“You guys are killing it out there!” said this GTA Realtor during a phone chat recently. Not the first time I’ve heard it, frankly, or something similar to that effect. My response is typically, “Ya, crazy, isn’t it?”
But as the days go on, I think more and more of those words: killing it. Mr. Agent, of course, was speaking slang and referring to the fact that real estate is booming in our neck of the woods and that Realtors must be super busy. But I’m taking things more literally than my millennial friend: that we real estate types are in fact doing some “killing” out here — the killing of property buying opportunities, that is.
Am I being melodramatic? Possibly. But think about it.
As prices continue to rise, do you think it’s going to get easier for buyers, namely first-timers and downsizers/seniors, to secure a property? No. Do you think people selling in the GTA are going to like the fact that prices in this region have exceeded their buying expectations and budgets? Heck no. Anyone “investing” in real estate will not appreciate (or tolerate) a market that has seen rocket fuel jumps in the last 4-6 months. Period.
Not so melodramatic now, am I?
A recent client sold her condo this past October and bought a similar one nearby in late December for over 12% more than market value at the time of her sale. Curious about the math? Ok. $45,000 more! Just because she waited and hoped her long closing date would give her time to think about her options. Let’s just say she had to make a quick decision (one that she had not been contemplating, by the way) or face the reality of possible homelessness. She is almost 75 and single. Chew on that one.
I do have a problem with this real estate boom and when I speak my mind, other real estate folks say the some thing: “Why are you complaining? You’re making money!” Buddy, I’m not complaining; I’m doing what you should be doing and questioning what this messy, booming market could mean for agents and their clients in 6 months, a year, etc. Let me put it to you this way: I’m not a fan of heights and don’t like the idea of “falling.”
Let’s be realistic: if prices keep rising, it’s only going to get more challenging for buyers to justify their purchases north of the GTA. As demand increases and inventory remains low, competition will only drive prices beyond head shaking limits, not to mention tick off an entire buying demographic that won’t be able to compete. There may not be blood in the literal sense but blood will be boiling inside many veins.
Killing it. Yup. It sure looks that way.
I live in Wasaga Beach, once recognized as an affordable place to move north of Toronto or its suburbs. Barrie used to have that title. So did Collingwood. And now, soon enough, Wasaga Beach will join the rank of “rural” destinations (geez, the media has to stop using that term incorrectly!) where $400,000 buys you an okay condo and $500,000 gets you a small detached in the east end of town. You should be cursing right about now because just six months ago, you could have bought these same properties for about 20% less.
I’m uncomfortable with this market. It’s unsettling. You get it and I get it. What’s the plan for 2021? Keep an open mind, watch the market, and maybe start a dialogue with a Realtor or three. Also, question what you read or hear in the media. Some of it is eye-raising hype or just exaggerated reporting. The idea that there is a “mass exodus” out of the city is just nonsense. Come on! Above average? Sure, I’ll take that; but given the state of our lives these days, it’s very easy to fall prey to verbal diarrhea.
For now, stick to your plans and don’t get sidetracked. There is always a solution because the real estate market is driven by humans, not a strange dark force with a mind of its own. Make the right decisions and all will work out.
Cover Photo by Ása Steinarsdóttir on Unsplash