Bidding wars for the past few years have been exclusive to Toronto and some hot neighbourhoods in the GTA. Well if you’ve been looking for a house lately in Ontario, you will know that it is crazy out there.
I personally have been inching further and further away with my clients because prices have been getting higher and higher.
The reasons why we have bidding wars are simple, and is a perfect storm for a sellers market.
1. Interest Rates: Interest rates have been low and steady
2. Demand: There has been a steady demand
3. Low Inventory: There is not enough inventory for the amount of buyers out there
4. Employment: Unemployment has been low.
5. Foreign investment: American & Chinese investment has been high.
After all these factors the main thing that I’m seeing is that a person sells their house on a street, another home owner realizes that for a little bit more they can move up to a bigger house, and now everybody is thinking this, and thus starts the demand.
Since the closer you get to Toronto the prices are astronomical, the prices in and around the GTA are growing due to all these factors and everybody is looking to move up in the world.