Move Up? Really? Yes!!

THE VIEW FROM OAK PARK

The Official Krisztina Blogsite

I recently received an email comment from a Mike B that I would like to address. It was regarding my Blog Posting called “Moving Up” which I posted on this site on July 22, 2009 (about 2 months ago). Here’s what Mike said and asked:

“How can you be so certain that prices will continue to climb by 10%- the National Post suggests a bubble is still growing in Canada. house prices will hit 1997 lows- I am not making this up..you seem to have the throttle on the OakPark market- you are looking for dual representation by getting listings and perhaps creating the frenzy on home sales -ie. holding offers , forcing multiple offers etc. I question the validity of the current pricing by greedy resellers and builders alike.

Moving up will be dangerous for those assuming large mortgages..rates have to move up- we will see speculators selling now- because they see the froth.

I am waiting thanks.

Mike B”

Let me start by saying that the 10% window increase I was discussing was in the timeframe of March-September 2009, and I was recommending ‘moving up’ in the window of late July/August to take best advantage of the price gap and the low interest rates. And let me underline that I was by no means referring to the Canadian Housing Market as a whole, but specifically my area of expertise – Oakville and West Mississauga. Today as I look at this area, the 10% increase has almost fulfilled itself. For example, a 3-4 Bedroom, 1 Car Garage in the West Oaks Mattamy home style was selling for $420-430,000 in June. Recently some of these homes have reached the $460-470,000 mark. Some of the Southeast Oakville homes that have been sitting on the market for more than 100 days have now been moving, and seeing close to asking – which would be considered a 15% recovery in pricing. I was warning my Clients in March that the “Move Up Gap” was the closest and in the next 6 months would be closing. (Although some of my Clients took advantage – they bought in the Joshua Creek area for $660,000 and that same model of home in the area is now asking $780,000!!)

Addressing Oak Park specifically (thanks for bring it up Mike!), this year so far I have sold 18 homes in the community. Out of the 18, I only double-ended 2 deals. Those homes sold for just under 100% – definitely not over asking! (I guess I take a little offense at the accusation that I am creating the frenzy and over-inflating the market…Ohhhhhh, if I only had such power!!)

I have not ever held back offers on any of my listings in Oak Park or elsewhere. That doesn’t mean I did not have multiple offers, but it’s the market that’s creating them. For example I got 5 offers on a home I listed in Mississauga on the second day with no holdbacks. I sold that home for $17,000 over asking. Of note on that property – during the Agent Open House, I got numerous Agent comments that the pricing was too aggressive!!

And that brings me back to the basics of Preparing a Home for Listing and Marketing/Advertising Reach. I believe these are my strengths. You complete the necessary home renovations (it might be hardwood floors, lighting, paint, new hardware or something else), you stage it (often using a professional stager), you do your research, you price it well, you market the property even before it hits the market, you understand the market and the buyer, and you have a strong internet and print advertising reach. It’s the behind the scenes work that pays off with interest in your listings.

And by the way, look out! It is already a seller’s market. As Mike B pointed out, mortgage rates have to go up, so take advantage, move up ASAP and lock in that rate. Then if they go up, it won’t be relevant!!

And PS Mike B – if I haven’t answered your concerns, I’d be happy to talk with you further – just call my cell!! And thanks for reading!!

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