If you are planning to sell your home in New Tecumseth, you’ll have no shortage of buyers as the local real estate market remains hot and the great migration from the larger urban centres continues to put pressure on the local housing situation.
Interested buyers combined with low inventory has pushed prices to record levels in the region and there is no sign that it is slowing down.
While other nearby regions have hit the high point when it comes to housing prices, New Tecumseth is still seeing a rise in prices with multiple offers when a home is placed on the market.
Towns like nearby Orangeville have already reached a point where housing prices are comparable to other centres closer to the GTA and prices have reached a plateau where it is just not feasible for it to go any higher.
The low inventory New Tecumseth means it is a seller’s market and local properties are still receiving multiple offers and bidding wars when the ‘for sale’ sign is placed on the front lawn.
“We had a big surge in prices in the spring and they still are,” explained local REMAX real estate agent Kyle Butcher. “We’re still seeing multiple offers on many of the listings with many going for over the asking price – that’s not true of 100 per cent of the listings, but it is the majority.”
There are several reasons why the real estate market is so hot north of the GTA. Many fi rst-time buyers simply cannot afford prices in the GTA market and have started looking north to less populated areas in hope of finding a home.
The pandemic also had a major infl uence as many people started working from home and decided to move to a more rural area and avoid the commute.
“The big migration out of the GTA – and that has been going on since the start of Local real estate market shows no sign of slowing down COVID – started with a lot of buyers who were selling for a ridiculous price down there and coming up this way and getting more bang for their buck,” Mr. Butcher said. “It’s rare now, to get local buyers for local listings. If we get a listing and 20 showings, I would have to say 90 per cent of those are out of town agents bringing out of town buyers.”
Things have slowed slightly, but there are still multiple offers when a property is put on the market. While the market normally slows down during the winter, the spring is expected to see new increases in prices.
“The bidding wars aren’t as drastic as they were,” Mr. Butcher said. “Previously you could be getting anywhere from six to 12 offers on a house, where now you are only seeing three or four, but the majority are still selling for over-asking. If nothing changes in the market dynamics, if supply and demand remains the way it is, then prices are still going to up. If the inventory increases it should level off.”
The surge in housing prices over the past two years have put a lot of pressure on new buyers looking to get into the market with their fi rst home.
New federal regulations called the “stress test” that were put into place in June determine if new buyers can really afford the home they want to bid on. On top of that, many buyers face a challenge when they put on offer on a home, only to find the lender will only provide the funds for the appraised value of the property – not the offered price. This leaves buyers scrambling to come up with the additional funds in cash to make the deal.
This has resulted in a lot of deals falling apart at the last minute.
There are a lot of factors that will continue to determine the real estate market over the next couple of years but, for now, the local market and surrounding region is still strong as the more and more people continue to leave the GTA in search of affordable property.
Brian Lockhart, Local Journalism Initiative Reporter, New Tecumseth Times