Toronto Real estate bidding wars make a comeback

[terri]

here`s an article from the toronto star.

http://www.yourhome.ca/homes/article/643200

I don`t know if other Toronto area investors are feeling this, but the market is crazy. I`m seeing line ups for open houses. At least back in the peak in 2007 there was inventory. Right now there`s not a lot of inventory so anything good has a ton of interest.

 

[Bankfighter]

On the news today they indicated that a home listed at $549,000 sold for $725,000 in a bidding war. With a 10% downpayment this house carries for $3,345 per month plus taxes based on a 10 year term at 5.2%. In the early 1990`s This payment would have carried a $350,000 mortgage based on rates at 11.5% for 5 year term.

 

[invst4profit]

I believe what we may be seeing is a dead cat bounce in TO real estate. These buyers will soon realise they were caught up in the frenzy and overpaid for a property that in a few years they may be forced to walk away from.

Stupid is as stupid does. (Gump is on TV tonight)

 

[bigbabba]

QUOTE (invst4profit @ May 31 2009, 07:44 PM) I believe what we may be seeing is a dead cat bounce in TO real estate. These buyers will soon realise they were caught up in the frenzy and overpaid for a property that in a few years they may be forced to walk away from.

Stupid is as stupid does. (Gump is on TV tonight)


agreed, there is still a lot of issues to sort out in the economy..these buyers have had their minds scattered by low rates..unfortunately they will pay for it down the road.

 

[Nir]

Most recent news update I heard is that yes, surprisingly there are a few bidding wars in Toronto now but following this bidding war period, prices are, again, expected to drop by end of this year. Just speculation of course but my guess is that this is correct, if not this year, drop by next year.