Thoughts on the Canadian Housing Bubble

On April 7th, MacLean’s ran an extensive article written by Joe Castaldo entitled, “How Canada completely lost its mind over real estate”. https://goo.gl/uzBvbf

Right now, Toronto’s list prices are largely meaningless because properties are routinely selling for well over asking price. In his article, Castaldo illustrates with details of the recent sale of a semi-detached home listed in the city’s west end for $699,000.

“To step inside (the home) was to travel back in time to the 1970s. The house was festooned with brown rugs, brown linoleum floor tiles and, in the basement, wall-to-wall wood paneling. After just five days on the market, it sold for $1.03 million in March—$331,000 more than the list price.”

There is an excessive amount of real estate speculation occurring in the city right now – not by foreigners, but by Torontonians! Many feel the party will not end – that housing prices will continue to rise, even though many experts are calling for caution in what many deem to be a housing bubble.

Does Toronto’s escalating prices have any bearing on real estate in Victoria BC? Well, some, but not in the same way.  In British Columbia, real estate and related fields such as construction and finance make up an astounding 40 per cent of GDP! It’s a vital industry, yet in Victoria, there is a massive shortage of supply for the growing demand!

If you're in a position to sell your home, let's talk best strategy to maximize your profits.

Making an Offer in a Competitive Market

Imagine finding a home you love, making an offer, and then finding out there are other competing offers on the table. Ouch! If you’re looking for a property in a competitive market, it is likely that there will be multiple offers. Even just one can create the risk that you’ll lose the home. So how do you make sure your offer is enticing enough to win over the seller?

Here are some ideas:

• Don’t make a low-ball offer. If you do, it might be dismissed and you probably won’t get another chance to bid — especially if the other competing offers are near the listing price.

• Have a pre-arranged mortgage and include that with your offer. This reassures the seller there won’t be any money issues. (Most lenders will provide you with a pre-arranged mortgage certificate for this purpose).

• Go in with a price high enough that the seller will be interested, but not so high as to be leaving money on the table. This is tricky and requires a savvy knowledge of the current market.

• Have a REALTOR® present the offer on your behalf. A REALTOR® will know how to do so professionally, and in a manner that gives you the best chance of getting the home.

In a competitive situation, working with a REALTOR® who is an expert on the local market — and a skilled negotiator — is crucial.

Looking for a REALTOR® like that? Call today.

Meet Frank Rudge

Frank Rudge is an energetic, enthusiastic individual. He enjoys people and people find him very personable and professional.

He was born in Grande Prairie, AB and moved to Edmonton, AB to attend the University of Alberta. He started selling real estate in Edmonton in 1976.

He and Betty, his wife of 43 years, decided to move to Victoria in 2001 and Frank chose to work with Re/Max where he dedicated himself to excellence. In his fourty-one year tenure, he has won the Silver and Gold Award with VREB (Victoria Real Estate Board) and the Platinum Award with Re/Max.

Frank has always liked to stay fit, so when he arrived in Victoria, he decided to take up rowing. He rowed his way to win numerous medals in regattas, and a Gold medal at the World Games in Edmonton. His athleticism and love of sports led him into coaching high school students and adults in the corporate challenge program which he continues to do today.

He and his wife have four grandchildren whom they are proud of and see often. Their son and daughter in law reside in Edmonton and their daughter and son in law reside in North Vancouver. All are very successful in their chosen fields.

When you meet Frank Rudge, expect to meet an energetic, vibrant man who loves family, rowing, his community, and who cares deeply about helping you find your perfect home.