Real Estate Market Continues To Defy The Odds
Mississauga September 2020 - The local real estate market continues to defy the odds and there are good reasons for it. Unit sales are up 22%, average price is up 27% and you can get a 5 year closed mortgage for less than 1.99%.The detached market has been exceptionally strong with the biggest price gains.
We live in a very desirable area in the GTA close to the lake and fabulous parks. It is easy to get into the city with GO transit and our schools and amenities offered here in south Mississauga are excellent. Covid-19 is affecting the way people want to live their lives now and here is what we are seeing:
- working at home is fuelling the trend towards detached homes with home offices, more sqft and larger yards
- young people locked out of the job market are moving back home which is creating a need for more space for some families
- family communal living- this trend continues again with the need for larger homes and more space for extended families to live together
- some who have lost their jobs will need to sell and rent- or move outside the GTA
- leisure homes are on the radar for many who are choosing to downsize to a condo and buy their cottage property
We need more inventory of detached properties as we move into the fall market as this segment is hot. If you are considering selling your home, contact us for a confidential evaluation of your property. It will be worth more now than you think.
Tax On Principle Residences In Canada
As we see it, the support provided by the government during Covid-19 will most definitely result in future tax increases. We are hearing that taxing principle residences will be strongly considered especially due to the hot real estate market and continuing price gains.
What could this look like? Consider the principal residence exemption has been abused by some and this will most likely get tightened up. In Canada, anyone including a builder- can purchase a property, designate it as a primary residence and sell it within 6 months. In the USA, to qualify for the exemption, you have to have lived in the home for 2 years out of the last 5 years leading up to the sale.
This change alone would put a stop to those looking for a fast reno/flip. Also in the USA, you can only designate one property as a principal residence and it can’t be the family cottage.
Whatever changes they make, for many Canadians their homes represent their largest asset and this will have an impact on property values. Stay tuned...
What Is A Pre-Emptive Offer?
Also known as a ‘bully’ offer, a pre-emptive offer is an offer registered on a property by a purchaser prior to the scheduled date and time the agent has placed on the listing. Pre-emptive offers typically tend to be well above the asking price on the listing and can include a hefty deposit and few or no conditions.
There are various reasons why buyers would want to ‘bully’ an offer on a property. Usually it is to get ahead of the competition by trying to get the seller to accept their offer before many others have a chance to bid.
Not all sellers will allow a bully offer as they believe they will get a better price and terms if they wait until the offer date.
If the listing does allow pre-emptive offers, all parties who have seen the property will be notified and have a chance to enter their best bid. If a pre-emptive offer is accepted, the scheduled offer date and time will be cancelled.
Sellers who do accept a preemptive offer will do so as they believe the price and terms are better than they will get by waiting.