Some people are beginning to think this market is only benefiting the seller, not the buyer. NOT TRUE! We’ve identified the best possible seller/buyer combination in the current market. And surprise, it just might be you!
Toronto West (Etobicoke): For illustration purposes, our reference points are the neighbourhoods in Toronto West, including Etobicoke, Mimico, Sunnylea, New Toronto, and the areas around Islington (south of Bloor), and around Scarlett Road.
Bungalows Galore! In this area, there are bungalows everywhere you turn. In the US, these would be called a ranch. They are a one-storey home, typically with a kitchen, living room, dining room, bathroom, two or three bedrooms, and a finished basement. There may or may not be a garage. They are usually 800-1800 square feet in the interior.
How Much Do These Bungalows Sell For? In this current market, a bungalow that needs to be updated (assume no new renovations have been done but the bungalow was updated partially in the 80s or 90s) sells around $650,000 – $900,000. The top end of the range of $900,000 is a relatively new threshold. We are not even sure if some of these that sell for that high would even appraise with a mortgage lender or bank. But, it is happening. There was one this week that just sold for $960,000 in New Toronto, south of Lakeshore Blvd., west of Royal York Road. (In this case, the builder who bought it is most likely going to subdivide the 50-foot lot into two semi-detached homes, build them and resell.)
Are You Sitting on a Gold Mine? Right now, these bungalows are getting the biggest appreciation in the market. Think about the market as a funnel. Larger number of buyers and the lower priced houses are at the biggest end of the funnel. There’s just more of both of them. That funnel starts tightening as those buyers begin buying up the lower priced houses, causing houses prices to raise and become escalated. Unfortunately, some buyers who waited too long, have found that there are not enough homes at their point in the funnel. This then begins to squeeze out buyers who are at the bottom end of the funnel looking for houses below $800,000. But, if you’ve got one of these bungalows to sell, you are golden. Why?
I’ve got a Bungalow Like That, Now What? This is your chance to leap and catch the prize. You can most likely sell your bungalow at a great high price right now, and either:
- Use that money to supplement your retirement and move into something more affordable in a different location.
- Use all that profit you’ve gained and buy yourself a home for $1.4M and up.
Why $1.4M and up? Because in the funnel, there are more and more houses in this price range as housing values continue to rise, but there are not as many buyers in this price point. That means there is more inventory than buyers in the market in Toronto West at $1.4M and up, by our observations. So if you are one of the lucky ones who IS in a bungalow in one of the areas above and wants to sell, you can probably do that right now. And then take your pick of the homes in the $1.4M and up range – there are more and more of them and many of them are NOT selling in 4 or 7 or 10 days.
It’s a great time to buy a home that is listed for $1.4M and up! And you’d be surprised at what you qualify for. Don’t have a mortgage broker? Not qualified? Contact us; we can connect you with some great mortgage brokers who can help you.
Would you like to hear more about the market and your house and what you can get for it? We’d be happy to speak with you about your home and help you to get your maximum price in this market. Just contact Sandy at 416-697-093 firstname.lastname@example.org or Rayissa at 416-400-0805 email@example.com.
These opinions and conclusions are our own and are based on over 40 years of real estate and marketing experience. Actually probably over 50 years experience. We’d be happy to discuss these trends with you and make this market relevant to you and your needs as a buyer or seller.