Home > real-estate > Resale house prices gone parabolic in York Region – view from G0

Resale house prices gone parabolic in York Region – view from G0

I have seen 3 houses in the last 2 weeks and every single one went over asking… this is in Markham/Richmond Hill area.

# List Sale Price
1 699900 705000
2 699900 725000
3 745000 758000

Couple Observations:

1. Similar houses in the area sold for under 635k just 6 months ago… that is more than 10% increase in less than 6 months!… If the trend continues, resale house prices will be up more than 20% in 2011!

2. Every single house had more than 3 offers clean offers – no financing, no inspection!

3. And all of them sold in less than 3 days of listing…

3 houses is nowhere near a constituent sample even if they are all in a small city block BUT this is the trend… I have spoken to a few realtors over the last month and that is what they say…

In contrast New Home prices have increased close to the inflation rate… around 2-3%

If you are in real-estate… or not… what are you seeing on ground zero?

Hysteria…Mania? Herding like donkeys? Sensible investors? Speculators? Pent-up demand? No Supply?…

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  1. Gary
    March 4, 2011 at 3:42 PM

    This is an interesting anecdote because i have been watching that area as well in terms of asking prices. 2800 sq ft homes have been in that range were 550ish in the throws of the recession in early 2009. If your listed examples are similar we can definitely see a parabolic movement. I cannot say for sure but the sale sure smells of panic buying at the cusp of mortgage rules changing. If you look at inventory it still looks quite subdued. It’s not difficult to see how prices can still be bid up in the low volume environment. Price discovery should be occurring as volume picks up. I expect this dynamic to play out through the spring market.

    Thanks for the update though. If you have some more specifics about those three houses that would be helpful.

    Regards,
    Gary

    • March 5, 2011 at 12:08 PM

      precisely… some houses are about 40-50% higher in 2 years.

      and the above houses are not even 2800 sqft… all 3 houses were in the 2200 (699k) – 2700 (750k) sqft range. The 750k house has a ravine. i’ll email you the exact listings.

      I think so too… prices are bid up because of super low supply.. but i’m seeing more listings everyday, however that could just be seasonal or is it greed?

  2. James Norris
    January 21, 2013 at 5:49 PM

    The homes I have seen in the York Region seem to be great. Thanks for sharing this information.

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