Full steam ahead… Sales are up 20% this week over last and listings down. The market feels like someone is putting gasoline on a forest fire. Even in the crazy market, supply gets smaller and demand continues to increase meaning if you're a buyer; things are going to continue to get worse before they get better.
Only 8 of the 41 sales this week sold UNDER the asking price. Yep, you read that right, all the other sales were over asking price, and not just over asking, we saw some huge $ over listing price this week. 80% of the deals were bidding wars this week, which is just beyond crazy. It’s the highest % we have seen since I’ve tracked the number almost a year ago.
We keep thinking that the number of listings is so low that it can only go higher… Well, that’s not happening... at least for the moment. We are down almost another 6% of total listings available in the market this week. I did the math when I took out the new construction from these numbers (which a few of them sold this week, more on that later); and we are still down to 70 total listings in all of Sudbury.
Speaking of new construction - You may remember my take away from a few weeks ago, where I showed some frustration and shock at the MASSIVE increase in prices; yea those ones in Lively. One of the bungalows that was listed just one year ago at 529k and didn’t sell (it increased a few times from 530k, to 540k, then expired at 560k). Well, that one just hit the hot sheets sold firm this week, not just at the 630k new revised sale price but with whatever extras and finishes the buyers asked for it sold firm for 680k. Just a small 150k increase from the advertised price 12 months ago.
It seems more times every week, I get more and more calls from Real Estate Agents driving up from Southern Ontario, calling me in front of a property telling me they have clients in their car and want to get into our listing. With Toronto buyers, come Toronto money and pushing our prices higher and higher. If the trend of buyers switching their home town from the ‘6’ to our local ‘Sudbury 5’; the number of new buyers who are entering the market will continue to increase pushing prices to the extreme.
We are in a wild time in the market. There are 2 outcomes that I can foresee happening. Post-lockdown and the spring-market that is coming will boost listings, giving buyers a few more options and taking some wind from the sails of the crazy market. The second scenario being that Southern buyers continue to see Sudbury as our real estate is on a half-price sale; competing with the locals to find their next home, all the while increasing demand and pushing prices higher. Only time will tell if we choose the red pill or the blue.
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