Pattie's Blog: Home prices and bidding wars in 2014
A house "sold" sign in Oakville, Ont., Monday, July 23, 2012. (Richard Buchan / THE CANADIAN PRESS)
Published Wednesday, March 5, 2014 1:42PM EST
Last Updated Wednesday, March 5, 2014 2:32PM EST
Look out home buyers - the competition is heating up this year. More Canadians are willing to fight it out to buy their perfect home. The BMO Home Buyers report says one in three Canadians, or 34%, would enter a bidding war when it’s time to buy a home.
This is a drastic 21% jump from last year. Of course, bidding wars are even more likely in housing hot spots like Toronto – 44% and Vancouver – 41%.
Current homeowners say they visited an average of 9.5 homes before buying.
Half of Canadians were successful on their first bid, but that number drops to 42% among those who bought in the past five years… and once again, in major real estate cities, this figure drops even more: Vancouver 32% and Toronto 24%.
Not only will bidding wars increase the price of houses – but prices themsevles are also on the rise this year across Canada.
The average transaction price is up 10% from one year ago with the average home sale price just over $400,000.
So you need to decide if you are prepared to enter into a bidding war because you could easily have to pay a price higher than the one advertised.
Know your limit and stick to it and don’t let emotions dictate your buying decision. I know easier said than done.