Some interesting figures caught my eye in Vaniers Institute report released today: Just over one-half of Canadian homeowners (55%) have a mortgage (Or conversely, 45% of homeowners are completely mortgage free) The average mortgage debt of households with mortgages was about $172,000 in late 2010.
This ties into a common complaint from my condo buyers recently: a lot of the inventory is overpriced. Granted, from a buyer’s perspective almost everything inherently costs too much.
However, many units listed are asking considerably more than what a comparable unit in the same building sold for recently. One reason for this could be due to “the fact that some buyers are rushing to get in due to new mortgage rules,” as one listing agent told me, so they’re trying to take advantage of this for their sellers.
Another reason is they simply can’t afford to sell it for any less because of how much they have left owing on it. That’s why some units are listed months (or even years) on end while other units sell so quickly.
Bob Truman had a good post & comments recently about how “most of the inventory is poor quality and as I mentioned before, it’s picked over. It either sells quickly, or it never sells…Good quality, attractive listings are gone in the blink of an eye. Most of the remaining inventory has been collecting dust and is crappy or overpriced.“
Below are some condos that have sold this month along with what the owner paid for it previously on MLS. This isn’t a complete list, but you can see that if someone bought during the peak with low down, they’d have to pay a large sum out of pocket to be able to sell. With many unable to do so, the overpriced listings simply sit on the market as sellers wait for prices to pick up.
Downtown studio suite sold for: $80,000
Previously sold: $105,000 in 2009
Previously sold: $117,000 in 2007
Redcarpet unit sold for $127,000
For sale on and off since 2008 when it was listed for $199,900
Glenbrook condo sold for $132,000
Previously sold for $210,000 in 2007
-37%
Connaught unit sold for $148,500
Previously sold in 2007 for $212,500
-30%
Another Redcarpet unit sold for $151,000
Previously sold in 2006 for $209,900
-28%
Haysboro unit sold for $154,000
Previously sold for $172,000 in 2009
-10%
Bankview unit sold for $162,000
Previously sold for $201,000 in 2006
-19%
Oakridge unit sold for $180,000
Was listed on and off since 2008 for $254,900
Previously sold for $208,000 in 2006
Lincoln Park suite sold for $186,000
Previously sold in 2008 for $242,000
-23%
Evergreen unit sold for $190,000
Previously sold for $239,500 in 2006
-21%
Bowness townhome sold for $200,000
Previously sold for $256,000 in 2009
-22%
Beddington townhome sold for $214,000
Previously sold for $289,000 in 2007
-26%
Sunnyside condo sold for $247,000
Previously sold for $292,000 in 2008
-15%
Country Hills condo sold for $248,000
Previously sold for $290,000 in 2007
-14%
Bridlewood townhome sold for $257,500
Previously sold for $295,000 in 2008
Sold for $314,900 in 2006
Connaught unit sold for $261,000
Previously sold for $347,750 in 2007
-25%
Royal Oak townhome sold for $270,000
Was listed on April 2010 for $324,900
Previously sold for $317,500 in 2006
Chaparral townhome sold for $272,000
Previously sold for $356,500 in 2008
-24%
Discovery Ridge unit sold for $300,000
Previously sold for $392,000 in 2007
-23%
Downtown unit sold for $363,000
Previously sold for $415,500 in 2006
-13%
This Eau Claire unit sold for $372,000
In 2008, they were asking $697,500 for it
Another Eau Claire unit sold for $492,500
Previously sold for $675,00 in 2008
-27%
Garrison Woods townhome sold for $605,000
Previously sold for $730,000 in 2008
-17%
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