# Unable to sell house in southern Ontario



## james4beach (Nov 15, 2012)

I was catching up with one of my friends who lives in the Golden Horseshoe region, southern Ontario. They originally intended to sell their house and move this summer. I was shocked to hear that they've been unable to sell the house as of today. And yes, they are currently trying. *No offers*.

I've been to their house. It's a very new construction, in a great part of town. Location is awesome, and interior is great too.

Some comments from him: "It's just weird to see such a change in a relatively short period of time. Previously, houses were selling after few days on the market. Now properties are sitting for weeks/months".


----------



## OnlyMyOpinion (Sep 1, 2013)

James, the following questions occur to me:
Is this an above-average expensive house? Are they MLS-listed? Did their listing garner showings? If their showings resulted in no offers they are asking too much.
As I noted in another thread, I just sold a modest 2 bedr place in east GTA. A good starter or down-size home. Showings were slow for days 1 and 2 but then got rolling. We got an offer from a day 2, third showing, 4 days after listing. It was 3% below list but clean, with a good deposit and we accepted. I was glad as well that it was a young person just starting out, not another landlord looking to split and rent top and bottom and fill the street (or lawn like next door) with more cars.


----------



## OhGreatGuru (May 24, 2009)

If they are getting no offers, either the price is too high, or the "awesome location" is unattractive to most potential buyers.


----------



## sags (May 15, 2010)

The media has been reporting that homes peaked in April and have lost 20-30% since. That isn't the kind of news that attracts buyers.


----------



## OnlyMyOpinion (Sep 1, 2013)

OhGreatGuru said:


> If they are getting no offers, either the price is too high, or the "awesome location" is unattractive to most potential buyers.


^+1 Agree.
We had 9 showings book in the first 3 days. In my experience that's a pretty typical number (6-12 in the first week). If you aren't getting showings then you are either listed too high and/or your place is not appealing for some reason. There are buyers out there but they are more selective and not willing to pay the moon. You need to compete with the supply in your area and price range. They need to choose your place over the competition.


----------



## james4beach (Nov 15, 2012)

In my friend's case, they've had showings but no offers. Maybe as you say the price is simply listed too high.


----------



## ian (Jun 18, 2016)

We looked at a home about four years ago in Calgary. It was still for sale three months ago. The price remained constant at $697 throughout that period. It was and perhaps still is overpriced. The only conclusion is that the seller is not really serious about selling.

We watched another one for two years. Priced incorrectly. It went from $629 to $529 over a period of two years. Don't know whether it sold, rented, or is off the market.

Pricing incorrectly in a slow/poor market means that the vendor will most likely follow the prices downward all the while carry the normal charges associated with a home.

We shopped for four years. In no hurry. So we saw a fair amount of sellers who overpriced for a slow market.


----------



## nobleea (Oct 11, 2013)

It sounds like the thread should use the term 'house' rather than 'houses', as you only bring forth an anecdote on one house.


----------



## Just a Guy (Mar 27, 2012)

I know many houses that don't get offers, most were usually because the seller thinks the house is worth a lot more than it actually is. Many people overvalue their own homes. They read the headlines, have owner's bias, get their property tax assessments (like the city cares if they overprice your home), etc. 

The only time you ever really know the value of your home is when someone else cuts you a cheque.


----------



## Zipper (Nov 18, 2015)

The market is still strong in London.

#1 son listed for $369 about 3 weeks ago and got 2 firm offers in less than a week.

One offer for $395 with conditions and the other for $385 and no conditions.

They took the no conditions one and close late next month.


----------



## ian (Jun 18, 2016)

We have bought and sold several homes. It comes down to price. IF a home does not sell well it is usually attributable to price. Any location, condition issues can usually be overcome by price adjustment. 

I think that one of the biggest mistakes that a seller can make is to price above the market. You loose time, and you loose potential buyers. Price right, to the market, and you should sell within the average days on market in your area.


----------



## sags (May 15, 2010)

All the evidence is the housing market has turned negative and prices continue to decline. Only a fool would rush in to buy now.


----------



## new dog (Jun 21, 2016)

It is also summer and it is coming off a very hot period. Last summer in Vancouver the same thing happened in the summer especially after the 15 percent foreign buyer tax. 

One would need to wait until the fall, winter and spring of 2018 to see if a significant slow down is really going on.


----------



## james4beach (Nov 15, 2012)

nobleea said:


> It sounds like the thread should use the term 'house' rather than 'houses', as you only bring forth an anecdote on one house.


You're right, thanks. I updated the thread title.


----------



## awesomeame (Nov 15, 2011)

Article out today on this topic..

https://ca.investing.com/news/stock...k-havoc-in-canada's-top-housing-market-503742

Matt


----------



## james4beach (Nov 15, 2012)

Why are banks reducing the amount of lending? Ah, sounds like appraisers are lowering their valuations. We'll just have to see if this is a passing thing.


----------



## Just a Guy (Mar 27, 2012)

Because, if there is a correction due to higher interest rates, guess who's got the job of cleaning up the mess? Banks don't have much real exposure, thanks to cmhc, but they really aren't in the business of foreclosures and resale. If people fail to make their payments, that's what they'll have to do, then they'll have to file with the government to get their money back and, if it's really as bad as I think, cmhc doesn't have the money to cover all the exposure, so there will be a lot of bad press as the taxpayer bails out the market. Funny how people will throw a fit about this when they demanded the banks lend out the money in the first place and set up a program to guarantee the banks weren't exposed but underfunded it...

Banks aren't stupid, they have people doing projections all the time and look for ways to mitigate risk. If they cut down the lending and exposure early, they hope to avoid or at least delay the crisis later. If banks were really greedy, they'd lend out as much as possible and own everything...the problem with owning everything though is someone still has to pay for it, and the banks don't want to be those people.


----------



## Pluto (Sep 12, 2013)

^^
New B20 lending rules comming up.
http://www.mortgagebrokernews.ca/people/a-b20-breakdown-171135.aspx


----------



## sags (May 15, 2010)

Bank exposure has skyrocketed due to changes to CMHC. People borrowed the 20% down payment from parents and alt lenders and now the banks are holding the mortgages.

With home prices falling 20% already, many of these home owners are already underwater if they had to sell.

Garth Turner has been writing on all the changes that have occurred and will occur.


----------



## Just a Guy (Mar 27, 2012)

Even if they dropped 20%, the banks aren't exposed yet...the third party lenders are on the hook. Banks aren't stupid.


----------



## redsgomarching (Mar 6, 2016)

Nvm read the first post wrong! 

I would say there is a general slow down overall and lack of demand. A nice 4 bedroom 3 bathroom semi detached outside of where my parents home is has been on sale for over a month now (listed at around 650k).


----------



## gibor365 (Apr 1, 2011)

james4beach said:


> I was catching up with one of my friends who lives in the Golden Horseshoe region, southern Ontario. They originally intended to sell their house and move this summer. I was shocked to hear that they've been unable to sell the house as of today. And yes, they are currently trying. *No offers*.
> 
> I've been to their house. It's a very new construction, in a great part of town. Location is awesome, and interior is great too.
> 
> Some comments from him: "It's just weird to see such a change in a relatively short period of time. Previously, houses were selling after few days on the market. Now properties are sitting for weeks/months".


This is strange! My neighbours just sold house in West Mississauga. There were a lot of offers. They sold more than asking price in less than a month posting.


----------



## Koogie (Dec 15, 2014)

Prices are still rising in Burlington/Hamilton area but I notice they are sitting a touch longer than before. Gone are the times when they sold on the day of listing. Takes a week or two now.


----------

