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Comment by hourislate | Hacker News Reader

> My sister had multiple properties where her bid was beat out by someone offering $100k+ over ask

This really isn't bad, consider Toronto, Canada where house that's over 100 years old (tear downs) cost well over 1 million and increase in value by over $2000 a week, yeah you heard that right.

There are houses outside the city (almost anywhere in Southern Ontario)that were anywhere from 200k -400k pre pandemic that are now approaching 1-2 million. I have seen 50 year old 1200 sq/ft Condos in Toronto go from 300k pre pandemic to now 800k. I believe by the end of this year the average price of a house in Toronto Canada will be approaching 1.5 million plus and is probably on a trajectory of 3-5 million in the next 5-10 years. Before you say it can't keep going, it's been on this path for the last 15 years and is showing no sign of letting up.

Governments are bankrupt and can't raise interest rates meaningfully ever again.

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> This really isn't bad, consider Toronto, Canada where house that's over 100 years old (tear downs) cost well over 1 million and increase in value by over $2000 a week, yeah you heard that right.

How much of that is completely self-imposed with out of control immigration quotas and a lax policy on foreing money laundering? [0]

[0] https://en.wikipedia.org/wiki/Snow_washing

I'm not sure you understand what I meant by someone offering $100k+ over ask. In the current market properties generally get listed and then are under contract in under 72 hours, which means in the market you're describing in GTA this would be like someone listening a property for $1.5M, expecting it to increase in value by (let's be generous) $10k in the 72 hours it takes to sell, and the bidders offer $1.7-$1.8M for that property. It's hard to express how much importance is also being put on these offers having NO clauses and being all-cash. It's just a straight, NSA cash offer, which is something investors can do with hedge fund / foreign money laundering capital, that someone who actually has to live in the place cannot. Personally, I will NEVER waive an inspection because I don't want my family's health put at risk.

Houses are frequently getting sold $300-400k above asking in the GTA, listers are intentionally low balling the asking price to strike bidding wars.

Usually what happens is a seller sets the house up for viewings which are so packed you only get 15 minutes. Then they take offers 2-3 days from the initial listing date, where you will compete with at least 10 other offers (usually a lot more) in a blind bid. There is not room for conditions like a home inspection and home inspectors are actually going out of business because of it.

> There is not room for conditions like a home inspection and home inspectors are actually going out of business because of it.

Wow, that is truly ridiculous. I guess as the saying goes, "it can always be worse". I'm glad I'm not trying to buy in GTA, at least. This is not a tenable and sustainable situation though, at some point people will be fed up enough it'll cause the break down of societies.

I think he's implying that it means those houses are underpriced, to be snapped up at 100k over asking so easily.

By comparison, a GTA home with a sale price of 1.5M regularly sells for 1.5-1.6. But last year it would have only cost 1.2M (not joking, I've been watching that market for about 3 years). In Toronto, real estate is religion. It's how a significant fraction of the population accrues wealth. And owning a home is held as the highest ideal.

Also I agree, I would never waive an inspection.. but right now that's congruent with saying "I never want to buy a home".

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