The east-end home listed at $1 earlier this month ended up selling for $290,000.
This was at the upper end of what owners were hoping to get for the two-storey unit at 44 Park Row North, said Grahame Wealleans, the agent for the sellers.
“It was a good price for that house, for sure,” he said. “I would say the market price was between, anything from 270 and 290 would be where it should be.”
Wealleans said he received eight offers on the house, and only one was below $200,000. All were sensible.
“I thought there was going to be at least one silly offer,” he said.
The sellers were happy with the deal, getting around the price they thought they might get for their home, he said. The owners bought the house for $167,000 three years ago and rented it out, doing some fix-ups along the way.
The new owners are undecided if they’re going to fix it up and rent it, or fix it and flip it in a year or so, he said. He described the house as a “blank canvas,” with little done in way of improvements.
‘There’s no inventory. Everyone’s scrambling over what’s available’
Wealleans said he got flack from a few newer agents in the business who called it mockery, listing a house for $1.
“It’s just proving a point,” he said. “We just went to an extreme.”
“I thought there was going to be at least one silly offer.”– Grahame Wealleans, real estate agent
It’s easy to spot houses listed at a prices way lower than what they’re worth, he said. It’s just the nature of this hot housing market we’re in. Some buyers are making bids at $50,000 over the asking price and they’re still not getting the home because they made too low of an offer.
“There’s no inventory. Everyone’s scrambling over what’s available,” he said. “There are a lot more offers coming in, there are a lot more viewings.”
Wealleans said he had 132 showings on a recent listing. Typically, he said he might get 20 to 50 showings on a comparable house.
For those who are still renting and looking to get into the housing market, Wealleans said they should “get on the ladder as quick as possible.”
From March 2015 to March 2016, houses in Hamilton have increased in price by 14.1 per cent on average, he said. That’s more than one per cent every month.
The homes in Hamilton below $500,000 are the ones “growing by leaps and bounds,” he said. The houses above $500,000 are still on the rise, but just not as fast.
Obviously, he said, the housing prices can’t continue to grow at this rate. The market will slow down eventually, but the bubble is not likely going to burst, he said.