The Toronto real estate market is moving at such a rapid space that even with a million dollars in your pocket in Toronto’s Greektown, one can only get a detached bungalow. This is just an indication of where Toronto home prices are heading. The Toronto Greektown, which is famously known for its blue-collar roots, is a place where a million dollars only gets a tear-down home and last week, there was a bidding war for a listed detached bungalow.
One might think a million dollar as a hug sum of money but in Toronto, this is far from it. Owners on a home at 69 Muriel Avenue recently sold their home in February. The property which was listed in January and begun accepting offers early February and was sold for a whopping $1,050,000. Taking a look bad, the owners had bought the property for $10,000 in 1966 but in recent times, with price inflation in mind, the property would cost roughly $73,000.
In January 2016, the house was costing about $645,000 with a value of $443,000 in 2012. Bidding wars have become a common trend in Toronto with bidding price exceeding well about the listing price which makes home prices very expensive in the city. In the Greater Toronto Area, the average home price stands at $770,745 in January which is a 22.3% increase from the previous year at the same period. However, the average home prices by the end of January were at $1.34 million in Toronto and $999,102 in other smaller regions.
But in Toronto, bidding wars are just common practices among buyers according to John Pasalis, president of brokerage Realosophy Realty Inc.
He went on to explain that with the short supply of new homes, buyers are desperate to buy homes and will go all out in Toronto to get the home they want. Jason Mercer, director of market analysis also added home prices will only decline if the supply end of the market is able to match up with the demand levels. But high home prices will continue to reign until a balance in the market occurs.
Any new policy made by the government should be geared towards addressing the supply of new homes, added Mercer.