$1M no longer yields a luxury abode in Toronto

The mythical $1-million barrier used to be a popular barometer of luxury, but in the red-hot Toronto housing market, this sum would only be enough to buy what has been described as “a tear-down home on a skinny lot.”

Built in 1912, the bungalow at 69 Muriel Ave. was listed by Royal LePage on January 23. The initial asking price of $679,900 prompted a fiery bidding war that led to the property getting sold on February 2 for a staggering $1,050,000.

The sale value was deemed exceptional by observers, as the house was situated in a miniscule 20 feet x 78 feet lot. The 10-day turnaround for the listing, which was slated to close mid-March, emphasized the level of competition in the GTA market.

Bidding wars have become an all-too-common feature of the GTA real estate sector, where the average sales price across all housing types has increased 22.3 per cent year-over-year in January (up to $770,745).

“People are getting a little too excited,” Realosophy Realty Inc. president John Pasalis said of the phenomenon, as quoted by The Globe and Mail.

And Jason Mercer of the Toronto Real Estate Board warned that this is just the beginning.

“Until you see a very sustained period of time where listings growth is outstripping sales growth, then we should continue to see strong price growth,” Mercer stated.

“If you’re a level of government that is looking at policies pointed at the housing market and affordability, as we move through 2017, those policy discussions and direction have to be pointed more so at the supply side of the market,” he added.

Related stories:
Toronto Real Estate Board foresees another year of double digit price increases
Proximity becoming a less important factor in buyers’ decisions - observers

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