#GTAHomeHunt is a weekly series from Star that goes into the details of real estate ads in the Toronto and Greater Toronto Area. Do you have a tip? Email us at firstname.lastname@example.org
Price quoted: $ 649,000
Quarter: Corso Italia-Davenport
X-factor: This two-bedroom, two-bathroom semi-detached house in Midtown Toronto has an exterior brick finish as well as a large deck and a fenced backyard. It has a fireplace, original hardwood floors and a den with a window that could serve as a home office. There are east and west facing windows with views of sunrise and sunset.
In addition, the house contains a finished basement – and another complete bathroom.
The home on 96 Via Italia is just a short walk from St. Clair Avenue West, as well as various transit options, shops, restaurants, cafes and bars.
It was listed on October 12 for $ 649,000 – but was sold a week later for hundreds of thousands of dollars. We picked up our expert, real estate agent Othneil Litchmore, to get a better understanding of why.
Why was it priced this way?
This house was built a week before the sellers would accept offers on the property, making it “very clear” that they expected more offers and would try to get the highest possible price, Litchmore said.
“Nothing has been sold in the neighborhood for $ 650,000, at least since July 1,” Litchmore said. “The cheapest thing that has been sold for in that neighborhood … is $ 690,000. (It’s) the absolute cheapest. It was a two bedroom, a bathroom (half semi-detached).”
The listed price was well below the neighborhood average, which was $ 1,066,000, Litchmore said. He noted, however, that this figure included all properties – not just those of the same size – and there were a few discrepancies. The most expensive house in the area was sold for $ 1.9 million, he said. But still, out of 170 properties sold in the area since July, all but 20 have been sold for more than $ 800,000.
Based on these numbers, Litchmore predicted that this house would sell in the $ 800,000s.
Selling for as much as $ 1,000,000 would be unlikely, he said, because the house “is not very large”, has not had many upgrades and probably has not been renovated in decades. In addition, there is no grass around the house.
“The front lawn is concrete (and) the backyard is concrete,” Litchmore said. “They plant things, but there is no spot of grass. There is not much attraction. It has some shortcomings.”
The house was sold for $ 919,000.
Sometimes real estate agents can list a home at a low price because they can’t predict how much it will actually sell for, Litchmore said, but they can still “comfortably promise the seller some kind of competition that will drive the price down.”
“I believe at this point in the market because there is a limited supply and there are … many buyers, so we’re switching to an auction style system. We might as well list too much for $ 1.”
Tips for finding places like this?
“Real estate in Toronto has become a business, more than anything else,” Litchmore said. “It’s no longer about home ownership, affordable housing or just … seeing a cute place online, collecting your money, getting in and just finding a cute place to live. We have completely abandoned that idea. ”
In 2001, this house was sold for $ 161,000, Litchmore said.
But for first-time buyers today, owning a home like this has become an option mostly for those whose parents can help them pay it off, or those who have a salary of up to $ 150,000, he said.
Finding a cute house like this at a more affordable price can be an option in small towns like Belleville and Cornwall, said Litchmore, where some may be available for $ 300,000.
“What a lot of people want to say is that this is why these microchips were created,” Litchmore said. “So while before, someone … 20 years ago or 25 years ago, tried to get into something like the first property … now, their option is a micro-apartment.”
Litchmore notes that people looking to buy in Toronto may be able to buy a condominium of less than 500 square feet in preconstruction for about $ 300,000.
JOIN THE CONVERSATIONS