An old Scarborough house, valued at $ 3 million, pretty much sums up this market: it’s not for people who want to live here
Real estate prices in Toronto went through the ceiling again in November as investors picked up properties and continue to inflate the market.
The average selling price reached $ 1,163,323, according to the Toronto Regional Real Estate Board (TRREB), an increase of 21.2 percent over this time last year.
TRREB also notes that supply fell, with new listings falling 13.2 percent year-on-year. Detached houses in the 416 averaged $ 1,807,983. Detached houses were up to $ 1,431,988. The average for Toronto townhouses is almost breaking the seven-digit district to $ 981,759. While all these apartments in heaven do not do much to bring prices down. They averaged $ 745,951.
In this market, a lot of sellers do not even bother to try to lure people in who actually want to live in this city. Instead, they are looking for investors. It is not uncommon to find detached houses being sold at wicked prices, expecting investors to hurry up and expect to make money on escalating prices and demand.
Take, for example, the nearly $ 3 million listing for an old Scarborough three-bedroom home in 752 Midland. The listing provides no pictures because sellers expect investors and developers to be lured in by the large plot of land that could potentially house new townhouses or a medium-sized apartment. They leave it to the buyers to check if any of it is possible at all.
Most potential owners of investment properties flock to the relatively more affordable condominium market. They can easily find real estate agents leading them in the direction of pre-construction apartment sales, promising similar price growth as we have seen in the last five years, which would simply let even more people be priced.
Last month, Bank of Canada Deputy Governor Paul Beaudry said investors are using their equity to buy investment properties, trusting that already sky-high real estate prices in Toronto will escalate further when immigration reopens.
But investors are driving prices up by competing with first-time home buyers for limited supply. According to Teranet’s market insight report, a quarter of the people who bought homes from January to August were more property owners.
Earlier this year, economists at RBC and BMO issued warning proposals that would ward off some buyers of investment properties that are fueling a housing bubble. Their proposals included a doubling of the minimum payout for investment properties and increased capital gains taxes for investors and speculators. But representatives in the real estate industry continue to reject proposals that could hurt commissions.
“For far too long, governments have focused on short-term bond support policies to artificially suppress demand,” TRREB President Kevin Crigger said in a statement predictably calling for less bureaucracy and more action to build more housing.
“Governments at all levels need to make a concerted effort to increase supply in the immediate term, to begin addressing today’s supply challenges and to work towards meeting the growing demand in the future.”