House Prices are Raising the Roof
Torontonians turn to Condo market as costs stay high
While perusing MLS listings of Toronto single family houses, one would get the impression that one & two million dollar homes are not out of the ordinary these days. Once again, the condominium seems to be the more affordable option for first-time buyers who want to continue to live in the city.
When you look at the average detached home at over one million dollars, and the prices that even semis are going for, it’s really unreachable for most people. This level of pricing is to be expected in any major global city.
Purchasing a condo apartment is the only realistic option for most. Affordability reports warn that single detached home affordability in Toronto continues to slip deeper into stressful territory for home buyers.
The Toronto market is experiencing a growing disconnect between the price of a single family home and a condominium. Condos have become slightly less affordable in the last two quarter, leading to a new trend in rental demand.
Despite the latest dire warning about affordability and bubble trouble, Realtors are still optimistic about real estate investment in general. Doom & gloom has always been there & it isn’t anything new. Most people have been so desensitized by the continual negativity in the press over the course of a decade, but yet the actual market is behaving in a completely different manner. When anyone digs deeper into the market & understand the fundamentals they become very confident in the future of investing & living in downtown Toronto.
One little known fact is that despite the seemingly red hot Toronto market with stories of multiple offers & bidding wars, over 17000 Toronto homes did not sell on the first try last year.
Independent research confirms that despite the never ending rise in demand, some properties need at lease two tries to sell. On average, properties relist for a shocking $24,000 less that the original asking price. While it may seem tempting to pull a listing off the market & relist on hopes of better offers, the smart money is with selling on the first listing. Sellers & agents should leave it all on the field to sell properties the first time around.
Source: MetroNews – Duncan MaAllister – March 2016
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