Here is a 3 bedroom, 1 bathroom house that was on the market for 6 days for an outrageous $599,000.00. Although, I guess not so outrageous because some a-hole (or a bunch) actually ended up bidding $700,000.00 for it and got it. And… here are the info/photos from what the $700,000.00 house looks like:
Side note…. I spent most of my day yesterday researching some things, and while I can’t write all of it down because it’s no doubt boring, I figured people need to know at least the following - in fun easy to read numbered list form!:
1. Media is reporting that economists now say we are NOT in a bubble and there will be no crash here. (While I believe their can’t be a crash here, this still isn’t sustainable the way it is…)
2. Realtors and others are saying contrary to popular belief there is not a lot of foreign investment in Toronto (I wonder why CityPlace has ads running in newspapers in China then? and why they sell their units in China before opening them up for sale here? And why some lawyers I spoke with say that most million dollar tear downs are cash sales from other counties?)
4. The average household income is $77,000.00, yet the average house cost is now nearing $800,000.00
5. The average household debt is 154% (weeeee let’s all buy Porsches!)
6. The average downpayment on a house is only 6%
7. CMHC apparently is now at its maximum they’re willing to insure
8. Low supply is happening for a lot of reasons, but one reason being most people didn’t put enough down payment in their homes when they bought the past few years, and now don’t have enough equity to actually sell!! And if they do even sell, it’ll be too hard to get back in even though they’d be selling for so much higher than they bought, that’s how much prices have risen. This also means they can’t refinance should they have to.
9. Maintenance fees in this city average 50-60 cents a square foot (More than double vancouver, and more than triple Montreal *so stop emailing me telling me it has to do with snow removal.*)
10. “Pre-construction” condos which have always been significantly cheaper than resale, are now selling for more money than resale.
11. Out of the 3,424 houses on MLS 1,200 of them are over $900,000.00, 1,300 are over $500,000.00 and a paltry 600 are under 500k. *numbers maybe slightly skewed as I had to hand count since I’m not a realtor and don’t have access to their data*
This isn’t a funny post, I’m just at a maximum annoyance level with the rhetoric being spewed right now by Realtors, Lawyers, Economists, etc… saying that everything in Toronto is just fine and everyone who’s making only 70k a year should continue to buy a million dollar house.
It’s Friday!!!!! And I think it’s warm out! Let’s all drive our Porsches* to expensive patio dinners.
*Porsches are owned by Porsche finance, not you.
(Thanks to ToSolds.ca for that 700k listing up there)