Photo Credit: Tundria
All you need to know regarding the housing market in Toronto, Canada and abroad.
This week in Toronto: The housing market is on fire, pre-emptive bully offers are on the rise and will the Bank Of Canada step in?
Elsewhere: Vancouverites direct ire towards foreign buyers, what effect will the Chinese market crash have on U.S real estate and an Indian real estate website gets hacked.
Toronto housing market on fire as detached home nears $1.1-million (The Globe And Mail)
“High-end homes have accounted for a greater share of overall transactions this year compared to last year,” the realtors group said. “This is the key reason why the average selling price has increased at a greater annual rate than the MLS HPI composite benchmark,” it added, referring to the home price index that is deemed a better gauge of market action.
So called pre-emptive offers became increasingly popular this spring as frustrated buyers grew bolder. The strategy involves dangling a cheque for an eye-popping amount in front of the homeowners before the scheduled offer date with the hope of beating rival bidders to the table.
The strong price growth is likely to renew questions about housing affordability in Canada’s largest city. RBC’s housing affordability index showed that home affordability continued to decline in the first quarter of this year, despite the Bank of Canada’s quarter-percentage-point cut to the key lending rate in January.
The average condo price in Toronto rose seven per cent from the previous year to $418,599. Condo construction has been booming in the city, leading some analysts to muse in recent years about oversupply and eventual price corrections.
“I think it is important to point out that our region continues to grow in response to our diverse economic, ethnic and cultural bases. The GTA consistently receives international accolades as one of the best places in the world to live and do business. As the number of households grow, many of them will take advantage of the diversity of affordable home ownership opportunities that exist in Toronto and the surrounding areas,” said Mark McLean, president of the board, in a release.