stats
globeinteractive.com: Making the Business of Life Easier

   Finance globeinvestor   Careers globecareers.workopolis Subscribe to The Globe
The Globe and Mail /globeandmail.com
Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space


Search

space
  This site         Tips

  
space
  The Web Google
space
   space



space

  Where to Find It


Breaking News
  Home Page

  Report on Business

  Sports

  Technology

space
Subscribe to The Globe

Shop at our Globe Store


Print Edition
  Front Page

  Report on Business

  National

  International

  Sports

  Arts & Entertainment

  Editorials

  Columnists

   Headline Index

 Other Sections
  Appointments

  Births & Deaths

  Books

  Classifieds

  Comment

  Education

  Environment

  Facts & Arguments

  Focus

  Health

  Obituaries

  Real Estate

  Review

  Science

  Style

  Technology

  Travel

  Wheels

 Leisure
  Cartoon

  Crosswords

  Food & Dining

  Golf

  Horoscopes

  Movies

  Online Personals

  TV Listings/News

 Specials & Series
  All Reports...

space

Services
   Where to Find It
 A quick guide to what's available on the site

 Newspaper
  Advertise

  Corrections

  Customer Service

  Help & Contact Us

  Reprints

  Subscriptions

 Web Site
  Advertise

  E-Mail Newsletters

  Free Headlines

  Globe Store New

  Help & Contact Us

  Make Us Home

  Mobile New

  Press Room

  Privacy Policy

  Terms & Conditions


GiveLife.ca

    

PRINT EDITION
Million-dollar teardown: Toronto's new housing reality
space
space
By BRENT JANG
  
  

Email this article Print this article
Thursday, February 9, 2017 – Page B1

It's a sign of what little $1-million now buys in Toronto's soaring housing market - a teardown home on a skinny lot fetching a premium price in a neighbourhood known for its blue-collar roots.

Last week, the detached bungalow with an asking price of $679,900 in the Greektown neighbourhood on Toronto's east side attracted a bidding war.

The front yards in the area, near the major intersection of Danforth and Pape Avenues, are often taken up by parking pads barely large enough to hold a car. Some properties have a small patch of grass that residents on the Prairies would scoff at for being a poor excuse for a lawn.

A million-dollar property is far from luxury in Toronto.

The sellers of 69 Muriel Ave. have owned their home for a half-century. They listed their property on Jan. 23, and began accepting offers on Feb. 1. "Attention builders, contractors, renovators and envisioners," the listing blared. "Don't miss out on this chance to build a fabulous new home." For good measure, the feature sheet added: "With front pad parking!"

On Feb. 2, after only 10 days on the market, the bungalow built in 1912 sold for an astonishing $1,050,000.

In 1966, the owners paid $10,000 for their modest abode.

Adjusted for inflation, it works out to roughly $73,000 today.

The residence had an assessed value of $443,000 on Jan. 1, 2012, and $645,000 on Jan. 1, 2016, according to Municipal Property Assessment Corp.

Multiple bidders competed for the tear-down on a tiny lot measuring 20 feet wide by 78 feet deep. The winning bid emerged 54 per cent above the list price and caught industry observers by surprise - $370,100 higher than the asking price.

The Royal LePage listing, which is slated to close in mid-March, underscores the scorching real estate market in the Greater Toronto Area.

For the GTA as whole, the average sales price for detached houses, condos, townhouses and other housing types reached $770,745 last month, up 22.3 per cent from January, 2016.

The average price of detached houses sold last month hit $1.34million within the City of Toronto and $999,102 in the suburbs, rising 26.8 per cent and 27.8 per cent, respectively, compared with a year earlier.

Bidding wars and offers that are well above the list price are commonplace in the GTA's skyrocketing housing market, said John Pasalis, president of brokerage Realosophy Realty Inc. "People are getting a little too excited," Mr. Pasalis said in an interview.

Views vary on how much limited supply is behind the sharp rise in prices versus robust demand from foreign and domestic buyers.

Sales volume has been surging while listings shrink in the GTA.

"Until you see a very sustained period of time where listings growth is outstripping sales growth, then we should continue to see strong price growth," said Jason Mercer, director of market analysis at the Toronto Real Estate Board.

"If you're a level of government that is looking at policies pointed at the housing market and affordability, as we move through 2017, those policy discussions and direction have to be pointed more so at the supply side of the market," Mr. Mercer said.

Last October on behalf of the Toronto board, Ipsos surveyed local realtors about foreign-buying activity. Realtors told the polling firm that fewer than 4.9 per cent of house sales in the GTA involved international buyers.

"I would take issue with saying 4.9 per cent is a small number. I think it is a very significant number," Bank of Montreal chief economist Douglas Porter said.

"In what is already a very tight and hot market, to add net new buyers can have a very big influence on prices. With modest employment growth, there is something else going on."

While Mr. Porter said an array of factors contributed to the GTA's booming housing market, he believes the turning point came when the B.C. government implemented a 15-per-cent tax on foreign home buyers last August in Metro Vancouver. He argues that there has been a shift of attention among some foreign buyers to the GTA and the Victoria region.

Real estate website and brokerage Zoocasa said Wednesday that Toronto townhouses will be a hot commodity in 2017 as prices for detached properties jump even further out of reach for many consumers.

Back on Muriel Avenue in Greektown, future listings for skinny lots in the East York area will use the sale of the tear-down as a rough guide for setting real estate values.

The theme in Toronto has been one of rapidly rising prices. A renovated row house on the same street sold four months ago for $1.15-million after five days on the market, much higher than the list price of $899,000. A renovated detached bungalow on nearby Wiley Avenue sold last April after one week on the market for $776,000 - well above the asking price of $599,000.

Higher-end Toronto neighbourhoods with larger lots are also experiencing price spikes. The area that includes Bridle Path mansions saw an average price for detached homes of almost $4-million last month while midtown sales, including in the Annex and Casa Loma, averaged nearly $1.9-million.

Associated Graphic

This detached bungalow at 69 Muriel Ave. in Toronto sold for about $400,000 above its asking price.

TIMOTHY MOORE/THE GLOBE AND MAIL


Huh? How did I get here?
Return to Main Brent_Jang Page
Subscribe to
The Globe and Mail
 

Email this article Print this article

space  Advertisement
space

Need CPR for your RSP? Check your portfolio’s pulse and lower yours by improving the overall health of your investments. Click here.

Advertisement

7-Day Site Search
    

Breaking News



Today's Weather


Inside

Rick Salutin
Merrily marching
off to war
Roy MacGregor
Duct tape might hold
when panic strikes


Editorial
Where Manley is going with his first budget




space

Columnists



For a columnist's most recent stories, click on their name below.

 National


Roy MacGregor arrow
This Country
space
Jeffrey Simpson arrow
The Nation
space
Margaret Wente arrow
Counterpoint
space
Hugh Winsor  arrow
The Power Game
space
 Business


Rob Carrick arrow
Personal Finance
space
Drew Fagan arrow
The Big Picture
space
Mathew Ingram arrow
space
Brent Jang arrow
Business West
space
Brian Milner arrow
Taking Stock
space
Eric Reguly arrow
To The Point
space
Andrew Willis arrow
Streetwise
space
 Sports


Stephen Brunt arrow
The Game
space
Eric Duhatschek arrow
space
Allan Maki arrow
space
William Houston arrow
Truth & Rumours
space
Lorne Rubenstein arrow
Golf
space
 The Arts


John Doyle arrow
Television
space
John MacLachlan Gray arrow
Gray's Anatomy
space
David Macfarlane arrow
Cheap Seats
space
Johanna Schneller arrow
Moviegoer
space
 Comment


Murray Campbell arrow
Ontario Politics
space
Lysiane Gagnon arrow
Inside Quebec
space
Marcus Gee arrow
The World
space
William Johnson arrow
Pit Bill
space
Paul Knox arrow
Worldbeat
space
Heather Mallick arrow
As If
space
Leah McLaren arrow
Generation Why
space
Rex Murphy arrow
Japes of Wrath
space
Rick Salutin arrow
On The Other Hand
space
Paul Sullivan arrow
The West
space
William Thorsell arrow
space





Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space

© 2003 Bell Globemedia Interactive Inc. All Rights Reserved.
Help & Contact Us | Back to the top of this page