The broker listing the pricey development opportunity says investors can split the property to build and sell two homes for nearly $3 million each
A Scarborough bungalow is currently listed at $2.2 million, which is double the record-breaking average price for a home in the Greater Toronto real estate market. The selling agents says that price is not evidence that Canadians are sitting on a housing bubble, as one economist has recently said.
The bungalow at 129 Manse Road, in the West Hill area not far from the Rouge and the Guild, is being sold as a development prospect. The listing says the massive 119 x 112.42 foot lot has approval to be split in half so that a buyer can build two large homes on the property. RE/MAX realtor Dan Hoffman, who is representing the seller, estimates that building 5,000 square-foot homes on each lot would cost an extra $1 million each. So that’s an approximately $4.2 million investment.
“You’re looking at $2.6 or 2.7 million,” says Hoffman, predicting what each home would fetch.
There’s at least one person in Toronto who wouldn’t go for that proposition.
Economist David Rosenberg told BNN Bloomberg that Canada might be experiencing “one of the biggest bubbles of all time” and that he would “absolutely not” invest in a home in the Greater Toronto real estate market.
Rosenberg was speaking in reaction to the Bank of Canada’s announcement that they will be holding the overnight interest rate at the record-low 0.25 per cent.
He pointed out that Canada’s unemployment rate is at 9.5 per cent, which is higher than peaks during the last two recessions, “including the great financial crisis.”
In a 2021 Housing Market report, the Canada Mortgage and Housing Corporation explained the cognitive dissonance between a pandemic causing high unemployment rates and a boom in the real estate market. The report explained that the service sector, which largely employs renters, was hit hard by the pandemic.
Meanwhile, high-income households experienced little job loss but benefitted from the low-interest rates, which in turn is driving house prices higher. The average selling price in February for a home in the Toronto real estate market was $1,045,488, which is a 14.9 per cent increase over February 2020.
“Home prices are up year-over-year with practically no wage growth,” says Rosenberg, who adds that the financials behind Canada’s real estate surge looks a lot like the dot-com bubble in 2001.
Hoffman isn’t alone when he argues that there is no bubble. Buyers investing in Toronto real estate and developing properties are counting on both a reopening of the economy post-vaccine and surging demand as soon as immigration opens up.
I tell Hoffman the idea of a West Hill fetching close to $3 million sounds astronomical.
“A lot has to do with who’s buying them,” he responds, suggesting we get away from thinking the traditional four-person family with $125,000 is the only kind of customer in the Toronto real estate market.
“I’m on the frontlines and I see two families moving into a house like this,” says Hoffman. “I see people buying a house and renting out the basement for $2000. I see a lot of gifted money. I’ve seen parents put $500,000 into their kid’s pocket for the down payment. There’s a lot of money out there. There’s a lot of equity.”
Canadian home sales, prices surge to new record in March
OTTAWA (Reuters) – Canadian home sales rose 5.2% in March from February, setting a new all-time record amid strong demand in markets across the country, the Canadian Real Estate Association said on Thursday.
The industry group said actual sales, not seasonally adjusted, rose 76.2% from a year earlier, while the group’s Home Price Index was up 20.1% from last March and up 3.1% from February.
The actual national average selling price hit a new record at C$716,828 ($572,821) in March, up 31.6% from a year earlier and rising 5.7% from February.
($1 = 1.2514 Canadian dollars)
(Reporting by Julie Gordon in Ottawa)
Hot real estate market sparks warnings to potential buyers as complaints to regulator double
As home sales in the province continue on a dizzying trajectory, the province’s real estate watchdog and regulator are warning buyers to be wary of what they may be getting into.
The Real Estate Council of B.C. (RECBC) and the Office of the Superintendent of Real Estate said that in the first three months of 2021, they have seen an increase in inquiries and complaints.
Calls to the regulator were up 42 per cent over the previous year, while complaints, such as how offers were made and accepted, were double the number received in the same period in 2020.
“Buying a home is one of life’s biggest financial decisions. There are potential risks at the best of times, but with the added pressure and stress of the current market conditions, those risks are amplified,” Micheal Noseworthy, superintendent of real estate, said in a statement.
Planning on buying or selling a home this spring? With increased market activiy, its important to understand the risks, and we are here to help. Here are some tips to help you find the most up-to-date information before you make a decision: <a href=”https://t.co/7D8d5Of5XZ”>https://t.co/7D8d5Of5XZ</a>
The Real Estate Board of Greater Vancouver says sales in the region have continued at a record-setting pace.
Residential home sales covered by the board totalled 5,708 in March 2021, up 126.1 per cent from March 2020, when the COVID-19 pandemic hit, and up 53.2 per cent from February of this year.
Rural and suburban areas have experienced the biggest spikes.
For the past two weeks, Jay Park has been in the middle of the buying frenzy.
He and his partner are trying to upgrade from their one-bedroom apartment to a two-bedroom condo or townhouse in Vancouver.
“I wish we had done this a month or two ago,” he said.
Park put an offer on a $1-million condo, $4,000 above asking price.
“To entice the [seller], we put in a subject-free offer, but it wasn’t successful,” he said. “They accepted $110,000 over asking price that was also subject-free.”
The hot market has led to bidding wars. Some would-be buyers have even lined up outside for days to try to get a jump on a property.
Erin Seeley, the CEO of the council, is warning buyers to do their research and be aware of risks before making an offer.
“It’s really important that buyers have engaged with their lender before they’re making offers so they know how to stay within a reasonable budget,” she said.
Seeley said some of the complaints the council has heard from buyers is that they weren’t aware the seller has a right to take an early offer.
“And the seller was really in the driver’s seat about setting the pricing,” she said.
Aaron Jasper, a Vancouver realtor, advises clients to avoid cash offers and to include finance clauses even if it may mean they lose a deal.
“There’s a lot of frustration among buyers, feeling pressure to take some risk,” he said.
“You’re better to be delayed perhaps a year getting into the market as opposed to being completely financially ruined.”
Jasper also says realtors are limited in the advice they can give to clients on legal matters, home inspections, potential deficiencies with homes, and financing.
‘Caught up in the craziness’
Other tips from the council include seeking professional advice before making a subject-free offer or proceeding without a home inspection, and speaking to a professional to determine how market conditions may be affecting prices.
Meantime, people like Jay Park say they are still keen to buy. Park has more viewings scheduled and is optimistic.
“It’s a very exciting time for us, but I also don’t want to get caught up in the craziness and make a purchase that’s above our means.”
Source: – CBC.ca
Black Press Media introduces one of Western Canada’s best real estate platforms helping home buyers Find. Love. Live. that new home
Need an agent who knows the community?
Or, is it time to look for a new place to live, but you don’t know what’s on the market?
Whatever the real estate need is for residents in the communities of British Columbia, Yukon & Alberta, there’s a new way to do that one-stop shopping – by visiting Today’s Home.
The slogan for the site is “Find. Love. Live.”
“We want people to find their dream home, love it, and live in it,” said group publisher Lisa Farquharson.
Building on the success of Black Press Media’s niche digital platforms – Today’s Home brings the same wealth of knowledge and local expertise to the search for a home, be it buying, selling, or even just daydreaming about what changes you can make in the future.
Search hundreds of listings that local real estate agents have available.
The listings cover properties around the region, from a one-bedroom, one-bath condo for $339,900 to million-dollar acreages throughout the province of BC, Yukon, Central Alberta and beyond.
Click on a listing, and see not only the realtor handling the property sale, but links to his or her other listings and social media feeds. With the click of a mouse, take a virtual tour of the property, find the property’s walking score, and learn about nearby amenities.
There are links available to schedule a showing, or send the agent a comment or question.
Want to share a listing? When you click on the share button, you’ll actually send an attractive digital flyer of the prospective property, not just a link.
There’s even a button to help determine how much you have to spend, courtesy of the convenient mortgage calculator.
Plus, scroll down the page on Today’s Home and find a list of expert local real estate professionals who can answer questions or help with that home sale, Farquharson explained.
Today’s Home offers the advantage of the massive reach that Black Press Media has built throughout Western Canada with its network of community newspapers and online products. That allows the public to tailor real estate searches based on location, price, and other key factors while allowing real estate professionals to gain unprecedented audience reach with their listings.
Today’s Home will dovetail into the media company’s existing print real estate publications.
“Black Press Media has real estate solutions in print and now we can add in the digital component,” Farquharson said.
Watch for expansion of the Today’s Home platform in the near future, she added. That will come as Black Press Media adds a new component – the development community. Developers will be able to reach a huge audience when their projects are ready for presentation.
For information on Today’s Home, contact group publisher Lisa Farquharson at 604-994-1020 or via email.
Happy house hunting!
Source: – Aldergrove Star
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