Last month a house in Toronto’s west end made headlines when it sold for $200,000 above it’s $639,900 list price. That’s 131% of the asking price. Earlier this week, I shared some astonishing sales from the weekend. Two houses sold for 138% and 129% of asking price. Both homes were in the $1,000,000 plus price range.
Yesterday, this house at 3 Ross St, in Toronto was listed for $829,000. It sold for $1,308,880. That’s 158% of asking price or $479,880. This semi-detached house is located in the College and Spadina area of Toronto. It sits on a 20′ x 116′ lot.
We can debate whether these are sales tactics (you know, list way below market price to attract buyers and create a buying frenzy) or if this means the market has gone crazy. To me, this just reaffirms my belief that this is a seller’s market. There is a pent-up demand for housing. And when the supply is low, higher prices usually follow.
Interesting, yesterday, a report from Tourism Toronto showed in 2103, 9.22million hotel rooms were booked. Up 2.8% from 2012. I’m not sure there is a direct correlation between the visitors and house prices but Toronto has certainly become a world-class city. Maybe our prices reflect that, too?
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Wow, who said the housing market was slowing down? Check this out.. 2 sales from this past weekend in Toronto show the market is red hot!
This house at 455 Manning St is located in the College and Bathurst area of Toronto. It was listed for sale at $749,900. And it sold for whopping $1,035,000 or 138% of list price! This is a 2.5 storey semi-detached home with a 19′ x 126′ lot. Wait, it gets better. The description says, and I quote “Attention Renovators/Investors/Handymen”. A quick look at pics inside leave much to be desired. This place is need of some serious home improvements. All I can say is WOW!
How about this one at 362 Lippincott Street located in the Bathurst and Bloor area of Toronto. Listed at $895,001 and selling for $1,150,000. That’s 128% of list price. The lot is 17′ x 101′. This is a 100 yr old semi-detached Victorian with major updates and renos. It certainly looks nicer than the first. But selling for 128% of list price? I’ll repeat myself, WOW!! Continue reading “2 sales in GTA this weekend went for 128% and 138% of List price!!”
We all know that a lower interest means a lower monthly payment. But did you know that a lower interest rate means you will also owe less when your mortgage comes up for renewal? This has been overlooked by consumers and experts alike. I haven’t seen any articles covering this. And it should change how you choose your next mortgage product.
It all has to do with the effects of compounding interest. Let’s take a look at 2 borrowers, each with a $400k mortgage. Borrower 1 is Mary. Borrower 2 is Dave. Mary has today’s 5 yr fixed rate of 3.29%. Dave has the more normal rate of 5.50% (the rate most experts think we will see in the next 3 to 5 yrs). We’ll amortize both mortgage over a 25 yr term.
Dave’s mortgage has monthly payments of $2441 and a balance owing of $356,749 at the end of 5 years. Mary’s mortgage has monthly payments of $1953 and a balance owing of $343,728 at the end of the first 5 years. Notice the difference in the balance owing after 5 years. We are talking about a $13,021 difference. That’s the effects of compounding interest. Continue reading “Lower rate = Lower payment and a Lower balance in 5 years!”