158% of List price! Housing market is hot!

 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?

Your best interest is my only interest.    Like this article?  Share with a friend.   I reply to all questions and I welcome your comments.

Steve Garganis 416 224 0114 steve@mortgagenow.ca