According to a Financial Post report the average price of detached homes in Toronto passed the $1 million mark for the first time last month. The GTA has experienced a housing bull market for almost 2 decades and there is no sign of it stopping.
I want to congratulate Torontonians for reaching the $1 million milestone. Welcome to the club. Meanwhile the average detached home in Vancouver now stands at about $1.4 million. But hey, it’s not a competition. And extreme cases like the Point Grey mansion that was sold a few months ago for nearly $52 million will skew the average results. Can you imagine the commission real estate agents make around here?
We often hear complaints about how unaffordable housing is in Canada. But there are two sides to each coin. My friend’s parents bought a home for $70,000 over 40 years ago. They have since paid off their mortgage, and their home is now worth over $1 million. They plan to sell their house soon in order to downsize and will become liquid millionaires. That sounds great to me. The majority of Americans and Canadians are home owners. So financially speaking rising home prices should benefit most of us.
Recently a Vancouver house sold for $567,000 over the asking price. It was listed for $1,600,000, but sold at $2,167,000. People are even making jokes about how insane the housing market is. Below is a short video I found of a Vancouver real estate agent talking about his inexperienced clients. It captures the ridiculous nature of the current market around here.