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. 😆
The video may be a parody, but it’s still funny because it’s true. $1 million doesn’t buy much in North Vancouver these days. But what’s even more interesting is a recent study by Vancity which shows that by the year 2030 the average detached home price in Vancouver will exceed $2.1 million. The report also suggests many millennials will have to lower their home ownership expectations as Vancouver becomes more unaffordable. “We really need to stop talking and really come up with policies and strategies that will help people to buy homes in the future,” said Andy Broderick, a vice-president at Vancity.
As a real estate investor, I don’t really mind if the average price rises up to $2.1 million lol. But if Vancity wants to promote cheaper housing then I would do the opposite of what Mr. Broderick suggests. I think home prices are expensive today because there are already too many “policies and strategies” that make it easy for anyone to buy a home. If policy makers want lower housing prices they should make it harder for people to buy. Less buyers in the market will help push home prices down. 🙂
Random Useless Fact:
Anything can be offensive if someone wants it to be.