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Below is a piece by Michael Salter from the Globe and Mail. It’s all about Toronto’s HOT, HOT housing market. Michael’s message: Here are the real reasons why home prices are skyrocketing and why they are going to remain high.
Did you find yourself agreeing with this article or did you notice that something was off? If you noticed something, it may be because this article was originally published on Friday, July 15, 1988. And by that time, the North American dream of home ownership had already died in Toronto.
Here’s the header I cut out from above:
Thank you to Tamsin McMahon for tweeting this out last weekend.
The Economist recently published the following chart alongside this article talking about the impact of foreign buyers on global house prices.
Heads-up: This is going to be a Toronto-specific post.
This week there was a lot of chatter about escalating house prices in this city (though that seems to be most weeks these days).
Paul Johnston listed a detached house in Dufferin Grove for $1,285,000 and then turned around and sold it for just over $2.1mm, with 17 potential buyers at the table. I also saw my friend post a note this morning that the average price of a detached house in Toronto has now surpassed $1.5mm.
What I am curious about – and this is a question for all of you who live here and/or follow the market – is what response does escalating house prices trigger for you? I asked this on Twitter (via a poll), but I would be curious to get your thoughts here in the comments.
Do you feel rushed out of fear that you may get priced out of the market? Are you now turning your attention to out of the city? Or are you looking at other housing types, such as condos? I am sure the responses will be split.
My response: condos.
Below is a piece by Michael Salter from the Globe and Mail. It’s all about Toronto’s HOT, HOT housing market. Michael’s message: Here are the real reasons why home prices are skyrocketing and why they are going to remain high.
Did you find yourself agreeing with this article or did you notice that something was off? If you noticed something, it may be because this article was originally published on Friday, July 15, 1988. And by that time, the North American dream of home ownership had already died in Toronto.
Here’s the header I cut out from above:
Thank you to Tamsin McMahon for tweeting this out last weekend.
The Economist recently published the following chart alongside this article talking about the impact of foreign buyers on global house prices.
Heads-up: This is going to be a Toronto-specific post.
This week there was a lot of chatter about escalating house prices in this city (though that seems to be most weeks these days).
Paul Johnston listed a detached house in Dufferin Grove for $1,285,000 and then turned around and sold it for just over $2.1mm, with 17 potential buyers at the table. I also saw my friend post a note this morning that the average price of a detached house in Toronto has now surpassed $1.5mm.
What I am curious about – and this is a question for all of you who live here and/or follow the market – is what response does escalating house prices trigger for you? I asked this on Twitter (via a poll), but I would be curious to get your thoughts here in the comments.
Do you feel rushed out of fear that you may get priced out of the market? Are you now turning your attention to out of the city? Or are you looking at other housing types, such as condos? I am sure the responses will be split.
My response: condos.
They also have this set of interactive graphs that allows you to chart prices according to a number of different measures. The two metrics that The Economist focuses on (above) are house prices against rents and house prices against incomes.
The argument they make is that as (foreign) capital begins to think of property as merely a bolthole, it can start to detach itself from fundamentals such as rents and incomes. New Zealand, Canada, and Australia are specifically called out.
This isn’t necessarily news. And one chart can only tell you so much. But I like staying on top of the various indices.
They also have this set of interactive graphs that allows you to chart prices according to a number of different measures. The two metrics that The Economist focuses on (above) are house prices against rents and house prices against incomes.
The argument they make is that as (foreign) capital begins to think of property as merely a bolthole, it can start to detach itself from fundamentals such as rents and incomes. New Zealand, Canada, and Australia are specifically called out.
This isn’t necessarily news. And one chart can only tell you so much. But I like staying on top of the various indices.
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