Housing: It’s Still Insane

There’s a house on my street - a semi-detached Victorian - that has been under renovation for more than a year. It’s now on the market for a whopping $749K, which is outrageous given it’s a three-bedroom home with a finished basement and a small backyard. Granted, it has been beautifully upgraded with new hardwood throughout and a bathroom that looks like it was designed by Martha Stewart. But is it worth $749K, particularly given most of the other houses on the tree-starved street are worth $300K to $500K? I wouldn’t be surprised if there’s a buyer out there who wants to live downtown and willing to pay for the privledge. On one hand, it will do wonders for property value but I dread getting my next property assessement!

Housing Market Booming

According to the National Post, there were record home sales in Toronto in 2005 - fueled by low interest rates and a good economy. While analysts expect sales could reach the same levels in 2006, you do have to wonder how much steam this housing boom has left given it has been going on for the last eight or nine years. At some point, it would seem that whoever wants to buy has done so. In our downtown neighbourhood, there are a few signs of heat but so far only a modest amount of sales. While it helps to hold down property taxes, we aren’t getting the gentifying impact many areas get when new owners move in. Maybe 2006 will be the year it happens.