With detached freehold property in such short supply and demand running wild, the price of admission into some of Toronto's more desirable neighbourhoods is skyrocketing.
Case in point? College Street's Little Italy Neighbourhood. This time last year, The Globe and Mail, in partnership with Realosophy, created an interactive map that illustrated the average price of a home in individual neighbourhoods across Toronto. As of Fall 2015, the average price for a home in coveted Little Italy was $955,353, up 11% from the previous year. That's a fairly significant jump, possibly representing an insurmountable price gap for many homebuyers to cross.
If this recent sale is representative of transactions to come, then freehold housing in College Street's Little Italy Neighbourhood will soon become unaffordable to the majority of Toronto house hunters.
Listed at $899,000, the appeal of this was strictly land value only. Occupied by a tiny dwelling that could best be described as a 'shack', the property was advertised as an opportunity to “build a dream home”. So, the final price of admission to acquire a 21×129 foot lot with lane parking?
Wait for it…
$1,218,000.
For this:
List: $899,000
Sold: $1,299,000
At Urbaneer, we embrace selling and buying strategies that are built on the supposition that bidding wars are now the new norm… but even we were floored by this sale. This slice of Little Italy steps from College Street for 135% of its asking price!
Now, there are a couple of reasons for this. First, whereas north of Bloor was once the bastion for the wealthy and professional class twenty years ago, the entire original City of Toronto is now highly coveted. Which means, as our 100 year old housing stock moves into being obsolete – no matter where the dwellings may be located – they're either being knocked down or transformed into executive residences. Back in 2013 I wrote about Why So Many Downtown Houses Are Being Renovated and, more recently, this must-read blog called Exploring Toronto Real Estate Property Values which shares some recent property sales that illustrate how the land many downtown Toronto houses sit on now account for the majority of their value today. Is this sale in Little Italy a new precedent? Yes, and no. Just one block north of the shack, this drop dead gorgeous 2.5 storey semi-detached Victorian came to market two weeks ago for $3.1million. At whatever price it sells, it will set a new barometer of value for a semi-detached house in the neighbourhood.
No matter how much media coverage Torontonians consume, or statistics and market trends we track (access TREB's November 2016 statistics here), Toronto's frenetic real estate market – on odd occasions – can still leave us utterly speechless. For another excellent example of the market's unpredictable moments, check out our August blog in our Tales From The Real Estate Trenches entitled, A Swansea Toronto House Received 33 Offers Last Night. That sale left us completely flummoxed!
While we certainly don't mean to discourage anyone who is still searching for their 'Dream Home', we've always said that your best weapon in the house hunt is information; a well-informed Buyer is a well-armed Buyer. Do your homework – by letting us help you. With over two decades of experience, here's Why I’m A Top Ten Realtor. Let my team and I steer, guide and counsel you gently with all the variables that make up a real estate purchase. Here's more About Us, and some of our recent Testimonials!
Have questions? Just pop Steve@urbaneer.com an email!
Looking for a Unique Architectural Masterpiece? This family-residence in The Beach, offered for $2,099,000 is a must-see heart-grabber and, relative to Little Italy, exceptional value!
~ steven and the urbaneer team
we're here to earn your trust, then your business.
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage – (416) 322-8000
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*Photo courtesy of Multiple Listings Service
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Tales From The Real Estate Trenches