Feral Goats Have More Sense

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My mother used to say some people had more money than sense.  No truer example of that would be the people buying real estate lately in Toronto.  Maybe it’s just me.  Maybe I just don’t get it.  Let me ‘splain…

We live in a good neighbourhood; we border on a downright fabulous neighbourhood with beaches and lakefront and all of that.  Two years ago, we bought a 3 bed semi-detached for way too much money.  We got sucked into a bidding war and emerged victorious but frankly, house-poor.  We’ve been holding our breath, waiting for the market to please, please, please come up to where we felt like we hadn’t been completely stupid.  Now, at long last, there are buyers out there more stupid than we were.

A shoebox-sized semi two doors up from us recently listed for $679,000.  We gasped, fell over, and laughed.  To give you a frame of reference, those houses normally sell for around $450k if reasonably well kept and around $500k for totally renovated.  Ours is bigger, though not as nicely renovated and we should’ve paid in the high $400’s but paid over $500k two years ago.  The seller reduced his price after a week to $599,000.  It sold yesterday for…$651,000. 

I couldn’t swing my kitten around in that house without smacking her head on the walls.  The people that bought it are: thin, minimalists with no kids, pets, or large houseplants.  But are they foolish?  I really don’t know anymore.  A house further up was listed at the same time.  It was much larger though not fabulously tarted up with marble, granite, and glass.  It had 2-car off street parking which most people would sell an internal organ or two for around here.  It was more reasonably priced at $550,000 and it sold for $575,000.  No doubt, the sellers are hearing about the shoebox down the street and they are feeling a tad ripped off.

Opinions about the Toronto real estate market differ wildly.  Some say it is merely robust; others say it is bipolar and currently in an unhealthy manic phase.  Who’s  to say?  If people are willing to pay these prices, if the banks are willing to lend…oh, wait…haven’t I heard this somewhere before?  I don’t know whether to be scared or whether I should run, not walk, to my local renovation superstore and buy some tarty makeup for my house…

 

 

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