The Globe and Mail
Treating the $990,000 asking price as a mere suggestion, the buyers would eventually pay $1.3-million for the house – a 53-per-cent premium over what it sold for just three years ago.
This is part of the new reality in frothy markets, such as Toronto and Vancouver, where an average home will set you back more than $1-million.
The Bank of Canada fretted last week, in its semi-annual review of the health of the financial system, about all the various risks that could cause the country’s housing market to unravel. Among them: rising long-term interest rates, a sharp rise in unemployment, a condo price crash in Toronto, and a Chinesebanking crisis.