A small number of people would spend a whooping $1M for a two-bedroom house in Little Italy.
Multiple factors affect the economy, including the housing market. Unemployment is a major problem in every society and every drop of the economy makes houses more expensive than ever.
For instance, restaurants and businesses open at some point during a pandemic. But, houses are sold for a lot of money. This is a good business for the owners, but “ordinary people” get to pay too much for a decent home.
Do you know that a Toronto home was put up for a sale? Well, there’s nothing wrong with that. The awkward part comes when someone tells you that this home had an asking price of one million dollars. Can you imagine that?
The tiny house tour
The small house was located near Little Italy. It was listed for $999,999 and comes packed with two small bedrooms, a bathroom, a kitchen, a living area, and a small garage that fits two cars.
The house is 6.14 meters by 39.32 meters and the owner advertised it as a “great size” with “loads of potential.” Well, truth is, the home is located near local shops, restaurants, parks, bars, schools, and public transit. The asking price goes above the asking price for the Greater Toronto Area which was $930,869 as of June. That’s about 12% higher than in 2019.
The rebounding market
According to experts, a lot of government workers and tech people have kept their jobs. This means that the housing market will come back quickly.
Montreal and other “immigration hubs” will come back easily as people will still need to rent a home.
Toronto and other similar cities won’t “fare” really well.
“There is already evidence of this happening in Toronto, where average rental prices have begun decreasing as new landlords try to attract clients from a diminished pool of potential renters,” a study by StatsCan described the drop.
Travel restrictions are the main reason many apartments and condos remained empty. Landlords had to drop the prices to attract the attention of long-term renters. A lot of people would rather leave their city apartments for bigger houses and fewer neighbors.
The ideal buyer
Most people would never even show any interest in buying such a small house for one million. But, people are strange and someone may try to get the place. Cleaning a small home is always easier than cleaning a large mansion.