Real estate bubble spreads across Canada
Exorbitant prices aren't just in Toronto and Vancouver anymore.
When it comes to ultra-expensive housing in Canada, everyone usually thinks of Toronto or Vancouver. But in recent months, the bubble in the market has become more extensive, and it's already swept across Canada.
For example, in the small town of Perth, Ontario, where fewer than 6,000 people live, a 4-bedroom bungalow recently sold for $679,900 CAD — $150,000 CAD more than the asking price. Typically, such real estate "wars", where buyers are willing to pay extra to get a home, are common in metropolitan areas.
"We were just shocked," says Barb Armstrong, the former owner of the bungalow. — It exceeded all our expectations, we were really shocked.
Barb and her husband were at first unenthusiastic about selling the house, but a realtor they knew told them what was happening in the local real estate market. People from Ottawa and even Toronto are moving to Perth because of the more rustic lifestyle and still relatively affordable prices.
The couple put the bungalow up for sale in mid-March. By the time the ad had 35 hits, they had already received 11 offers to buy.
"Property prices in our city have jumped almost 50%," shared Paul Martin, president of the Perth-based Real Estate Council.
He said half of the buyers are from Ottawa, which is nearly an hour away, and a third are from Toronto, which is about a three-hour drive.
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