Real estate: hot or not?

You bet it’s burning hot …

Shortage of new listings fuelling desperation among Toronto home buyers

The reason is simple: New listings for houses have been below historic norms yet interest rates have remained so low, more people are looking to buy.

A home-buying report released Wednesday found that the appetite for bidding wars is highest in Toronto: 44 per cent of those surveyed said they would get into a multiple-bidding situation.

House sales were up just 2.1 per cent in February, year over year, but prices jumped 8.6 per cent as buyers battled bitter weather and a shortage of new listings in what even many realtors are concerned is a worrisome new level of desperation to buy a house in Toronto.

The average sale price was $553,193 in February, up from $509,396 a year ago.

Just this week, the battle lines were tightly drawn on an up-and-coming street in the Coxwell and Danforth area where a renovated semi-detached house, listed for $549,000, drew a stunning 25 bids. The Rhodes Ave. home went for $717,336, almost $170,000 over the asking price.

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