TCHC homes selling for up to 20 per cent above asking
As the housing market continues to warm up across Canada, the Toronto Community Housing Corporation is reaping the benefits of climbing prices.
Nearly 75 per cent of the agency's stand-alone homes that were approved for sale have been sold -- the majority of them selling for 15 per cent to 20 per cent more than the listing price.
The bulk of these properties are located in some of Toronto's most sought-after neighbourhoods, and are being scooped up despite needing some work.
In Toronto's South Riverdale neighbourhood, for example, a three-bedroom, end-of-row townhouse that is in need of some renovation work is expected to sell above its asking price of $680,000.
"It will likely sell in excess of its list price," TCHC's senior real estate executive Greg Spearn told CTV Toronto. His expectation is based on recent numbers.
In the last month, two former TCHC properties have sold over-asking. A home on 46 MacLean Avenue -- located in the popular Beach neighbourhood -- sold $66,000 over its asking price of $715,000. And a property on 42 Geneva Avenue, located in the Gerrard Street East and Sumach Street area, was purchased for $730,000, more than $40,000 over its original list price.
According to the president of a Toronto real estate firm, many of the buyers snapping up TCHC property are what he calls "dreamers," or people who are motivated to enter the city's hot housing market at a lower price.
"(These are) renovators and people who want to buy a house in a great neighbourhood and make it their own castle," Freeman said.
So far, the TCHC has sold 114 of the 158 homes that have been approved for sale by council in 2012. They have earned approximately $49.5 million -- all of which goes directly into the TCHC's coffers.
"We're obligated to put it straight into capital repairs and that's where we want it to go," Spearn said. "Our view is our homes need to be fixed before we look at new ones."
This year, the sale of 58 TCHC homes is expected to net approximately $33 million. With so much revenue streaming into the public housing agency, it raises the question if more stand-alone homes will be put on the market.
According to mayor-elect John Tory, he plans on reviewing the sale of TCHC homes on a case-by-case basis.
"Any sensible government would be examining on a continuous basis homes that just don’t make sense for us to own," he said.
Tory's vow to potentially put more homes on the market could stir up tension with Coun. Janet Davis, who has voiced concern in the past about the selling off of TCHC houses.
She said if the city moves forward with another mass-sell off of properties, she will be opposed to it.
"We can’t finance the capital upgrades of our portfolio by this kind of cannibalistic approach."