Real Estate News from 40 years ago

I read this "Blast from the Past" article in the Markham Economist & Sun newspaper November 13, 2014 issue. It's a news article from their November 14, 1974 issue.

Average house price whopping $75,151

The average price of a single-family home in the Town of Markham is $75,151.

This information is revealed through a computer study completed by A.E. LePage Limited Realtor, Toronto, Montreal and Vancouver.

A record of all real estate transactions during the first six months of 1974, as obtained through the registry office, showed 694 sales for a volume of $75,596,809.

Included in the area of Greater Metropolitan Toronto, the study showed 41,058 transactions for a volume of $2,526,504,027.

In Markham, the average cost of row condominium is $39,985, and the average cost of an apartment condominium is $45,516.

"Although these figures are as of June 30", notes company researcher director Clifford Bowman, "they serve as an excellent indicator of average prices".

Mr. Bowman explains too that since July 1 there has been a "softening" in the real estate market and prices have "leveled out". He attributes this to higher mortgage rates and down-payments: scarcity of adequate funds and uncertainty surrounding the timely purchase.

Commenting on whether or not the cost of housing will drop drastically, he states: "I would like to see it happen. But I'm not confident it will".

He continues: "Prices have temporarily stabilized, but with increasing costs of serviced land, and new construction costs keeping pace with the rising rate of inflation it doesn't give one much hope."

Mr. Bowman claims the only way prices of homes will drop today is by all levels of government working with the construction industry to expedite the movement of serviced land onto the market, thus creating an enormous supply on new housing and taking the pressure of the demand for existing and completed unit, including apartments. "The No. 1 priority of all levels of government should be the current housing crisis."