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In Toronto, some homebuyers are so desperate to win bidding wars that they’re rushing to make offers without even getting an inspection.

The average price for a detached home in Canada’s largest metropolitan area jumped to C$1.21 million in February, up a third from a year earlier, amid a dearth of properties for sale. In the same period, Toronto-based home-inspection firm Carson Dunlop saw a 34 percent drop in volume. Murray Parish, president of the Ontario Association of Home Inspectors, said he’s seen a 30 percent decline at his firm, Parish Home Inspections.

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“The bottom line is we are in a shortage of supply,” said Tasis Giannoukakis, a Century 21 Leading Edge Realty Inc. broker based in Toronto, adding that it’s not uncommon to see bids of as much as C$200,000 over the asking price. “That pressure is what’s causing everybody to remove the conditions on an inspection.”

Home-price increases in North America’s fourth-largest city and its suburbs have outpaced growth in places including Manhattan, Vancouver, Seattle and San Francisco, leading local officials to search for ways to control price gains and spurring concerns a correction may be coming. The frothy market, buoyed by low interest rates, is resulting in frenzied bidding wars, causing many shoppers to leave once-standard clauses such as a professional home inspection and financing contingencies out of their purchase offers.