Data released by the Toronto Real Estate Board this week confirm what is already well-known to even the most passive observers: The real estate market in Toronto and the Greater Toronto Area are booming and are not showing any signs of abatement.
As we have already seen, single detached homes in the 416 area code have become a luxury few can afford as their prices have risen 9.2 per cent year over year to reach an average price of $1,056,114.00. Remarkably, though, prices for single detached houses in the 905 region have risen an astounding 13.1 per cent year over year as families unable to afford Toronto housing flock to the seemingly endless supply on offer in the GTA. Those homes are now selling for an average price of $729,961.00.
Interestingly, condos in the 416 area code have surpassed an average price of $400,000.00 for the first time in history, selling for an average of $407,612.00 with sales up 5.8 per cent year over year. Much like the single detached housing market, price increases in the condo market were higher in the 905 area than they were in the 416 with an average GTA condo selling for $318,471.00 and up 7.4 per cent year over year. With the higher increase in GTA condos versus Toronto condos, their average prices are not wildly divergent, however it is worth noting that the average size of those condos being sold in the GTA are larger than their Toronto counterparts.
The sweet spot in between condos and detached housing, of course, are townhouses which have surged in popularity in the last decade with many ultra-modern new developments in and around Toronto. Unsurprisingly, the sale of townhouses is soaring with an increase of almost 29 per cent in sales in Toronto. The average price rose almost 10 per cent to a price of $551,231.00 in Toronto and $448,236.00 in the GTA.
The figures relating to condo sales are particularly interesting as there has been much speculation of late about whether the city can absorb the supply of new units coming onto the market year after year, as tower cranes are ever-present in the city fueling the growth. Many have been worried about the effect on the condo market of the central Bank of Canada raising its prime lending rate. Clearly, buyers and investors are not so worried. The strong growth of all housing sectors outside of Toronto seem to confirm the idea that some have put forward that residents are competing to live in Toronto and for every person who cannot afford to, someone else is available to take their place.
Our homes are often the greatest investment we make in our lives and prudence is always advised. We always encourage our clients to do their due diligence before purchasing and we always take the greatest care to perform our due diligence on your behalf as well. We are always happy to discuss potential purchases or sales and advise you on the best course of action. At Davidzon Burshtein LLP we strive to be your trusted Toronto real estate lawyers.