The Greater Toronto Area’s housing market is off to a steady start this January, reports the Toronto Real Estate Board (TREB).
January numbers show a stable real estate landscape, with prices and sales slightly up from January 2018. Sales are up 0.6 per cent year over year to 4,009 transactions, while prices are up 1.7 per cent to $748,328.
“It is encouraging to see the slight increase in January transactions on a year-over-year basis, even with the inclement weather experienced in the GTA region during the last week of the month. The fact that the number of transactions edged upwards is in line with TREB’s forecast for higher sales in calendar year 2019,” said TREB President Garry Bhaura.
As in 2018, 2019 is also showing a huge discrepancy in price movement between property types.
This is most pronounced in the 416. Condos rose 8.8 per cent to $591,444, while detached houses sank the exact same per cent to $1,174,134. In the 905 the discrepancy is still there, just less extreme. Condos grew 8.2 per cent to $456,857, while detached houses were mostly stable, edging up 0.9 per cent to $883,027.
“Given housing affordability concerns in the GTA, especially as it relates to mortgage qualification standards, we have seen tighter market conditions and stronger price growth associated with higher density low-rise home types and condominium apartments, which have lower average selling prices compared to single detached homes,” said Jason Mercer, director of market analysis at TREB.
Prospective buyers have a tough choice to make when the cost of a detached house is almost double the price of a condo unit — and sometimes far more.
The most expensive neighbourhood to buy a condo is in the Annex, Wychwood, Yonge and St. Clair areas, with the average condo selling for $1,244,400 — more than the average detached house in the city.
In comparison, the most expensive neighbourhood in which to buy a single family home is Lawrence Park North, St. Andrew Windfields, where two properties sold for an average of $6,724,000.
It’s rare the prices difference is that extreme though.
The most popular price for a single-family home across TREB was in the $700,000 to $799,999 range, with 275 sold, while for condos it was in the $400,000 to $499,999, with 400 sold.
In Etobicoke, for example, detached Etobicoke homes for sale sell between $709,500 to $1,381,253. Conversely, prospective buyers can pick up Etobicoke condos for sale for between $344,156 to $528,969.
Still, although the price difference may be a deterrent, single-family homes are still the most in-demand property type across TREB, capturing 42.5 per cent of total sales.
For more details about Toronto’s January housing market, including data on sales, semi-detached properties and townhouses, check out the infographic below:
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Writer: Danielle Kubes
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