GTA detached home prices are up over 24%, bringing median to $1.35M

Buying a detached home in the GTA has become a near-impossible dream for many aspiring homebuyers, with prices now sitting 24.2% higher than the previous year.

Detached homes have skyrocketed in price more than any other housing type in the GTA. According to a new report from Royal LePage, the median detached home price now sits at $1,352,200.

“More than 18 months into the pandemic, and we are continuing to see strong price appreciation in the suburbs, as well as secondary cities outside of the GTA, fueled by a desire for larger homes, more outdoor space and the flexibility of location, afforded by the option of remote work,” said Karen Yolevski, chief operating officer of Royal LePage Real Estate Services Ltd.

“This trend began prior to the pandemic and has been accelerated since March 2020. The question that remains is what percentage of those who moved away from the city centre will ultimately make their way back. Future newcomers to Canada will also be a significant factor in future demand.”

Although detached homes saw the largest growth, prices across all GTA home types are up 17.9% year-over-year, bringing the aggregate price up to $1,075,900.

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In Toronto specifically, the gains have been noticeably smaller, with home prices up just 4.8% year-over-year to $1,110,500. Detached homes in the city are up 11.9% to $1,566,600 and condos are up 6.7% to $687,700.

“In the city centre, prices continue to rise as supply fails to satisfy growing demand,” Yolevski said. “The condo segment continues to rebound, following a drop in sales and prices early in the pandemic. As immigration levels increase, so too will demand for condominiums in major urban centres like Toronto, which will put more pressure on prices in the coming year.”

Although the market has seen some cooling off with fewer bidding wars, low inventory levels continue to be a problem and will sustain some level of competition.

“In some cases, would-be sellers are not putting their homes on the market for fear they will not find another property to buy,” Yolevski said. “I expect, even as the rate of appreciation slows, prices will continue to climb through the remainder of the year and into 2022, when unmet demand from this year returns to the market.”