In what was called a “rebound year” for home values in the region, the GTA saw gains in the value of property so high that they rival the average annual income for many residents.
According to property listing company Zoocasa, the local real estate market emerged from a 2018 slump and managed to earn more last year than the people who would hope to buy them.
The company estimates that median home prices rose by 8% to $720,000 during 2019. This adds up to an average increase of $55,000 per property. The total is 94% of the median Torontonian’s after-tax income of $58,264, according to Zoocasa.
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“The largest increases took place in Toronto Central, where median prices rose 9% year over year to $705,800, a difference of $55,800, accounting for 96% of income,” said Penelope Graham at Zoocasa. “That’s followed by Toronto West, which rose 8% to $715,000, up $55,000 and accounting for 94%, while Toronto East experienced a 6% increase to $740,000, up $45,000 and accounting for 77% of income.”
Zoocasa found that a total of 87,825 homes were sold in the GTA over the course of 2019, representing a 12.6% uptick in sales following a 10-year low set in 2018.
The company said that home prices managed to climb an average of 4% across the GTA year over year to $819,319, requiring buyers to find an extra $32,079 more than they needed to the year before. Sold home prices in Toronto rose 5.6% to an average of $883,520 during 2019.
Simcoe County and York region managed to score the smallest median home price increase of all GTA regions, with the median home price hitting $588,250 and $850,150 respectively, both accounts for a 2% increase.
In a previous report released earlier this month, Zoocasa predicted steady growth for the city over the course of the new year.
“Canada’s housing market has come a long way from its 2016-2018 boom-bust cycle,” the report said. “After sustaining roughly two years of softer sales and price growth following the introduction of the federal mortgage stress test, as well as provincial taxes and policies in Ontario and British Columbia, demand for homes for sale found its footing in the second half of 2019. ”
Both BC and Ontario are also expected to “lead housing market growth” in the country.
In the Ontario real estate market, sales will hit between 204,200 to 213,800 units (+4.2 – 7.3%), with prices between $614,000 to $633,700 (+5.4 – 6.5%).
To help people see how much value homes in regions across the GTA have gained over the past year, Zoocasa put created an infographic breaking it down by location.