It’s not a secret that home prices in Toronto have continued to increase on a year-over-year basis.
According to real estate site Zoocasa, the Toronto housing market has seen “a world of change in recent years.” A strong economy, heavy migration, low rental vacancy, as well as investment in real estate as an asset, have had a huge impact on average home prices in the city.
Using data from the Toronto Real Estate Board, Zoocasa said the average home buyer would need to shell out $256,055 more for a home in July 2019 compared to 2014, that’s an increase of 46% and a price tag of $806,755.
Research by Zoocasa also found that over a five-year time period, “dramatic price increases have persisted in pockets across the city.”
“The study, which crunched the difference in average home prices for condos and houses in 35 MLS districts in Toronto, reveals prices have more than doubled in a number of neighbourhoods, especially in the condo market and areas with prices lower than the city average,” stated Zoocasa in its latest report.
Overall, the average increase in condo prices was 66% (or $627,927) between 2015 and 2019. Of the neighbourhoods assessed in the report, eight have seen appreciation of 100% or higher, 30 of 35 have experienced at least a 50% increase, while all have seen prices tick up by a minimum of 25%.
Seven of eight remain priced below the $500,000-mark in 2019, and they were well below the $250,000-mark in 2014. But, Zoocasa reports that these neighbourhoods also have a lower inventory with sales that are much lower than in more central areas in the city.
Condos located within the Toronto’s downtown core or close to transit hubs saw the greatest volume of sales, like City Place, Cabbagetown, and Mimico, despite being at a higher price point between $520,000 – $711,000.
Neighbourhoods where condo prices doubled
•E10 –West Hill, Centennial Scarborough: +147%
•July 2019 Average condo price: $340,750
•Sales: 4 New Listings: 9
•E08 –Scarborough Village, Guildwood: +140%
•July 2019 Average condo price: $424,344
•Sales: 16 New Listings: 27
•E11 –Malvern, Rouge: +128%
•July 2019 Average condo price: $377,295
•Sales: 20 New Listings: 29
•W09 –Willowridge –Martingrove –Richview: +127%
•July 2019 Average condo price: $418,168
•Sales: 11 New Listings: 20
•E06 –Birchcliff: +121%
•July 2019 Average condo price: $661,700
•Sales: 5 New Listings: 16
•W04 –Yorkdale, Glen Park, Weston: +120%
•July 2019 Average condo price: $466,390
•Sales: 26 New Listings: 37
•W05 –Black Creek, York University Heights: +115%
•July 2019 Average condo price: $389,516
•Sales: 25 New Listings: 40
•W10 –Rexdale-Kipling, West Humber-Claireville: +101%
•July 2019 Average condo price: $389,196
•Sales: 28 New Listings: 62
Meanwhile, house sales in Toronto rose 42% over the five year period to $1,167,968 for detached and semi-detached houses. Zoocasa reported that the bulk of neighbourhoods experienced a 25-49% uptick in prices (15 neighbourhoods) and between 50-74% (13 neighbourhoods). Four saw an increase between 18-24%, while just three saw increases above the 75% mark.
And of those three, two MLS districts saw prices double, which includes Forest Hill and Oakwood, and Regent Park, St. James Town, and Corktown.
However, there are differing factors at play in each of the communities, according to Zoocasa.
In the Forest Hill/Oakwood area, conditions were favourable with 30 sales and 44 listings during the month of July, setting the stage for a robust sellers’ market at a premium price point of $2,031,545. But in contrast, detached and semi-detached houses for sale are in very scarce supply in Regent Park/St. James Town/Corktown, with just four sales and five listings over the course of the month.
“That effectively puts upward pressure on prices, which are at an average of $1,789,032, despite it being a very small market for single-family housing,” said Zoocasa. “However, house buyers continue to be most drawn to lower-priced neighbourhoods as affordability remains a key factor; the greatest concentration of sales activity happened in MLS districts where average home prices have remained below the $1-million mark including East York –Danforth Village, Morningside, and Black Creek –York University Heights.”
Neighbourhoods where house prices doubled
•C03 –Forest Hill, Oakwood: +121%
•July 2019 Average condo price: $2,031,545
•Sales: 30 New Listings: 44
•C08 –Regent Park,St. James Town, Corktown: +101%
•July 2019 Average condo price: $1,785,032
•Sales: 4 New Listings: 5