Turns out your postal code has a huge impact on whether your condo feels the ups and downs of the Toronto condo market. New data from Teranet and the National Bank of Canada demonstrate the huge impact of location on not just price, but long-term performance as well.
Zeroing in on specific neighbourhoods within the city, the data providers found that condos in the Parkdale, High Park and Christie area (blue line) consistently outperformed the Toronto Metropolitan index (black line) in price growth, increasing since 2005 to an all time high of 177.23. The popularity of Parkdale, High Park and other western communities is well-documented as it remains a less expensive alternative to downtown with good transit service to the core. The price index base line was set at 100 in June 2005.
The southwestern part of the city also outperformed condos in the Glen Park-Amesbury, Cedarvale-Silverthorne-Fairbank areas (red line), which measured a 129.72 index level in June of this year.
However, Teranet-National Bank note that despite the marked price increase over the last eight years, values for condos in the southwestern part of the city appeared to be much more volatile and subject to downturns than their under-performing equivalent in midtown. Looking at the black line, which represents all housing types in Toronto, Parkdale condos echoed the sharp downturn felt on a city-wide basis in the summer of 2009. Though condos in the Cedarvale part of the city don’t share the same high values as the southwest, the 2009 downturn was hardly a blip on their radar.
But that doesn’t necessarily mean the region is immune to market shake ups. As the city-wide real estate market stalled in the latter part of 2012 and early part of 2013, both parts of the city clearly felt the effects.
Sample data prepared exclusively for BuzzBuzzHome from a population of 700+ neighbourhood and house type sub-indices developed by the Teranet – National Bank House Price Index™. Each organization provides price intelligence for properties in major Canadian markets. The neighbourhood boundaries were set independently by Teranet and National Bank.