Photo: James Bombales
Each property type in the GTA’s housing market saw a significant price increase in the first quarter of 2015 over the same period in 2014. According to a new report from Royal LePage, the average price for a standard detached bungalow in the region rose 10.2 per cent, year-over-year, to $655,669. Not far behind, the average price for a standard two-storey rose 9.2 per cent to $803,794, while standard condo prices increased 7 per cent to $395,584.
“The momentum we saw in the Toronto residential real estate market last year has carried over into the first quarter of 2015,” said Gino Romanese, Senior Vice President, Royal LePage.
“Competition for homes in Toronto, particularly bungalows and standard two-storey homes, is fierce. Buyers looking to redevelop these properties have become more prominent in recent quarters, putting additional upward pressure on prices and frequently causing bidding wars.”
It’s a stark contrast to the national picture. Royal LePage characterized recent country-wide price trends as a “soft landing” with smaller than normal price growth.
In Q1-2015, the average price of a home in Canada rose between 3.8 per cent and 6.6 per cent year-over-yea, led by detached bungalows, which saw prices increase to $405,895. Standard two-storey homes followed with a 5.3 per cent increase to an average of $451,463, while standard condos saw the smallest increase at 3.8 per cent to $261,782.
Despite the softening, Phil Soper, president and chief executive of Royal LePage said, “we do not foresee a sharp decline in home prices, particularly in today’s low interest rate environment.”