Photo: Andre Recnik/Flickr
Think the Toronto real estate market is expensive? The final quarter of 2017 saw double-digit year-over-year price growth across Ontario’s cities.
The largest increase was in the Kitchener, Waterloo and Cambridge region, where the aggregate price of a home rose 24.6 per cent year-over-year to $490,271 in December, according to the Royal LePage House Price Survey, released today.
“The seller’s market in Kitchener, Waterloo and Cambridge continued to be strong through the final months of 2017, which is a trend we fully expect to carry over into the new year,” writes Royal LePage Grand Valley Realty broker Keith Church, in a statement.
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Prices rose across housing types, with the price of a detached home rising by 25.1 per cent year-over-year to $519,970 and the price of a condo rising 12.6 per cent year-over-year to $286,868.
“The migration of buyers from the Greater Toronto Area has stemmed somewhat but most of our buyers are now coming from the ever-growing local population,” writes Church. “With aggregate home prices coming in just under $500,000 favourable interest rates and regional growth of 15,000 people annually, we expect to see continued robust activity…on the horizon.”
Other markets to see double-digit increases included Brampton, where the aggregate home price rose 14.7 per cent year-over-year to $709,071, while Mississauga home prices increased by 12.7 per cent to $742,200. Oakville prices grew 14.2 per cent year-over-year to $1,105,412.
These numbers stand in contrast to the national numbers, which show that Canadian home prices increased 10.8 per cent year-over-year to $626,042 in the final quarter of 2017. The median price of a detached home rose 11.1 per cent year-over-year to $741,924, while the median price of a condo rose 14.3 per cent year-over-year to $420,823.
Royal LePage predicts that home prices will increase by just 4.9 per cent by the end of 2018, as the market adjusts to higher interest rates and new mortgage rules.
“The unsustainably high rates of home price appreciation witnessed in recent years in BC and Ontario were dangerous to the stability of not only the housing market, but to the broader economy itself,” writes Royal LePage president and CEO Phil Soper. “Policy measures like the [new mortgage rules] will quell runaway housing inflation to an extent. However, we do foresee an upswing in demand in the latter portion of the year, as prospective buyers adjust to the new realities.”