The Toronto condo market continues to outpace its low-rise counterpart, according to a new report from real estate website Zoocasa.
Condo values jumped 11 percent year-over-year last quarter, while low-rise home values rose just 1 percent.
“New quarterly data from the Toronto Real Estate Board reveals the average [condo] unit price rose 9.7 percent year-over-year to $594,039 between July and September,” writes Penelope Graham, managing editor of Zoocasa, in the report. “Last month alone, the average unit fetched $615,582, up 11.7 percent, compared to a decline of 1.4 percent for detached home prices.”
According to Graham, condo values were up in 23 of 35 Toronto markets last quarter, while low-rise homes only managed to outpace condo value growth in 12 neighbourhoods. Part of the reason for the difference in pace? A rising interest rate environment, combined with new lending regulations, is pushing buyers towards the more affordable condo market.
Condos in the city’s downtown, especially in its west end, did particularly well, according to Zoocasa’s analysis.
“[These areas] continue to reign supreme, supported by a booming city-centre job market and demand for the 416’s trendiest neighbourhoods,” writes Graham. “As well, neighbourhoods known for their upscale housing stock, such as North York’s Willowridge community, as well as tony Yorkville, are among the top five areas experiencing the greatest price appreciation.”
For a closer look at which Toronto neighbourhoods are seeing the fastest condo price appreciation, check out Zoocasa’s infographic below: