It’s a tale of two markets: detached home prices in the GTA are weakened while denser housing types are posting what the Toronto Real Estate Board calls “relatively strong” gains.
The trend continued in July, with the GTA-wide average price of a detached home sinking 0.9 percent annually to $995,043. Meantime, condo apartments sold for an average of $584,019, up 6.7 percent on a year-over-year basis.
With the release of the figures this week, TREB draws attention to the divergent trends.
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“Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses and condominium apartments,” the monthly Market Watch report reads.
Of all housing types, price growth was strongest for condo apartments in Toronto proper, where the average price was $627,927, up 7.7 percent.
“However, the single-detached market segment, which has arguably been impacted most by the OSFI (Office of the Superintendent of Financial Institutions) stress test, has experienced a slower pace of price growth, with average detached prices remaining lower than last year’s levels in some parts of the GTA,” says TREB.
The City of Toronto has been hit harder than the suburban average. The average price of a detached Toronto home has plunged 9.1 percent in 12 months, sinking to $1,227,301.
The average detached home price for the 905 area code, which encompasses the suburban areas surrounding Toronto, was $929,633, up 2.5 percent.
“As we suspected, strong demographic demand, limited supply (at least for single detached and larger units) and a plunge in mortgage rates have put a floor under the market,” writes BMO Senior Economist Robert Kavcic in a note to clients.
In total, 8,595 homes changed hands in the GTA last month, surging 24.3 percent from a year earlier. Taking seasonal factors into account, home sales were up 5.1 percent on a month-over-month basis. Detached sales soared 29.7 percent, while condo-apartment sales climbed 14.3 percent.