Photo: James Bombales
Condos may still be more expensive overall in the City of Toronto, but prices are rising fastest in Mississauga, just to the west of the city.
The average price of a condo in the Toronto region’s largest suburb was $455,243 in the third quarter of 2019, up 9.6 percent from the same period last year. Mississauga also beat out regional suburban rivals Brampton and Whitby, where condo prices posted strong gains of 7 percent and 6.1 percent, respectively.
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But make no mistake, even though City of Toronto condos didn’t top the region last quarter when it comes to price growth, the market is still rocketing skyward. The city saw a 9.2 percent increase to its average condo price, strong enough to earn it the distinction of the second biggest increase in the region during Q3.
That’s all according to Royal LePage’s House Price Survey released today. The quarterly survey takes a deep dive into home prices for the major housing types (two-storey homes, bungalows and condos) in 63 Canadian real estate markets.
While surging condo prices in the city and many of its surrounding suburbs is a major theme covered in the Royal LePage survey, renewed interest from buyers in the single-family home market is the top trend the brokerage has identified for the third quarter.
“The shrinking price gap between condominiums and detached properties in many areas of the
GTA has encouraged some homebuyers to save for a bit longer and enter the market owning a
bungalow or a two-storey home,” says Chris Slightham, president, Royal LePage Signature Realty, in a media release.
It was not so long ago that condos were seen as the ideal starter home for first-time buyers who couldn’t hope to afford a single-family home after years of sustained price increases. But the market has changed, with condo prices now climbing rapidly while detached home price growth has slowed.
“We’ve also seen an increase in consumer confidence across the GTA partly because of
the recent decline in the benchmark five-year interest rate, which has made single-family homes
more attractive,” says Slightham.
Another regional trend flagged in the report was the impact that the announced opening of a new Amazon fulfillment centre had on the Scarborough condo market. The average condo price rose 7 percent in the third quarter to $416,219.