While Toronto condo prices have remained mostly unchanged in recent months, new research published this week shows that one specific area of the city is experiencing soaring levels of price growth.
According to a market report released by Toronto-based brokerage Strata.ca, one-bedroom condo units located in North York have seen four consecutive months of price increases.
By the end of July, the sale price of a single-bedroom unit in the district averaged $528,000, up $25,000 since March when the typical sale price was $503,000. Similarly, the price of a two-bedroom North York unit hit a yearly high in July at $698,400, which is an increase of more than $45,000 since March.
The brokerage highlighted that the growing desirability of North York is causing properties to sell for over the asking price, with one-bedroom suites going for 3.32 percent above list price. This stands in contrast to early 2021, when listings typically sold under asking, Strata.ca explained.
Comparing the multiple communities within North York, Willowdale stands out as the district’s most active neighbourhood for price growth. Last month, Willowdale buyers who purchased a one-bedroom unit paid $60,000 more on average compared to June. However, those who bought a two-bedroom unit actually saw prices go down by $20,000 month-over-month in July.
Already a hub for condos, Strata.ca notes that the Willowdale neighbourhood is expected to see more units added to its roster thanks to city densification policies around existing mass transit. The community is situated close to the Don Valley Parkway and Highway 401, plus a strip of Yonge Street that lends access to the Yonge and Sheppard TTC subway lines.
Strata.ca broker Cliff Liu explained in the report that North York’s appeal as a “cheaper alternative” to central neighbourhoods is considered a primary selling point for the community.
“Many of the people buying in North York right now are first time homebuyers as it’s a bit more ideal as an entry point,” said Liu. “It’s also an area where downsizers can pick up a retirement home, but still find all the conveniences of the city.”
While North York prices have shot up, other areas of the city have experienced less pronounced growth.
In downtown Toronto, condo prices have averaged $790,000 since April, while in Midtown, condo values have dropped from their April peak of $1,026,083 by almost $150,000, Strata.ca said. However, buyers still paid approximately two percent over asking for one- and two-bedroom Toronto condos in July.
Closed borders, new Airbnb rules, and a wave of Torontonians looking further outside the city for housing thanks to the work-from-home movement are all factors that could be causing prices to stagnate, said Robert Van Rhijn, Strata.ca’s Broker of Record.
“July numbers are in, and the average sale price of a condo in Toronto last month was $712,046,” said Van Rhijn. “That’s just a $350 increase compared to June.”
