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<\/a>Photo:\u00a0Spiroview Inc.<\/a> \/ Adobe Stock<\/em><\/p>\nFrom the launch of the first iPhone, to the world\u2019s population reaching seven billion people, a lot has changed in the past 25 years. In that same quarter-century timespan, the Greater Toronto Area\u2019s housing market has also witnessed remarkable transformation.<\/p>\n
In its Quarter Century Market Report released today, RE\/MAX Canada says that home sales have doubled while prices have soared over 450 per cent in the GTA since 1996, growth that has been supported by market demand and limited home supply. The report examined home buying activity in the nine Toronto Regional Real Estate Board (TRREB) districts which make up the GTA.<\/p>\n
Between 1996 and 2021, over two million GTA homes have been sold, equal to a dollar volume of $1.1 trillion. The number of residential sales has grown 118.2 per cent between 1996 (55,779 transactions) and 2021 (121,712 transactions).<\/p>\n\n
Meanwhile, the average home price has risen 453 per cent over the same 25-year period, with prices climbing from $198,150 in 1996 to $1,095,475 in 2021, a compound annual growth rate of 7.08 per cent.<\/p>\n
\u201cPerformance of the GTA housing market over the 25-year period has been nothing short of remarkable,\u201d said Christopher Alexander, president of RE\/MAX Canada, in the report. \u201cThis is especially so when considering this time period was characterized by the tech meltdown of 2000, 9\/11, SARS, the Great Recession of 2008, Ontario\u2019s Fair Housing Plan and the on-going pandemic.\u201d<\/p>\n
New construction, transportation contributes to Toronto\u2019s real estate growth<\/h3>\n
Upon examining TRREB\u2019s market districts, RE\/MAX\u2019s Quarter Century report found that land availability, particularly within the city\u2019s core, has \u201cwaned.\u201d Meanwhile, migration, low interest rates and housing affordability have continued to play a critical role in the growth of the Toronto region.<\/p>\n
In the last 25 years, Toronto Central, Halton Region, York Region, Simcoe County and Dufferin County have reported triple-digit sales increases, rising 156.9 per cent to as high as 1,123.7 per cent. Average GTA sale prices have also reached new highs in the last quarter-century, from a low of 301 per cent to a high of 874 per cent.<\/p>\n
New construction has been a \u201csignificant factor,\u201d in the sales gains seen throughout GTA regions such as Peel, Durham, Halton and York. The GTA\u2019s 905 communities evolved to be affordable alternatives for freehold property purchasers, with starter homes on smaller lots enticing first-time buyers outside of the 416 area, RE\/MAX Canada explained. Transportation initiatives like the expansion of the GO train system and 400-series highways have also supported growth, bringing new life to older cities like Milton, East Gwillimbury and Innisfil.<\/p>\n
\u201cIf you build it, they will come, and they sure did,\u201d said Alexander. \u201cBolstered by historically low interest rates, a strong economy, grit and determination, buyers both young and old have moved to the city\u2019s bedroom communities.\u201d<\/p>\n
GTA housing and development to evolve with land availability<\/h3>\n
With land in limited supply within the GTA\u2019s 905 areas, the emphasis is moving from freehold homes to high-density properties, RE\/MAX Canada noted.<\/p>\n
For instance, condos represent one in two sales within Mississauga, while more condo developments are in the works for areas like Brampton, York Region and Pickering\u2019s City Centre.<\/p>\n