Average detached home price over $1,000,000
Toronto and the surrounding area is the hottest real-estate market in Canada and has been for decades. The Toronto and greater Toronto area, (GTA) now expanded to include the city of Hamilton, (GTHA) has long being labeled as “over-heated” with houses being sold at what many international ratings agencies say are highly inflated prices.
In spite of constant warnings that “the bubble will burst”, it hasn’t and doesn’t appear to be heading in that direction at all.
Out of reach for first time buyers
Just a few decades ago, the typical expectation was that young couples would be able to buy their own home and raise a family. With prices already above most salary capabilities and rising faster than salary increases, that dream is already out of reach for most, and getting further and further out of reach.
Recent sales figures from the Toronto Real Estate board peg the average price for a detached home at $1,053,871 That’s up almost 11 percent from just one year ago.
In other places in the GTHA the increase is even greater. York region, just to the north of Toronto proper, and including towns like Markham, Vaughan, and Newmarket, had a price jump of almost 15 percent.
This has led to bidding wars, where desperate buyers offer more than the original asking price and bid against other potential buyers.
Jason Mercer, the Toronto Real Estate Board’s director of market analysis.
Says, “Expect strong rates of price growth to continue through the remainder of 2015 and 2016.”
Another analyst, Helmut Pastrick, with Central 1 Credit Union, is predicted strong sales through to 2017. He also predicts increasing record prices across the province with the average home price in Ontario rising to almost $550,000 from the current average of just ove $450,000 for a detached home.
Another survey released by the local Re/Max-Hallmark Ltd. Brokerage found that 32 percent of home buyers over the next 18 months, will be first time buyers.
The survey found that 50 percent will use retirement savings to fund the down payment but are looking at property under $450,000.
That means detached homes in the region cannot be considered, nor even semi-detached. The average town-house in the region outside Toronto is just at the $450,000 level
In Toronto, the average condo price is now almost $420,000, and outside Toronto, it is over $300,000.
The average price across for a home in Canada hit $433,367 in August, that was an increase of 8.7 per cent in the past year, according to the Canadian Real Estate Association. The other “overheated” market is the Greater Vancouver area in British Columbia where prices have increased by 12 percent over last year.
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