Home prices in and around Toronto are rising and only expected to climb higher
If you thought a global pandemic would be enough to curb the Greater Toronto Area's sizzling real estate market, you thought wrong. Prices are climbing, and that's not even news at this point.
What is newsworthy is the sustained price appreciation even after the turbulent year and a half of lockdowns straining the market. And we aren't talking a little bit of price appreciation either.
Royal LePage's House Price Survey released today reveals that the aggregate price of a home in the GTA shot up by a whopping 17.9 per cent year-over-year in the third quarter of 2021, now soaring at a sky-high $1,075,900.
This is part of a Canada-wide trend of out-of-control housing price acceleration.
🏡 Canada's aggregate home price increased 21.4% year-over-year to $749,800 in Q3. Market activity slowed due to chronic supply shortages and the seasonal summer slowdown.— Royal LePage Canada (@Royal_LePage) October 15, 2021
💡 Learn more on the Royal LePage blog.https://t.co/PfZqHlCGox
An overwhelming demand for houses in the GTA has been a recurring theme throughout the pandemic, and this is evidenced by a meteoric 24.2 per cent year-over-year spike in the median price of a single-family detached home, which would now cost you an average of $1,352,200.
And if you're in the market for a condo in the GTA, you'll have to dig pretty deep too.
Though not as extreme as single-family home appreciation, condo prices have risen dramatically as well. A year-over-year median price increase of 12.3 per cent has brought the average cost of a GTA condo to $645,300.
"More than 18 months into the pandemic, and we are continuing to see strong price appreciation in the suburbs, as well as secondary cities outside of the GTA, fueled by a desire for larger homes, more outdoor space and the flexibility of location, afforded by the option of remote work," said Karen Yolevski, chief operating officer, Royal LePage Real Estate Services Ltd.
"This trend began prior to the pandemic and has been accelerated since March 2020. The question that remains is what percentage of those who moved away from the city centre will ultimately make their way back. Future newcomers to Canada will also be a significant factor in future demand."
Toronto proper saw price growth too, though nothing as extreme as the broader region factoring in red-hot suburban markets.
It's 4.8 per cent more expensive to own a home than in the third quarter of last year, Toronto's aggregate home price rising to $1,110,500. Single-family detached homes increased in median price by 11.9 per cent to $1,566,600, with condos rising 6.7 per cent to $687,700.
"In the city centre, prices continue to rise as supply fails to satisfy growing demand. The condo segment continues to rebound, following a drop in sales and prices early in the pandemic," said Yolevski.
And if prices weren't already high enough, Royal LePage is forecasting more big green dollar signs for the GTA housing market, predicting a 14.5 per cent increase in GTA-wide aggregate home prices in Q4 of 2021.
For homeowners and investors, this may all seem like good news, and while it might be for some of the shorter-term investments out there, many in and around Toronto have a lot riding on the housing market.
Recent news that Toronto was ranked the second-riskiest housing bubble in the world should be cause for concern for those relying on their real estate investments, even as their property values swell.
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