Home prices are absolutely exploding in this Toronto suburb right now
If you, a downtown Toronto coolster, have always banked on one day moving out to the 'burbs for a mere affordable house when the time is right, I sincerely hope you either a) bought that home three years ago or b) consider a $500,000 discount on a nearly two-million dollar home "affordable."
Because that's where we are — Toronto and Vancouver are no longer alone in the seven figure club thanks, at least in part, to the mass exodus of city dwellers into smaller towns and suburbs amid the COVID-19 pandemic.
Brampton is the latest Ontario city to report jaw-dropping property value increases, according to RE/MAX Canada, with average home prices jumping by nearly 25 per cent over the span of a single year.
" While the price of GTA real estate has increased, it remains more affordable than properties in the Toronto core. But, as more people stray from the big city, particularly amid the Covid-19 lockdowns, housing markets in the surrounding areas have flourished," reads a newly-released report from the real estate giant.
"The city of Brampton is no exception."
RE/MAX goes on to note that Brampton, Ontario, is situated just west of Toronto (duh) and that the Peel Region city has a population of roughly 600,000 people (per the last federal census.)
According to realtors, Brampton is known industry-wide as "a dynamic and quickly growing commuter city for those who work in the GTA, Guelph, or even as far as the Kitchener-Waterloo area."
Rising home prices certainly reflect the Ontario city's popularity: Not only did they soar throughout the summer, they continue to rise even as pandemic restrictions begin to life.
"With a limited amount of inventory and higher than typical demand, prices of homes in the Brampton real estate market have surged, making it more challenging for buyers who want to call the GTA 'home.'," writes RE/MAX.
"The city saw the average home price increase 24% to $1,060,277 during the month of August this year."
Like Toronto, home sales have dropped a bit due to sky-high housing prices — sales actually dropped by 26 per cent in Brampton this past August compared to August of 2020.
"Declining unit sales gave some hope that the market could begin to replenish," notes RE/MAX. "However, with just 950 residential properties hitting the market, prices skyrocketed amid tight supply levels."
And isn't that just the way?
Higher demand and lower supply equals inflated housing prices — something that Toronto has been experiencing for years but that markets all over Ontario are now dealing with as well thanks to remote work capabilities.
Sadly for prospective buyers — especially first-time home buyers — this trend is expected to continue for some time across the GTA, Brampton included.
"Price growth in September continued to be driven by the low-rise market segments, including detached and semi-detached houses and townhouses," says TRREB Chief Market Analyst Jason Mercer of the phenomenon.
"However, competition between buyers for condo apartments has picked up markedly over the past year, which has led to an acceleration in price growth over the past few months as first-time buyers re-entered the ownership market. Look for this trend to continue."
Join the conversation Load comments