Everyone knows how prices are going up in the trendy downtown areas. But here’s something to keep an eye on… This fall, prices in the suburban 905 area increased at a greater rate than in the central 416 area.
These price increases are showing up in detached homes and semis, and also with condo apartments. Specifically, the average price for detached homes in the 905 area was up 10.6% in October 2014, compared to last October. That same stat for detached homes in the 416 area was 8.7%.
Similarly, the average price for semi-detached homes in the 905 area was up 8.3% in October 2014, while the same price increase in the 416 area was 5.4%. For condos, the 905 increase was 4.6%, while in the 416 it was 1.5%.
Why are buyers pushing up suburban prices, even when there are few bidding wars? The reason is affordability. At this point, the average price for a detached home is 30% lower in the 905 than in the 416. And the average condo price in 905 is more than 20% lower than in 416. Those price differentials make a compelling argument.
We’re used to talking about how home prices are always going up in Toronto, and we usually focus on the older neighbourhoods – the ones with homes built before World War 2. But there is a finite number of detached homes and semis in old City neighbourhoods. Buyers are looking for alternatives that fit their budgets. This can mean different locations, or different styles of housing.
If you’re thinking of buying, it’s good to bring your agent into the process early on… You can email us, or call James and Joanne at 416-483-8000. We have broad experience in central Toronto and many parts of the GTA. We’ll help you develop your strategy and get you into a home that’s right for you!