Monthly Archives: November 2014

Price growth in the suburbs

Leslieville detached

Which price is rising faster? One of these…

Don Mills bungalow

Or this one?

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%.

Affordability
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.

Plan ahead
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!

Toronto Market Update – Nov. 5, 2014

November 2014 Toronto Home Prices

As our chart shows, fall home prices are moving sharply upwards in the GTA, in the typical year-over-year pattern. The average selling price for October 2014 transactions was $587,505 – up 8.9% compared to the average of $539,286 reported for October 2013 (and up 11.6% from the monthly average in January 2014, the lowest point of the year.) The trend in recent years has been for two equivalent price peaks each year, typically in May and October.

A new trend?
We’re used to seeing the strongest price growth in low-rise homes, and a more moderate increase in condo apartments. But here’s something to keep an eye on… This fall, prices in the 905 area have increased more than in the 416. This is happening with detached homes and semis, and also with condo apartments. The likely cause — 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.

Where demand is strongest
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.

“While sales growth has tracked strongly so far this fall, many would-be home buyers have continued to have difficulties finding a home due to the constrained supply of listings in some parts of the Greater Toronto Area, particularly where low-rise home types are concerned,” said Jason Mercer, TREB’s Director of Market Analysis. “The resulting sellers’ market conditions are forecast to drive strong price growth through the remainder of 2014 and indeed into 2015 as well.”

Plan ahead
If you’re thinking of selling, 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 with your plans and create a strategic marketing plan that works for you.