Detached housing prices in Toronto plunged about 9 per cent this January, year over year, but still remain out of reach for most buyers at $1.74 million.
Condos remain the only property option for most prospective buyers, even as their prices continue to climb — up about 9 per cent to $591,500.
Almost two and a half times more condos were sold in the 416 than single-family homes this January, at 342 units versus 840 houses.
With single-family homes sliding the exact percentage that condos are rising, it would appear they have an inverse relationship. In fact, TREB blames the unequal price growth on the tighter mortgage rules that began last January. Borrowers must now qualify at their contract rate plus 2 per cent or the Bank of Canada rate, whichever higher, and currently at 5.34 per cent. This likely severely reduced the size of mortgages and pushed prospective buyers into condos, the only market type they could afford.
The most expensive place to buy a detached home remains in Toronto Central, at just over $1.9 million. Richmond Hill is the second-most expensive region with single-family homes just over $1.45 million Oakville and King City are tied for the third-most expensive area, with homes approaching $1.4 million.
Condos only rarely reach those sorts of prices, and are confined to Rosedale and the Annex.
Still, with condo markets steadily rising over the last few years, even that market type has become out of reach for many buyers. Very few neighbourhoods have units selling for an average of under $500,000. Etobicoke condos are one of the last somewhat affordable bastions in the city, with condos going between $344,000 to $571,500, and the east end is even cheaper, with Scarborough units going for under $400,000. North York condos go for about the city average, at around $600,000
But outside of the outer boroughs of the 416, the price of high-density living soars dramatically.
Liberty Village, for example, was a vacant, industrial area that was recently developed into a tightly woven cluster of high-rises. It’s now the most popular place in the entire GTA to buy a condo — 183 Liberty Village condos were sold this January for an average of $664,300.
Still, as long as single-family home remains around double the price of a condo, it’s unlikely the demand will cease.
For more data on the Toronto real estate market this January, check out the infographic below:
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