Toronto has the second most expensive housing in Canada this July, next only to Vancouver, according to the Canadian Real Estate Association (CREA).
Toronto’s composite benchmark price, which is a more accurate measure of price change than averages, declined 0.59 per cent year-over-year to $768,400.
“We have certainly experienced an increase in demand for ownership housing so far this summer,” said Jason Mercer, the Toronto Real Estate Board’s director of market analysis. “It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market. ”
Toronto 41.5 % Less Expensive than Vancouver
Meanwhile, the benchmark price for a home in Vancouver is currently sitting at $1,087,500, a 6.7 per cent increase from last year. Those prices make Toronto look like a bargain, at 41.5 per cent less expensive.
“Summer is traditionally a quieter time of year in real estate. This is particularly true this year,” says Phil Moore, president Real Estate Board of Greater Vancouver. “With increased mortgage rates and stricter lending requirements, buyers and sellers are opting to take a wait-and-see approach for the time being.”
Go West to Save 150%
Property prices drop considerably outside of those two major metropolis. Indeed, the average for a home across Canada is $481,500, but once we remove Toronto and Vancouver from the equation, the home prices are just $383,000, says CREA.
Canadians looking for more affordable places to live would do well to check out Edmonton homes for sale or Calgary real estate. Properties are on sale now, figuratively, in these cities, as oil prices have yet to fully recover and as supply exceeds demand.
Homes in Edmonton went for average of $370,046 this July, just under the national average, while properties stand at $435,200 in Calgary. In both cities detached houses can be had for hundreds of thousands of dollars less than a condo in either Toronto or Vancouver. Moving from Vancouver to Calgary, at the average prices, could save Canadians could save up to 150 per cent on housing.
Condos Outpace Detached Houses
A national trend, seen in primarily in the dense cities of Toronto and Vancouver, but also across the nation, is the relatively rapid growth of less expensive properties, and the slow growth or decline of the most expensive properties. This is almost certainly due to the federal bank regulator tightening mortgage lending rules on January 1 of this year, and thus reducing affordability for borrowers.
CREA’s national statistics show that apartment units posted the largest year-over-year price gains across all market segments, up 10.1 per cent, followed by townhouse or row units, up 4.7 per cent. That’s a marked contrast from one-storey and two-storey single family homes, which were down 0.7 percent and 1.5 per cent respectively.
In Toronto, the benchmark price for single-family detached homes decreased 4.15 per cent to $923,800, while condos increased 8.33 per cent to $501,400.
In Vancouver, the benchmark price for detached properties reached $1.588,400, a 1.5 per cent decrease year-over-year. Condo units reached $700,500, an incredible 13.6 per cent increase from June 2017.
Check out our infographic below to see how other Canadian cities fared this July:
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