For many ambitious homeowners, purchasing a detached home in the GTA has become a near-impossible dream, with prices now 24.2 percent higher than the previous year.
The price of detached homes has risen faster than any other housing type in the GTA. The median detached home price now stands at $1,352,200, according to a new survey from Royal LePage.
Although detached homes have seen the most growth, prices in the GTA have increased 17.9% year over year, bringing the total price to $1,075,900.
The gains have been considerably smaller in Toronto, with property values rising only 4.8 percent year over year to $1,110,500. The price of a detached home in the city has increased by 11.9 percent to $1,566,600, while the price of a condo has increased by 6.7 percent to $687,700.
“More than 18 months into the pandemic, and we are continuing to see strong price appreciation in the suburbs, as well as secondary cities outside of the GTA, fueled by a desire for larger homes, more outdoor space and the flexibility of location, afforded by the option of remote work,” said Karen Yolevski, chief operating officer of Royal LePage Real Estate Services Ltd.
“This trend began prior to the pandemic and has been accelerated since March 2020. The question that remains is what percentage of those who moved away from the city centre will ultimately make their way back. Future newcomers to Canada will also be a significant factor in future demand.”
“In some cases, would-be sellers are not putting their homes on the market for fear they will not find another property to buy,” Yolevski said. “I expect, even as the rate of appreciation slows, prices will continue to climb through the remainder of the year and into 2022, when unmet demand from this year returns to the market.”
Although there has been a slight cooling in the market, with fewer bidding wars, low inventory levels remain a problem and will continue to fuel competitiveness.