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Toronto Condo Prices Keep Rising, Even As Detached Prices Plunge

Condo prices keep rising, even as detached house prices plunge in the City of Toronto.

According to the The Toronto Real Estate Board (TREB) recently released July report, condo prices shot up 7.7% to $627,927 year over year, while sold prices in Toronto for single-family properties sank 9.1% to $1,227,301. Other more dense housing types also did well year over year, with semi-detached properties increasing a healthy 5% to $981,802 and townhouses rising 5.5% to $755,401. “Higher density home types continued to drive price growth, whereas detached home prices remained down in many communities throughout the GTA,” TREB says.

It’s no wonder that condos continue to outpace single-family homes — they’re far more affordable at about half the price and prospective buyers are still have borrowing issues now that banks have tightened lending criteria. 
“Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses and condominium apartments,” says TREB.

“However, the single-detached market segment, which has arguably been impacted most by the OSFI stress test, has experienced a slower pace of price growth, with average detached prices remaining lower than last year’s levels in some parts of the GTA.”It doesn’t help that a home in Toronto Central — which consist of the most desirable neighbourhoods, closest to Line 1 on the subway, actually sells for just under $2 million, while a condo in the same region sells for just under under $700,000. That makes the true cost of a single-family home almost three times more expensive in the city.

Families may also be fleeing the city for neighbouring communities where they can buy a larger, better maintained detached house for a lower price. Milton homes for sale have skyrocketed over the last few years, for example, and now sell for an average of $905,180. Newmarket, similarly, has solid housing stock for $875,518. And of course, homes in Durham Region, just east of the 416, has large homes available for the price of a Toronto condo, at $660,375.

Meanwhile, condos in the 416 continue to be a in-demand option for residents who love the maintenance free lifestyle, and being close to the hustle and bustle. Condo sales rose just over 14% from last July with 1,617 units sold, making up 26.5% of all properties sold in the city. 

Want to see more data on Toronto’s housing market this July? Check out the infographic below.

 


Image courtesy of condos.ca.