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The Greater Toronto Area condo market started off 2019 by posting price gains, reports the Toronto Real Estate Board (TREB). Condos grew 8.8 per cent in the 416 to about $591,500, and 8.2 per cent in the 905 to $457,000 year over year. In contrast, single-family homes in the 416 plummeted 8.8 per cent to $1,174,000 and softened 0.9 per cent in the 905 to $883,000. Prospective buyers are increasingly turning to condos instead of single-family homes, likely because it’s what they can afford..
“Given housing affordability concerns in the GTA, especially as it relates to mortgage qualification standards, we have seen tighter market conditions and stronger price growth associated with higher density low-rise home types and condominium apartments, which have lower average selling prices compared to single detached homes,” said Jason Mercer, director of market analysis at TREB.
Both a City of Toronto and 905 condo is about half of price of a detached house in their respective regions. Although the most expensive place to purchase a condo across all of TREB’s region is still in Toronto Central, at $678,000, there are few areas in the 905 which are catching up, and are now more expensive than some 416 regions. Units in Toronto West and East go for $500,000, and $430,000 respectively, but head west along the lakefront or north on Yonge St. and you’ll find cities with units that match or exceed those prices. Burlington, with easy access to the GO train, and neighbouring Oakville, are two of those areas. Burlington real estate shows condos going for $439,100 in January, while Oakville real estate data shows units going for $520,000. Markham and Vaughan, in York Region, are also in high-demand with prospective buyers, with units going for $522,600 and $576,500 respectively. It’s easy to see why the condo lifestyle has spread to the suburbs — easy maintenance, a gym without walking through the cold and the chance to live in lively neighbourhoods.
Condo purchases accounted for almost 31 per cent of all transactions in the GTA this January, selling 1,238 units, coming second only to single-family homes, but far outpacing semi-detached and townhouses. The demand for condos across the GTA is only likely to continue to grow throughout 2019. For more information on Toronto’s January housing market, check out the infographic below.
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