All property types posted price gains in the 905 region this January, according to the latest report from the Toronto Real Estate Board (TREB).
Detached house prices rose 0.9 per cent to $883,000, semi-detached 1.8 per cent to $650,750, townhouses 2.1 per cent to $600,500 and condos 8.2 per cent to $456,860.
Condos Continue to Lead the Market
Condo prices outpacing single-family homes was also at trend seen in the 416, and is likely to continue into 2019. Because of the new stress test implemented by the federal bank regulator last January, prospective buyers have likely found their borrowing reduced and are now looking at less expensive market segments.
“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.
Home Values Vary Throughout Region
The 905 is a wide area and all real estate is local. All regions posted year-over-year gains except for Simcoe County and Durham Region, which slipped a fraction. Within those larger regions, however, each cities saw varying price changes.
Halton Region as a whole edged up a 3 per cent to $854,750, for example, but Burlington real estate declined, dropping 5.5 per cent to $ 726, 900 while Oakville real estate, also in Halton, grew 3.8 per cent to $1,050,000.
Meanwhile, Peel Region grew almost 5 per cent to $696,700 as a whole, while Caledon houses plunged 6.7 per cent to $816,150 and neighbouring Mississauga real estate grew 11.7 per cent to $705,500.
However, prospective buyers and sellers should be wary of statistics — although they represent the overall market, they do not necessarily reflect their specific neighbourhood.
Prices across all TREB’S regions edged up 1.7 per cent to an average of $748,330 year-over-year and TREB forecasts continued growth throughout the year.
“It is encouraging to see the slight increase in January transactions on a year-over-year basis, even with the inclement weather experienced in the GTA region during the last week of the month” said TREB President Garry Bhaura. “The fact that the number of transactions edged upwards is in line with TREB’s forecast for higher sales in calendar year 2019.”
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