There is always some reason regarding why home prices continue to fluctuate and in Toronto, this time the reason can be found in detached housing that has pulled up the average price of homes for the first six months of 2019. According to industry experts, the recovery has started in the detached housing segment and there are now possibilities of getting more relaxed mortgages which are more conducive to the low rate environment and it might boost the GTA housing market again.
According to the Toronto Real Estate Board, more than half the district had indicated a rise in the prices, mostly due to demand for single- detached homes. This trend has been seen in over 50% of the GTA’s neighborhood. The report had an overview of recent trends in 65 districts and the sale of detached homes went up by about 88% that was only 51% in 2018 for the same period.
Major trends in the housing market in Toronto
The greatest development was noticed in the 905 area and all the 30 neighborhoods here saw a surge of home buying activity and as a result 43% noted a price appreciation. The other dominant area, 416, 20 out of 35 districts also saw an increase in prices and prices increased by 57%.
The detached homeowners definitely have much cause for relief now and the prices of such homes are back on track and there is an increase of 17% from last year. With market shares climbing, the detached homes now comprise of 457% of all home sales in the GTA area.
The cause of such high sales is that the homes have now become a lot more affordable and the location of the properties continues to play a vital role. The first time buyers and the trade up buyers are on the lookout for prime real estate before prices start to climb. In areas like North Riverdale, South Riverdale, Black- Jones and Greenwood- Coxwell, the average price rose 15.2% to $ 1,378,987. Other areas that have seen a popularity are Trinity-Bellwoods, Palmerston-Little Italy, Niagara, Little Portugal, Kensington-Chinatown, and Dufferin Grove and there was an increase in 12.8% in these neighborhoods, and average prices being around $1,953,511. Apart from that, Leaside, Thornclifee Park, Dorset Park in Scarborough, High Park North, Lambton Baby Point, and some other areas also saw a significant popularity.
What the numbers say in other locations?
It can be said that a low inventory is what a seller aspires for and the ones in Toronto are quite happy as the unsold inventory has reduced significantly. The sales to active listing ratio are now between 62.5% in C01 to a high of 88.8% in E01.
In about 45% of the GTA districts around the area 416, a good inventory also means it is a buyer’s market and areas like north of Bloor has seen new opportunities for negotiation. The markets going south start to grow tighter.
It can be said that the demand is clearly high for single detached home south of Bloor Street, but the area in 416 is seeing the maximum numbers. In area like C03, homes can be still be bought for just over 1 million price point and areas like C10, which comprises of areas like Sherwood Park, Mount Pleasant West, Mount Pleasant East are other similar neighborhoods. Other popular areas Junction Area, High Park North and Leslieville. The first time buyers are on the lookout for opportunities to get the beast deals.
The top performing markets in terms of unit sales for detached homes at 1 million price point are L’Amoreaux, Tam O’Shanter-Sullivan, Steeles neighbourhood (E05). This area saw an increase by 76.2%. Other areas were Agincourt North, Malvern West, Milliken and saw an increase of 57.1%. Essa in Simco County saw an increase of 43.6% sales with 168 units sold in all.