It doesn’t matter where you go in the greater Toronto area, the price of a detached home is soaring faster than the rest of the market with the situation showing no signs of abating, according to new data.
eptember sales results from the Toronto Real Estate Board show the average price of a detached home reached $1,053,871, a 10.7 per cent increase from a year ago. But double digit increases have become the norm across the GTA for detached home with York region prices up 14.7 per cent in that category from a year ago.
Jason Mercer, TREB’s director of market analysis, said new listings or supply have started to increase in the GTA, but total active listing are still down from a year ago. “Expect strong rates of price growth to continue through the remainder of 2015 and into 2016,” he said, in a release.
The strength of the Housing market in Ontario has led Helmut Pastrick, chief economist with Central 1 Credit Union, to boost his forecast all the way into 2017. “Sales have been strong this year but fewer new listings are coming on the market, so prices are rising in most regions. Continued low MortgageRates have helped spur sales,” he said, in a release.
Pastrick now predicts new records for price will be set across the province next year and the year after with the average reaching $538,000, up from the current $465,444.
All of this could be bad news for first-time Buyers trying to scratch together enough money to buy a detached home. A survey released Monday from local Toronto Brokerage Re/Max Hallmark Ltd. found 32 per cent of buyers over the next 18 months in the GTA will be of the first-time variety.