If a chill doesn’t fall down your spine the second you hear the words Toronto’s housing market, you either have a boatload of money or you like to live dangerously my friend. According to Bloomberg, Toronto’s housing prices peaked this month for the first time in almost two years despite a total lack of supply. The average price of a home in the 6ix rose 5.8% from a year ago rounding off to a whopping $810,900. It marks the most significant leap since December 2017 and takes us within less $5000 of breaking the all-time record, which was broken back in the middle of 2017, hooray.
And if you’re waiting for the day when Toronto homes magically become affordable again, I’m afraid you may need a time machine, that or figure out how to build a lot of houses quickly, seriously those might be your only options.
“As market conditions in the GTA have steadily tightened throughout 2019, we have seen an acceleration in the annual rate of price growth,” Jason Mercer, TREB’s chief market analyst, told The Financial Post.
“We will likely see stronger price growth moving forward if sales growth continues to outpace listings growth, leading to more competition between home buyers,” he added.
Amazingly, despite the rising prices, Toronto house sales have rocketed up 14%, marking 8,491 units over the same two years.
According to The Post, detached homes and townhouses were a significant factor in the sales figures with newer listing dropping 9.6% and active listing falling almost 19% during the short period.
So, basically, the Toronto housing market is slowly starting to make a comeback after struggling for two years while adjusting to higher taxes and tighter regulations.
Also, did we mention that a global real estate study released last month revealed that the 6ix’s housing bubble takes the cake in North America for the most overvalued houses in the world? I know, sheesh.
Toronto housing prices have nearly tripled from 2000 to 2017, and despite rent control efforts, it isn’t getting any easier to buy a house in the city.