RIP to all the dreams of owning a nice home with a big backyard.
Saying that Toronto and the GTA's real estate market is expensive has reached the same level as saying that the sky is blue, and according to a recent report, prices are set to get even higher.
On Tuesday, April 19, Royal LePage released its house price survey, which revealed what the housing situation is like across Canada, and within its findings, it broke down its predictions for what the real estate market will look like in Ontario (and even more locally, in the GTA.)
According to the study, the average house prices are expected to go up by 16.5% by the end of the year in the GTA, with houses likely going for $1,304,600 on the market by then. At the end of last year, houses were going for over $1.1 million on average throughout the GTA.
The area saw a bigger price jump between the start of last year to the beginning of 2022, with the aggregate price of homes jumping up by 27.7% to $1,269,900 within the year.
"Demand for housing in Toronto and the surrounding region remains strong. Despite a slight increase in new listings in recent weeks, competition is still very tight among buyers looking to enter the market ahead of further interest rate hikes," COO of Royal LePage Real Estate Services Ltd., Karen Yolevski, said in the report.
The aggregate home prices in the 6ix alone have gone up to $1,309,800 which is almost an eyewatering 21% jump from the start of last year.
Yolevksi also pointed out that the condo market has gotten more competitive, and the number of offers listings get in certain areas has dropped, which has pushed competition up between buyers.
Not all hope is lost for the future of Ontario's real estate market
The report pointed to a couple of real estate policies — like the increase of its Non-Resident Speculation Tax for example — that could help locals buy a home in the province.
"While new policies aimed at improving real estate market conditions for buyers will take years to produce results, I commend the Ontario government for taking action to increase supply through needed densification. In Toronto, this will give young homebuyers hope that they will be able to purchase a property in the future," said Yolevski.
"Potential homeowners should not expect relief from the tax increase applied to non-residents, as foreign buyers make up a small percentage of the total market."
This article's cover image was used for illustrative purposes only.