Average price of detached home in Toronto hits $1.15M
The GTA set a new sales record in May, according figures released Wednesday by the Toronto Real Estate Board. Detached houses in the City of Toronto sold for an average of $1.15 million in May, up 18.2% in just the last year.
The GTA is in the midst of a record-setting frenzy for real estate.
The region set a new record in May for sales, right on the heels of a record-smashing April, according to figures released Wednesday by the Toronto Real Estate Board.
Prices also continued their unrelenting climb skyward: The average selling prices of houses and condos combined climbed 11% last month, year over year, to $649,599. That’s up from $584,946 just a year ago.
The MLS Home Price Index Composite Benchmark was up just 8.9%, however, reflecting the fact that the city is seeing more sales of high-end homes than it did a year ago, which are skewing average sales prices upward.
The big problem remains listings, which remain so far behind demand they continue to play out in bidding wars and bully bids among frantic buyers which have catapulted house prices to almost unthinkable levels – an average of $1.15 million for a detached house in the City of Toronto in May, up a stunning 18.2% just in the last year.
Sales of that highly sought after housing type were down six per cent last month, though, largely because there aren’t enough for sale, and they’re now well out of reach of most buyers.
“With no relief so far on the listings front, expect similar rates of price growth as we move through the remainder of 2015,” said TREB senior market analyst Jason Mercer in a statement. “At this point, a number of months where listings growth outstrips sales growth would be required to satisfy pent-up demand.”
But that’s highly unlikely to happen in a market where baby boomers are largely staying put and opting to renovate at the same time that the great buying bulge of their now-grown children, the echo boomers, are moving into their prime home-buying years.
Their impact continues to be felt in the condo market – the only realistic housing choice left for most young buyers in this hot market. Sales of condos surged by 13.2% across the GTA in May and prices climbed a healthy 5%, defying the skeptics who continue to voice concerns that too many units are being built.
So far, at least, the number of young buyers and renters has largely kept pace with all the new supply. In fact, condos saw the biggest increase in sales in May of all housing types, according to TREB’s monthly figures.
Sales of detached homes were up just 3% in May across the GTA, with a 6.4% increase in the 905 regions countered by a 6% decline in single home sales in the 416 region, again, largely because of supply and affordability.
Detached prices were up 13.6% in the 905 regions, to an average of $735,915, compared to Toronto’s 18.2% climb in prices to an average of $1.15 million.
Semi-detached home sales were up 6.8% across the region, with an almost 11 per cent surge in sales in the 905 regions compared to a 0.4 per cent increase in sales in the City of Toronto as buyers seek safe havens in this real estate storm.
The average price of a 416 semi was up 13.7% in the 416 region to an average of $779,523 and up 11% in the 905 regions to $493,194, says TREB.
Townhouse sales were up 7.5 per cent across the GTA. Average sales prices were up 10.2% in the City of Toronto, to $555,052, while a similar 10.9% increase in townhouse prices in the 905 regions saw average sale prices hit $449,705.
Condo sales were up 13.2% across the GTA, with sales increases of almost 13% in the City of Toronto and 13.8% in the 905 regions.
Average sale prices were up 5.5% in the 416 region to $422,947 and up 3.9% in the 905 regions to $319,639.
Active listings – the total number of houses for sale – were down 10.1% in May across the GTA, year over year, as new listings decreased by 0.8%.
Even the number of days houses sat on the market declined, by 14.3%, to 18 days compared to 21 days a year ago.
A similar scene is playing out in Canada’s other hot housing market, Vancouver, where house and condo sales combined were up 23.4% in May – 16.7% above the 10-year historic average – although down 2.9% from April.
The MLS benchmark price for a detached in Greater Vancouver was up 16.3% from last May, to $1.4 million. But median prices climbed by more than 25% in some prime neighbourhoods, such as Vancouver West, where the median sale price of a detached home was almost $2.89 million in May.