Is the Toronto housing market, one of the two hottest real estate markets in Canada, really slowing down in the new year? How much impact do the new mortgage regulations have on the market?
If you look back at market performance at this time last year, there was a shortage in inventory which lead to record high housing prices. Current market performance indicates a "cooling" as various factors impact this once overheated housing market.
If you're planning to enter the market soon, are you aware of the changes and how should you prepare for them? Here are some highlights for you to consider.
- Average housing prices in January dropped 4% compared to this time last year.
- The gap between supply and demand has been large. The number of houses that changed hands last month decreased by 22% while the inventory increased 136%, which is opposite to the situation last January.
- Condos, compared to other types of housing, showed a robust growth in prices, up by 15%.
- It's still early days to conclude the impact of the stress tests. Industry insiders suggest that we'll get a better read in April when all the 90 to 120-day pre-approvals expire.
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If we look at the market performance in the past decade, we can see the market trend is rising in terms of housing values, and the inventory is nearing the 10-year average.
Want to better understand the housing prices in the Toronto city? Take a closer look at C01, C02, and C03 areas.
- Overall, houses in the C01 area are most affordable amongst the three areas.
- Surprisingly, semi-detached homes in the C02 area are valued the highest (i.e. $2.99 million on average) even compared to detached homes. Condos in this area are also at the $1 million level, reaching $1.244 million last month. The value of an average detached home is $1.5 million.
- Similar to the C01 area, the prices of condos are a bit less than half of the prices of detached houses in the C03 area. Detached homes changed hands for an average price of $1.8 million, condos sold on average for $775k and semi's went for $706k.
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