16 August 2018
Ken Ramsay

How is Toronto’s Real Estate Market Stacking Up?

Everyone wants to know how the Toronto real estate market is doing.  Prices were up and then they were down, how are we doing now?  With the new mortgage rules that have taken into effect, buyers are limited in their ability to obtain financing.  This means buyers are approved for smaller loans in an attempt to cool the market.  Therefore, those who would have liked to purchase detached homes and are unable to are now driving up demand and competition for the more affordable homes, which is actually driving up prices instead of cooling the market. The average prices today for detached, semi-detached and townhouses are all above their past 2017 peak prices for new record highs as seen in the chart below.  Also, for those who are curious about condos... condo prices and the number of condo sales are still rising above the 2017 market peak as well, as it is still the most affordable housing type.

Spring 2017 vs Spring 2018 Average Sales Prices

Photo Source: Bullpen Consulting 

The average sale price in the chart above is comparing the average quarterly sale price by freehold home type: detached, semi-detached and townhouse for homes in Toronto Real Estate Board districts: C01, C08, W01 and E01 (which spans from the Humber River to Coxwell south of Bloor/Danforth.  This area was chosen to best represent housing of the working population.