Real Estate GTA Real Estate Buying Tips and Advice
Toronto, is the most populous city in Canada, having a count of more than 2.9 people in the city. It is the capital of Ontario and is a hub of cultural diversity and celebration, containing people with different types of culture, race, traditions, beliefs and values. The unemployment rate of Toronto is pretty low, when compared to the national average, making it a good prospect for career and entrepreneurship. Although it is one of the most expensive locations to settle in, yet a life here means a journey near to perfection, which makes it one of the best places to live in Canada.
The real estate industry defines detached housing as the houses which lie separate from other structures of a home, often meant for single-family accommodation. In this housing unit, the overall structure does not share common space and is hence not attached in any form, be it physically or legally. These houses have a huge demand, which makes the average price of a detached house in Toronto relatively high. Detached houses are the opposite of what connected houses are, and are not a registered entity as a part of a condominium or strata. According to the Canadian census (2011), there were more than seven million detached houses in the local housing market, which formed around 55% of real estate dwellings in the county. This reflects the significance and high preference of detached houses among the residents of Toronto, Ontario.
As we have already mentioned earlier, detached homes are widely popular among Canadian residents, especially the ones residing in Toronto. That being said, the average price of a detached house in Toronto is higher than the market trend. Anyone keeping track of the local listings should not be surprised by this statement as it comes as a natural phenomenon that when the demand is high and the supply is relatively lesser, the prices are likely to soar. According to the research analysis of the Toronto Regional Real Estate Board (TRREB), the average price of a detached house in Toronto (in District 416) was $1,778,928 in November 2021, a record high of 19.5% year-over-year rate and a 6% increase in comparison to October 2021.
Apart from detached houses, the price of townhomes and semi-detached single family homes have also skyrocketed. The average cost of a townhouse in Toronto is $1,304,504, which is a 7% increase since August 2021 and 13.9% increase from the previous year. Similarly, single family semi-detached homes have also hit an all time high as the average price has soared upto $1,451,471. This shift in numbers has resulted in an increase of 28.8% year-over-year in the average home price in the Greater Toronto Area (GTA). When combined together, the average sales price for all housing units has increased by 18.3%, increasing the figure for new homeowners to $1,137,280. Recent data has indicated an 18% sales fall in September 2020 and TRREB believes that such low sales rate is a result of high soaring average price of detached houses in Toronto, which is again an outcome of insufficient supply.
Kevin Crigger, the president of TREB, once stated the central reason why the average price of detached house in Toronto is so high is due to the incredibly robust demand structure for housing facilities in the city. The Toronto real estate market has a huge demand and there are plenty of home-seekers looking to invest in properties provided they are suitable.
It is now evident that the lack of supply and the varying degrees of choice has grown exponentially, and the Band-Aid, a policy introduced to suppress the demand of housing in Toronto, has certainly not shown results. So will house prices drop in the GTA? Most likely, it's a big no as it's not an issue which he solved by a single government. It's a long process and collaboration at the provincial, federal and local levels is the only solution.
TREB CEO John DiMichele reiterated the political factors that will inevitably affect the Toronto market. Prime Minister Doug Ford, whose government agrees with industry demands to increase supply by cutting red tape, despite the cost to the environment, is about to be re-elected in 2022. DiMichele said that from a policy standpoint, much of the heavy lifting necessary to bring more homes online happens at the provincial and local levels.