Strengthening consumer confidence in Q3 drives healthy growth in Greater Toronto Area detached home pricesOctober 10, 2019
First-time buyers saving for single-family properties as price gap with condominiums diminishes
TORONTO, Oct. 10, 2019 /CNW/ – According to the Royal LePage House Price Survey1 released today, the aggregate price of a home in the Greater Toronto Area (GTA) increased 3.7 per cent year-over-year to $858,443 in the third quarter of 2019.
When broken down by housing type, the median price of a two-storey home and bungalow in the GTA saw moderate appreciation, increasing 2.9 per cent and 1.8 per cent year-over-year, to $989,498 and $811,090 respectively in the third quarter. Meanwhile, condominiums within the region saw strong price appreciation, with the median price rising 8.5 per cent to $561,144.
The condo segment continued to drive home price appreciation in the GTA in the third quarter of 2019. The third quarter saw strong growth in the condo market across the GTA, with prices increasing in Mississauga, Toronto, Scarborough, Brampton and Whitby by 9.6 per cent, 9.2 per cent, 7.0 per cent, 6.7 per cent, and 6.1 per cent respectively.
While there was broad strength across the GTA, four suburban areas experienced depreciation in the aggregate price of their homes. Despite the strength in the condo segment, the aggregate price of a home in Oshawa decreased 0.3 per cent, while the median price of a home in Ajax and Markham decreased 1.3 per cent. Richmond Hill saw the largest depreciation among all the suburban regions examined by Royal LePage, with a 3.2 per cent decrease in the aggregate price. Conversely, aggregate prices in Pickering and Toronto showed the highest gains, increasing 6.5 per cent and 6.2 per cent respectively.
The recent marginal decline in the benchmark five-year interest rate used to assess homebuyers’ mortgage eligibility boosted consumer confidence. Healthy price growth in the detached segment combined with affordable new condominium developments and strengthening efforts to improve transit connectivity in some suburban areas contributed to an increase in the number of transactions, especially in the suburban 905 area code.
“The shrinking price gap between condominiums and detached properties in many areas of the GTA has encouraged some homebuyers to save for a bit longer and enter the market owning a bungalow or a two-storey home,” said Chris Slightham, president, Royal LePage Signature Realty. “We’ve also seen an increase in consumer confidence across the GTA partly because of the recent decline in the benchmark five-year interest rate, which has made single-family homes more attractive.”
Slightham added that the GTA housing market may take a pause in the coming months, as potential buyers put investment decisions on hold to digest the implications of the outcome of the federal election.
Looking to the fourth quarter of 2019, Royal LePage forecasts that the aggregate price of a home in the Greater Toronto will rise 3.1 per cent year-over-year to $859,301, which is a 0.1 per cent increase compared to the…