Toronto high home prices are no longer just limited to new detached homes, the average home price for all ground level homes in the Greater Toronto Area are now above $1 million who reports show.
According to the Building Industry and Land Development Association, the average price for low-rise including detached, semi-detached, row and townhouses are presently being sold over $1 million. This is a 25% increase in just a year.
Ten years ago, the average home price for ground level homes was $444,368 but currently, it stands at $1,316,325. Also in January 2007, the average home price was $328,989 but in January of this year, the average price was $879,619.
The high home price is partly as a result of low supply while demand is high most especially for single family homes which get sold in a very short period.
Bryan Tuckey, chief executive of BILD explained that when demand and supply are not balanced, there is a high possibility for home prices to inflate as many buyers chase after the few available homes in the market.
By the end of January, there were only 1,524 ground level homes on the market for sale which is one of the lowest recorded in Toronto. Ten years ago, home listing was 18,400 which indicate that Toronto has been through a massive drop in home inventory.
The average price for condominiums and mid and high-rise properties also increase in the Greater Toronto Area. The average home price was at $507,511 in January. New apartment prices also saw an increase of 13% which is about $60,000 increase.
But as the average home prices are increasing, the supply level continues to decline significantly. Tuckey went on to express that “presently in GTA there are less than half other the entire number of new homes available to purchase in comparison to ten years ago.”
Some of the leading factors responsible for the housing supply crisis include a great number of land restrictions, shortage of serviced development land and also delay in development approval process.