While Toronto has been known for having pricey real estate for decades now, those looking to enter the housing market for the first time can continue to expect affordability challenges for the foreseeable future due to persistently low housing supply and pent-up demand stemming from the COVID-19 lockdown.
Not to mention, for the first time ever, the average home price in the Greater Toronto Area (GTA) is now the closest it has ever been to reaching $1 million, after hitting an average of $943,710 in July. Based on the current trend in price growth, it’s within reason that the market could eclipse the $1 million average sometime this year, which is more than a little daunting for most first-time homebuyers.
According to RE/MAX, detached housing trends, home sales, and prices in the Toronto-area have been on fire this year, with many pockets of the city experiencing tremendous price growth.
In fact, the areas of Annex, Yonge-St. Clair, Casa Loma, Wychwood saw the biggest increase in detached housing values, which were up by 25.7% in Q1 and Q2 of 2020, compared to the same period in 2019, to reach a whopping $2,918,968 average. The areas of Yonge-St. Clair and Wychwood were recognized as being two of the top neighbourhoods to buy real estate in 2020 due to their value and the momentum of price growth.
Tied for second place, with an average price increase of 18.4%, are Oakridge, Birchcliffe-Cliffside, which saw average prices increase to $1,095,287 and High Park, Swansea, Roncesvalles, and South Parkdale, where prices reached $2,050,596.
The areas of Oakwood-Vaughan, Humewood, Cedarvale, and Forest Hill South saw prices increase by 17.7% to reach $2,371,546, with Oakwood-Vaughan also being recognized as one of the top neighbourhoods to purchase in this year.
Islington-City Centre, West-Etobicoke-West Mall, Markland Wood, Eringate-Centennial-West Deane, Princess-Rosethorn, Edenbridge-Humber Valley, and Kingsway South experienced an average price growth of 17% to reach $1,693,382.
Rounding out the top five is the west-end district of Alderwood, Long Branch, New Toronto, and Mimico, where prices rose by 16.2% to reach $1,202,176. Interestingly enough, earlier this year, Alderwood was recognized as the best neighbourhood in Toronto to put your money into a home. For those out of the loop, Alderwood is located on the west side of the city, just north of Long Branch.