September was a record-breaking month for home sales in the GTA, as more residents reassessed their housing priorities and searched for homes with more space to work, live, and play -- particularly here in Toronto.
Last month, detached house sales grew 28% y-o-y -- compared to a modest 7% increase in condo apartment sales -- with 1,161 homes changing hands, according to the latest data from the Toronto Regional Real Estate Board (TRREB).
The median home price for detached properties in the City of Toronto reached a whopping $1,185,000 (+10% y-o-y) -- meaning half the detached houses sold during the month sold for less than this amount, while the other half sold for more.
READ: Canadian Home Prices in September Recorded Second-Highest Increase in 22-Years: Report
Hopeful homeowners looking to enter the market can find solace knowing that there are pockets throughout the city where they can find detached homes with median house prices under $1 million.
In fact, Zoocasa recently took a closer look at median house prices for detached houses in 35 neighbourhoods across Toronto to understand where there may be opportunity for aspiring buyers seeking a lower barrier to entry for a detached house. Zoocasa also included the minimum down payment required to secure a mortgage on the median-priced detached house, based on down payment guidelines in Canada.
According to Zoocasa, across the 35 neighbourhoods, there are currently just nine neighbourhoods where the median price for a detached house is under the $1M mark, compared to 2019, when there were 14 such neighbourhoods.
What's more, Zoocasa revealed that of the nine neighbourhoods where median prices were under $1M, four are located in the city’s west end and the remainder are in Toronto’s east end.
For homes priced under $1M, buyers in these nine neighbourhoods have a lot more flexibility when it comes to down payments since the minimum down payment required is significantly lower, as Zoocasa says the minimum down payment required remains under $75,000.
This offers prospective buyers a significantly lower barrier to entry for a detached house compared to homes priced at $1M or higher, where the minimum down payment required would be at least $200,000.
According to Zoocasa, Toronto’s most affordable neighbourhood for detached houses based on the median home price is Rockcliffe-Smythe, Keelesdale-Eglinton West, where the median price was $875,000 in September, up from $775,000 in 2019. In this neighbourhood, home buyers require a minimum down payment of just $62,500 to secure a mortgage on a detached property.
Of the five neighbourhoods where prices grew past the $1M mark since September 2019, four are situated in the east end and one neighbourhood is in Toronto’s west end.
Top 5 City of Toronto Neighbourhoods With the Lowest Median Detached House Price
1. W03 (Rockcliffe-Smythe, Keelesdale-Eglinton West)
- Median detached price: $875,000 (+13% vs. last year)
- Down payment required: $62,500
- Market condition in Sept 2020: SNLR 51% (Balanced Market)
- Market condition in Sept 2019: SNLR 30% (Buyers’ Market)
2. E09 (Morningside, Woburn, Bendale)
- Median detached price: $890,000 (+15% vs. last year)
- Down payment required: $64,000
- Market condition in Sept 2020: SNLR 51% (Balanced Market)
- Market condition in Sept 2019: SNLR 56% (Balanced Market)
3. W10 (Rexdale-Kipling, West Humber-Claireville)
- Median detached price: $891,500 (+14% vs. last year)
- Down payment required: $64,150
- Market condition in Sept 2020: SNLR 52% (Balanced Market)
- Market condition in Sept 2019: SNLR 59% (Balanced Market)
4. E04 (Dorset Park, Kennedy Park)
- Median price: $918,000 (+15% vs. last year)
- Down payment required: $66,800
- Market condition in Sept 2020: SNLR 70% (Sellers’ Market)
- Market condition in Sept 2019: SNLR 51% (Balanced Market)
5. E10 (West Hill, Centennial Scarborough)
- Median price: $967,000 (+15% vs. last year)
- Down payment required: $71,700
- Market condition in Sept 2020: SNLR 72% (Sellers’ Market)
- Market condition in Sept 2019: SNLR 41% (Balanced Market)
You can see how the rest of the neighbourhoods faired in the infographic below.
You can't read the full report here.
