Zoocasa reports that despite a record-breaking summer for Toronto house prices, the demand for detached homes is still tempered
The analysis, drawn from Toronto Regional Real Estate Board data, says the average price for a detached Toronto house in August was $1,505,100. That’s $73,442 lower than the peak price in April 2017, or five per cent less.
The average price for detached homes in the Toronto Central area was $2,385,278 in August. That figure is five per cent down, or $113,956 less, from the February 2017 peak.
Prices from 2017 cooled after the Canadian government tightened rules around insured mortgages. For homes costing $1,000,000 or more, buyers must fork over a 20 per cent deposit. As a result, there has been more demand for semi-detached and other more affordable properties in the Toronto real estate market. There’s a smaller pool of buyers for detached homes in the city.
The average detached house price in York region was down a steep eleven percent. At its peak in February 2017, the average detach in York Region cost $1,466,236. In August 2020, it was $1,308,430, down by $157,806. The King area in particular fell 22 per cent, $503,375, from its October 2016 peak to $1,774,480.
But average prices for detached houses hit record-breaking highs in other Greater Toronto Area (GTA) neighbourhoods, according to Zoocasa. The Durham Region reached $813,740. Halton Region hit $1,283,651. Brampton climbed to $989,039. And Mississauga was up to $1,307,832. Detached homes in the Peel Region as a whole was $2,195 shy of its peak, which it reached in July instead of August.
The Canadian Real Estate Association reported that sales across the country rose 6.2 per cent in August, month-over-month. Transaction were up 33.5 per cent year-over-year, with real estate activity in August making up for lost time during COVID-19 lockdowns.
“2020 is looking like it will go down as a fairly middling year overall,” says CREA senior economist Shaun Cathcart in a statement.
He adds that the year’s sales activity is weaker than what it would have been without COVID-19, but its “quite a bit better than we would have given it back in April.”