Detached homes around Regent Park and Scarborough's Birchcliff saw the biggest price gains in Toronto's pricey real estate market, according to RE/MAX
Regent Park and Scarborough’s Birchcliff are some of the neigbourhoods where Toronto house prices saw the biggest gains in 2020, according to the RE/MAX 2020 Hot Pocket Communities report. The report compares the average price for detached homes over the first six months in 2019 and 2020.
The city’s average home price hit an all-time high in June, despite the COVID-19 pandemic. Low supply has fuelled demand. But some areas are feeling the heat more than others.
The average price for the rare detached homes in the area containing Regent Park, Cabbagetown, Jamestown and the Church-Yonge corridor jumped $2,555,500 from $1,641,813. That 55.7 per cent increase is the highest for any neighbourhood in the GTA. But it coincides with a 75 per cent drop in sales, from eight transactions in 2019 to two in 2020.
“Strong demand characterized much of the first quarter of 2020, setting the stage for a record-breaking spring market in the Greater Toronto Area,” says Christopher Alexander.
The RE/MAX of Ontario-Atlantic Canada executive vice president says the real estate market has been bouncing back after the severe downtown caused by COVID-19. “With the easing of restrictions and the province moving into the third, and perhaps final phase, we anticipate that the housing market will likely accelerate.”
The Annex, Wychwood and Deer Park area came second place in terms of price growth, climbing 25.7 per cent to $2,918,968. The Birchcliffe-Cliffside area in Scarborough has seen a significant uptick in new developments and businesses. It tied with the High Park and Roncesvalles area for third place with 18.4 per cent gains. Detached homes in the east end area just west of the Scarborough Bluffs rose to $1,095,287. That’s nearly half the $2,050,596 figure for homes the High Park and Roncesvalles area.
Toronto’s priciest real estate had the steepest declines. The Rosedale and Moore Park area plunged 15.2 per cent from $3,687,292 to $3,127,643. The Bridle Path and Windfields area were not far behind. The average home price dropped 9.5 per cent from $3,697,343 to $3,346,422. While sales in Toronto were down between 5 and 75 per cent depending on the neighbourhood, Bridlepath and Windfields is the only area that had an increase in sales at 20 per cent.
The 905 hasn’t seen any declines in average detached home prices. The Township of Brock near Lake Simcoe made the biggest climbs, rising 15.2 per cent to $552,711. Essa township in Simcoe is close behind with 14.6 per cent at $626,003. And then comes Vaughan, rising 13.5 per cent to $1,369,407.
“While the strength of the market is underscored by rebounding economic fundamentals, it’s clear that we are not out of the woods yet, given what’s happening around the world,” adds Alexander. He echoes warnings from realtors and the Canada Mortgage and Housing Corporation.
The CMHC predicts a sharp downturn beginning in the fall as COVID-19 relief programs are expected to dry up. The lack of immigration, low employment, a subsequent increase in supply and other economic impacts from COVID-19 could be factors that bring real estate prices drastically down.