Every month the Toronto housing market inches closer to what feels like that first peak on an insane roller coaster. Those selling houses have more and more reason to celebrate, while those looking to enter the market just wish the drop would come already.
This latest Toronto housing update will either make you laugh or cry. According to the Toronto Real Estate Board (TREB), the average detached home in Toronto sold for $1.5 million in February. And even the average semi-detached home is out of reach for many now, selling at $1.08 million.
Moving to the suburbs won’t do you many favours either. Prices in the 905 region of the GTA are right behind prices in the city, with detached homes selling for $1.1 million on average in February, with semi-detached homes going for $712,276.
This represents the biggest housing bubble the city has seen since 1989
Indeed, prices in the 905 are growing at a ridiculous pace, with detached homes having increased by 35.4% year-over-year, while semi-detached homes spiked by 33.2%. In comparison, detached homes in Toronto sold for 29.8% higher than they did in February 2016 and semi-detached prices were 27.6% higher.
The problem of limited supply vs. demand remains — as it has for a while now. In fact, these prices have done little to dissuade people from wanting to buy homes in the city. Last month, TREB reported there were about half the number of active listings in the city (only 5,400 compared to 10,902 in 2016) and -12.5% the number of new listings added (9,834 compared to 11,234).
This represents the biggest housing bubble the city has seen since 1989, and experts are warning that we could see a similar outcome. While others have argued the market is in line with comparable cities around the globe, the residents are telling a different story. Many young professionals are feeling priced out of the city and unsure about how they’ll ever afford a home of their own.
But there is hope.
More people are considering the option of buying a home with friends or family to split the costs, although that solution won’t work for everyone. But for many Torontonians, this news only serves as further reason to stick to renting and build wealth in a different way or to leave the city altogether.