RE/MAX reviewed housing prices for the first six months of the year, and determined the price for a Toronto home averaged around $522,000. The average is up approximately 3 percent from the same period in 2012, though the true value of a home varies by region across the city.
In the west end, the most significant price increases occurred near Keelsdale off Eglinton West, where prices rose over 10 percent to an approximate $457,000. On the east end, the highest price growth was in the Birch Cliff region near the lake. The price for a single detached home there averages around $579,000, which is up nearly 9 percent from the same period in 2012.
The data was compiled from the Toronto Real Estate Board, which also noted an 8 percent decline in home sales from 2012 down to 46,000 units. However, Gurinder Sandhu, Executive Vice President of RE/MAX, believes the drop in home sales was expected.
In the first six months of 2012, buyers rushed to and purchase a home before the government’s new lending rules went into effect. Sandhu believes that over the last year, would-be buyers sat on the sidelines to build up their savings for a future purchase to qualify under the tougher rules.
Sandhu expects home sales will improve in the second half of the year, but also expects home prices to continue rising as well.
“This is a return to a healthier market. These low single digit increases can be sustainable in the long run with increases in employment and salary levels. In the past, we had years with low double digit increases. Those are not sustainable.”