As Condo Prices Increase, Buyers Look to Next Level Up
Posted By: Rachel Kavanagh
August 15, 2019
As Condo Prices Increase, Buyers Look to Next Level Up – Homebuyers in the Toronto region are starting to shift their focus to low-rise housing options as condominium prices continue to rise, shrinking the gap between other property types.
Condos were the strongest housing category in Toronto in 2017 and 2018 as first-time homebuyers in particular favored the more affordable housing option. Since then condo prices have climbed far faster than other housing categories question whether they still represent the best value for the money.
As of July, the average sale price for a townhouse in the GTA is $660,251 or 13% more than the average condominium at $584,019. It is the lowest percentage price gap between the two housing types since July 2012. The average semi-detached house cost is 35% more than the average condo in July, while detached houses are 70% more expensive.
The rougher mortgage rules have made it harder for some buyers to stretch up to a higher price category, even if the price difference is shrinking.
Buyers who want to consider a townhouse or semi-detached may want to explore outside of the 416 to the 905 for the best value.
The average sale price for a townhouse in the 905 during July is $631,539, 0.57% more than a condo in the 416 at $627,927. While a semi-detached house is 10.6% more than the average condo. Buyers who are seeing the 905 as a possible destination will need to add commute time as a decision-making factor.
Looking at specific communities, the average sale price for a condo in Markham is $524,457, 11.3% lower than the average GTA condo. However, when looking at the next level up, the average sale price for a townhouse in Markham during July is $803,952, 53% higher than a condo. Semi-detached houses are not much better with their average sale price being 56% more.
In the first seven months of 2019, the number of semi-detached houses sold in the GTA climbed by almost 19%, while townhouse sales rose 14%. Condos posted a slower growth this year, with the number of sales climbing just 0.9%. This indicates that buyers are beginning to look towards townhouse and semi-detached houses as their first or perhaps next purchase.
Should prices in the condo market continue to rise, the ripple effect will be felt in the neighboring communities and different property types. Buyers will look to stretch their dollar further by looking elsewhere to find the best value.
* As Condo Prices Increase, Buyers Look to Next Level Up written by Benczik Team Realty
For more information on your home, visit our website and get a free home evaluation to ensure you get the best seller’s service! With experience around Markham, Stouffville, Unionville, and all of York Region, Benczik Team Realty works to serve you in the best way possible! Act now, and don’t miss out on this ever-growing market.