Asking prices continue to climb
Toronto's home prices could reach an average of $2 million by 2034 if current trends continue, according to a new report from real estate listing website Zoocasa.com.
The report showed that Toronto home prices have risen by an average of 5.6% annually over the past decade.
“Interest rates play a big part in pricing. As rates come down, home prices go up,” the report said. “In the case that rates do begin declining this year, we can anticipate a corresponding price increase in the market overall, meaning we can reach this multimillion-dollar average home value even faster.”
Read more: How can borrowers get the lowest rate in a high-rate environment?
According to the Toronto Regional Real Estate Board's (TRREB) March 2024 report, the current benchmark price of a single-family detached home in the city is $1,708,800. Toronto houses crossed the million-dollar average in 2021, fuelled by a 17% increase since 2020.
While the $2 million mark looms on the horizon, Zoocasa pointed out that this price point is already a reality in many Toronto neighborhoods.
“Looking at the past two years, average home prices in 43% of Toronto’s neighbourhoods have surpassed $2 million,” the report said.
Based on the past decade's growth rate, Zoocasa projected that the average selling price for homes in Toronto will hit $2 million by 2034. However, if interest rates begin to decrease this year, this milestone could be reached even sooner.
Even traditionally more affordable areas are feeling the pressure. For instance, In Rockcliffe, Smythe, Keelesdale, and Eglinton West, the average single-detached price peaked at $1.6 million in February 2023.
Similarly, neighborhoods like High Park-Swansea, Roncesvalles, and Parkdale, often considered somewhat affordable within the city's priciest areas, have seen average home prices consistently exceed $2 million since June 2023.
On the opposite end of the spectrum, Toronto's most expensive neighborhoods make the $2 million mark seem modest. In affluent areas like Rosedale and Moore Park, or York Mills, Bridle Path, and Hoggs Hollow, prices have soared well beyond $3.6 million, with some homes even crossing the $4 million threshold since 2019.
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