Greater Toronto real estate entered another cheap credit fueled buying frenzy. Toronto Regional Real Estate Board (TRREB) data shows home prices made a sharp increase in January. The market frenzy wasn’t evenly distributed though, with the suburbs outperforming the city. Detached real estate also saw most gains, making astronomical price increases. Meanwhile, condo apartments haven’t budged much in almost a year, as price growth hit a near decade low.
Greater Toronto Real Estate Prices Rip Higher
Greater Toronto real estate prices ripped higher looking at the composite benchmark. The TRREB benchmark reached $927,700 in January, up 11.94% from the same month last year. In the City of Toronto, the composite reached $961,100, up 4.99% over the same period. Both regions saw price growth accelerate, but it was entirely due to detached homes.
Greater Toronto Benchmark Price
The price of a “typical” composite home across Greater Toronto.Source: TRREB. Better Dwelling.
Greater Toronto Detached Real Estate Price Rise Over $32,000
Greater Toronto detached real estate prices soared last month, especially in the burbs. TRREB’s detached benchmark reached $1,134,600 in January, up 16.64% from the same month last year. The City of Toronto detached benchmark reached $1,301,000, up 11.84% over the same period. The size of the monthly increase can’t just be glossed over. TRREB’s detached benchmark increased $32,500 in just one month, and the City’s benchmark increased $29,800. TRREB includes the city, which means suburban homes made even larger increases.
Greater Toronto Benchmark Price Change
The annual percent change of TRREB’s benchmark price for all home types.Source: TRREB. Better Dwelling.
Toronto Condo Prices Haven’t Moved In The Past Year
Greater Toronto condo apartments aren’t feeling the same frenzy as detached homes. TRREB’s benchmark condo came in at $575,500 for January, up just 1.70% from the year before. The City of Toronto condo apartment benchmark was $597,500, totally flat from a year before. Greater Toronto condo prices didn’t even rise by the cost of rent, and were flat in the City. Price growth for condo apartments is now at the lowest level in over half a decade.
Greater Toronto is still seeing the trend of two distinct markets, but one of them is now on steroids. Detached prices increased by almost the median after-tax annual household income in just one month. The combination of moral hazard, easy money, and FOMO are sending prices soaring. However, condo apartments are showing abysmal growth, even with the easy money. Which makes you wonder where condos would be if the easy money stops.
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