Greater Toronto real estate prices had a really big finish to the year, just not in the City of Toronto. Toronto Regional Real Estate Board (TRREB) data shows home prices made a sharp increase in December. The monthly jump was only across the Greater region though, while the City’s index slipped lower. Almost all of the City’s drag on prices was attributed to condo prices, which saw a sharp monthly drop.
Greater Toronto Real Estate Prices Rise $7,000 In December
Greater Toronto’s composite price made a big jump for the month, and is now much higher than last year. TRREB’s composite benchmark price reached $909,500 in December, up 0.78% ($7,000) from the previous month. This represents an increase of 11.05% when compared to the same month last year. Both the monthly and annual increase are substantial. It becomes much more complicated (and interesting) when this number is broken down.
Greater Toronto Benchmark Price
The price of a “typical” composite home across Greater Toronto.Source: TRREB. Better Dwelling.
City of Toronto Real Estate Prices Fell $5,800 Last Month
Excluding the suburbs, the City of Toronto composite fell last month. The City’s composite fell to $952,400 in December, down 0.61% ($5,800) from the month before. Prices are now 4.78% higher than the same month last year. Home prices in the City are growing at less than half the rate of 905, with the city’s premium disappearing quickly.
Greater Toronto Benchmark Price Change
The annual percent change of TRREB’s benchmark price for all home types.Source: TRREB. Better Dwelling.
Detached Home Prices Made Much Bigger Gains In The Suburbs
Greater Toronto’s detached home prices made a big jump last month. TRREB’s detached benchmark price reached $1,102,100 in December, up 1.60% ($17,400) from the month before. The very large monthly increase makes prices 15.00% higher than the same month last year. Huge gains, that were mostly led by astronomical gains in the 905.
The City of Toronto’s detached homes made a much more modest increase. The City’s detached benchmark reached $1,271,200 in December, up 0.17% ($2,200) from the previous month. Compared to the same month last year, prices are now 9.82% higher. This growth rate is still very large, but is dwarfed by Greater Toronto’s print. Basically detached homes in the 905 increased at around 8 times the pace of the 416 in December. The suburban premiums are getting very large.
Greater Toronto Condos Saw Prices Drop Over $5,000 Last Month
Condo apartments continue to drag right across Greater Toronto last month. TRREB’s condo benchmark reached $574,400 in December, down 0.88% ($5,100) from the month before. That brings prices to just 2.36% higher than the same month last year. Once again, most of that value is being created in the 905 suburbs.
City of Toronto Condo Prices Are Almost Flat From Last Year
The City of Toronto underperformed in condos as well. The City’s condo benchmark reached $597,100 in December, down 1.16% ($7,000) from the month before. This makes prices just 0.76% higher than last year. The monthly drop was more than half the size of annual gains the month before.
Greater Toronto continued the pandemic trend of paying big premiums for more space. Just a few weeks ago, Royal LePage forecast this trend will continue. Work from home adoption is expected to accelerate the migration to secondary cities, which started before the pandemic. Most firms are forecasting the trend to continue throughout the year, with condo prices showing minimal to no growth in the City.
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