Condos The Only Option For Average Toronto First-Time Homebuyers

Condos are the only affordable option for average first-time homebuyers in Canada’s largest city, according to data from two real estate authorities released Monday, October 5th.

The Re/Max Hallmark Ltd. Homebuyer Survey found those planning to buy their first home in the Greater Toronto Area over the next 18 months expect to spend $455,000 on average, with a mean down payment of 22 percent.

That puts detached, semi-detached, and townhouse living well out of the average price range in the 416 area code, according to the Toronto Real Estate Board’s (TREB) September resale housing figures.

The average condo in Toronto costs $418,603 according to TREB, a 5.6 percent year-over-year increase. Townhouses – the nearest alternative to condos in terms of price – saw the fastest price acceleration in the 416 region, surging 10.8 percent year-over-year to $527,257. Average detached home prices jumped 10.7 since last September to $1,053,871, and semi-detached prices increased 7.3 percent to $740,373.

All of this is likely to translate to a great deal of disappointment for some buyers. Over 60 percent say they are looking for property in the City of Toronto, and 56 percent say they prefer detached homes, according to the Re/Max Hallmark survey. While detached housing outside of Toronto is considerably more affordable at $732,852, prices are still well beyond the average budget.

Millennials will bear the brunt of the disappointment. The survey found 18 to 34-year-olds make up 57 percent of those shopping for a home.

Reference: BNN

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