August was a record-setting month for the average sale price of detached homes in much of the Greater Toronto Area (GTA), despite the ongoing COVID-19 pandemic.
According to a new report from online real estate portal Zoocasa.com, Brampton and Mississauga were among a number of other GTA municipalities hitting new monthly market highs for detached units.
“Of the 33 GTA areas included in our analysis, average home prices hit their all-time peak in 12 regions,” read Zoocasa’s study. “Brampton ($989,039) and Mississauga ($1,307,832) noted their highest average home price on record for detached properties.”
In Mississauga, the average price for a detached home in August increased by $244,303 (23 per cent) year-over-year compared to the same month last year. Likewise, in Brampton, the average price for a detached unit spiked $131,798 over the past 12 months — representing a 15 per cent annual increase.
The other 10 record-setting GTA detached home markets in August included Ajax ($826,454), Clarington ($732,523), Oshawa ($672,522), Scugog ($919,542), Whitby ($886,322), Burlington ($1,184,945), Halton Hills ($1,046,213), Essa ($844,362), Innisfil ($766,834) and New Tecumseth ($768,788).
The only region in the GTA that has seen a notable decline in average price was York Region, which has experienced an 11 per cent overall average decline in detached home price since its market peak in the spring of 2017.
“Despite 8 of 9 municipalities recording detached average home prices above the $1,000,000 mark, not a single York Region municipality saw average home prices hit close to a peak in August. In fact, for the region as a whole, the average home price was down $157,806 (-11 per cent) from the peak price of $1,466,236 in February 2017,” read the study.
The study also found that finding a detached home in the GTA for less than $1 million is becoming increasing difficult in Toronto and the surrounding area.
“In total, 18 municipalities across the GTA noted average home prices above the million-dollar mark in August, compared to 12 regions this time last year. These municipalities were concentrated in the City of Toronto, Durham Region, Halton Region, Peel Region and York Region.”
Zoocasa used price data from the Toronto Regional Real Estate Board’s (TRREB) August market report for its analysis, and TRREB analysts believe a number of factors are contributing to the spike, regardless of the economic uncertainty the COVID-19 pandemic is still causing for many.
“Generally speaking, market conditions remained very tight in the GTA resale market in August. Competition between buyers was especially strong for low-rise home types, leading to robust annual rates of price growth,” said Jason Mercer, TRREB’s chief market analyst.
“Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation, and the continuation of very low borrowing costs. In addition, fewer households have chosen to go on vacation as a result of COVID-19 and instead have remained in the GTA and been active in the housing market, satisfying pent-up demand from the spring,” added TRREB president Lisa Patel.
Courtesy of BramptonGuardian.com: https://www.bramptonguardian.com/news-story/10204753-mississauga-brampton-among-12-gta-markets-that-set-record-prices-for-detached-homes-in-august/