The Toronto Real Estate Board announced yesterday that, for the first time, the average price for an average detached home Toronto rose above the $1 million mark. $1,040,018 to be exact. Toronto saw 774 sales of detached homes with an average days-on-market of 16 — meaning it just took, on average, about two weeks for a detached home in Toronto to sell. The average selling price to listing price was 102% as a result of multiple offers causing detached homes to sell above their asking price.
Partly contributing to the surge in the price of detached homes is the availability of homes for sale in the market. In February, the supply of homes was down 8.7% compared to the same month last year. The high demand for detached homes continues to result in rising prices as record low interest rates makes it ‘affordable’ to buy a home while taking on a larger mortgage.
The appeal of detached Toronto homes continues to grow, but more affordable segments including townhouses and condominiums are quickly becoming an alternative as some buyers are getting priced out of buying a detached home.