Soaring housing prices in GTA sends buyers north
Published Wednesday, October 5, 2016 7:56PM EDT
Housing prices in the Toronto area continue to soar, with the average price in September rising 20.4 per cent to $755,755.
The number of sales also jumped 21.5 per cent, according to figures released this morning by the Toronto Real Estate Board.
It says there was strong sales growth for all major home types but a lack of supply limited growth in the City of Toronto itself.
The average sale price for detached houses in Toronto proper rose to $1.29 million, up 23 per cent from a year earlier. The comparable price for detached houses in surrounding areas was $928,414, up 26.6 per cent.
The soaring prices in the Greater Toronto Area are driving home buyers north.
"Right now with the low interest rates in the market, with the lack of product out there, people are doing whatever they can to get into the real estate market,” said Todd Palmer who is the marketing director with Pratt Homes.
The Junction, one of Pratt Homes latest condo developments in Barrie almost sold out in two days. Palmer said eight per cent of buyers were from the GTA. There was even more interest from those buyers for The Gallery condo development at 16 per cent.
It's a similar story for resale homes in the Barrie area which are selling within a week of being listed.
About 30 per cent of sales are from GTA agents.
The average home in Barrie sold for $476,000 in September.
"The pricing is definitely very desirable compared to what's going on south of us, but just the lifestyle that Barrie offers around lake Simcoe, small community minded, but still everything is right there and just a step away from Toronto," said Diane Beauchesne, a Remax sale representative. "We're seeing a lot of competing offers, which typically Barrie is not a competing market, but now almost every sale goes into competition."
-With files from The Canadian Press