Home prices across the GTA hit a new record of almost $650,000 according to reports from Realnet. This is a pretty big surprise because new homes being built have gone down a bit, as well as sales over all – but the appraised value keeps going up and up and the homes that are selling are selling like hotcakes. Here we’re going to talk about how low rise housing is hard to find and why people are willing to pay the premium when it comes to luxury real estate for sale.
High Demand for Low Rise Housing
The average home price across Canada is in the mid-$300k range, but the average price for a home in the GTA is actually sitting around $670k. What makes the GTA such a home buyin’ hotspot? A short supply of great low rise homes.
With Baby Boomers choosing to age in place instead of the great migration predicted earlier this year by economists AND Millennials entering the housing market for the first time, it can be hard to find a good home. Millennials are sticking closer to the cities since they’re much less likely to drive than their parents’ generation.
Both these groups are still looking for great low rise homes though, and this is driving prices higher and higher. Even with home sales across the GTA falling a little compared with last year, the sales prices are rising higher and higher.
If you’ve been trying to find the home that’s right for you and you need a low rise home, you’re going to want to check out what Oakville has to offer.
Condo Sales Down
Sales of condos are down; no one is terribly sure if this is because fewer condos started being built this year or because people are just looking to buy low rise homes as a trend. Condos over $1m in the luxury real estate market continue to sell well, even while their lower cost cousins are having a harder time finding new owners. Amazingly enough, Oakville also have lots of condos for sale too!
Oakville happens to have one of the highest municipal development fees across the GTA, which is discouraging new units being built at the moment. Condo sales across the city are still quite good – since these units have already been built they’re not subject to the steep fees that a newly built condo would face this year.
New Construction Put on Hold
Across the GTA many developers have put their plans for new units and homes on hold, waiting until the new housing start numbers improve early next year. CMHC (Canada Mortgage and Housing Corporation, the largest tax payer backed mortgage insurance company) released new numbers this month saying that 2013 will have a slight rebound, while 2014 will see much more development with new housing next year.