Toronto’s One Million Dollar House Average
I love living in Toronto. People talking about why they love it mention the safety, cleanliness, good economy, healthcare, government, even it’s beauty, culture and entertainment. And I agree that those are all great.
But the best part for me? My daughter is 12. In all her days, so far, no one has ever asked my beautiful half Korean/half European girl or her brother, “”What are you, anyway?”. In fact, when I ask them about racism, they don’t even really grasp the concept very well. It’s as foreign to them as living on Mars. More actually, because my son would do that in a minute. And the fact that they can go to school and play with their friends and no one ever cares about the colour of their skin, that for me is huge. I wouldn’t want to live anywhere else in the world.
The Cities of Opportunity study rank Toronto the 4th best place in the world to live (we didn’t get first because of our transit issues which I also get). So when prices skyrocket, I understand why.
Last week the Toronto Real Estate Board released the numbers that the average detached home in Toronto hit $1,040,018. We could see it coming but still, wow.
Why it happened
• Low interest rates means eager buyers. These rates don’t show any sign of rising anytime soon.
• Active listings have dropped as well, so there is less on the market and people are eager to buy, which means bidding wars.
• The continued growth of the city, as well as people’s desire to spend less time commuting and more time with their families as congestion increases have both lead to huge demand. People aren’t moving into the suburbs, they are moving back into the city. My husband and baby girl once took three hours to get home to Oakville from the University of Toronto. We put our home up on the market that week, we now live within walking distance of both our jobs.
• The oil slump affected everything in Ontario, from importing and exporting to just having more money in pocket from low fuel prices.
Bottom line, buyers know a good thing and prime Toronto real estate is a great thing.
What it means for you.
• With prices creeping up, the amount of debt to afford Toronto can be daunting. Make sure you talk to a great mortgage specialist (we know one) who can help tailor make a financing package ideally suited for your needs.
• CMHC no longer insures the mortgages on homes worth over $1 million, even if 20% is put down. This makes it more difficult to borrow the larger sums required if you don’t have a significant down payment. However, you no longer have to pay CMHC mortgage default insurance which can be up to 3.15% of the value of your mortgage.
• Toronto homes become a more attractive investment every day. The demand shows every sign of continuing.
What it means when buying or selling in Toronto.
Look for someone who knows the city, someone who has your best interests at heart, and someone will fight for you to get the best price possible. I’d love to help you – give me a call!