You know things are a little off when a so-called starter detached home in the GTA is reaching a psychological threshold of a million bucks. Mind you these are homes that are often dated and require a lot of work. If you are looking for a home with all the bells and whistles, think two or even three million dollars.
The Building Industry and Land Development Association (BILD) show record-breaking prices for detached and semi-detached houses and town homes, with prices increasing well over $100,000 in 12 months.
In July, the average price of new detached and semi-detached homes in the GTA was $906,508, a 12 per cent increase from the year before.
High-rise homes in the GTA also increased by seven per cent, with the average cost of a unit valued at $475,764.
In Mississauga, the average price of a home sold in June 2016 was $637,660, up 12.7 per cent from June 2015.
Brampton is also seeing a steady increase in the housing market, with the average home selling for $570,380, up from last year’s average of $460,485.
Supply of new homes has decreased 41 per cent from 10 years ago, with 17,213 new homes available in the GTA, down from 29,238.
However, sales of new homes and condominiums in 2016 were the highest they’ve been in 10 years, with 28,208 homes sold in the GTA from January to July.
A recent study conducted by the real estate brokerage TheRedpin found that the average household income required to buy a home in the GTA is $124,153. So what that means for most residents of the GTA is if a couple is earning a combined income of $100,000, it may not be enough to own a home in the city anytime soon. – CINEWS