The Toronto real estate market has ebbed and flowed over the past five years. The pandemic led to truly unprecedented market conditions, throwing normal trends out the window and prices have been fluctuating ever since with the assistance of interest rate hikes in the last year. Now that we’re returning to the normal real estate cycle we can really understand how prices have changed. So, how much more expensive is it to buy a home in Toronto today than it was five years ago?
To find out, Zoocasa analyzed 35 Toronto neighbourhoods to see where home prices have appreciated the most in both the single family market (detached and semi-detached homes) and the condo apartment market, by comparing the latest available data from the Toronto Regional Real Estate Board in March to housing prices from five years ago.
Here’s a look at how prices have increased across Toronto in the last five years:
Condo Prices Have Increased Everywhere
Condo prices have increased across all the neighbourhoods we analyzed, but perhaps not as much as you might think. In spite of the late 2021/early 2022 price boom, the rise in interest rates brought prices in these markets back down following the pandemic highs, with just one doubling in value in the last five years. Toronto as a whole has increased by 24.19%.
The neighbourhoods where condo prices have appreciated the most are the neighbourhoods that had lower than average prices (compared to the Toronto average). The highest appreciation occurred in Oakridge, Birchcliff-Cliffside by over 110% to $672,400. York Mills was the second highest appreciating market at 74.24%, despite being such a pricey market, largely in part due to its prestige as a “millionaire’s mile”.
The majority of neighbourhoods have seen prices increase by 25-49%, with 15 of them appreciating in that range. Of that total, 10 of them had average prices lower than the city’s average.
Single Family Homes Follow Similar Trend
Single family homes have followed a similar trend to condo apartments. Of the 35 we covered, 23 of them have had home prices increase by over 25% – the same as the condo market. None have doubled, but five increased by 50% to 75%. Scarborough Village, Guildwood has had the greatest increase, improving by 72.51% to $1,616,142.
Toronto’s average house price has increased by 27.72% in the last five years to $1,485,501. In a similar vein to condo apartments, markets that are lower than that price have seen some of the largest price increases, with four of the top six neighbourhoods being made up of areas with prices below the city’s average. The most expensive neighbourhood, York Mills, has seen relatively small growth in the single-family market at just 3.43%.
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Worth noting is the single market where prices have actually decreased in the last five years. The neighbourhood of Yorkville, Annex, Summerville has had price depreciation of 6.46%. One contributing factor here is the greater popularity of condos, for which prices have increased by 28.21%.
Interested in learning more about prices in Toronto? Give us a call today to speak to an agent in your neighbourhood and check out our website for more market insights and free resources.