The average home value in the Greater Toronto Area has climbed another 15 per cent in the four months since it went over the $1m tag price in February this year.
 
The latest data found by the Toronto Real Estate Board (TREB) appears to be hindrance for first-time buyers to acquire detached homes in the GTA. It also found that the housing market is “modestly overvalued”.
 
Despite the new numbers, the Crown corporation, the body in charge of Canada’s housing policy, only sees two of the 12 markets surveyed to be at high risks.
 
“It’s all about choices. If you are set on living in a detached home, you are going to sacrifice distance,” George Carras, president of RealNet Canada Inc., was quoted as saying by Financial Post. His remark came in response to the TREB’s results for May.
 
He added that for buyers to find affordable detached living for $500,000 means they have to look into the so-called “GGH markets”, Innisfil, Cambrdge or Hamilton. GGH is the acronym recently used to mean Greater Golden Horseshoe, which includes Southern Ontario up to the U.S. border.
 
The Toronto city proper now carries an average price of $1,115,120 for detached homes, or an 18.2 per cent year over year gain.
 
The Financial Post also said in its report that even Canada Mortgage and Housing Corp. (CMHC) seems to be telling Torontonians to forget detached homes, saying “Townhouses will become the equivalent of the new single-detached home in the GTA.”
 
“At $1.15m, that’s beyond reach for the average first-time buyer. The next best option is a townhouse or more realistically a condo unless you want to look into the outer parts of the GTA,” said Dana Senagama, a principal market analyst with CMHC. “And, yes, the GGH is being thrown around a lot more.”
 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate


More market watch: