One of Canada's big banks believes that the divide between existing single-family homes and an onslaught of new condo buildings in the GTA is getting larger, reports CBC News.
Derek Burleton and Diana Petramala, economists from TD Bank, said that people's fixation on house prices in the GTA has blurred the differences between various subsections of the housing market. These subsections include the 416 area versus the 905; single detached houses versus condos; and new construction versus existing homes.
"One market is facing too much supply, while another appears to be heating up," the bank said in a statement. "The GTA housing market is a tale of several markets with divergent conditions."
It is often said that Toronto's real estate market is red-hot and has been for quite some time. As a result, there is little doubt that the market is being powered by the state of single-family detached homes.
Prices for single-detached homes rose 12 per cent year-over-year, the strongest gains amongst the different classes of residential real estate, despite being below historical norms.
Condo prices are also on the rise, with the average price of a new unit being $545,000. This is much higher than the $347,000 price tag carried by existing condo inventory. A total fo 70,000 new condo units will be built this year, creating a gap that TD believes won't close anytime soon.
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