House Prices in Brampton Reach Wild New Heights
That crash/correction that some people say is right around the corner doesn't appear to be hitting the red hot GTA market anytime soon.
According to a recent Royal LePage House Price Survey, overheated home price appreciation in the region showed double-digit growth in the prices of homes across the GTA.
In the first quarter of 2017, the aggregate price of a home in the region rose by what the real estate company calls an "astounding" 20 per cent year-over-year to hit $759,241.
The median price of a two-story home and bungalow climbed 21.9 per cent and 19.3 per cent year-over-year to $894,919 and $752,114, respectively. Condos are also becoming most costly, with year-over-year prices increasing 11 per cent to hit $408,909.
In terms of Brampton specifics, the average two-story home costs about $657,895 (up from $549,585 last year). Bungalows now cost $551,911 and condos run buyers about $305,097. Overall, home prices have risen 19.7 per cent year-over-year.
"Brampton continued to witness significant appreciation in the first quarter of 2017, with the aggregate price of a home climbing 19.7 per cent year-over-year to $633,580," the report reads. "Increased migration into the region from higher-priced areas in the GTA, including Richmond Hill, Vaughan, Mississauga and Toronto has put an upward pressure on home prices within the market."
Royal LePage reports that, during the quarter, the strongest growth came from the suburban areas outside of the downtown Toronto core. The growth in the suburban market makes sense, as more and more people have been completely priced out of Toronto's denser neighbourhoods. This suburban migration, has, naturally, led to an uptick in 905 house prices and has further compromised the area's already modest supply of available housing.
“With prices coming back to earth in the Lower Mainland of British Columbia, the Greater Toronto Area has claimed the title of Canada’s hottest housing market this quarter,” said Dianne Usher, senior vice president, Johnston and Daniel, a division of Royal LePage. “A serious lack of inventory due in part to rezoning processes that don’t permit intensification in many populous areas within the region, coupled with incredible demand fueled by a strong economy, immigration, high household formation and continued low interest rates, has driven the market into a frenzy, causing ultra-hot home price appreciation.”
Royal LePage points out that Toronto's hot housing market hasn't only affected nearby satellite cities, it's driven prices up in municipalities up to two hours outside the city core.
“As affordability across the GTA continues to erode, many homebuyers have increasingly begun to search for property elsewhere in southern Ontario where market factors are more favourable,” Usher continued. “However, the fact remains that many of these regions are not built to support large volumes of demand, causing market conditions in these areas to quickly intensify.”