Toronto’s home prices are now more expensive than Vancouver’s: report
Laura Hanrahan
other
Toronto home prices have been skyrocketing over the past year, but as astronomically high as they got, they were no match for Vancouver’s ultra-expensive prices. Until now, that is.
A new report from RBC found that Toronto’s composite MLS HPI benchmark price reached $1.260 million in January, finally edging out Vancouver’s $1.255 million and making it the most expensive market in Canada for the first time in decades.
“It’s a stunning development though not entirely surprising considering how hot the Toronto-area market has become, especially since the fall. Toronto’s benchmark price soared over the past five months, including a mind-blowing 4.3% monthly increase—or nearly $52,000—in January alone,” the report reads. “Vancouver prices have accelerated as well, just not to the same extent.”
Despite pandemic restrictions and a major snow storm, Toronto’s real estate market remained strong in January as limited inventory continued to bolster fierce competition. Active listings were at near-historical lows at the end of the month, the report says, down 44% year-over-year.
Single-family homes have seen some of the biggest gains in the market, with prices up 36% year-over-year. Condos aren’t too far behind with a 26% annual increase in prices.
“We see little that will materially alter these trends in the near term though expect that higher interest rates will gradually cool things down later this year,” the report says.
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The same low inventory levels have also plagued Vancouver’s market with active listings barely increasing from a decades-low last month.
“Successful bidders had to be more aggressive on offered prices,” the report says. “This drove up the area’s composite MLS HPI benchmark 18.5% y/y to a new high of $1.255 million.”
Single-family homes are up 22.7% annually and condos are up 14% year-over-year. These tight demand-supply conditions are expected to continue putting pressure on housing prices in the near term.
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