Have you been thinking about moving to a new home within the main city of the Golden Horseshoe, Toronto? If you have, it's likely there are some concerns that have been nagging at you.
Let's face it, Toronto does not have a reputation as being the most affordable city around. In fact, there are market reports from years past (notably 2006) that had Toronto ranked as the most expensive city in the world. We'd like to point out that in 2009, that reputation does not exactly match up to reality.
Take a look at the average cost of some downtown Toronto real estate compared to what you might find in Victoria, BC. That price tag of $400,000 on a single story detached home with three bedrooms and two baths may shock someone coming from the north woods. If you had shopped in Victoria first, though, you would find a similar house listed at $25,000 MORE!
That's right, compared to prices in cities out west, Toronto can look like a downright bargain. A Toronto real estate listing can't help but raise the eyebrows of someone who has purchased in Vancouver or Calgary, where prices have been driven more by speculation than by the economic and population factors which have been the foundation of the Toronto market.
Now that we've busted that national myth, let's take a look at some of Toronto numbers to build up a foundation for reality.
To start out with, a look at the average price of a single detached home. We mentioned the $400,000 mark above, and really that is not too far off. That price will fetch you more home in the Riverdale Toronto real estate market than right in the downtown area, and the further out you go the more floor space you will get. Current price averages as of September 2009 are actually below this ceiling, with the average listings sitting at around $390,000, right in the city.
Condos in Toronto are all the rage, part of the reason being that they are more affordable than detached houses. Remember that we are talking average here, and new and upscale developments and individual units such as those at Liberty-on-the-Park will tend to cost more.
For a unit at 763 Bay St or similar condominiums, though, the average price has not changed much since 2008. Condos are selling around the $300,000 mark.
As the real estate market in Toronto picks up once again, though, expect prices to begin the rise which marked them so well three years ago. Current trends suggest that this may happen sooner than most people think, so get out and buy while there's time!
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