The real estate market in the Toronto metropolitan area could witness a rapid increase in home prices this year, according to the latest forecast from Royal LePage.
During the fourth quarter of 2019, the region recorded an increase of 4.8% in aggregate housing prices to $ 843,609. During the same period, the average price of a house and a standard two-story bungalow increased by 4.4% and 2.4% to $ 982,944 and $ 806,977, respectively. The average price of condos increased faster, by 7.8% to $ 565,919.
Low housing supplies, population growth and greater consumer confidence continued to drive the region’s price improvement, said Kevin Somers, director of operations at Royal LePage.
“The Toronto metropolitan area is at a tipping point where we see signs that prices could start to increase rapidly. The region has a very low supply of listings while we see more buyers trying to enter the market,” he said.
Across the region, price growth varied significantly, with some areas, particularly those within the city center, showing stabilizing values due to high demand and low inventory.
Pickering and Mississauga reported the most substantial price increases at 9.7% and 7.9%, respectively. In Toronto, values increased by 6.6%.
The cities of Ajax and Oshawa were the only two areas that showed an annual decrease in aggregate price, a decrease of 1.2% and 1.8%, respectively.
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