Personal Finance By Tess Kalinowski 175 Views

Toronto home prices soar by 6.2% — and they are forecast to keep rising

Home prices in the Greater Toronto Area are continuing to surge due to greater consumer confidence and a recent decline in mortgage rates, according to a new report from Royal LePage.

Across the region, Pickering saw the greatest year-over-year price appreciation, rising 6.5 per cent to $737,276, putting it slightly ahead of a 6.2 per cent gain in the City of Toronto, where the aggregate median price grew to $926,419.

As a whole, the GTA saw prices rise by 3.7 per cent, year-over-year, to a median aggregate home price of $858,443, according to the third quarter report, released Thursday. Prices are forecast to continue growing to a median home price of $859,301 by the end of the year.

“People just need houses,” said Chris Slightham, president of Royal LePage Signature Realty. “The population has grown in the last 24 months significantly. People just need somewhere to live and people realize the sky hasn’t fallen on real estate.”

Condo town houses and apartments saw significant gains across the region with prices rising 9.6 per cent in Mississauga and 9.2 per cent in Toronto. Scarborough, Brampton and Whitby also saw condo prices increase 7 per cent, 6.7 per cent and 6.1 per cent, respectively.

The report attributes Pickering’s price gains to a new casino that is slated to begin opening next year and the number of students attending nearby campuses of the University of Ontario Institute of Technology, Trent University and Durham College.

But Slightham says Pickering’s price point and geography also work in its favour.

“The 416 has gotten quite expensive, it’s an accessible community from a price standpoint and from a distance standpoint if you have to commute,” he said.