{"id":5596,"date":"2021-06-03T12:58:00","date_gmt":"2021-06-03T20:58:00","guid":{"rendered":"https:\/\/justo.ca\/blog\/?p=5596"},"modified":"2022-06-27T20:48:17","modified_gmt":"2022-06-28T04:48:17","slug":"how-much-will-it-cost-to-buy-a-house-in-toronto","status":"publish","type":"post","link":"https:\/\/blog.justo.ca\/blog\/how-much-will-it-cost-to-buy-a-house-in-toronto\/","title":{"rendered":"How Much Will It Cost to Buy a House in Toronto?"},"content":{"rendered":"\n

If you plan to buy a house<\/a>, you may have heard some people say it is best to let the market cool down. It is the same advice repeated yearly in the last few years. However, the average cost of houses in the Greater Toronto Area continued increasing, and much more so during the pandemic. Is buying a home today better than waiting for the housing market<\/a> to slow down? The trend indicates you should before it becomes much more expensive in the foreseeable future.<\/p>\n\n\n\n

The Cost of Buying a House in Toronto<\/h2>\n\n\n\n

The first thing that comes to mind when thinking about buying a house<\/a> is how much it costs. You may have a preferred price range, but is it genuinely affordable?<\/p>\n\n\n\n

Toronto Housing Affordability<\/h3>\n\n\n\n

According to the National Bank of Canada<\/em>, the average cost of non-condo houses in Toronto is $1,039,438<\/strong>. Your annual household income to afford this price level should be at least $178,499<\/strong> (Housing Affordability Monitor)<\/em>.<\/p>\n\n\n\n

\"family<\/figure>\n\n\n\n

Although mortgage qualifying rates have not changed substantially, the mortgage rates are historically low (McClelland)<\/em>. On this basis alone, you could say that it helped in housing affordability. However, the reality is that both unemployment and savings rates also increased, which negate the benefits of low mortgage rates. At any rate, the average selling price of residential houses still surpassed $1 million for the first time.<\/p>\n\n\n\n

In February 2020, the average cost was $910,142<\/strong>, according to The Toronto Regional Real Estate Board<\/em>. This year, it increased by 14.9% to $1,045,488<\/strong> for the same month. COVID-19 may have slowed down most other industries, but not real estate. The rising cost of home resales indicates high demand, with total residential transactions increasing by 52.5%, from 7,193 to 10,970 for the same period.<\/p>\n\n\n\n

During the early days of the pandemic, there were fears that the rising cost of Toronto real estate may finally end<\/a>. As the numbers show, any trepidation was premature. If anything, sales even increased, driving up prices. One plausible explanation for this \u201cphenomenon\u201d is that the unique circumstances brought about the need for more living space. Adults need more space to work at home. Children and young adults, on the other hand, also need more space to study online.<\/p>\n\n\n\n

Cost of Toronto Houses<\/h3>\n\n\n\n

Which type of house do you need and how much does it cost, on average?<\/p>\n\n\n\n

Note:<\/em><\/strong> The figures cited are for February 2021, compared to the same period a year ago.<\/em><\/p>\n\n\n\n

Single-family detached home:<\/strong><\/h4>\n\n\n\n