Tuesday, May 31, 2016

$3 million benchmark price for a single family home in Toronto in 10 years if trends remain

As one of Canada’s best performing real estate market for several years now, Toronto has seen home prices grow to new levels.

As one of Canada’s best performing real estate market for several years now, Toronto has seen home prices grow to new levels.

Within a decade, however, these concerns might prove moot as benchmark costs could go as high as $3 million for each single-family home if present trends do not change, according to an analysis by Daniel Tencer and Jesse Ferreras of HuffPost Canada.

Taking current price growth rates into account, the duo’s predictions noted that the baseline price of a house in Toronto would be sitting between $2.26 million and $3.582 million by 2026.

Even going from a condo to a single-family home would become nigh-unaffordable for a significant proportion of would-be buyers within a decade.

"In Toronto today, upgrading from an average condo to an average house costs $758,000. By 2026, it will cost between $1.68 million and $2.95 million. Good luck."

The HuffPost analysts said that while continuous growth in the next ten years is unlikely, "The point of this is not to scare you into rushing out and getting a huge mortgage before prices get any worse, it's to illustrate that what's going on in Toronto and Vancouver today can't go on."

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