According to the recently released Coldwell Banker 2009 Home Price Comparison study, GTA ‘move-up’ home prices are a bargain, at least internationally speaking. The Home Price Comparison Index (HPCI) studied 345 North American markets including 35 Canadian markets, as well as an additional 56 international markets outside North America. In this study, Coldwell Banker compared the pricing of what they call the “aspirational home”, a 4-bedroom, 2,200 square feet single-family dwelling with 2 1/2 bathrooms, which would be most favoured by move-up buyers and middle management corporate transferees. Here in the GTA, Coldwell Banker Terrequity expanded on these findings by conducting its own study in 16 markets in the GTA using the same criteria.
La Jolla, CA led all 400 markets studied with an average home price of $2,125,000 US. Singapore took top international spot outside North America with a four-bedroom home there selling for $1,898,500 US. Vancouver took the top Canadian spot at $1,174,241 US. A similar type of property in Toronto averaged $766,643 US. To see how Toronto prices stack up against the top 10 international markets, please refer to the chart below. (Note: For purposes of comparison, all of these amounts have been converted to US dollars at a rate of .93)).
| Rank |
City |
2009 Avg.
Sales (US $)
|
| 1 |
La Jolla, CA |
$2,125,000 |
| 2 |
Beverley Hills, CA |
$1,981,750 |
| 3 |
Greenwich, CT |
$1,519,250 |
| 4 |
Palo Alto, CA |
$1,489,726 |
| 5 |
Santa Monica, CA |
$1,460,912 |
| 6 |
San Francisco, CA |
$1,363,250 |
| 7 |
Boston, MA |
$1,337,578 |
| 8 |
Newport Beach, CA |
$1,315,505 |
| 9 |
Palos Verdes, CA |
$1,237,041 |
| 10 |
Vancouver, BC |
$1,174,241 |
| |
|
|
| |
Toronto, ON |
$766,643 |
Coldwell Banker Terrequity Realty’s study of 16 GTA markets showed there are some very attractively priced communities within the GTA where your home-buying dollar can go further or where investment opportunities abound. Not surprisingly, the ‘aspirational’ home in Central Toronto (bounded by Yonge St on the east, Humber River on the west and Eglinton on the north) had the highest average price of $998,000 (Canadian dollars). The Beaches in Scarborough (bounded by Warden on the east, Woodbine on the west and Kingston Rd on the north) came in second position with an average price for a detached four-bedroom home selling for $795,000. North York (bounded by Steeles on the north, Victoria Park on the east, Islington Ave on the west and Highway 401 on the south) showed the third highest price for a ‘move-up’ home at $662,000.
The areas with the most affordable four-bedroom detached homes in the GTA included upper and lower Scarborough, Mississauga, Brampton and Pickering. Pickering was the most affordable at $374,000 followed by Brampton at $383,000. Upper and lower Scarborough and Upper Mississauga were in the $460,000-500,000 range. The majority of the Toronto markets for a four-bedroom property fell between the $400,000-600,000 price-range. For the average price of all 16 markets in the Terrequity study, please refer to the chart below.
| City |
2009 Avg.
Sales (Cdn $)
|
| Central Toronto |
$997,637 |
| Beaches |
$795,000 |
| North York |
$661,940 |
| Etobicoke (Lower) |
$635,000 |
| Oakville |
$570,500 |
| Richmond Hill |
$569,666 |
| Mississauga (Lower) |
$562,200 |
| Etobicoke (Upper) |
$535,500 |
| Markham |
$522,666 |
| Thornhill |
$514,500 |
| Vaughan |
$501,500 |
| Mississauga (Upper) |
$499,333 |
| Scarborough (Upper) |
$485,833 |
| Scarborough (Lower) |
$461,966 |
| Brampton |
$383,000 |
| Pickering |
$373,666 |
One of the most interesting results of the combined studies was that even our most expensive market of Central Toronto is priced very comparably to major cosmopolitan markets such as Chicago, IL, Pasadena, CA, and Queens, NY which all average in the mid- $800,000 range (stated in US dollars). Please note Manhattan NY was excluded from the study because of a lack of comparable single-family homes.
Toronto appears to offer a unique blend of world-class properties in the central part of the city and some very affordable neighbourhoods in Brampton and the eastern GTA. What is even more impressive is the broad range of four-bedroom properties that are available for under $500,000. While some prospective buyers may focus on the fact that prices have gone up in recent years, the reality is that ‘move-up buyer’ homes in Toronto are very affordably priced when compared to the other international cities in the global marketplace, and even against some of Canada’s own pricier markets on the West Coast. This pricing combined with the record low interest rates we have seen this fall, offer some unique real estate investment opportunities not available in other major markets in many parts of the world. Why not take advantage of one of Canada’s best real estate investment opportunities, before our ‘well kept secret’ gets out to the rest of the world.
Andrew C. Zsolt, Ca, Mba, Fri, is the founder and Broker of Record of Coldwell Banker Terrequity Realty, Brokerage – the number one Coldwell Banker franchise real estate brokerage in Canada. Andrew has made appearances in The Globe & Mail as well as The Toronto Star as a notable real estate expert. You may contact Andrew via e-mail at azsolt@terrequity.com.
