The cost of buying a single-detached house in the high-demand communities of Riverdale and Leslieville got a little more expensive in 2009.
An in-depth analysis released Jan. 28 by Re/Max Ontario-Atlantic Canada found that the E01 district was the lone downtown Toronto area where housing values actually increased by more than five per cent last year. This means the average cost of buying a detached house in the downtown east communities is up by 6.7 per cent to $522,017.The study also determined 2009 housing values in 27 per cent of the GTA's 63 districts were actually slightly below 2008's figures, while 57 per cent appreciated by less than five per cent in 2009.Only 16 per cent of districts, including E01 (Riverdale, Leslieville), recorded an average price appreciations exceeding five per cent.Some of the other Toronto districts to see notable increases included Malvern, Hillside, Rouge (E11), which saw the second highest jump of 7.3 per cent or $368,95 and Bathurst Manor, Armour Heights (C06), which ranked 10th on the list with a 5.1 per cent increase to $597,025.Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada, said in a release these figures show there's no housing bubble, despite the limited housing inventory."While sales were up considerably over one year go - and supply was tight in many of the city's hot-pocket areas - the expected surge in average price did not occur," he said."Buyers remained cautious in their pursuit of homeownership, with most unwilling to overpay for the privilege."Polzler said that the E11 figure is especially notable because it demonstrates buyers, many of which are first-time homeowners with young families, want houses under $400,000."First-time buyers were a driving force throughout much of the year, but their role was most noticeable in early 2009," he said."Almost one in every two homes sold was priced under $400,000 in the first quarter of the year. An entirely different picture emerged in the final quarter when just one-third of homes moved under the $400,000 price point."Polzler pointed to the demand for more upscale properties in Don Mills (where the average price is $572,529) and even Rosedale at $1,717,190 to illustrate this point. The overall value only rose one per cent to $919,838 from 2008. The number of actual home sales in Toronto's north end saw the highest 2009 increase at 32 per cent to 8,843 units.Housing sales in the west end from Brampton to The Kingsway reached 19 per cent to 12,453 units, however the actual cost only rose by 1.5 per cent to $467,227.There was a fairly moderate increase in sales in east Toronto at 2.6 per cent to $400,813. The cost of single-detached homes in Scarborough's Bendale, Woburn district averaged at $325,393, while they reached $691,128 in the Beach. "After a dismal start, the stats confirm that 2009 returned to the healthy, upward trajectory that we have followed for much of the last decade," Polzler said, adding he expects to see moderate gains for detached home sales in 2010."The detached housing category continues to be a solid gauge of the market's overall performance, accounting for approximately half of the activity in the GTA."