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Don’t Want To Live In 905 Toronto? Well, A Ride To 416 Won’t Be Cheaper Either

The choice between buying a new independent house and owning a new condo in Toronto would soon be a difficult one. According to Canada’s leading real estate information services company, RealNet Inc., the price difference between a new single-family detached home and a new condo has reached almost $300,000 in February 2015.

Another company, BuzzBuzzHome’s information show the average price of a new independent home or townhouse was $733,578 in February, compared with $442,672 for a condo, reflecting a gap of $290,906. This means, the price of a new home has gone up 12 percent from the same period in 2014, but the price of a condo jumped just by one percent. BuzzBuzzHome is known for providing map based search results for all new residential properties.

The trend is similar to Vancouver, informed Brendan Pyne, RealNet Canada business development manager. In fact, Toronto is 10 years behind Vancouver when it comes to such kind of price difference in the housing market, he added. The shortage of new land to construct independent houses or townhomes forced many property developers consider high-density developments, resulting in thousands of options for condominiums in the greater Toronto area.

Though most of the land is in the 905 areas, it denotes Toronto’s congested suburbs, which is not a preferred address for many. However, the average price of a resale independent property in the 416 area is over a million now —  an increase of 8.8 percent from last year, the average price of a resale condo in the same area could be somewhere around $369,655, reflecting a slight decline from 2014.

With the current real estate scenario in Toronto, forget owning an independent house with a backyard; the average size of a new condo is just about 800 square feet, at least 125 square feet lesser from 10 years ago.

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Price gap between new houses and condos hits $300K in Toronto

The gap between the price of new condos and the price of new homes is widening in Toronto, hitting close to $300,000 in February according to RealNet.

RealNet figures show the average price of new detached home or townhouse was $733,578 in February, compared with $442,672 for a condo, a difference of $290,906.

And while the price of a new home is up 12 per cent from this time last year, the price of a new condo has inched up by just one per cent.

“It’s similar to the trend in Vancouver,” said Brendan Pyne, RealNet Canada business development manager. “Toronto is 10 years behind Vancouver in terms of the difference in the housing market.”

There is a limited amount of new land for single-family dwellings, most of it in the 905 area, he said.

That’s forced developers to consider high-density development and thousands of new condos are under construction or coming onto the market this year.

“I would say the main factor driving the gap in the Greater Toronto Area is green land legislation that restricts the ability to grow outward,” Pyne said.

Vancouver ran into the same limits 10 years ago, he added.

There is intense demand for both new and resale single-family homes, so much so that Toronto real estate prices have continued climbing, even as real estate markets in other cities begin to slow.

The average home price for a detached resale house in the 416 area is now over $1 million and is up 8.8 per cent from a year ago. The average price of a resale condo was much lower at $369,655, a slight decline from last year.

For young Toronto families that presents the possibility that they’ll never own a home with a backyard.

And while detached and semi-detached homes are out of reach financially, condos may not be big enough for couples with children. The average size of new condos is shrinking and currently stands at about 800 square feet, 125 square feet less than they were 10 years ago.