Homes for Sale in Toronto Priced Below Average

The Toronto real estate market continues to be one of the most expensive places in the world to achieve the dream of homeownership. Demand for homes for sale in Toronto has eased since the 2020-2021 housing boom, but the housing industry in North America’s fourth-largest city remains hot, and prices continue to be higher than they were before the public health crisis.

Still, at a time when mortgage rates are above six per cent, the Canadian economy is entering a technical recession, and households’ pandemic-era savings have been exhausted, sales activity of Toronto homes for sale is not what it was a few years ago.

As a result, sellers are responding to these conditions by selling below the average price; whether this is reviving demand in Canada’s costliest market or not remains to be seen. But to understand the trend, it is first vital to take a gander at the latest market data to determine Toronto house prices.

Prices of Homes for Sale in Toronto

According to the Toronto Regional Real Estate Board (TRREB), the average price for Toronto homes for sale in October rose 3.5 per cent to $1,125,928. The price of single-family detached homes advanced more than six per cent to above $1.45 million, while semi-detached houses swelled 2.1 percent to $1,102,721. Townhome prices inched higher by 1.1 per cent to $930,185. The average selling price for condominiums and apartments tumbled 1.2 per cent to $708,780.

The challenge has been that sales activity for homes for sale in Toronto has slowed compared to the same time a year ago, local real estate association data show. In October, prices for homes for sale in Toronto dropped by nearly six per cent year-over-year, sliding to 4,646.

This was seen throughout the Toronto real estate market, too:

• Detached: -5.7 per cent; 2,157 units
• Semi-Detached: -3.2 per cent; 428 units
• Townhome: -11.5 per cent; 726 units
• Condo: -2.2 per cent; 1,296 units.

“Record population growth and a relatively resilient GTA economy have kept the overall demand for housing strong. However, more of that demand has been pointed at the rental market, as high borrowing costs and uncertainty on the direction of interest rates has seen many would-be home buyers remain on the sidelines in the short term. When mortgage rates start trending lower, home sales will pick up quickly,” said TRREB President Paul Baron in a statement.

So, are sellers really selling their homes below the city average? This is what the numbers are showing.

Where Are the Toronto House Prices Below the City Average?

One real estate brokerage recently published the results of a new study that revealed more than half of neighbourhoods in the Toronto real estate market have detached homes that are listed below the municipality’s average.

According to the report, 18 out of 35 Toronto neighbourhoods maintain an inventory of detached homes that are priced below the city’s average, and nearly all of them are situated outside of the downtown area.

Put simply, if you are purchasing a residential property on a budget, you will need to avoid the downtown core, be it in Scarborough or North York.

Where were the cheaper places in the Toronto real estate market? The Rexdale-Kipling, West Humber-Clairville neighbourhood topped the list, going for approximately $760,000 less than the average of homes for sale in Toronto.

Other neighbourhoods with Toronto house prices about $600,000 below the average:

• The Rockcliff-Smythe, Keelesdale-Eglinton
• Malvern, Rouge
• Morningside, Woburn, Bendale
• Yorkdale-Glen Park, Weston

The neighbourhoods of Dorset Park, Kennedy Park, West Hill, Centennial Scarborough, and Birchliff had homes listed below the city average by more than $500,000.

Here is a breakdown of the rest of the report’s data based on September statistics:

• Milliken, Agincourt North: $498,074
• Black Creek, York University Heights: $486,419
• Scarborough Village, Guildwood: $446,734
• Steeles, L’Amoreaux, Tam O’Shanter Sullivan: $383,074
• East York, Danforth Village: $363,348
• Mimico, Alderwood: $352,396
• Willowridge-Martingrove-Richview: $316,660
• The Beaches, Upper Beaches: $$174,199
• Bathurst Manor, Clanton Park: $62,924

The neighbourhoods of Parkwood, Don Mills, and Victoria Village ranked last, with homes selling for only $8,527 below the Toronto average.

On the flip side, 17 neighbourhoods had homes for sale in Toronto higher than the average. Four of these places sold for $1 million to nearly $3 million above the city average:

• York Mills, Bridle Path, Hoggs Hollow: $2.86 million
• Rosedale, Moore Park: $2.62 million
• Leaside, Thorncliffe Park, Flemingdon Park: $1.436 million
• Regent Park, St. James Town, Corktown: $1.176 million

The other areas of the city, from Mount Pleasant East to Liberty Village, were selling for between $130,000 and $936,000 above the Toronto average.

Real Estate Agents Are Critical

This is why working with an experienced and astute real estate agent is imperative for your home-buying journey. Realtors know the Toronto real estate market in and out and will know the best places in the city that are suitable for your budget and needs. Unfortunately, going solo in making the most important and largest purchasing decision in your lifetime might be a recipe for disaster.