While condos have shown very modest and sustainable growth, detached homes have been on a tear since 2012. First, let's review the key condo indicators for last month. The median condo price held at $395,000 and the average days on market was typical at 29 days.


The Supply / Demand ratio is holding at the same level for the last 2 years predicting relatively flat price changes to come in the short term.


Now for the more interesting graph. Median Price of a Detached Home in Toronto Vs Median Price of a Condo.


Since January 2012, the price of a detached home in the city is up 45%. So over the last 3.5 years, that is a 12.8% growth rate per year. That is so unbelievable that I don't think even the most optimistic forecasters expected this. There's so much talk of a condo bubble but all the new condo supply has just been meeting demand, which has kept prices quite flat and stable. I don't see a condo bubble.

Could these house prices be sustainable? Personally, I think our 'crisis' level low interest rates kept far too long are responsible for this asset bubble. Money is so cheap to borrow, many people feel comfortable with large debt. If you're under 45 years old, you've probably never experienced falling real estate prices.
What should you do if you need to move because you need more space but are nervous about the market?
A great alternative are executive townhomes in the West End, around Islington. You can get 2000 square feet, outdoor space, no renovations needed, very low monthly fees (around $125) and without all the work that comes with a detached home.

Prices of those townhomes have increased but not as much as detached homes which we think will make them less volatile in the years ahead. There are some good options available in the $750k range.

If you're interested, just ask us to send you some examples to review!