Every quarter of the year, I often discuss the condition of the real estate market in the area that I live in during my net worth performance review. The information that I shared is pretty much localized to the Greater Toronto Area (GTA). However, my readers are pretty much spread out throughout North America and they may be interested to know what’s the real estate market condition in the metropolis that they live in too.
To satisfied my own curiosity and my readers’ interest, I decided to do some research to compare the GTA real estate prices with other North American Metropolises. Since the GTA is the biggest metropolis in Canada, I wanted to know how we would fare against other large metropolises like Mexico City, New York City and Miami. One of the questions that I wanted to address is, “Are the real estate prices in the GTA really that expensive?”
GTA Real Estate Prices
The Greater Toronto Area’s (GTA) real estate market has had a varied year in 2017. After reaching peak price in April, the number of homes sold nationwide fell by 6.2% in May, which is the largest month-to-month decline in nearly five years.
Yet, sales in the region rebounded and steadily increased in September. The average GTA home sold for $775,546 in September, up 5.9% from August’s average of $732,292, according to The Globe and Mail. The average price hike came after the increase in residential properties sold in September. Global News reported that 6,379 homes were sold in September, compared to 6,335 homes in August. However, the rise is still off by 35% from the 9,830 homes sold in the same month in 2016. The recovery has continued into November 2017 where 7,374 transactions have been recorded. Compared to last year in the same month, sales were down by 13.3%.
Even though buyers are becoming bolder with their purchases, sellers appear to be cautious. They are most likely waiting for prices to strengthen or until the spring, which is a typically favorable time for sellers. The uncertainty is also fueled by the Bank of Canada’s rate hike, which lifted by one-quarter of a percentage point to 1%.
Comparing To Mexico City
Taking into consideration GTA’s price fluctuations last year, how does its real estate fare against other North American regions? Let’s review the most populous city in North America, Mexico City. The city has contrasting real estate prices, as noted by the Mexico News Daily. A square meter of housing can range from $510 dollars to $73,000, depending on which neighborhood the building is in. The average price for an older one-bedroom condo in the upscale Polanco district is around $300,000 to $400,000, which is slightly lower than GTA’s current average price for a condo at $516,965.
Comparing To New York City
New York is the second most populous city in North America and has prices that are higher than both the GTA’s and Mexico City’s. The average sales price for a Manhattan co-op is $850,000, while the median price for a one-bedroom apartment is $835,000. While the city has seen a decline in market-wide prices for the first time in almost three years, the prices still don’t compare to the affordability of homes in other regions.
Comparing To Miami
New York has higher prices than even Miami, a city known for its beaches and upscale neighborhoods. Downtown Miami is one of the most affordable neighborhoods, with its median sales price of $189,375 for condos and $325,000 for single-family homes. Miami Beach meanwhile, has a median sales price of $495,000. It’s surprisingly affordable given that the area is home to an array of great bars, restaurants, and luxury condos. There is even the Art Deco district in South Beach, which is a popular tourist spot as according to Discover Homes Miami. South Beach’s real estate has also seen a dip in prices, with Discover Homes Miami stating that the “average sales price per square foot decreased to $1,229 from $1,247” this year. The least expensive condos are found in North Beach, with a median sales price of $240,000. The neighborhood itself is filled with residential properties, with no restaurants or bars nearby. Even so, that price is cheaper than an old condo in Mexico City’s Polanco and any type of home in GTA.
To recap, GTA stands in the middle in terms of real estate prices. It may not be the most populated metropolis in North America, but it has higher prices than some of the other big cities. Of course, nothing can top the sky-high prices of New York City, but at least GTA residents would not have to worry about dealing with the same housing problems as New Yorkers. If you are looking to purchase a property at GTA, feel free to check out our 26 tips to buy your dream home with confidence.
So readers, are real estate prices sky-high or fluctuate wildly in the area that you live in? Do you think housing is affordable in the area that you live in?
Note: This post is a collaborative post. Please read my disclaimers for more information.