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Working-class neighbourhoods enter the $1M club

A row of houses.

Scarborough, one of the GTA’s hottest markets, saw double-digit price gains in many of its suburbs as the region’s property sector continued to defy expectations.

“The – nestled between the popular Beach area and the Scarborough Bluffs – has experienced a serious upswing in demand due to affordability and close proximity to Toronto’s downtown core,” Ken McLachlan, broker-wwner of Re/Max Hallmark Realty, said in a release.

“Scarcity of product, coupled with low interest rates, served to drive prices of detached homes to new heights during the first half of the year.”

Re/Max Hallmark Realty has published a new report that examines sales and price appreciation in 35 neighbourhoods in the Toronto Real Estate Board’s 416 area code and nine communities in York Region.

According to the report, the average price of detached homes rose 10 per cent overall – more than 63 per cent in 22 416 neighbourhoods and 67 per cent in six York Region districts, compared to the same period one year ago.

In the 905, neighbourhoods like Cliffcrest, Scarborough Village and Guildwood reported increase of 23.9 per cent – with the average price hovering at $754,437, which represents an increase of close to $150,000 over the June 2014 year-to-date average of $609,047. 

The Rouge-Malvern area experienced a 19.2 per cent increase in price, rising to $621,912 from $521,643 one year earlier.

The Bank of Canada’s move to cut interest rates a quarter of a percentage point to 0.5 per cent is expected to further accelerate home buying activity.

“A five-year fixed term now hovers at 2.69 per cent at a chartered bank, even less at a credit union or trust company,” McLachlan said in the release. “There’s no telling where mortgage rates will drop to in the weeks and months ahead.  The stimulation will create even greater urgency in an already heated housing market.”

Overall, the East End and York Region posted the greatest increases in average detached housing values, at 15.5 and 15 per cent respectively during the first six months of 2015, with prices rising to $727,221 and $934,207, respectively. 

The downtown core saw a 12.1 per cent increase to $1,616,682 in average price year-to-date 2015, while values in the West End appreciated 10.3 per cent to $822,539 during the same period.
 

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