CUSTOM MANSIONS, AND PRICE SPIKES

August 18, 2021

WHY DID CERTAIN AREAS EXPERIENCE PRICE SPIKES?

August has been another month that has shown spikes in property pricing. According to average selling prices, Gincourt and the Jane and Finch area were two of the most affordable neighbourhoods in Toronto real estate last year.

Toronto Regional Real Estate Board (TRREB) data shows that rates in both areas are higher than the ones downtown east — from Cabbagetown to the waterfront.

Innisfil and Clarington, two areas outside of the city, have shown a significant jump in their home prices, with an average of over 40 per cent since July 2020 in selling prices.

What investors are seeing in areas like Agincourt is the opportunity to buy detached bungalows and create mega-mansions. Some of these investors are hoping to turn these bungalows into homes that are appropriate for deep pocketed families looking for space and convenience.

These mansions were already seen as a trend in places like Scarborough, especially neighbourhoods like Guild, West Hill and the Bluffs! Those lots were gaining popularity and bringing in more buyers, thus increasing demand. And now this demand is tackling larger cities all over.And because of this, they tend to skew the perceived value of homes in a given neighbourhood

Mcmansions seem to be more attractive towards new families, and those looking to live in a more stable environment in The City. Do you think this will create yet another housing crisis?