The Toronto housing market is currently cooling off as buyers wait to see what happens in the next Bank of Canada interest rate announcement. As a result, home sales slowed down in September, with detached home sales in particular dropping by 5.1% from August.
Despite competition slowing down and inventory propping up, detached home prices are still growing and the City of Toronto’s average detached home price increased month-over-month by 5.4% to $1,724,007 in September. But this doesn’t mean motivated buyers can’t find a deal in the city. The majority of neighbourhoods in Toronto actually have detached home prices below the city’s average, and one neighbourhood even has detached homes for under $1,000,000.
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In order to discover the best pockets of affordability in Toronto, we analyzed the average detached home price in each Toronto neighbourhood and compared it to the city average.
18 out of 35 Neighbourhoods Have Detached Home Prices Below the City’s Average
Unsurprisingly, home prices outside of the city center are much more affordable than in the central downtown areas, with the most affordable neighbourhood’s average detached home price almost half the City of Toronto average. The most affordable neighbourhood, W10 (Rexdale-Kipling, West Humber-Claireville), has an average detached home price of $962,389 – $761,618 less than the City of Toronto average.
Seven other neighbourhoods, all located to the far east and west of downtown Toronto, have an average detached home price of more than $500,000 less than Toronto’s average. W03 (Rockcliffe-Smythe, Keelesdale-Eglinton) and E11 (Malvern, Rouge) are the second and third most affordable neighbourhoods, with average detached home prices of just over $1,000,000 each.
Huge Disparity Between the Most Affordable and Most Expensive Toronto Neighbourhoods
There are 17 neighbourhoods in Toronto with an average detached home price higher than the Toronto average, but the price gap between these neighbourhoods is dramatically different. The top 4 most expensive neighbourhoods are all more than $1,000,000 more expensive than the Toronto average, while the rest largely have less than a $600,000 difference with the Toronto average.
Not surprisingly, the most expensive neighbourhood in Toronto for a detached home is the prestigious C12 (York Mills, Bridle Path, Hoggs Hollow), where the average price is a staggering $4,584,077 – more than $2,000,000 higher than the city’s average. The second most expensive neighbourhood, C09 (Rosedale, Moore Park) also has an average price of more than $4,000,000 and a more than $2,000,000 price difference from the Toronto average.
Of the more expensive neighbourhoods, E01 (Leslieville, Riverside, Little India) is the most affordable with an average price of just $5,793 more than the Toronto average. This suggests buyers might have an easier time finding a less expensive detached home here.
Comparing the most expensive with the least expensive reveals an even greater disparity. The most expensive neighbourhood, C12 (York Mills, Bridle Path, Hoggs Hollow) is more than $3,600,000 more expensive than the least expensive neighbourhood W10 (Rexdale-Kipling, West Humber-Claireville).
For buyers looking to live in Toronto, this means searching in the right neighbourhoods for your budget is crucial. Working with a realtor familiar with the local market can help you better navigate the real estate market. Give us a call today to talk with one of our experienced agents about your real estate goals!
