As per an article in today's Toronto Star, neighbourhoods of Swansea, Roncesvalles and Parkdale enjoyed the highest one-year appreciation among single-detached homes in the Greater Toronto Area in 2006. Homes in those neighbourhoods now hover at $642,000, up by 18 per cent from $544,000 at the end of 2005, making it the best return on investment in the Toronto area. Offering older, character homes in proximity to the High Park and Old Mill neighbourhoods, the area has benefited enormously from the renovation boom of recent years. The multimillion-dollar refurbishing of the Drake and the Gladstone hotels - favourites with the modelling and film industries - has been a big part of the Parkdale renaissance. Some buyers end up in Parkdale or Roncesvalles after being priced out of the High Park area, which has already undergone a major appreciation.
Downtown neighbourhoods made the biggest gains in 2006, reflecting the importance of location. While central areas had an average gain of 7.5 per cent, the average existing property (for all classes) in the Toronto area increased by a much more moderate 5 per cent.
The second-highest one-year appreciation occurred in the north Toronto area around Hoggs Hollow, York Mills and the Bridle Path, where a single-detached home now commands an average of $1.4 million, up 13.6 per cent in the past year.
Lawrence Park, a favourite with young Bay Street executives, saw a 12.4 per cent gain to $1.08 million.
The Bayview Village community increased 12.2 per cent to $582,000.
Scarborough Bluffs, an up-and-coming area near the Beach community, recorded an 11 per cent gain to $351,000.
Still, despite the solid gains in the top neighbourhoods, price gains in the Toronto area are slowing, about twice as many neighbourhoods in the Toronto area were experiencing double-digit increases.
For 2007, analysts have forecast the average price of an existing home will rise anywhere from 1.8 per cent (below the inflation rate) to 5 per cent, reflecting a cooling in the real estate market. The top gainers in the condominium market were in the York Mills, Hoggs Hollow and Bridle Path neighbourhoods, with a 22 per cent gain to $496,000. Prices rose 13 per cent to $190,000 in the Humber Heights, Kingsview Village and Richview area. In third place was the Yorkville, Annex and Summerhill neighbourhoods, with an 11 per cent jump to $493,000.
Source: Toronto Star
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