The lack of newer three bedroom family sized homes in urban Toronto continue to push prices upward in the freehold property sector due to the imbalance of supply and demand, and hardly any new family sized homes are being built. The average price gap from a condo to a detached home is growing wider since there is a finite amount of land in the Central areas when condo dwellers need to source bigger spaces to raise a family. In the past 5 years, we are increasingly noticing more infill redevelopments in Toronto neighbourhoods that were once saturated with 20th century bungalows, turn down or topped up being replaced by 2 storey homes.
At the edge of the city core where old suburbs like East York, Mimico, Long Branch, Don Mills, Birchcliffe and Brookhaven which are still considered to be in close proximity to the urban centre, are where 2 storey homes on orginal bungalow lots now selling for close to or well over $1m. Despite this, I still think there is a lot of value in buying bungalows on underutilized lots in residential districts which are zoned R2 or higher. For the move-up buyer, this can be an option as an affordable entry level to the freehold market, giving homebuyers an option to secure land first and increase square footage by adding on an addition as your needs change down the line. This is also one of the reasons the prices have jumped in these areas.
Pre-war detached bungalows are very rare since those can only be found as one off in inner city neighbourhoods and most will be sold at land value. Bungalows in post-war neighbourhoods such as East York, North York, Mimico, and Long Branch, are being snapped up and converted to highest and best use. Under-utilized lots with a modest bungalow in infilling areas are highly sought after properties by move-up buyers and builders alike.
Bungalows in Central Toronto zones typically sit on 20' to 40' wide lots, which makes it ideal for additions and adding a second storey conversion.
This is a snapshot of how much a 3 bedroom bungalow in habitable condition would cost in these areas based on 2016 Spring market:
Inner city bungalow
East York - 3 bedroom with separate entrance for in-law suite in basement $700k and up
Don Mills - $1m and up
North York - $1.2m 55' wide lots
Mimico - average mid 600k and up 25' to 30' wide lots are common
Long Branch - 700k and up, average 35' wide lots
The above average prices will always depend on how livable and how solid the existing structure is, as well as finished or unfinished basement, number of washrooms and condition of the home. My business is about finding a real estate solution for your needs. If you are interested in sourcing a bungalow, I can offer an estimate of value based on your choice neighbourhood and how much a home that fits your needs will be to help budgeting for your next home. You can contact me by email anne@annelok.com.
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