If you bought a bungalow anywhere in Toronto or any of the surrounding communities in 2010 than you are a winner as your property value increased more than any other home.
Reasons the bungalows has been hot are
1 - Bungalows are built on huge lots and can be severed to built two seprate homes.
2 - Aging popullation want bedrooms and living on one level which the bungalows provide.
3 - Bungalows are mostly built in the older neighbourhoods of Toronto, hence providing easy
access to TTC, shopping..
4 - Home flippers have renovated the older bungalow properties added extra bedrooms and
sold them for huge profit.
5 - As per the last CMHC report the age group between 45-55 has the most equity in there existing
homes and highest income hence tend to pay more for the properties they like.
Bungalows continued to appreciate at a faster pace in the Toronto market compared with other housing types.
On average, detached bungalows saw the largest year over year increases, up 4.5 per cent to $499,050, according to the quarterly survey. Condominiums rose by an average of 3.7 per cent to $339,025, while two storey homes increased by 2.5 per cent to $589,929.
“Affordability has kept detached bungalows in demand,” said Gino Romanese, senior vice president of Royal LePage. “Detached bungalows have also been popular with builders who either renovate them or rebuild them into larger units.”
The Royal LePage report confirms earlier research released Sunday by The Star using property assessment data, which showed bungalows have been the highest appreciating category in the Greater Toronto Area.
Since the last provincial assessment in 2008, bungalows in areas such as Leaside, York Mills, Lawrence Park and Moore Park have increased in value anywhere from 22 per cent to 41 per cent over that three year period.
Bungalows have been popular as well with an aging demographic who don’t want to deal with stairs. But rising values have also impacted vulnerable seniors on a fixed income who find they are living in neighborhoods that have become increasingly gentrified.
Low interest rates have also sparked the continued appreciation of home prices. On Tuesday the Bank of Canada held firm on their key overnight lending rate, keeping it at 1 per cent as widely expected for the fifth consecutive meeting.
However, Royal LePage does not see significant price increases for homes on the horizon. While the housing market has had a reprieve from the central bank, most analysts are forecasting that the first hike will come in July.
“The rate at which Canadian homes have been appreciating may well have peaked over the next year or so,” said Phil Soper, president and chief executive officer of Royal LePage. “While low interest rates continue to drive demand, the tepid pace at which employment levels are improving is tempering the rate of home price appreciation in many Canadian cities.”
While the resale market continues to appreciate, the new home market also continues to be robust, according to figures released Tuesday by Statistics Canada.
Canada’s new housing price index was up by 0.4 in February over January, driven mainly by the Toronto market, according to the federal agency. The consensus estimate was for a 0.2 per cent gain.
The Toronto and Oshawa market, which accounts for 27 per cent of the overall Canadian market, showed a 0.6 per cent monthly gain. Prices are now up 3.6 per cent year over year for new housing. That beats the Canada wide average of 2.1 per cent.
