Residential properties in Ontario with a value under $500,000 have significantly dwindled in number over the past ten years, as revealed by recent data from the Municipal Property Assessment Corporation (MPAC).
According to MPAC's report released on Thursday, the landscape of home values in Ontario has undergone a notable shift. In 2013, a staggering 74% of residential homes in the province fell under the $500,000 benchmark, and an impressive 91% were assessed at less than $750,000. Fast forward to the present, and only 19% of residential properties in Ontario are now valued under $500,000, with 48% falling below the $750,000 mark.
Greg Martino, Vice President and Chief Valuation and Standards Officer for MPAC, emphasized the widespread nature of this trend, noting that even smaller communities outside the Greater Toronto and Hamilton Area (GTHA) are experiencing increases in home values.
Martino explained, "Looking across the province, our data shows increases in home values across Ontario – even in smaller communities outside the GTHA. The reality is that current home prices are a reflection of various economic forces at play. Factors like supply and demand, increased construction and labour costs plus inflation are all part of what's driving today's house prices."
MPAC's report shed light on the surging costs of detached, semi-detached, or townhomes, attributing the trend to "unprecedented rates." In 2013, the median value for a detached home in Ontario hovered just below $378,000. Today, that figure has surged by an astounding 128%, reaching over $862,000.
The report also highlighted a substantial change in the valuation of detached homes, with 41% now estimated to be worth over $1 million. This marks a significant departure from 2013 when only 6% of homes reached this price point. The escalating costs are indicative of various economic factors shaping the current housing market, including supply and demand dynamics, rising construction and labor expenses, and inflation.
In 2013, the majority of semi-detached homes (94%) and townhomes (97%) were valued at less than $750,000. However, in the present scenario, only 33% of semi-detached homes and 46% of townhomes fall below this threshold, illustrating a considerable shift in the housing landscape.
As of December 2023, the median home value in Ontario stood at $765,000, with the median value in the GTHA reaching $1,031,000. These figures underscore the ongoing evolution of the real estate market, driven by a complex interplay of economic factors that continue to shape the housing landscape in the province.
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