Townhome prices are on the rise in the GTA, but is the supply there?
When it comes to a great value real estate investment in the GTA, it’s all about townhomes. At least that’s how George Carras, owner of RealNet Canada, sees it.
Writing in the Toronto Star on Friday, Carras notes that “townhomes are generally cheaper than both detached homes and condos” yet “they’ve experienced the greatest price appreciation in 2011.”
The average price of a new townhome is $464,096 for 1,884 square feet — a record high level. That’s 28 per cent less expensive that the average detached home and 9 per cent less expensive than the average condo.
But there’s a catch… There’s always a catch.
Carras explains that townhome inventories are currently at near-record lows across the GTA — only 1,609 units were available for sale at the end of last month — while prices have been rising the fastest in 2011.
For him, the main insight is there could be value in a townhome that’s being overlooked. With average new condo prices relatively flat and the growth of townhome prices overshadowing that of detached homes, Carras sees a great opportunity in the medium density housing market.
Think the medium density market is the place for you? Here’s a little rundown of townhome developments currently for sale or in their registration phases at the moment: