Toronto's real estate market experienced a significant series of adjustments over the past year as rising interest rates threw cold water on record-high prices and dampened demand.
According to data from the Toronto Regional Real Estate Board (TRREB), the median price for all property types in the city was down 3.6% year over year in January, while the median price of detached homes declined 19.1%.
The drastic drop spurred real estate agency Zoocasa to analyze where median detached home prices have fallen below the $1M mark in Toronto, while also calculating the downpayment required for each area in accordance with the federal government's guidelines.
Of the 34 Toronto neighbourhoods included in the report, there are only two where the median price of a detached home is below $1M. City-wide, the figure sits at $1,270,000.
With a median detached home price of $843K, Rockcliffe-Smythe, Keelesdale-Eglinton West was deemed the most affordable area in the city, with a 20% downpayment -- the minimum required to avoid paying mortgage insurance -- of $168,600.
Although the median detached home price in Rexdale-Kipling, West Humber-Claireville is $930K, the neighbourhood has a sales-to-new-listings ratio of 83%, putting it firmly in seller's market territory. As such, prices in the north-western pocket could surge in the coming months as competition heats up. Buyers who swoop in beforehand will need $186K for a downpayment.
In Oakridge, Birchcliff-Cliffside and Scarborough Village, Guildwood, the median detached home price is teetering on the edge of $1M, meaning it wouldn't be unlikely to find a detached home priced below that.
In the majority of Toronto's neighbourhoods, the median detached home price ranges between $1M and $2M. However, there are five where the median price exceeds the $2M mark. Of those, Rosedale, Moore Park was by far the priciest, requiring a minimum downpayment of $710K to afford the median detached home in the neighbourhood, which is over $3.5M.
Although still exorbitant, median detached homes in the second most-expensive area (Leaside, Thorncliffe Park, Flemingdon Park) were over a million dollars cheaper, at $2.3M, requiring a minimum downpayment of $470K.