Toronto’s real estate through the ages

It’s no secret that real estate prices continue to increase in markets such as Toronto, but certain neighbourhoods have homes that fly off the market faster than others. If you were lucky enough to get into these markets many moons ago, this review of historical pricing will likely leave you feeling pretty happy about your investment. But, if you nervously held back, worrying the bubble would inevitably pop, well, this report might leave you with feelings of regret.

Here are three examples of listings within neighbourhoods that have experienced a significant incline in pricing over the past few decades. What might start out as neighbourhoods with reasonably priced homes, often progress to significantly high ROI for homeowners who bought and sold at the right times.

Each example shows what the home listed for in 2016 and is compared to their property records that show the mortgage amounts of the past.

1. 54 High Park Blvd., Roncesvalles/High Park

Bedrooms: 6
Bathrooms: 6
Property taxes: $10,393.54 (2015
1912 – Consideration or amount of mortgage*: $6,000
2000 – Consideration or amount of mortgage*: $350,000
2016 – Consideration or amount of mortgage*: $3,300,000

Roncesvalles Village is one of those neighbourhoods that you might not discover when you first move to Toronto, but as soon as you do, you love it. Known for its Polish heritage, Roncy has seen many changes over the years, and its real estate prices are no exception.

Veronica Feihl, manager of the Roncesvalles Village BIA and long-time neighbourhood resident, notes a few changes in the area. “I have noticed that the Polish demographic has changed, for sure. When I first moved here I’d go into stores and they would automatically greet me in polish.”

According to Feihl, the polish population has declined over the years and a lot of new stores have opened up, which has contributed to the neighbourhood changes.

Feihl bought a home on Marion Street in 1990, “When we moved in, the interest rates were so high, mortgages were around 17 per cent, we got it at 13.5 per cent... We thought we were so lucky to get that.” She laughs thinking about today’s record-low interest rates.

Feihl rented part of that house to afford her mortgage payments and she suspects that a lot of people are doing that in Roncesvalles nowadays too — families splitting places across generations, or friends going in on a home together. Feihl thinks university students expect a different lifestyle than their parents had — they know they might not be able to buy a home in the traditional way, so they’re finding new avenues to get into the market.

And perhaps she’s right — maybe community buying is the future of homeownership in neighbourhoods such as Roncesvalles. In an area where a home goes from $6,000 to $350,000 to $3.3 million, splitting the costs doesn’t seem like a bad idea.

2. Palace Pier: 2045 Lake Shore Blvd. W., Unit unknown, Humber Bay

Bedrooms: 3
Bathrooms: 3
Property taxes: $3,337.71 (2015)
1987 listing price: $224,900
2003 listing price: $385,000
2016 listing price: $598,000

Today, Toronto is known for its condos – there seems to always be another condo going up somewhere, somehow. Toronto’s west end waterfront is one area seeing this trend. But not all too long ago, this area was almost completely bare.

When Palace Pier went up in 1976, it was essentially the first of its kind. A luxury building on the waterfront, what more could you ask for? Today, the waterfront is merely a starting point for city dwellers looking to buy.

Long-time Palace Pier resident and broker of record for Regency Park, Irene Goodman has seen the Humber Bay neighbourhood develop into the condo haven it is today, “The waterfront has become a city of its own,” she says.

It’s not hard to understand why – a waterfront community is always a hot commodity and with new condo developments come new customers.

But what else is driving up the prices in Palace Pier and other condos throughout the city?

Foreign buyers continue to be a hot topic in Canadian real estate and while some deny that they seriously contribute to skyrocketing home prices, Goodman has no doubt, “We are cheap to the rest of the world,” she explains, “We’re only expensive to each other.” She’s had multiple sales with foreign buyers in Palace Pier and assumes condo prices will continue to be affected by this.

Goodman suspects that this area in Humber Bay is just about done developing (she wonders where we’d manage to put more), but Palace Pier will no doubt stay on top of Toronto’s real estate market.

3. 181 Crescent Rd., Rosedale

Bedrooms: 7
Bathrooms: 7
Property taxes: $15,045.97 (2016)
1901 – Consideration or amount of mortgage*: $2,700
1946 – Consideration or amount of mortgage*: $12,000
2016 – Consideration or amount of mortgage*: $5,295,000

From $2,700 to $5,295,000 – Rosedale’s prices have certainly witnessed significant increases.

As the chair of the Rosedale BIA and a local designer, Marissa Agueci works with many businesses and residents in the neighbourhood. “The care and maintenance people have put into their property has in turn made it a highly desirable location for many people to strive to buy in.”

She makes a good point – Rosedale homes like this one are undeniably gorgeous. This home on Crescent Road is reminiscent of a small castle and was built by Toronto architects in 1902. It has been renovated and updated, so while the outside may show its age and history, the inside is modern and practical.

Like other historic neighbourhoods in Toronto, the homes in Rosedale are unique and their architecture and design styles often vary from street to street. This neighbourhood has been home to upper-class Torontonians for some time now, but as Agueci says, “It still maintains the small village charm – with a focus on diversity, inclusion and celebration.” Because of this, she feels the area will continue to attract new homebuyers.

According to Agueci, there are speculations that condos are in the forecast for the area. For now, she suspects that home prices will continue to rise in the area as the neighbourhood offers the combination of greenspace, subway access and community amenities.

*According to property records on file at Toronto’s land registry office.