Greater Toronto real estate seen staggering growth in single-detached sales and average price, little sign of slowing despite shortage of available listings
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Year-to-date sales in York Region rise close to 110 per cent while Peel and Central Toronto almost double over 2020 levels,
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Nearly half of 60 TRREB districts reporting year-over-year average price increases in excess of 25 per cent
Mississauga, ON (August 16, 2021) — A steady decline in the supply of single-detached housing in the Greater Toronto Area (GTA), coupled with mortgage rates hovering well-below three per cent, hastened demand from first-time homebuyers and galvanized the city’s move-up market in the first half of 2021, according to a new Greater Toronto real estate report released today by RE/MAX Canada.
The RE/MAX 2021 GTA Hot Pocket Communities Report examined trends and developments in 60 Toronto Regional Real Estate Board (TRREB) districts, finding that inventory constraints propelled demand throughout the GTA and set the stage for unprecedented market performance. With 11,297 active listings, this was the lowest level for June in at least a decade and down 35 per cent from the 10-year average of 17,260, surpassing the previous low of 12,327 reported in June of 2016. As a result, the average price for single-detached homes soared, with values in almost 97 per cent of TRREB communities well-ahead of year-ago levels, with nearly half reporting an increase of 25 per cent or more compared to the same period in 2020. The top 10 performers in 2021 in terms of year-over-year price appreciation ranged from 34.2 per cent in Milton (Halton Region), to a high of 46.4 per cent in Durham Region’s Uxbridge this year.
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Average price of detached homes in the GTA, by neighbourhood
Unit sales of detached homes in the GTA, by neighbourhood
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Across the board, RE/MAX Canada found appreciation in detached housing values was accompanied by a significant upswing in sales volume between January and June of 2021. When compared to the same period last year, unit sales more than doubled in York Region (109.6 per cent), while Peel and Central Toronto posted gains of 98.2 per cent and 96.7 per cent respectively. Sales increases across the GTA ranged from a low of 33.3 per cent in the East End’s Wexford-Maryvale, Clairlea-Birchmount, Kennedy Park, Ionview and Dorset Park (E04) community to a high of 175 per cent in Dufferin Grove, Little Portugal, Trinity-Bellwoods, Palmerston-Little Italy, Niagara, University, Kensington-Chinatown, Bay St. Corridor, and Waterfront Communities (C01) in the Central Core.
“Halfway into 2021 and the Greater Toronto housing market continues to fire on all cylinders,” says Christopher Alexander, Senior Vice President of RE/MAX Canada. “Overall home sales topped 70,000 between January and June, the strongest first half in the history of the Toronto Regional Real Estate Board, while values smashed through record levels set in previous years. Without a serious influx of new listings to ease the upward pressure on pricing in the coming months, the market will likely continue on this upward trajectory.”
First-Time Buyers Flock to the 905
With interest rates at historic lows, first-time buyers are scrambling to get into the market before home ownership is beyond their financial reach. However, affordability challenges continue to be exacerbated by the supply crunch. Of the 60 TRREB communities examined in the RE/MAX 2021 Hot Pocket Communities Report, only six offered single-detached homes under the $1 million price point. This is compared to 18 communities during the same period in 2020, and 28 in 2019. All six markets were located in the 905-area code.
“More transit options and hybrid work schedules have made relocation to the city’s outlying areas even more attractive,” explains Alexander. “First-time buyers are feeling the squeeze but are still determined to become homeowners, with many happily travelling further afield to make it happen while working from home. The beneficiaries of the trend have been suburban communities in Durham, Peel, Dufferin County and the most northern part of York Region.”
New-home construction has intensified in outlying areas in recent years. This is especially so in the communities of Clarington, North Oshawa, East Gwillimbury, North Keswick (Georgina) and Caledon, where an abundance of new housing product has come to the market as resales and are quickly snapped up. East Gwillimbury home sales jumped 145.3 per cent to 444 units in the first half of the year, compared to 181 unit sales during the same period in 2020; Georgina climbed 90.4 per cent (710 vs. 373); Caledon, up 108.2 per cent, more than doubled (610 vs. 293); Oshawa increased 71.9 per cent (1,810 vs. 1,053) and Clarington rose 65.6 (1,139 vs. 688).
“While first-time buyers are grappling with supply and demand, existing homeowners have been reaping the rewards as equity gains have soared over the past two and half years,” says Alexander. “In recent months, many move-up buyers have taken advantage of lower interest rates and those equity gains to trade-up to larger homes or neighbourhoods closer to the downtown core – with not too much change to their monthly mortgage payments.”
Central Toronto Real Estate Sales Propelled by Move-Up Buyers
Homebuyers who are “trading up” are likely behind the push for housing in the 416 area code, driving sales in central areas such as Bathurst Manor and Clanton Park (C06), which are up 169.8 per cent (116 vs. 43) in the first six months of 2021, compared to year-ago levels. Meanwhile, sales in Lansing-Westgate, Newtonbrook West, Willowdale West and Westminster-Branson (C07) have climbed 120.3 per cent (271 vs. 123) during the same period. In the city’s east end, sales in Milliken, Agincourt North and South, and Malvern West (E07) jumped 171.4 per cent (190 vs. 70); Tam O’Shanter-Sullivan and L’Amoreaux Steele (E05) rose 107.4 per cent (197 vs. 95); and Malvern and Rouge (E11) increased by 101.3 per cent (153 vs. 76). To the west, Humberlea/Pelmo Park, Downsview-Roding-CFB, Glenfield-Jane Heights, York University Heights, Black Creek, Humbermede and Humber Summit (W05) appreciated 138.5 per cent (186 vs. 78), and Stonegate-Queensway (W07) rose 100 per cent (124 vs. 62).
Communities bordering on the 416-area code such as Vaughan and Markham in York Region, Pickering in Durham, and Mississauga and Brampton in Peel have also experienced a serious uptick in sales in the first half of the year, compared to one year ago, as they capture some of the movement back into the city.
“The most daunting aspect of the current housing surge is that this period may actually be the calm before the storm,” says Alexander. “With the worst of the pandemic hopefully in the rear-view mirror and recovery on its way, economic expansion is likely. The Bank of Canada is committed to holding interest rates at current historically low levels for at least another year. Immigration is expected to bring another 1.2 million permanent residents to the country over the next three years. With all this stimulus at play, comparisons have been made to the Roaring 1920s – let’s just hope that this script has a better ending.”
About the RE/MAX 2021 GTA Hot Pocket Communities Report
The 2021 GTA Hot Pocket Communities Report is based on data from the Toronto Regional Real Estate Board and information provided by RE/MAX brokerages. Local RE/MAX brokers were surveyed in July 2021 for their insights on market activity and local developments.
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RE/MAX Hot Pocket Communities Report reveals double-digit detached price increases in 55% of Greater Toronto Real Estate Markets
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Spring supply crunch drives strong price appreciation for single-detached homes across the board in the first half of 2020
Detached housing values have shown remarkable resilience in the first half of 2020, with 95 per cent of Greater Toronto real estate districts posting solid gains in average price, according to a report released today by RE/MAX of Ontario-Atlantic Canada.
The RE/MAX 2020 Hot Pocket Communities Report examined trends and developments in 65 Toronto Regional Real Estate Board (TRREB) districts, finding that a steep decline in the number of homes listed for sale during Ontario’s State of Emergency contributed to a notable uptick in single-detached housing values. Active listings across Greater Toronto real estate markets hovered at 14,000 in June, the lowest level for the month since 2016 when active listings bottomed-out at 12,327. Average price was up in 95% of areas between January and June 2020, compared to the same period in 2019. Double-digit increases were reported in 60% of 416 districts and in 50% of 905 districts.
“Strong demand characterized much of the first quarter of 2020, setting the stage for a record-breaking spring market in the Greater Toronto Area – and then came Covid-19,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “In past downturns, a drop in unit sales has usually been followed by a significant upswing in the number of homes listed for sale. That didn’t happen in this case as buyers and sellers paused in April, then cautiously resumed home-buying activity as COVID-19 cases dropped and local economies re-opened. With the easing of restrictions and the province moving into the third, and perhaps final phase, we anticipate that the housing market will likely accelerate.”
The spring market that materialized in June is expected to remain robust throughout the summer months as pent-up demand, low interest rates, and limited inventory headline market drivers. “Virtually every housing category in the GTA, from starter homes to the luxury market, will be impacted by pent-up demand in the months ahead,” explains Alexander. “Historically low interest rates – with five-year closed rates as low as two per cent – will also provide impetus for the foreseeable future.”
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- Detached home prices in the 416
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- Detached home sales in the 416
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- Detached home prices in the 905
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- Detached home sales in the 905
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Location will be top-of-mind for most homebuyers, as illustrated by this year’s top five markets (two tied in second place). Of the 65 Greater Toronto real estate districts examined in the report, RE/MAX found that the strongest gains in average price occurred in areas in close proximity to Toronto’s central core. Leading in terms of percentage increase in the average price of a detached home in the first half of 2020 is Yonge-St. Clair, Annex, Casa Loma and Wychwood (C02), where values climbed 25.7% to $2,918,968. Move-up buyers were particularly active in this area, with a shortage of homes listed for sale, particularly in the Annex. In June, there were 28 active listings, and 17 average days on market, and the sale-to-list price ratio was 98%.
With an increase of 18.4% in average price, two markets straddling the lakeshore in the east and west ends of the city ranked second in terms of price appreciation. Swansea, Roncesvalles, South Parkdale and High Park (W01) saw detached housing values climb to $2,050,596, while Oakridge, Birchcliffe-Cliffside (E06) topped $1 million, settling in at $1,095,287. Young families were a major driver in both areas, with affordability and proximity to the Beach community drawing buyers to Oakridge, Birchcliffe-Cliffside, and close proximity to the downtown core and west-end shoreline attracting purchasers to High Park, Swansea, Roncesvalles, and South Parkdale.
While C03 is home to Forest Hill South and some of the most expensive real estate in the city, the area is also comprised of affordably priced hot pockets such as Oakwood-Vaughan and Humewood. The average price of a detached home in C03 is up 17.7% to $2,371,546, although a small bungalow in the aforementioned neighbourhoods can be purchased for just over $1 million. The same holds true for W08, home to the tony Kingsway South, but also offers up detached homes starting at just under $1 million in neighbourhoods such The West Mall. Average price in W08 was up 17% in the first half of the year, compared to the same period one year ago, rising to $1,693,382. Alderwood, Long Branch, New Toronto and Mimico in W06 have also been on an upward trajectory in recent, with the average price of a detached home rising 16.2% to $1,202,176.
While sales of detached homes were down overall, RE/MAX found several suburban/rural districts that bucked the trend, showing signs of growth. Most were located in more suburban/rural areas of the Greater Toronto Area, where the dollar stretched farther and listings were plentiful. Leading in terms of percentage increase in detached housing sales was the King area in York Region where 161 detached properties changed hands, up from 117 one year earlier, representing a 37.6% upswing in volume. Just under 200 active listings were available for sale in June, average days on the market hovered at 44, while the sales-to-list price ratio was 93%.
Bridle Path, Sunnybrook, York Mills, St. Andrew, and Windfields (C12), the only district in the 416 to post an uptick in sales, claimed second place for sales. The area, the most expensive in the GTA, experienced a 20.6% increase in sales between January and June 2020, with the number of detached homes sold rising to 76, up from 63 during the same period in 2019. Days on market were 19, with a sales-to-list price ratio of 94%. Close to 100 homes were listed for sale in June.
Affordability was the common denominator in the third, fourth and fifth place finishes, all with an average price between $600,000 and $650,000. Simcoe County’s Innisfil posted strong gains, ranking third with a 14.4% increase bringing the number of sales in the area to 389, up from 340 in 2019. Days on market were 35, sales-to-list price ratio was 99%, and more than 220 active listings were available in June. Fourth place Oshawa, in Durham Region, also proved a hot spot for sales so far this year, with more than 1,053 single-detached homes sold in the first half of the year, a 10.8% increase over 2019. Detached homes are moving quickly, with average days on market at 16, the sales-to-list price ratio is 101%, and 200 active listing available for sale in June. Rounding out the top five was Georgina in York Region, with 373 detached homes sold in the first six months of the year, up 9.1% over the 342 sales reported during the same period last year.
“While the strength of the market is underscored by rebounding economic fundamentals, it’s clear that we are not out of the woods yet, given what’s happening around the world,” explains Alexander. “Having said that, the manner in which government has handled Covid-19 has been exemplary, and while there may have been some missteps along the way, we have all benefitted from leadership at all three levels. I’m confident that under their continued guidance and direction, we will be able to navigate any and all stormy waters ahead, and that bodes well for the economy and the housing market overall.”
Greater Toronto Real Estate Market Sees Rising Detached Home Sales Pull Up Average Price
The bounce-back in single-detached home sales is contributing to an uptick in average price, with more than 50 per cent of neighbourhoods in the Greater Toronto Area reporting an increase in detached housing values the first half of 2019, according to a new report released by RE/MAX of Ontario-Atlantic Canada.
RE/MAX examined trends and developments in 65 Toronto Real Estate Board (TREB) districts, finding that detached home sales were up in almost 88 per cent of markets, while prices were up in 51 per cent of markets between January and June 2019, compared to the same period one year ago. The 905 area saw the greatest increase in home-buying activity, with all 30/30 areas reporting rising detached home sales, and 43 per cent of 905 communities experiencing price appreciation. Meanwhile in the 416, just 20 of the 35 districts experienced an uptick in sales, while detached home prices increased in 57 per cent of neighbourhoods.
Detached housing is finally back on track, with year-to-date sales almost 17 per cent ahead of last year’s levels, signalling a return to more normal levels of home-buying activity,” says Christopher Alexander, Executive Vice President, RE/MAX of Ontario-Atlantic Canada. “Market share is also climbing, with detached homes now representing 45.7 per cent of all home sales in the Greater Toronto Area, up from 43.1 per cent one year ago.
While greater affordability remains the strongest catalyst in the uptick in detached home sales, RE/MAX has found that location is an equally important component, as first-time and trade-up buyers move to secure prime real estate before values are on the move again. Leading in terms of percentage increase in the average price of a detached home is E01 in the city’s east end, comprised of North Riverdale, South Riverdale, Leslieville and Greenwood-Coxwell, where average price rose 15.2 per cent to $1,378,987.
Toronto Real Estate Hotspots
Second place was claimed by downtown Toronto’s C01 area, which includes Trinity Bellwoods, Little Italy, Palmerston, Little Portugal and Dufferin Grove, boasting a 12.8-per-cent increase in average price, bringing values to $1,953,511. Perennial favourite blue chip neighbourhood Leaside ranked third with an 11.2-per-cent increase in detached housing values to $2,193,747. Rounding out the top five are Scarborough’s E04 (Dorset Park, Wexford, Maryvale, Clairlea-Birchmount and Kennedy Park) where price climbed 7.8 per cent to $836,585; and Toronto’s W02 (the Junction, High Park North, Runnymede, Bloor West Village and Dovercourt-Wallace Emerson) rose 7.1 per cent to $1,410,057.
According to TREB Market Watch, all five neighbourhoods were in clear seller’s market territory in June, characterized by low inventory levels and in some instances, bidding wars. The sales-to-active listings ratio ranged between 62.5 per cent in C01 to a high of 88.8 per cent in E01.
Despite strong demand in these hot-pocket areas, more than 40 per cent of districts within the 416 are in a technical buyer’s market, with a good selection of homes listed for sale. RE/MAX also found that market conditions were tightest south of Bloor Street, while select neighbourhoods north of Bloor offered greater flexibility in terms of negotiation– this is especially true when average price topped $2 million.
“While heated demand exists for single-detached housing south of Bloor Street, there are select pockets throughout the 416 that are scorching hot,” explains Alexander. “The Oakwood-Vaughan area in C03, where homes can still be had for just over the $1 million price point, is one of those neighbourhoods, while C10, comprised of the Sherwood Park, Mount Pleasant West, Mount Pleasant East, is another. The Junction Area, High Park North, and Runnymede-Bloor West Village (W02) in the west end and Leslieville (E01) and the Beach (E02) in the east are also highly sought-after, with close proximity to transportation and vibrant shopping avenues the common denominators drawing younger buyers.”
Top performers in terms of unit sales were markets offering single-detached homes under the $1 million price point. Scarborough’s L’Amoreaux, Tam O’Shanter-Sullivan, Steeles neighbourhood (E05) saw the most significant upswing in terms of percentage increase in sales, with the number of homes sold up 76.2 per cent to 148 units.
Milliken, Agincourt North, Agincourt South and Malvern West (E07) ranked second, with a 57.1-per-cent increase and 132 sales, while Yorkdale, Glen Park, Briar Hill, Belgravia, Brookhaven-Amesbury, Weston, Maple Leaf in the West end (W04) reported a 50-per-cent gain to 204 units sold. Simcoe County’s Essa reported a 43.6-per-cent increase in sales of 168 units, while Downsview-Roding, Glenfield-Jane Heights, Black Creek and York University Heights in the west end rounded out the top five with a 37.1-per-cent increase in sales to 144 units.
With an average price of $1,380,253 for a detached home, York Region’s Richmond Hill ranked sixth, up 36.1 per cent to 615 sales. The north end of the GTA appears to be in recovery mode, having been particularly hard-hit in the correction. Savvy first-time buyers looking for the best deals in the GTA are likely to find them in York Region, where the dollar seems to stretch further.
“With recovery well underway in the detached housing segment, the residential real estate market is starting to fire on all cylinders,” says Alexander. “The possibility of more relaxed mortgage rules down the road – in conjunction with today’s low interest rate environment – may serve to spark up the GTA housing market yet again.”
75% of GTA Neighbourhoods See Detached Values Increase, Quiet Comeback for Detached Homes Bodes Well for Greater Toronto Real Estate Market
Price appreciation in the second quarter of 2018 showed a marked improvement over Q1 figures, with the average detached housing values in the Greater Toronto Area (GTA) on par or climbing in 75 per cent of Toronto Real Estate Board (TREB) districts, according to a report released by RE/MAX INTEGRA, Ontario-Atlantic Region.
The RE/MAX Hot Pocket Report examined sales and average prices for detached homes in 65 TREB districts for the first and second quarters of 2018. The quarterly comparison found that second-quarter sales were up almost across the board (63/65), with housing values on par or rising in three-quarters of GTA markets (49/65).
“While the stellar performance of the GTA’s condominium sector captured headlines throughout much of the year, detached housing sales and prices were quietly making a comeback,” says Christopher Alexander, Executive Vice President and Regional Director of RE/MAX INTEGRA, Ontario-Atlantic Region. “Second-quarter detached housing numbers from both a price and sales perspective suggest that the market has shifted yet again, with momentum building as homebuyers flex their muscles.”
Toronto Real Estate Top Performers in Price Growth
The top-performing markets in terms of price appreciation experienced double-digit growth in Q2. Led by Palmerston-Little Italy, Trinity-Bellwoods, Niagara and the waterfront communities (C01) in the 416, values rose 17 per cent from $1,601,327 in the first quarter to $1,872,407 in the second quarter. Homes in the sought-after downtown core are typically sold at a sale-to-list-price ratio of 107 per cent within eight days on market.
To the East, Brock posted a 15-per-cent increase in average price. Values in The Beach (E02) experienced a 13-per-cent uptick, while Edenbridge-Humber Valley, Kingsway South, Princess Rosethorn and Islington City Centre West (W08) rose 10 per cent in the second quarter, compared to the first. Georgina – a community on the shores of Lake Simcoe— rounded out the top five, jumping 10 per cent.
Home-buying activity was also on the upswing in the second quarter of the year, with 97 per cent of districts reporting an increase in sales volume between Q1 and Q2 2018. The neighbourhoods of Lawrence Park North and South, Bedford Park-Nortown and Forest Hill North – comprising the North Toronto neighbourhood of C04 – were clear frontrunners in the second quarter, with sales almost tripling first quarter levels. Between April and June, 173 homes changed hands, up 193 per cent from the first three months of the year.
Mississauga placed second with a 122-per-cent increase in detached sales in the second quarter, compared to Q1, followed by Caledon with an upswing of 121 per cent. Yonge-St. Clair, the Annex, University and Wychwood (C02) ranked fourth, with a percentage increase of 118 per cent, while Highland Creek, Centennial, West Hill and the Rouge (E10), placed fifth at 116 per cent.
Greater affordability provided a much-needed break for homebuyers in the Greater Toronto Area in 2018, with year-over-year prices falling short of 2017 levels in many areas.
“Buying opportunities continue to exist as a result in neighbourhoods throughout the 416 and 905 area codes,” explains Alexander. “But the window is starting to close, with detached housing sales and values climbing.”
While the average price of a single-detached home hovered at $1,350,000 in June, five neighbourhoods in the 416 offered up single-detached homes under $860,000 in the second quarter of the year. Those neighbourhoods were: West Humber, Claireville, Rexdale-Kipling and Thistletown-Beaumond Heights (W10) at $732,854; Bendale, Woburn and Morningside (E09) at $742,670; Malvern and Rouge (E11) at $752,292; Rockcliffe-Smythe, Keelesdale-Eglinton West and Weston (W03) at $783,141; and Downsview-Roding, Glenfield-Jane Heights, Black Creek and Humber Summit (W05) at $859,215.
Purchasers expanding search perimeters to suburban GTA communities realized even greater savings, with average prices for detached homes found under the $600,000 price point in Essa ($547,970); Oshawa ($556,309); Brock ($573,951); Clarington ($585,562); and Georgina ($590,255) in the second quarter.
The RE/MAX Hot Pocket Report also found a limited supply of detached inventory in the 416 contributed to a noticeable decline in days on market in hot pocket neighbourhoods in Toronto proper. While the overall average was 21 days in June, detached homes sold in eight days in Palmerston-Little Italy, Trinity-Bellwoods, Niagara and the waterfront communities (C01); nine days in Mount Pleasant (C10); 10 days in Leaside (C11); 11 days in High Park North, Junction (W02); and 12 days in Rockcliffe-Smythe, Keelesdale-Eglinton West and Weston (W03); Lawrence Park North and South, Bedford Park-Nortown and Forest Hill North (C04); the Beach (E02); and O’Connor Parkview, Crescent Town, East York, Danforth Village and Broadview North (E03).
“The GTA’s detached housing market has clearly stabilized after a rocky 12-month period,” says Alexander. “The frenzied home-buying activity of 2016/2017 is behind us. The new normal for Toronto and the surrounding communities is a relatively balanced housing market, with supply meeting demand. Given current economic fundamentals, we expect continued upward pressure on detached housing values throughout the remainder of the year.”
Quarterly Comparison of Detached Homes in Greater Toronto Real Estate Tells A Tale of Two Markets
Against a backdrop of sliding home sales in the Greater Toronto Area (GTA), the average price of detached homes continued to rise in 40% of Toronto Real Estate Board (TREB) districts in the second quarter of 2017. We examined 65 neighbourhoods in the Greater Toronto Area in the first six months of the year, comparing first quarter performance to that in the second quarter.
So what did the numbers tell us?
Statistics show that affordability played a significant role in price growth, with half of TREB districts in the 905 reporting an upswing in the average price of a detached home in the second quarter, compared to the first quarter of 2017, while just over 34% of communities in the 416 experienced an increase. The vast majority of upward trending markets in the 905 were priced under $1,000,000, while in the 416 area code, increases were reported at price points ranging from under $1 million to over $4 million.
“Homebuying activity in the GTA has been a tale of two markets– a tight, record-breaking first quarter and a softer second quarter, characterized by easing sales and overall average price — a result of the introduction of the provincial government’s Fair Housing Plan,” says Christopher Alexander, Regional Director, RE/MAX INTEGRA, Ontario-Atlantic Region.
“The first quarter of 2017 shattered all existing TREB records for Q1 dating back to 2007, with over 25,000 residential unit sales reported, an increase of 12 per cent over Q1 of the previous year, and average price appreciation of 29 per cent during the same time period. Given current conditions, it’s really quite remarkable that, against the unprecedented strength of the first quarter, we still saw 40% of GTA neighbourhoods outperform Q1 price appreciation. ”
The top 5 communities that saw the greatest increases in average price of a detached home were:
- Brock, with an 11.73% upswing between first and second quarters ($562,711 vs. $503,630)
- Caledon is up 8.61% over the first quarter, rising from $1,037,997 to $1,127,414
- Halton Hills climbed 7.75% to $841,155 in the second quarter, up over the $780,644 reported in Q1.
- Riverdale, Greenwood-Coxwell, Blake-Jones (E01), rising 7.59 per cent to $1,298,439
- Dovercourt-Wallace Emerson – Junction, Junction Area, High Park North, Runnymede-Bloor West Village, and Lambton-Baby Point (W02) appreciated 6.91 per cent to $1,390,342, up from $1,300,518 in the first quarter
“The resilience in housing values may help to explain why homes sell faster here than in any other Canadian centre,” says Alexander, noting that days on market in the GTA sat at 15 in June, a figure on par with healthy year-ago levels. “The current lull may represent the best buying opportunity in recent years, with more than 19,000 properties available for sale. Buyers waiting on the sidelines for a better deal may not find it in the GTA’s hot pocket areas, but they may come across attractive options in neighbouring communities.”
Demand for homes in the third quarter will likely reflect the softening that typically occurs over the summer months, followed by renewed strength in the final quarter of the year.
“As stability returns to the market, strong underlying economic fundamentals in the Greater Toronto Area and the province of Ontario are predicted to bolster activity, particularly in Q4,” says Alexander. “Unemployment in the GTA hovers at 6.8 per cent, corporate profits are up, with more employers investing in new equipment and hires, and consumer confidence is rising, albeit slowly. The slight uptick in interest rates may also propel some buyers into the market in anticipation of higher rates down the road.”
Density will also play a key role in the GTA moving forward, explains Alexander. “As long as development of single-family homes is stifled, solid demand will exist for this type of product, keeping the outlook for price growth on an upward trajectory.”
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