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.”