While successive interest rate hikes and broader global uncertainties have cooled the housing market, demand for properties in some sought-after neighborhoods in the Greater Toronto and Vancouver areas remains stable and even rising, according to a new report. .
RE/MAX Canada 2022 RE/MAX Hot Pocket Communities Report analyzed unit sales and average prices in the first and second quarters of 2022 in 60 districts of the Toronto Regional Real Estate Board, 16 regions within the Greater Vancouver Real Estate Board, and six areas in the Real Estate Board from Fraser Valley.
AVERAGE PRICE
In Toronto, District W09, which is home to Kingsway Village, The Westway, Humber Heights and Willowridge-Martingrove-Richview, saw the largest year-over-year average price increase for single-family properties at 35.2 percent. The median purchase price of a single-family home in this area is $1,551,803.
The worst performing area in Toronto is C01, which includes Dufferin Grove, Little Portugal, Trinity-Bellwoods, Palmerston-Little Italy, Niagara, University, Kensington-Chinatown, Bay St. Corridor, and Waterfront Communities. That district saw a -0.7 year-over-year decline in single-family home sales. The median purchase price of a single-family home in this area is $2,127,268.
From the first to the second quarter of 2022, Toronto’s W02 district (High Park North, Junction Area, Runnymede-Bloor West Village, Lambton-Baby Point, Dovercourt-Wallace, and Emerson-Junction) saw the largest increase in the city at 7.3 per percent, while C08 (Waterfront Communities, Moss Park, Cabbagetown-South, St. James Town and Church-Yonge Corridor) posted an 18.8 percent decline in sales.
In York Region, the best year-over-year district was King, which saw a 24.1% increase, while the worst was Richmond Hill at 12.2%.
From the first to the second quarter, Aurora was the best at -7.2 percent, while Stouffville was the worst at -22.3 percent.
In Durham, Scugog was the best district for median single-family property sales, while Uxbridge was at the bottom of the list with a 12.7 percent increase.
From the first to the second quarter, Pickering was the best at -10.3 percent, while Brock was the worst at 19.4 percent.
Brampton tops the list in the Peel region with an increase of 26.2 per cent, while Mississauga is the lowest at 15.5 per cent.
From the first to the second quarter, Caledon was the best at -7.3, while Brampton was the worst at 14.8 percent.
In Halton, Halton Hills saw the largest year-over-year increase in independent sales at 23.4%, while Milton saw the smallest at 18.6%.
From the first to the second quarter, Burlington was the best at -6.2 percent, while Oakville was the worst at -15.6 percent.
Orangeville, the only district in Dufferin Country, saw a 26.47% year-over-year increase and a 12% decrease from the first to second quarters.
In the GTA, average prices held up fairly well in most central and western Toronto neighborhoods, however Durham, Peel, York, Halton and Dufferin all experienced some losses compared to gains seen in recent years. years.
“Since the core has traditionally been more resilient, driven by strong demand, a finite supply of homes available for sale. Higher family income and higher capital at the higher end of the market, the results are not unexpected,” RE/MAX Canada President Christopher Alexander said in an August 18 press release.
“The softening in prices was clearly most evident in the suburban areas and outer perimeters of the 416, most of which experienced strong upward momentum during the height of the pandemic when buyers were looking to leave the city.”
Elton Ash, executive vice president of RE/MAX Canada, said that despite the decline in prices, “the sky is far from falling.”
“In fact, there is relative stability in terms of market conditions, so buyers shouldn’t expect big bargains. Sales to active listings remain squarely in balanced territory overall and even tight in some areas, he said.
“In Vancouver, for example, supply was lower this June than it was last in 50 percent of the markets and sales are down accordingly. This trend is likely to keep prices fairly stable going forward.”
UNIT SALES
Data on unit sales saw wide variation year-over-year with single-family home sales up 40 percent in surveyed GTA markets in the second quarter of 2022. The vast majority of increases occurred in code 416, the report stated.
Durham was also found to be a “hot spot” with half of its markets reporting an uptick in home purchases.
“For those buyers who were active in the second quarter, improving home affordability due to declining prices and the threat of higher rates in the future clearly prompted many to switch to single-family homeownership.” Alexander pointed out.
“Increased selection, particularly in coveted hot pockets, also played a big role in April and May as the pandemic-driven buying spree came to an end. Buyers locked themselves into five-year fixed terms as the overnight rate hovered between 1 percent in early April and 1.5 percent in early June.
In Toronto, W07 (Stonegate-Queensway) is the only district that saw no movement in terms of unit sales, while the worst area is C10 (Mount Pleasant East and West), which saw a 41.6% decline.
From Q1 to Q2, C11 (Leaside, Thorncliffe Park and Flemingdon Park) was the best at 119.0%, while C01 was the worst at -37.9%.
In the York region, the best district for unit sales was Richmond Hill at -37.9 percent, while King was the worst at -48.4 percent.
From Q1 to Q2, King was the best at -7.0 percent, while King was the worst at -36.8 percent.
In Durham, Clarington was the best district for annual unit sales at -26.3 percent, while Brock was at the bottom of the list with a 38.2 percent decline.
From Q1 to Q2, Scugog was the best at 48.3%, while Brock was the worst at -43.3%.
If you’re planning to buy a home in Toronto any time soon, you could be saving for longer than expected.Caledon tops the list in the Peel region with a decrease of 37.7 per cent, while Brampton is the lowest at 42.1 per cent.
From the first to the second quarter, Caledon was the best at -3.1 percent, while Brampton was the worst at -19.8 percent.
In Halton, Burlington posted the highest year-over-year separate unit sales at -21.0%, while Oakville posted the lowest at -42.4%.
From the first to the second quarter, Burlington was the best at -1.8 percent, while Oakville was the worst at -14.7 percent.
Orangeville, the only district in Dufferin Country, saw an increase of -32.10% year over year and a decrease of 8.3% from the first to the second quarter.