A new report from RE/MAX Canada shows that investors and people upgrading/downgrading from homes are driving the increase in detached home-buying activity in about 40 per cent of the GTA’s 905 areas, 80 per cent of Fraser Valley communities, and 70 per cent of Greater Vancouver.
Out of all the regions studied, the RE/MAX Hot Pocket Communities Report found that Toronto’s detached home market was the leader in rebounding sales momentum within the first six months of 2024, with just over 34 per cent of neighbourhoods in Toronto (416 areas) experiencing stability or growth in home-buying activity — this was more so than the 905, Greater Vancouver, and Fraser Valley areas.
According to RE/MAX Canada President Christopher Alexander, downtown and midtown communities remain favourites among buyers in Toronto looking for detached properties in coveted blue-chip neighbourhoods, like Rosedale-Moore Park, Forest Hill South, the Kingsway, Leaside, and The Beaches. Popular gentrified areas include Trinity-Bellwoods, Palmerston-Little Italy, and Corso Italia-Davenport.
“The ongoing evolution of Toronto’s blue-chip neighbourhoods continues to prop up demand, as buyers at all price points are drawn to their attractive walkability scores, entertainment and amenities, including parks, restaurants, trendy shops and cafes,” Alexander said in a statement.
“While affordability remains the top obstacle for first-time homebuyers, more experienced buyers and investors are taking advantage of softer housing values, making their moves ahead of the Bank of Canada’s end to quantitative tightening.”
Detached housing sales over the $5-million price point in the GTA are up by nearly 19 per cent, with 127 detached sales reported in the GTA in the first six months of the year, compared to 107 sold during the same period in 2023.
Still, buyers continue to seek affordable housing throughout the GTA. Three of the fastest-growing regions in the GTA’s 905 areas are also home to the top four most affordable neighbourhoods, offering detached housing options for under $1 million: Durham region (Brock and Oshawa neighbourhoods) has average detached home prices ranging between $766,933 and $897, 818; Dufferin County (Orangeville) has average detached home prices of $926,139; and York region (Georgina) has average detached home prices of $930,086.
“Overall home sales in the GTA in July, for example, were up 3.3 per cent compared to July 2023. Meanwhile, sales in the first six months of 2024 are down just four per cent compared to this same period one year ago,” Alexander said, adding that it’s a sign that the gap is closing amid growing buyer confidence.
The report also shows that condo investors who may be “disenchanted” with the market have shifted their attention to detached homes on small lots in the GTA’s east end.
As we previously reported, a joint report on investor losses (by Urbanation and CIBC Economics) found that, on average, condo investors who closed on their newly completed units last year saw negative cash flow of close to $600 per month.
“Given that statistic, it’s not that surprising that investors are revisiting their investment options,” the RE/MAX report states.
