Photo: James Bombales
GTA detached home sales have struggled ever since the Ontario government introduced its Fair Housing Plan in the spring of 2017. But according to a new report, that may be starting to change.
Since June, the sale of $600,000 to $900,000 single-detached homes to first time buyers has increased 22 per cent year-over-year, according to data from RE/MAX INTEGRA, Ontario-Atlantic Canada Region.
“We expect momentum to build moving into the traditional fall market, and the trend to continue throughout the remainder of the year,” writes executive VP and regional director of RE/MAX INTEGRA, Ontario-Atlantic Canada Region Christopher Alexander, in a statement. “The worst is now behind us. Pent-up demand will be a factor in the coming months, as homebuyers – many of whom delayed their purchasing plans – are entering the market.”
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Alexander points to strong job numbers and a growing population to support the demand for single-detached homes.
Prices have also been steadily rising for months. In Q2 2017 detached home prices rose on a quarter-over-quarter basis in 75 per cent of GTA neighbourhoods.
Led by Palmerston-Little Italy, Trinity-Bellwoods and Niagara, prices rose 17 per cent quarter-over-quarter from an average price of $1,601,327 to $1,872,407. Homes in the downtown core sold within eight days on the market.
“The real story is that after all the government intervention, the demand in the real estate market was enough to keep pushing prices upwards,” Alexander tells Livabl.
After a new stress test was introduced in January, home buyers took some time to consider whether they wanted to re-enter the market, says Alexander.
“Before those new rules came into place, people really wanted to buy, but afterwards they were cautious and wanted to see how things would play out,” he explains.
Now that the market has seemingly adjusted to the effects of the test, Alexander predicts that sales will continue to rise heading into the fall.
“I do think we should see this trend continue moving forward,” he says.