RE/MAX exec on the listing types proving most popular at present
Given new market realities, modern home buyers are now focusing more on value-added properties and communities, according to Elton Ash, executive vice president of RE/MAX Canada.
The flight to affordability observed in Canada’s largest urban market during the first half of the year has pushed the share of detached home sales up to 44.7% in the Greater Toronto Area and up to 29.3% in Greater Vancouver.
At the same time, the fundamental strength of these red-hot markets means that buyers who took advantage of lower prices will benefit from even higher home values in the long term, Ash said.
“Listings that offer a short or long-term benefit – be it a basement apartment that allows homeowners to offset their mortgage costs now or homes that hold long-term potential in a future renovation or sale to a builder – are most sought-after,” Ash said.
“Location, while still an important aspect, has been replaced by value and necessity. A growing number of buyers are willing to travel further afield to get the best bang for their buck.”
Canadian home prices could drop by 10% in early 2024, but affordability won't recover soon, says Oxford Economics' Tony Stillo. https://t.co/UZ23NGCYEl#mortgagenews #mortgageindustry #houseprices #affordability— Canadian Mortgage Professional Magazine (@CMPmagazine) August 11, 2023
Non-downtown sub-markets in Toronto reporting surges
RE/MAX reported that Toronto’s York Region saw a marked boost in detached home sales during the second quarter, with a 104% increase from Q1 levels (2,328 sales compared to 1,143 sales).
“Affordability was a major factor given detached properties in the 905 area code are priced significantly less than similar homes located in the 416 area code,” RE/MAX said.
Stark differences in local housing policies played a central role in this dynamic.
“Buyers in the 905 are also not subjected to the municipal land transfer tax of two per cent to 2.5% implemented by the City of Toronto,” RE/MAX reported. “As such, the region continues to experience solid demand, as evidenced by the uptick of nearly 18% in overall housing sales in June (compared to year ago levels for the same period).”