'Softer' values for detached homes bringing buyers back into the market, RE/MAX study finds

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RE/MAX found an increase in second\u002Dquarter home sales across 40% of GTA neighbourhoods and 31% of the Greater Vancouver region. Read on

The report compared market activity in the first and second quarter of 2022 in terms of unit sales and prices, analyzing 60 Toronto Regional Real Estate Board districts, 16 regions within the Real Estate Board of Greater Vancouver and six areas in the Fraser Valley Real Estate Board . RE/MAX found an increase in second-quarter home sales across 40 per cent of Greater Toronto Area neighbourhoods and 31 per cent of the Greater Vancouver region, compared to Q1.

“For those buyers that were active in , improved housing affordability due to easing prices and the threat of higher rates down the road clearly provided the impetus for many to leap into detached home ownership,” said Christopher Alexander, president of RE/MAX Canada, in Thursday’s release.Article content

According to the report, there have been some existing sellers in the City of Toronto who have used the opportunity to trade up to larger homes or more desirable neighbourhoods closer to the city. “The difference between the selling price of an existing property and the purchase price of a new one … has narrowed considerably,” the report said, a shift that can work in favour of the buyer given mortgage portability.

In the City of Toronto, the benchmark price of a detached home was $2,073,989 in February. In July, it fell to $1,515,763, according to TRREB. Meanwhile, the benchmark price for condominiums in the City of Toronto was $738,930 in July, down from the most recent peak of $840,444 in March but still up seven per cent over last year.Article content

In Vancouver, the discounts are not as pronounced. For example, in April, detached homes saw a benchmark price of $2,139,200 compared to $2,000,600 in July.

 

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