'Softer' values for detached homes bringing buyers back into the market

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Canadians seeking detached homes have returned to the market amid “softer” values in the second quarter, according to a new release from Re/Max Canada

“Buyers shouldn’t expect big bargains,” Elton Ash, executive vice-president at Re/Max Canada, said.

“Sales-to-active listings remain squarely in balanced territory overall and even tight in some areas. In Vancouver, for example, supply was lower this June than last in 50 per cent of markets, and sales are down accordingly. This trend will likely keep prices fairly stable moving forward,” Ash said.Article content

Despite the softening in housing markets overall, active detached housing listings in June were running almost 19 per cent below the 10-year average in the GTA, approximately 12 per cent below the 10-year average in the GVA, and close to nine per cent below the 10-year average in the Fraser Valley. The decline in listings comes at a time when builders are pulling up stakes and shelving proposed developments due to softer demand.

Canada is set to welcome over 430,000 immigrants annually until 2024, as stated in the federal government’s revised target released earlier this year. Fifty per cent of those newcomers will reside in the GTA. “Inventory remains a puzzle that policy can’t solve in the foreseeable short or long term,” Alexander said. “It’s a real challenge, as the supply of detached homes remains low from a historical perspective and also in the context of population growth and future needs. This will remain a crucial factor impacting Toronto and Vancouver, which are now seen as world-class markets.”

 

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