Detached Supply Improves and Prices Moderate in York Region Housing Market

While affordability continues to be a monumental challenge for first-time buyers in the York Region housing market, existing homeowners with equity are cautiously entering the market, according to the 2024 Hot Pocket Communities Report by RE/MAX Canada.

Cam Forbes of RE/MAX Realtron Realty reports that opportunities exist throughout the region at present, with the most affordable communities, including Newmarket and Stouffville, experiencing some upward pressure on values. Overall inventory levels for detached housing product have improved in York Region, with a good selection of detached properties available for sale. Values have moderated, down 1.1 per cent in the first six months of 2024, compared to year-ago levels.

Despite softer housing values and a plethora of “deals” available in the York Region housing market, the first step to home ownership – the condominium market – is struggling, with 8,806 active condominium apartment listings on the Multiple Listing Service (MLS) in June, and 28,163 new units completed in the last four quarters in the Greater Toronto Hamilton Area (GTHA), according to the latest data report by Urbanation. Entry-level buyers who are hoping to enter the freehold market typically do not have the downpayment to support the size of the mortgage required and rates are prohibitive. Interest rates would need to come down between one and 1.5 per cent to make a meaningful difference in today’s market.

Detached housing sales in the first half of 2024 are off last year’s pace by nearly 10 per cent, but some areas have fared comparatively well, including East Gwillimbury, Georgina, Vaughan and Stouffville, all of which report activity nearly on par with the first half of 2023 levels. With the traditional summer market underway, sales activity in York Region is expected to slow further as people go on vacation, head off to the cottage, or simply enjoy the sunshine. While there may be a nominal upswing in the demand for detached homes in the fall, a change in market fundamentals by spring of 2025 should spark an increase in home-buying activity, particularly if overnight rates fall below four per cent.