Average price of single family homes continue to fall in GTA

Single family homes in the GTA, where Newmarket resides, have seen a price dip for the second consecutive month.

Single family homes dipped from an average of $1.393 million to $1.374 million from August to September. Apartments saw an increase going from $725,400 to $728,400, while townhouses also saw an increase from $855,000 in August to $856,300 in September.

“While there is no data available on the number of buyers opting for apartments/townhomes vs. single detached homes in the GTA, the data suggests that the prices of detached homes have been increasing at a faster rate than other property types,” said Rose M. Sorbera of Red Apple Real Estate in Newmarket. “This could indicate that buyers are trending toward more affordable options such as townhouses and semi-detached homes.”

Sorbera said that despite it being a deep buyer’s market for the first time in 14 years, Toronto home prices continued to increase on both a monthly and annual basis.

“It seems that buyers are trending more toward freehold townhouses than single detached homes in the GTA,” she said. “However, there is no clear indication of whether buyers are trending more toward apartments or townhomes in September and October 2023.”

Overall, Canadian home sales fell 1.9 per cent in September compared to August, the Canadian Real Estate Association reported last month. However, sales were up 1.9 per cent compared to September 2022.

“It is possible that factors such as high borrowing costs, lack of affordability, and uncertainty could have played a role in sales dropping,” said Sorbera. “Other factors that could affect home sales include comparable home values, the age, size, and condition of a property, neighbourhood location and appeal, and the health of the overall housing market .”

Sorbera said it’s important to note that these are just some possible factors that could have contributed to the dip in home sales from August to September. Other factors could also be considered.

According to zolo.ca, the average house price in Newmarket as of October 2023 is $1,166,356 with 182 new listings in the last 28 days. The median days on market for a home is 23 days. The same source reports that the average house price in Toronto as of October 2023 is $1,132,382 with 5,901 new listings in the last 28 days. The median days on market for a home is 20 days.

"While I couldn’t find any data on the trends of sellers/buyers in Newmarket and surrounding areas vs. the GTA as a whole, it’s worth noting that the real estate market in the GTA has been experiencing a slowdown since June/August 2023,” said Sorbera. "According to RE/MAX Canada, the average sale price of a single family home in the GTA has dropped to $999,500 after being over $1 million from June/August 2023. However, it’s important to note that this is just an average and that prices can vary depending on location and other factors.”

Sorbera says that it’s difficult to predict with certainty whether or not the housing market will rebound with sales spiking back up in the coming months.

“The Toronto real estate market will continue to evolve, that will be driven by various economic factors and trends,” she said. “While it is difficult to predict what will happen in the future, my recommendation would be to consistently stay informed about current trends and data from reliable sources such as the TRREB.”

In Ontario, sales volumes fell in the Greater Toronto Area, but rose in Kitchener-Waterloo.

"What happens next will depend on interest rates,” Shaun Cathcart, CREA’s senior economist, said in a news release. “Whether that means uncertainty about the possibility of further hikes, or just the cost of borrowing money right now, neither of these will be resolved for would-be buyers anytime soon. As such, expect a quieter than normal winter with all eyes on the Bank of Canada.”