Home buying trend improves, but prices fall short

Upward momentum served to mitigate the decline in detached housing values in the first half of the year, but average price fell short of last year's levels in most neighbourhoods throughout the Greater Toronto Area (GTA), Greater Vancouver, and the Fraser Valley, says research by RE/MAX Canada.

The ‘RE/MAX Hot Pocket Communities Report’ says there was a substantial reduction in detached values in the first quarter of the year triggered a surge in home-buying activity in the second, with supply shortages accelerating upward pressure on pricing. Yet, despite the rally in home-buying activity, close to 93% of detached homes posted a decline in values in the first six months of the year, compared to the same period in 2022.

"Anxious homebuyers were quick to identify the bottom of the market and jumped in with both feet in the second quarter of the year," says Christopher Alexander, president of RE/MAX Canada. "The short burst of home-buying activity clearly underscored the resilience of the housing market, but the lack of inventory available for sale curtailed any real momentum from building. Demand was greatest for affordably priced detached homes under the $2 million price point in the second quarter, with sales more than doubling between the first and second quarter in key GTA, Greater Vancouver, and Fraser Valley markets. The uber-luxe market segment was also active, given the uptick in the number of homes changing hands over $7.5 million in the GTA. While the impetus was short-lived, it was not due to a lack of willing buyers."