Housing prices in York Region set to rise
Average house prices are expected to rise between one and six per cent this fall in most regions across the country, according to Re/Max’s 2024 Fall Housing Market Outlook.
York Region falls squarely in the middle, with prices here expected to rise three per cent.
“The fall market is usually a good early indicator for activity as we look ahead to early 2025 and we’re headed toward more healthy territory,” says Re/Max Canada President Christopher Alexander. “With interest rates starting to ease, buyers are beginning to come off the sidelines.”
That’s not to say the fall market will be in “full swing” according to historic standards, he notes. “Consumers will drive that trend, so we’ll need to see a bigger move by the BoC for that to happen.”
According to a Leger survey commissioned by Re/Max as part of the report – which was released the day before the Bank of Canada (BoC) lowered the key interest rate to 4.25 per cent – two in 10 Canadians will feel more comfortable engaging in the real estate market once they see more than a 100-basis-point cut to the BoC’s lending rate between then and the end of the year.
Greater Toronto Area realtors reported 4,975 home sales through the MLS® System in August – down by 5.3 per cent compared to 5,251 sales reported in August 2023, according to the Toronto Regional Real Estate Board. New listings, meanwhile, hit 12,547 – up by 1.5 per cent year-over-year and the average selling price was down by 0.8 per cent compared to August 2023 to $1,074,425.
The Re/Max report found 25 per cent of Canadians are actively saving to buy a home and are confident they will be able to buy soon. But dropping interest rates may prove too little, too late for some existing homeowners: 14 per cent say they need to renew their mortgage soon and with the current higher interest rate, they may need to sell their home.
“Despite some consumer confidence starting to return to the market this season, the reality is Canadians are still grappling with some serious housing affordability challenges rooted in lack of supply,” Alexander says. “Yes, borrowing is becoming less expensive, but this won’t make housing affordable in the long run.”
He’s among those calling for a national housing strategy. “Markets ebb and flow, and as buyers re-enter the market and absorb inventory, we’ll see more upward pressure on price,” he says. “Ultimately, for the long-term health of Canada’s housing market, we need a national housing strategy developed in collaboration between all levels of government that’s more strategic and visionary in how we can use existing lands and real estate to boost supply.”
Photo of Re/Max Canada President Christopher Alexander courtesy of Re/Max Canada.