Here’s How Halton Real Estate Patterns Have Changed Over the Years
We've said it once and we'll say it again, the real estate market is constantly fluctuating. In a recent inhalton article, it was noted that the Toronto Real Estate Board (TREB) called 2018 "a volatile year" for the housing market.
Although 2019 is expected to a little bit better in terms of sales and average selling prices in Toronto and the Greater Toronto Area (GTA), we still have some 2018 statistics and facts that may come as a shock to some Halton residents.
According to a recent RE/MAX Ontario-Atlantic Canada press release, migration patterns of residential homebuyers in the GTA have shifted west. This, according to the release, is due to the Halton Region's and Toronto west's market shares rising between 2013 and 2018.
The release notes that the Halton Region captured 10.1 per cent of total market share in 2018, leading with a 2.3-per-cent increase over 2013. On the other hand, Toronto West climbed almost one per cent to 10.5 per cent. The release also looked at market sales in the Peel Region, Toronto Central, Toronto East, York Region, Durham Region, Dufferin County, and Simcoe County.
Over the past five years, there have been many factors that have contributed to Halton's increase market shares.
“Growing demand for affordable housing buoyed new construction and contributed to rising market share in Halton Region over the five-year period,” Christopher Alexander, Executive Vice President, RE/MAX of Ontario-Atlantic Canada, said in the release. “Product was coming on-stream at a time when the GTA reported its lowest inventory in years and skyrocketing housing values were raising red flags. Freehold properties in the suburbs farther afield spoke to affordability.”
As a result of people flocking to the Halton Region in order to avoid these skyrocketing housing values, an increase of construction and development has become quite common for the region.
According to the release, new housing starts in Halton was averaged to be around 3,100 annually between 2013 and 2016. Between 2013 and 2017, almost 39,000 residential units came on-stream in Toronto’s Downtown and Central Waterfront areas.
Another real estate pattern that has changed, that may not come as a shock, is the average price to buy a house.
The average price for a home sold in Toronto's west end in 2018 hovered near $755,658. The ever-increasing prices, as noted by Alexander, will have an impact on what type of properties will be more popular in the future.
“Freehold properties remain the choice of most purchasers in Halton Region and Toronto West,” Alexander said. “The same is true to a lesser extent in Toronto Central, but condominiums continue to gain ground. Just over one in three properties sold in the GTA was a condominium in 2018 and that figure is higher in the core. As prices climb in both the city and suburbs, the shift toward higher-density housing will continue, with fewer single-detached developments coming to pass.”
In recent years, as a result of increasing prices, many buyers, including younger buyers, empty nesters, and retirees have shifted towards Simcoe County where the average price ranges from $528,942 to $746.
“As the millennials move into their homebuying years, they will displace baby boomers as the dominant force in the GTA’s real estate market,” Alexander said. “Their impact on housing will have a serious ripple effect on infrastructure in the coming years, placing pressure on transit systems, roadways, local economies and their abilities to attract investors and new businesses, parks and greenspace development.”
However, there has been a demand for condominium apartments and townhouses areas like City Place, King West Village, and Liberty Village. There has also been gentrification in many Toronto neighbourhoods such as Oakwood-Vaughan and Dufferin Grove as they offer smaller freehold properties at more affordable prices.
Over the next 10 years, the increase in demand is projected to re-ignite homebuying activity in Toronto East, York, Peel, and Durham Regions regardless of the affordability, lack of available housing, and fewer transit options that may be apparent now.
What do you think of these shifting real estate patterns in Halton and the surrounding areas?
Graphic is courtesy of RE/MAX Ontario-Atlantic Canada.
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