What is the Best Home Type in Toronto York Region? My Takeaway from Sep Real Estate Market Date
Hi, Everyone! This is Qin Dan From Qin Real Estate, Everyone said to me that real estate has been cooling down, right? Yes, I bet you can feel the market change either as a buyer or seller, today with September’s Real Estate Data released let’s see what the data told us.
As a whole Greater Toronto Area’s average residential home price come to a 1.1 Million per unit, which is 16% lower compared with March 2022 when the market went up to the peak.
Among GTA I am focusing on York Region where I am located in Newmarket. Please note the following numbers are all from the York region. When I was reading 172 pages of statistic report from Treb I found out: The prices of different home types are not falling at the same speed in recent 6 months, and Some home types are much more resilient than others; At the same time, the prices of different home types are not rising at the same speed, the prices of some home types rise higher than others.
Who doesn’t want to own a House not only as a cozy home but also enjoy a stronger value increase in the tailwind market and be more resilient in the headwind market?
At first, according to Toronto Real Estate Board, the current housing types were divided into 4 main categories: one-story single family, two-story single family, townhouse, and apartments. The average prices of housing types in the York region in September are:
• one-story single family: 1.18 million per unit
• two-story single family: 1.54 million per unit
• Townhouses: $895,000 per unit
• Apartments: 702,000 per unit
Now we want to know How much is the price down respectively for the 4 home types in the recent 6 months, so we know what is price falling from the peaking time in March 2022?
One Storey SF： -20%, Townhouse: -17%, Two Storey Sf: -16.3% Apartment: -11%
Then it’s easy to get:
• Apartments are the most resilient, the price of apartments only decreased by 11% which is the least
• The Second-storey properties are the 2nd resilient home type, decreased by 16.3%
• The third resilient is the townhouse! Decreased by 17%
• One-story single is the least resilient, as we can see the price drop is highest at 20% among the 4 types. The one-story home price in East Gwillimbury and Georgia fell to the 27-28% range, kind of extreme.
While when I mentioned the two cities do you just get the conclusion: oh we should avoid those two cities? Hold On, In the following part I will also mention East Gwillimbury’s two stogey’s price rising highest among all York Region‘s 9 cities /towns in last 3 years, now let’s look at price increase in the past 3 years.
• 2-story single family is definitely a winner. The price increased 47.9%, you know what? East Gwillimbury price rose highest at an incredible number of 72.6%.
• Ranking 2nd is the apartments, the price rises 47.6%, among which Markham has the highest price rising 55.5%
• The third winner is townhouses 44.5% price rise within the last 3 years,
• The fourth winner came to One story single family, 42.8% of home price gain. Since we mentioned East Gwillimbury and Georgina we would like to know their price for single-family in the last 3 years, right? East Gwillimbury is 35.5% and 42.7%
What’s my Take Away from those data and What is the Best Home Type in Toronto York Region?
Takeaway 1, The most popular home type is 2-storey SF. Combined with my practice in real estate, I do know most of my clients prefer full-functional and modern-designed 2-story homes. Also, 2-storey is most developed by developers in supply of the new home, which definitely help to promote 2-story home;
Takeaway 2, The One-floor single family shows the least popularity. Take East Gwillimbury as an example, The 2-story single family can go high as 72% within 3 years, while the one-story can only rise by 35%; when the headwind came the one-story fell most in price. Why? I do have some clients who have built-in love with one story bungalow, but It won’t hurt by knowing this fact.
For the one-story single-family I think the possible reasons are: A, Most homes are old and are based on outdated design; B, Some land still uses septic tanks and well which are working but not welcomed as municipal infrastructures. C, While there are opportunities here: most one-story single family has huge lands, and the current market seems to haven’t taken this big advantage. But some investors with sharp eyes will not ignore the emerging opportunity from a one-story single family
Takeaway 3, York Region’s apartments are very vibrant types! the price of an Apartment in Sep is $700,000 per unit, which no doubt is the most affordable, newer, and decent home type.
Takeaway 4, The most Favored Home Types outperform others whatever the market goes up and down. This might not be the forever rule but It applies in the current market.