Home prices plummet in southern York Region in 2nd quarter of 2018

Aggregate home prices down 12.4% in Richmond Hill, 8.8% in Markham, 6% in Vaughan compared to same period last year

Yorkregion.com
July 10, 2018
Adam Martin-Robbins

Home prices have cooled considerably in Markham, Richmond Hill and Vaughan in the second quarter of 2018 compared to the same period last year, when the real estate market was red hot, according to a new report.

Richmond Hill saw the most dramatic drop, with the aggregate home price, essentially a weighted average, down 12.4 per cent to $1.132 million from $1.292 million in 2017, according to the Royal LePage House Price Survey and Market Survey Forecast released July 10.

In Markham, the aggregate home price fell 8.8 per cent to slightly more than $1 million, from $1.1 million, while Vaughan was down six per cent year-over-year to just more than $1 million from about $1.08 million.

Across the GTA, the aggregate price dipped by 1.9 per cent to nearly $822,000, according to the report.

"Activity in the Greater Toronto Area has begun to normalize in the second quarter of 2018," Chris Slightham, president of Royal LePage Signature Realty, said in a news release. "However, while the new mortgage rules have increased inventory levels providing some relief to buyers, reduced purchasing power has forced many to adjust their expectations."

Slightham added that well-priced homes with access to amenities continue to sell quickly and receive multiple offers.

Broken out by housing type, the median price of a bungalow in Richmond Hill plummeted 26.1 per cent to $890,000, from about $1.2 million in 2017, while the price of a detached, two-storey home fell 11.7 per cent to $1.2 million, from $1.4 million.

Condominium prices, however, climbed 9.5 per cent year-over-year to $440,000 from $402,000.

A similar trend played out in Markham, where the median price of a detached, two-storey home was down 9.5 per cent to $1,072,328 from $1,184,950, while bungalow prices fell 8.4 per cent to $1,197,065 from $1,306,842.

Condo prices jumped 4.5 per cent to $460,678 from $440,973.

Vaughan also saw the median price for a two-storey, detached home drop 7.4 per cent year-over-year to just shy of $1.1 million from nearly $1.2 million, but bungalow prices shot up 7.2 per cent to $1.255 million from nearly $1.172 million.

Condos also saw a slight uptick of 2.7 per cent to almost $474,000 from $461,000 in the second quarter of 2017.

It’s not just York Region that is seeing condo prices head skyward.

Across the GTA, the median price has surged 8.7 per cent year-over-year to hit $504,000, up from nearly $464,000.

Heading into the third-quarter, Royal LePage is forecasting a rise in house prices of about 2.1 per cent quarter-over-quarter as consumer confidence improves and buyers return to the market.