Demand Fuels Momentum for East End Toronto Detached Homes

Sales of Toronto detached homes in the east end remained tight in the first six months of the year, with local communities characterized by low inventory levels and high sales-to-list price ratios, according to the 2024 Hot Pocket Communities Report by RE/MAX Canada.

Steve Tabrizi, owner of RE/MAX Hallmark, reports that strong demand has fuelled upward momentum in average price in perennial favourites such as the Beaches, Woodbine Corridor and East-End Danforth (E02), Birchcliffe-Cliffside, Oakridge (E06) and Highland Creek (E10) in the first six months of 2024, while home-buying activity rose in Riverdale, Leslieville, and Blake-Jones (E01), Wexford, Maryvale, Clairlea-Birchmount, and Dorset Park (E04) and Highland Creek, West Hill and Scarborough Rouge (E10). With an average of 12.6 listing days on market in June, the East End, and more specifically, established neighbourhoods near the waterfront, remains exceptionally popular with young buyers and those with families. Overall, sales were down a modest 3.4 per cent in East Toronto neighbourhoods in the first half of the year.

Despite a two-per-cent dip in average price in east-end markets, affordability remains top of mind in the area, with many buyers looking for single-detached homes in the sweet spot between $1.5 million and $2 million. Most sellers, however, are staying put, content with vibrant communities, good schools, and proximity to amenities and transportation, leaving many buyers waiting in the wings. There has also been a recent influx of investors who have shifted from the condominium space to the East End, where smaller homes on 25- to 35-ft. frontage with the potential for laneway housing offer an excellent return in terms of rental income. Pent-up demand is also building at certain price points but accumulating a downpayment and higher carrying costs are proving insurmountable for many first-time buyers. Those purchasers able to save a downpayment are now travelling further east in the hopes of realizing home ownership in Durham Region, where communities such as Brock, Oshawa, and Clarington offer detached housing under the $1 million price point.

Trade-up activity is occurring to a certain extent, which has contributed to higher values in some areas as more expensive homes are sold. Some homeowners are upgrading within their neighbourhoods, while others are expanding their search into communities within the central core where values for larger homes on more generous lot sizes have softened. With two rate cuts in the rear-view mirror, it may take until late fall of 2024 or early 2025 before the market truly awakens. But when opportunity finally aligns with affordability, the market is expected to gain momentum quickly.