Living next to Drake might not be as hard as you thought. If you’re looking for a Bridle Path mansion and hoping to land a bargain, now might be the time to buy, as Toronto’s upscale neighborhood has seen an almost 30% decline in home prices last month.

In June, the GTA housing market continued to ease as house prices fell for a fourth consecutive month. But in Toronto, some pockets saw prices jump while others crashed.

The Bridle Path, an affluent North York neighborhood, continued to take a hit with an almost 30% drop in the average house price from May to June, while The Annex saw prices jump almost 24% , according to the latest figures from the Toronto Regional Real Estate Board (TRREB).

A big reason for the variability in home prices across the GTA is low inventory, though some areas of the city are still seeing strong demand, real estate experts say. And another Bank of Canada rate hike expected next week continues to keep potential buyers waiting for the market to stabilize, they also note.

The average sale price for all homes and condos in June was $1.15 million, down from February’s market high of $1.33 million and May’s average of $1.21 million. of dollars.

“We’re seeing a nearly 15% decline from February’s high and with that falling and rising interest rates, those costs are almost offsetting each other,” Toronto real estate agent Cameron Forbes said. “That means we have reached equilibrium in terms of price.”

Sales have also fallen sharply by 41% year-on-year – similar to declines seen during the global recession of 2008 and 2009 – but property experts expect activity in the market to stabilize in the fall as the initial shock of the rate hike subsides. while buyer demand remains, especially for certain neighborhoods.

“The desire to live in neighborhoods where you can work comfortably and be close to restaurants and events will always be desirable, regardless of market dynamics,” said Karen Yolevski, chief operating officer at Royal LePage, corporate brokerage.

As people return to in-person work and immigration opens up again, urban centers remain attractive to many, Yolevski said.

“There are fluctuations when you look at house prices from month to month by neighborhood, but when you look at the city as a whole, the trend line tends to rise,” said- she declared. “There is an upward trajectory of growth in the GTA.

The Annex—Yonge—St. Clear

The Annex—Yonge—St. The Clair area, which includes Yorkville, South Hill, Summerhill, Wychwood Park, Deer Park and Casa Loma, saw the largest increase in home prices in June, at nearly 24% month-over-month, the average selling price increasing to more than $2.1 million in June from $1.7 million in May. Prices were also up almost 24% year over year.

The region’s share of single-detached home sales was much higher in June than in May, which was one reason for the rise, said Jason Mercer, vice president and principal analyst at TRREB.

“That means a larger share of much more expensive homes (compared to condos) contributed to the overall average,” he said.

But the influx of new luxury apartments in high-end mid-rise buildings is also attracting potential buyers.

According to the TRREB, condominium apartment prices rose more than 14% from May to June.

“These are boutique new apartments and are priced high compared to other neighborhoods,” said Cailey Heaps, CEO and Official Broker of The Heaps Estrin Team.

St. Andrews—Bridle Path—York Mills

In the St. Andrews—Bridle Path—York Mills area, the TRREB reported an almost 30% drop in the average home price from May to June, from $3.1 million to $2.2 million .

The area continues to take a hit after falling 22% from April to June as prices were hit by the federal government’s ban on foreign home buyers, which is a big factor in areas like Bridle Path. And buyers in the area are looking for long-term investments, according to property experts.

“The Bridle Path type of buyer is more affluent and can take their time researching and selling their property,” Forbes said. “There is no rush, which means there are fewer sales.”

In May there were 29 sales and in June there were 18, a decrease of 37.9%. And year-over-year home prices didn’t fare much better with a 28.2% decline.

Laurent West

Lawrence West, which includes Bedford Park, Lawrence Manor, North Toronto, Forest Hill North and Lawrence Park, saw average prices drop 6.95% month over month from $2.5 million in May to nearly $2.4 million in June.

Heaps said the volume of sales had dropped significantly – there were 81 sales in May and only 54 in June, a drop of 33.3% – the average price was not drastically different and matched the general downward trend the city has seen over the past month. While prices were down in June, year-over-year the region saw a 4% increase.

In addition, there is usually a market slowdown in June as summer travel contributes to less active home buyers and sellers, especially in family homes, she added.

Vaughan and Brampton

Suburban areas of the city such as Vaughan and Brampton saw similar price declines month over month, at 5.7% and 7.2% respectively.

In Brampton, the average sale price rose from $1.14 million in May to $1.06 million in June. In Vaughan, the price rose from $1.4 million in May to $1.3 million in June.

“In areas like Brampton, you have more long-term family homes, where people will stay longer,” said Wins Lai, a Toronto real estate agent. “So we’ll see stocks stay in the market longer because people are less likely to leave the neighborhood with the interest rate increases.”

During the pandemic, both areas have also seen an influx of potential buyers looking to acquire more space with better access to nature, which has driven up prices significantly in the suburbs.

But now that more and more people are returning to downtown Toronto, those artificially high prices continue to drop, Heaps added.

“Suburban markets like Vaughan and Brampton are feeling a steeper decline as inventory there was prolific,” she said.

Still, Vaughan saw a 0.5% year-over-year increase in house prices and Brampton, 5%.

“Prices are even higher in June this year compared to last year,” Yolevski said.

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