Markham, Richmond Hill, Vaughan - Condo Price and Trends
Thursday Oct 08th, 2020Share
The following chart is tracking recent trends in the condominium market in Markham, Richmond Hill and Vaughan. For simplicity I will call these the areas York.
To compare apples to apples only one and one plus one units are being tracked.
The data is tracked starting September 1, 2019 to illustrate the most recent trends and the impact of Covid-19 on this segment of the real estate.
The commentary and the charts are to provide info on how this segment of the market behaves itself, and how it behaves in comparison to one (and 1+1) bedroom condos in DT Toronto.
Please have a look at the latest blog on DT 1 bedroom condos to see how the two areas compare.
The volume has been very steady during the last 12 months except the holiday season (typical) and beginning of covid (expected as everything was shut down). The chart is very similar to DT condos.
Sold to list ratio.
Sold to list ratio has been sitting at 99% for the last month and half, it’s been remarkably consistent the covid hit. Similarly to DT condos we have experienced absolute craziness in February and first half of March 2020, the charts for both areas are remarkably similar.
The days on the market is quite different from DT Toronto, surprisingly York is much weaker at 31 DOM, a huge increase over the recent range from mid July to mid September where it stayed between 20-23. DOM for DT core stayed in the tight range between 17-22 in the same period. We will have to see if the DOM for the second half of September is an anomaly, or a developing trend.
Average Selling Price.
The average selling price shows the most meaningful disparity between the parts of the York region addressed in this blog and DT Toronto.
The average selling price in the second half of September 2020 in York was $500,953, a meager 5% decline from the peak of $526,715 in the first half of March 2020. In comparison to a second half of September 2019 the current average price has actually increased by 9%. There is a bit of a weakness in September, but since the beginning of April all the way to the end of August this chart is simply remarkable.
Let’s compare these to DT Toronto, DT core prices in the second half of September have declined 11% from it’s peak (versus 5% in York, also please keep in mind that for the DT core charts I have eliminated properties selling for over $1M, these are custom units which do not reflect the needs of an average consumer, York doesn’t have those 1 bedrooms).
In comparison to the second half of September 2019 there is a YOY decrease of 2%, versus 9% increase for York, that’s a 11% difference!!!!!!
Despite all the doom and gloom in the condo market (and let’s be honest, in GTA if there are no bidding wars that means doom and gloom), the condo market in Markham, RH and Vaughan, has performed remarkably well. Some units are still getting multiple offers, but let’s not kid ourselves, pre-covid craziness has vanished and we are experiencing healthy balanced market in Markham, RH and Vaughan for 1 (and 1+1) bedroom condos.
In contrast to DT core the York region didn’t have buildings with short term rentals, less entertainment, universities etc, majority of the buildings have higher owner occupied/ leased ratio than many buildings in DT core, and there is a strong demand from buyers of Asian descent, both investors and first time home buyers. Simply put this area is doing well, much better than DT core, and quite better than Scarborough, Mississauga and other areas (if anyone is interested, we can run charts on these areas as well).