Why Is Ontario Home Prices Changing?

One of the markets with the highest search in Ontario this year is the real estate. Ontario is one of the provinces with the largest population in Canada. Therefore the demand for new homes grows each year exponentially.

Something that may harm the real estate market a bit is the current global pandemic due to COVID 19. This represents a challenge for future buyers who have in mind to buy houses currently in this province, since the restrictions are increasing by the massive contagion.

When deciding to buy a home in Ontario, the price variation that exists according to the province must be taken into account, in addition to some external factors that lead to their rise.

Here are some of the factors that set prices within the Ontario providence:

People Take Advantage Of The Low-Interest Rates

As in most countries, Canadian banks have applied to lower loan interest rates by 0.25%, from 1.25%. This encourages many people to want to purchase their homes today, but the market demand is not too high to satisfy the entire market.

The lower interest rate is usually a great help to future buyers if they want to qualify for a mortgage. Thus increasing the market demand much more, this is already a bit limited.

Ontario Real Estate Markets

Real estate markets outside the GTA are typically more stable and less changing. Most buyers start studying their future homes outside the city, where prices are generally lower.

In February, a significant price increase of up to two figures could be observed over the years for the type of single-family homes as well as condominiums. This is positive news for sellers and owners.

In contrast, not for worried buyers who prefer to move to the suburbs, even if their jobs are located in Toronto. In real estate, it is a law that the closer to the city, the more expensive it is.

Other regions near Ontario, such as Niagara, also experienced high growth between 2018 and 2019, with sales prices rising to 13%.

Big Problem For Real Estate Agents

Important and central cities such as Toronto and Vancouver are often difficult markets for acquiring homes due to high demands and low supply. In Toronto, due to the large influx of immigrants, and the low presence of land, the lack of new homes abounds, making this a big problem for real estate agents.

As the most central city in Canada, Toronto has an important growth almost than daily. Since it is where the best jobs are offered, and this draws much attention from future buyers.

The Ontario Ministry of Finance, in its annual report, expects the population of the province to have a 38% increase by 2046. This represents an estimate of 14.3 million currently in 2018 to almost 19.8 million.

All About Real Estate

Weather stations in Ontario can present an obstacle to the real estate market. In the winter season, buyers stop their searches, to take refuge from very strong climatic conditions, present at the time.

 Sellers who choose to sell this season are forced to lower house prices since the winter season is the harshest for the real estate company.

For its part, spring and summer are when warm climates are present, and Canadians decide to go out and find new homes. That is why the sellers present increases in their sales in this season.

The fall season brings a low inventory in the market because the spring and summer had the majority of sales for the year.

Leave a Reply

Your email address will not be published. Required fields are marked *