Housing markets in Ontario to pay attention to in 2020
All housing markets go through changes. Also, they are very often connected to real estate forecasts that are very important. Not only real estate investors, but also owners and buyers should keep a close track of these details. Especially if they are getting ready for a real estate venture, like buying or selling their property. Housing markets in Ontario, are very important to many Canadians since this is one of the largest providences in Canada. If you are interested in participating in this market, we advise you to religiously follow upcoming changes. But for now, here is what you need to know.
Housing markets in Ontario started the year 2020. very strong
Ontario is the most populated province in Canada. Naturally, because of this fact, there is a very high demand in real estate. Many buyers are attracted to this region. The demand currently easily outweighs the supply. Since the transportation system advanced other regions within the providence are gaining popularity. At this point, you can relocate hassle-free to any part of Ontario. However, finding the perfect property might be not as easy. Coronavirus has set back all housing markets in Ontario. This problem will continue to ride all Ontario housing markets. Still, it is expected that the markets in this region will bounce back without too much difficulty once the pandemic ends.
Toronto’s housing market dictates the trend in the Ontario region.
Prices differ across the entire province
The housing markets in Ontario are very diverse when it comes to prices. Generally speaking, proximity to the bigger cities will generate higher real estate prices. There are a few minor exceptions. For instance, Oakville is a small town with the highest sales prices in the providence. So, moving in small towns, like Oakville can end up being pricier than anticipated. On the other end of the spectrum, Cornwall had the lowest prices in the province.
Factors that influence the housing markets in Ontario
The real estate market has factors that push their property prices in a certain direction. Thus, real estate trends in Ontario are being dictated by a few simple but very influential factors.
The interest rates are extremely low
Future and potential real estate buyers should say a big thank you to the Bank of Canada. In the past, interest rates were 1.25%. At first glance, this sounds very reasonable. However, the current interest rates have dropped, and they equal to 0.25%. This number might be one of the biggest stimulators when it comes to the demand for real estate in the Ontario region.
Lower interest rates are opening doors to new buyers to purchase properties of higher value and better quality.
The mortgage stress test is no longer the declining factor
The mortgage stress test used to be a crossroad where many potential buyers had to turn around. This would be the moment where they would hang in their towel. Because of higher interest rates, many interested buyers dropped out of the real estate game. Interest rates were just too high to afford. However, the lowering of interest rates has proven to be a true mage changer. Now, buyers can take out greater loans and as a result, they can buy better properties than before.
Coronavirus influence on the real estate forecast
There aren’t many housing markets that haven’t been influenced by the COVID-19 pandemic. Therefore, Ontario’s real estate markets aren’t an exception. Yet, it is important to state that things haven’t died down completely. Of course, everything might be moving at a slower pace. But things are still moving in the correct direction. The current prognosis is that housing markets will be affected by the coronavirus in a negative manner. Though, they are expected to bounce back in record time afterward.
Different housing markets within the providence of Ontario
Not all housing markets in Ontario fall under the same umbrella. There are differences in pricing and in their forecasts.
Housing Market in Toronto
At the beginning of 2020. in February, the selling prices were skyrocketing up to 16.7%. The demand is so major in this area that supply cannot keep track. Living in GTA, the Great Toronto Area is appealing to many. As a result, there is a huge request for real estate. This situation is great for sellers and not so great for buyers.
Housing Market in Ottawa and Windsor
These two real estate markets are only a few steps behind Toronto. The same dynamic has been registered, but with slightly lower prices. The growth of prices in these regions has been registered between 11 and 12%. This area is very popular with young working professionals.
Ottawa is next to Toronto another major city that draws attraction to the housing markets in Ontario.
Hire professional movers to relocate you to the Ontario province
When moving to or within the Ontario province it is always advisable to hire professional assistance. Moving is a process that you might not be able to maneuver on your own. Even if you could, there is no need when you can spare yourself the stress and anxiety of it all. By hiring professional movers, you’re putting your move in the safe hand of experienced professionals. This luxury might significantly increase your moving bill. Yet, in the end, it will prove to be the best investment when moving. For those that are in desperate need of reliable movers in the Ontario region contact Number 1 Movers Ontario.
Are you sitting in the buyer’s or seller’s chair?
Which chair you are sitting in makes a whole lot of difference if you want to be a player that participated in any housing markets in Ontario. Sellers are having an advantage because of the intense demand. To add some sugar to the current situation, it seems that this trend will remain at least until the end of 202o. However, the same cannot be said for buyers. If you are looking to purchase a property in this region you better be on your toes with your pockets loaded. Remember, many are in your shoes and looking for the same thing. So, don’t let them get ahead. Happy real estate hunting Canadian style.