Across Ontario, the housing market is hot and seems to be showing no sign of cooling down. The market is so hot in places like the Golden Horseshoe and other Ontario regions that the provincial government has even recently announced that it is considering implementing a foreign buyers’ tax. As a prospective buyer or seller in the area, you may be wondering just what to make of recent housing price changes across the Golden Horseshoe. Is it a bubble, or are these prices part of a long-term trend?
Recent changes in the housing market
Housing prices across Canada have been steadily on the rise for the last several years. While this has been most notable in Toronto and Vancouver, cities within the Golden Horseshoe have seen their own spike as well. The Niagara area, for example, has seen a 17% increase over the past two years.
It is no wonder that the Golden Horseshoe is attractive to many buyers. Cities like Hamilton, Burlington, Niagara Falls and others are close enough to larger density areas like Toronto and the United States to be convenient while their prices, despite the fact that they are climbing, are considerably lower.
Add to that, the fact that the Golden Horseshoe region truly is a great place to live, and it would seem you can’t lose.
Toronto prices affecting the Horseshoe
While housing prices in the Golden Horseshoe will never rival those of Toronto, it is easy to see how Toronto prices affect prices in the Burlington and Waterdown area. This happens in two primary ways. The first is that as Toronto becomes increasingly unaffordable to many buyers, it increases demand in neighbouring communities.
The second comes from the fact that many homeowners in Toronto view the current market as an excellent selling opportunity. They are able to sell their Toronto homes for a tidy profit and move into something nicer in the Golden Horseshoe – often mortgage free.
Time to buy or sell?
No doubt about it. This is a good market for sellers. There seems to be an abundance of interested buyers out there while the number of homes going on the market remains relatively small. This helps to ensure the seller receives a good price for their home.
Buyers, on the other hand, may be wondering whether this is really a good time to get into the housing market. While some economists have used the word “bubble” to describe the current situation, the housing market doesn’t seem to be behaving that way. Rather, it has been showing steady growth indicating that despite rising prices, it is still a reasonable time to buy.
Of course just because it is a good time generally to buy or sell, it does not necessarily mean that it is a good time for you or your family. That is something that you will need to determine for yourself.
Consulting with a member of the Woolcott Team is a good first step to give you an indication of how much you might expect to get if you were to sell your current home or how much you might expect to pay if you are buying.
To find out how you might take advantage of the current market, we invite you to call Woolcott today.