Real Estate Rising Prices in Ontario
When looking at the provinces and territories that had the largest upsurge in terms of price difference, Ontario sits at the top of the list
Published by Hillfield Properties on 17th June, 2021
Canada saw a surge in housing prices over the past year. A market t
People now spend the majority of their time at home and need more space. With work-from-home more generalized, many people don’t have to live within commuting distance from their jobs. That means most people who own condos and smaller homes could build equity and move to a property which meet their needs.
During the pandemic, people upsizing were the first wave of buyers, as more work-from-home space was desirable. Separate functional spaces for parents to work and kids to learn was desperately needed.
Existing homeowners benefited from price appreciation, so they had more home equity to use when buying a bigger home. This primarily applies to owners of smaller houses upgrading to larger ones.
Before the pandemic, rents were rising faster than incomes, so first-time buyers struggled to come up with down payments. Things have since turned around and in recent times rents have been falling. This made renting a more attractive option compared to the costs of ownership. However it also allowed persons the affordability of being able to save toward a down payment of a house or property.
Only a small percentage of Canadians have managed to increase their savings over the past year. This implies that rather than saving, people are shopping online. So if you have managed to secure a down payment and are looking for a property, contact an expert who can give you advise on owning your own home.
From the start of the pandemic, many Ontarians weren’t spending their income at restaurants or on vacations. Probably due in part to closure of borders and other stores. Some may even be saving more money than they did before.
The Bank of Canada has drastically reduced rates, but the qualifying benchmark mortgage rate has fallen less than a half percent since the pandemic began. That however did not prevent the rise of the 5-year fixed mortgage rate.
With people no longer having to live within commuting distance to their jobs, as long as suburban and rural areas have decent internet, they became even more appealing to families looking for more space.
One of the largest changes came from Ontario. Prices in suburban and rural areas were impacted the most and saw the biggest changes, with regions like Rideau-St. Lawrence and Sarnia-Lambton in Ontario averaging about a 50 per cent increase from the previous year.