Ontario Real Estate Set to Expand in New Ways

As Canadian Provinces including Ontario slowly experiment with opening up businesses once again, residents are finding a changed scene even in local settings. How has this affected the real estate market? After months where house showings were limited, virtual or non-existent, home buyers, sellers and real estate agents are now — carefully — making up for lost time. Are you considering your next housing move in a post-lockdown world? In unprecedented circumstances, who does one go to for advice? 

When moving ahead during stressful times, learning from past experiences is advantageous. Gerard Buckley of Mortgage Wellness is a mortgage broker and seasoned financial professional who has weathered his share of economic turmoil. From Canada’s breaking away from the gold standard right through to 911, SARS and the financial market crisis of 2008, Gerard has guided his clients successfully even in an unpredictable world. So, what does he have to say about the Ontario housing market going forward?

The Great Migration

For families that have weathered the pandemic storm from a GTA high-rise, escaping the hustle and bustle for some land of their own is going to look very appealing. And the desire for gridlock freedom extends from large families right down to single-occupant homeowners and renters. Real Estate Agents have already noted the trend for home-seekers to have their sights set on communities outside of GTA.

This northern migration is expected to continue for the foreseeable future as the worldwide battle against COVID blazes on. Popular lakeside towns of Georgian Bay and Muskoka villages may notice this exodus more than rural farming communities but, in general, house prices outside of urban zones will likely rise due to the increased demand.

Condo Sales Down

The domino effect of current city-dwellers heading to the hills will be the decline in condo sales. With quarantining fresh in mind, fewer home buyers will opt for a stylish box in the sky — especially when average downtown condo prices trade out for acres of land elsewhere. The overall toll this will take on current condominium investors could be significant.

For those looking to enter the real estate market, now more than ever, smaller and more affordable communities outside of the GTA will continue to be where the focus is. Not only are many of these areas within driving range of city jobs, but with more employers offering remote options due to lockdowns, many workers no longer need to be in urban centres at all.

 

Interest Rates Halt

Any ideas of increasing the Bank of Canada’s prime interest rate have dissolved. With a fragile economy still discovering how to operate and countless businesses utilizing emergency government loans, increasing lending fees is off the table. Border closures will likely lead to a lower immigration rate for 2020, leaving Canada with far less expansion than years past. In a country that relies on such growth to boost the economy, fewer newcomers could have a dampening impact on the strength of the dollar as a whole. 

On a positive note, any who are looking to sell property in the outlying parts of Southern Ontario could see top dollar along with low borrowing costs for future real estate investments. Real estate agents in these communities are already reporting fast sales and increasing demand with many of the buyers stemming from the GTA.

Moving Forward in Uncertain Times

While Ontario’s future regarding the real estate market remains unclear, navigating the recent global and provincial changes is possible. Gerard specializes in financing home and land purchases from the shores of Lake Huron to the shores of Georgian Bay — and everything in between. As someone who migrated from Toronto, himself, he fully understands what is involved in making such a transition successful. 

From finding the right community for your personal and family needs to spending the appropriate amount of money on a home outside the city, having a local expert on your side goes a long way. Contact Gerard Buckley of Mortgage Wellness for confident leadership through your next home mortgage.