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For many buyers, both housing costs and the strongly competitive atmosphere of real estate in Ontario have felt both challenging and overwhelming. However, new trends are emerging.
If you’re looking to buy a home in Ontario, here’s what you need to know about the province’s shifting market.
The Past 5 Years of Ontario Real Estate
While housing across Ontario has been increasingly sought-after for the past decade, the last five years alone have seen truly unprecedented growth. During this time, a combination of lifestyle factors and economic trends shaped an intense seller’s market within Ontario real estate. Then, in 2020, the red hot market was about to heat up even more.
In the early months of the COVID-19 pandemic, the Bank of Canada lowered its policy interest rate in an effort to offset potential economic damages. This reduction suddenly made mortgages very affordable for Canadians looking to buy in Ontario. As a result, the already competitive Ontario market became flooded with buyers.
These conditions created substantial challenges for many homebuyers. So while it became easier to get a mortgage, finding and buying a home was a different story. Record high selling prices and competitive elements such as bidding wars became seemingly standard across the province.
What is Changing?
After two years of competitive conditions for buyers, things are finally beginning to change. Emerging real estate trends from around the province show that Ontario’s market is now beginning to cool off somewhat.
While new homes are still entering the market, Ontario is seeing fewer overall transactions compared to this time last year. This means that housing inventory is slowly beginning to accumulate, impacting both buyers and sellers alike.
In addition to less activity, fewer buyers today are entering the market. This is a result of the Bank of Canada raising interest rates and subsequently making mortgages more expensive. While this is good news for buyers who can still afford a mortgage, the market hasn’t been totally flipped upside down.
Looking for more information about the current real estate market? Explore these blog posts.
- How to Sell Your Home Outside of Canada
- Downsizing – Should You Buy or Rent Next?
- What to Know About Investing in Ottawa Real Estate
How Sellers Are Impacted by Market Changes
Although there are fewer transactions occurring in the market compared to this time last year, and some prices are starting to stabilize, homes are continuing to sell with the correct market strategy and approach. Days on market are trending higher in some scenarios, however, each market is unique and price trends will vary based on the community.
The best way to understand real estate shifts in your area is by working with a local agent. They can provide you with data and insights narrowed down to a neighbourhood level so you have all the information you need in your buying journey. While average selling prices remain high, there are a few emerging trends that will favour buyers entering the market today.
Today, new homes are still entering the market, but they aren’t always selling as quickly as they have been over the past two years. As a result, today’s buyers have access to a steadily growing inventory of available homes. With this small boost in supply, buyers now have more options when searching for their perfect home.
Looking to buy a home in Greater Ottawa away from the city centre? Explore some of our rural community guides.
Although prices remain strong, settling market conditions and more available inventory are offering buyers a break from the otherwise competitive nature of Ontario’s housing market. Decreased buyer competition means that you’ll have more time to find the right home for you and may not feel as rushed during the buying process. Bully offers and bidding wars are also becoming less frequent as the market pace continues to settle.
Getting ready to buy or sell? As trusted and experienced local agents, we can help! Contact Us.