Housing Prices

Homeownership in Canada

Homeownership in Canada: What to Expect

Homeownership in Canada 

When it comes to homeownership in Canada there’s a lot to know and to prepare for. It can sometimes be difficult for young prospective buyers new to the market. This is due to the rising housing prices that we’ve seen over the past few years. 

There was a high demand in 2020 but a low inventory which caused the housing prices to rise. This created what we call a sellers market, meaning that the seller can look for the best offer on their property, causing the seller to go for the best offer. This is usually higher than what the asking price was to begin with. 

In a 2016 Canadian census, it was reported that in the year 2000 the rate of homeownership was just below 64 per cent and increased to 68.55 per cent by 2020. This was based on a group ages 55-64. “The 2016 Canadian census provided some helpful information for professionals and homeowners alike. While the data is from several years ago, it still provides a solid snapshot of what home ownership is like in Canada.”

It was also reported that, “78% of homeowners are couples, some with children and some without. Royal LePage Signature Realty also reported that around 48% of young buyers in the 25-35 age group owned their own home. As well, 92% of these young people have a positive association with real estate investments and believe that purchasing a home is a good financial investment.”

This census also indicated that many of these homeowners had a higher education than secondary school and had a higher income. It also indicated that this group of homeowners had responsible spending habits. As of 2022 we know this may have changed because there have been many individuals that have been affected by the ongoing pandemic.

Real Estate Market Statistics 

While it is true that the ongoing pandemic has had an impact on many industries and the economy, real estate saw on of its biggest booms. According to the Canadian Real Estate Association (CREA), there were a reported 551,000 homeowners that were able to purchase a home in 2020 and 2021. The pandemic caused mortgage rates to drop which lead to low borrowing rates and also low interest rates. 

“Because of this, many buyers realized that they could purchase a home and lock in a low interest rate with a low monthly mortgage payment. This led to high demand for houses and a shortage of houses on the market.”

COVID-19 and the Real Estate Market

It was also reported that the pandemic caused there to be more out of town buyers. They were purchasing residential properties outside of the larger cities to move to more rural locations. Due to this we saw the median cost of residential property rise 52.9 per cent in places such as Muskoka to $625,000. 

While some chose to still buy and sell during the pandemic, there were some who decided not to make any moves. This was due to the fact that for a while there were no in-person open houses and everything was moved to online. However, it was still reported that 84 per cent of potential new homeowners stated that they still plan to buy a new home in the near future. 

When it comes to the affordability of housing in Canada there’s a lot to consider. According to the CREA, the average price of a residential property rose more than had been previously predicted. By mid 2021 the price had risen to over $700,000.  

This rise in the price of a residential property caused there to be an increase in monthly mortgage payments, causing there to be a rise in the downpayment. This then caused there to be less entry level housing for new homeowners. We can take a look at the December 2021 real estate market statistics to see what it was like for buyers in Burlington, Ontario. 

Burlington Real Estate Market Statistics for December 2021

According to the REALTORS® Association of Hamilton-Burlington (RAHB), there were a total of 811 sales of residential properties in the entire RAHB market area. Sales in the area saw a decrease of 32 per cent since the previous month, and an 11 per cent decrease compared to the same time last year. 

In December 2021, it was reported that there was a 50 per cent decrease in new listings when compared to November 2021. There was a six per cent decrease in new listings since December 2020. The average price of a residential property was $931,787 in the entire RAHB market area. This was a two per cent increase compared to the previous month and a 27 per cent increase compared to the same time last year. 

In Burlington, the price of a residential property was $1,221,317 with a total of 136 sales. This was a 26 per cent increase when compared to the same time last year. The median price of a home in December 2021 was reported to be $1,155,000, which is a 36.9 per cent increase. 

“December 2021 saw a new residential average sale price record to close out the year. The number of properties changing hands in December did not rival the momentum from December 2020, however, we have never seen the months of inventory and active listings available this low before. Generally, most people wait until after the holidays to list their homes, but with approximately 300 residential properties on the market heading into 2022, we are expecting to continue to see tight conditions with such low levels of supply.” RAHB President Lou Piriano

Contact Lori VanDinther and Team

There are a lot of real estate statistics talked about in our blog this month, it’s important to see what’s going on in the market. This way we can better understand why prices and mortgage rates are they way they are. If have any questions about these statistics my team and I would be happy to help. 

You can contact us, we love getting to connect with our clients, to help you find the home of your dreams in Burlington, Ontario and surrounding areas. Please contact me either by email at info@loriv.com, or by phone at 905-632-2199.  

Fall Housing Market

The Fall Housing Market

Canadian Fall Housing Market 

The Canadian Fall housing market prices are expected to have a five per cent increase in what’s remaining of 2021. It was reported that 26 out of 29 of Canada’s major housing markets, were sellers markets. 

There was also a high demand and a low inventory, which is what added to many bidding wars. “Early indicators from RE/MAX brokers and agents across Canada’s housing markets suggest steady activity for the remainder of 2021.” 

When it came to single-detached homes, we experienced the bigger price increases compared to the same time last year. These increases were between 6.8 per cent and 27.3 per cent across all 29 markets. According to RE/MAX, they expect this trend to remain among young families and for it to continue into the fall. 

“As our brokers and agents predict, the fall market activity is expected to remain steady, which is promising, despite the ongoing challenges presented by the Delta variant. This is particularly relevant given housing markets in Canada are often a good indicator of economic activity in the country, and with the Bank of Canada forecasting economic growth of 4.5 per cent in 2022, a strong fall housing market is a good sign that things may be starting to return to a more natural rhythm.” – Christopher Alexander, Senior Vice President, RE/MAX Canada.

Housing Overview for Ontario 

When it comes to the housing market in Ontario, we saw the highest average residential price increases for single-detached homes. It was reported that the majority of the other regions had increases. They were between 20 per cent and 35.5 per cent year-over-year. 

However, the outlier markets experienced prices below 20 per cent. This included Toronto, Thunder Bay and Mississauga. Condos and townhouses performed quite well in all of those regions. Smaller and more suburban markets such as Kitchener, North Bay, London, Peterborough, and Southern Georgian Bay had a higher surge.

“The estimated price outlook for the remainder of the year ranges from a two-per-cent price decrease in North Bay, to increases across the other regions ranging between two and 15 per cent.”

The REALTORs Association of Hamilton-Burlington September Stats 

According to the REALTORs Association of Hamilton-Burlington (RAHB), there were a total of 1,226 residential sales. It was also reported that the average residential sale price was $881,656. This is a almost a five per cent increase from August 2021, and 22 per cent increase from September 2020.

RAHB also reported that in September 2021, there were 279 new listings in Burlington and that the average residential property price was $1,064,685. These are both increases when compared to the same time last year. 

“After months of relatively flat prices, September’s historically low listing and inventory levels have moved the average sale price to a new record. The demand remains strong and the supply remains low. Overall, we need more supply on the market to meet the demands of buyers and investors. There’s nothing on the horizon to indicate that October will be any different.” – RAHB President Donna Bacher.

Contacting Lori VanDinther and Team 

If you have any questions or concerns my team and I are here to answer them for you. We love connecting with our clients, this is because our goal is to help you find the home of your dreams. Please feel free to contact me anytime either by email or phone and I’ll do my best to help you! Myself and my team look forward to working with you! 

Burlington real estate

Burlington Real Estate Market Is Hot

Hamilton-Burlington Real Estate Market

It doesn’t come as new information at this point that the Hamilton-Burlington real estate market is on fire. With the average price of a residential property having an increase of 54 per cent in February and new listings up by 61.9 per cent since January 2021. 

There’s a lot that attracts people to this area such as the beautiful Royal Botanical Gardens, various beachs, waterfront properties, historic areas and incredible restaurants. Home buyers have been seeking the Burlington and Hamilton area to escape the busy cities like Toronto for something with more room to move. Especially during this time in our lives when COVID-19 is having us at home more often. 

Real Estate Statistics for February 2021 

The REALTORS® Association of Hamilton-Burlington (RAHB) reported that sales in the market area were 25 per cent higher-year over -year. With the average cost of a residential property being $787,840, an 8 per cent increase compared to the previous year. The average cost of a residential property in Burlington was reported to be up by 27 per cent to $1,067,867. Burlington also saw 375 new listings and an average of 14 days on the market.  

“In the RAHB market area, we saw an above average increase of 7.7 per cent in the average price of a home month over month. There are several pandemic related factors which have contributed to the high demand for housing combined with the low supply levels we have experienced in our market area. The good news is the number of new listings broke a 10-year record for February and our active listings increased by 28 per cent from January 2021. As we recover from these ultra low inventory numbers, buyers should start to see more selection and a bit less competition. Additionally, new listing numbers should stay strong and inventory levels should continue to increase to a more normal level as more of the RAHB market area moves out of lockdown and control zones.” – RABH President President Donna Bacher

Why The Hamilton-Burlington Market Is Attractive

It has been reported that unemployment is declining and in January 2021 there were 1,600 employment opportunities within the region. This fact alone makes the area more attractive to potential buyers. There are excellent schools and job opportunities in the area only adding to the rush of buyers looking for their next dream home. 

Burlington’s most sought after neighbourhood Milcroft saw 85 sales in February, with an average residential property price of $983,974. There are many great reasons to purchase your home in Burlington and the time is now. COVID-19 has played a role in why the market is the way it is. 

“COVID-19 continues to place logistical hurdles on families trying to get their home onto the market; however, as spring weather arrives and if COVID-19 restrictions are eased, families should be in a better position to leave their home to accommodate necessary showings which should increase the number of active listings in the RAHB market area,” – RABH President President Donna Bacher

Contact Lori VanDinther 

If you have any questions about what other tips there are about curb appeal, we will be happy to help! 

Make sure you contact Lori VanDinther and her team today if you’re interested in buying or selling your home. If you’re interested in learning what your home is worth, try our free home evaluation.