Real Estate Market

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.  

Burlington Real Estate Statistics for October 2021

Average Ontario Home Prices 

It was recently reported that the average price of a residential property in Ontario in September was $887,290. While the average income for someone living in Ontario was reported to be $55,500, meaning that the average price of a residential property is 16x the average income. 

Ontario is the most populated province in Canada, with the majority of the population living in the south. It was also reported that the most affordable properties are located to the north, such as Thunder Bay and Sudbury. You can learn more about other provinces and their average residential property price by reading an article provided by the Canadian Real Estate Magazine.

Burlington is located in the southern part of Ontario and the REALTORS® Association of Hamilton-Burlington recently released their October statistics. In this article we’re going to review some of those statistics and the Burlington area did in terms of sales, average price of a residential property and more. 

The REALTORS® Association of Hamilton-Burlington 

The REALTORS® Association of Hamilton-Burlington (RAHB) reported a total of 1,329 sales of residential properties within the RAHB market area for October 2021. Sales saw an eight per cent increase when compared to September 2021. However, new listing were reported to be down by 18 per cent compared to the same time last year. 

The average price of a residential property in the entire RAHB market area was reported to be $922,279, this was a five per cent increase compared to September 2021. This was also a 27 per cent increase when compared to October 2020. 

The above chart, Burlington Residential Table, shows us the overall October 2021 Burlington Real Estate Statistics. It was reported that the average price of a residential property was $1,148,587. This was a 28 per cent increase when compared to the same time last year. 

When it came to the sales activity, there was a total of 246 sales of residential properties in October 2021. This was a 33 per cent decrease compared to the same time last year. When it came to the number of new listings, there were 264 in October, this was a 37 per cent decrease compared to the same time last year.

Finally, when we look at the median price of a residential property, we can see that there an increase of 31 per cent to $1,049,500. We can now take a look a the map below and get an even close look at each neighbourhood in Burlington. 

Average Price by District in October 2021 

The above map, Average Price by District, illustrates to us how each neighbourhood in Burlington did in terms of sales and what the average price was. The sub areas that we need to take note of for October were; 30,31, 32 and 35. Each of these areas had the greatest number of sale in Burlington in October 2021. 

According to the Burlington Real Estate Statistics, the area that had the greatest number of sales was area 35, located in the sought after neighbourhood of Millcroft. There were a total of 70 sales in October, the average price of a residential property in this area was $1,011,755. The highest average residential property price was area 38, the average cost of a property in this area was $3,172,500. 

October 2021 Real Estate Statistics for RAHB Market Area

It was reported that single family detached properties continue to be the most competitive type of property. The average price of a detached property reached a new record of $1,000,000. This was reported right across the RAHB market area.

Townhouses in the RAHB market area had an eight per cent increase in sales when compared to September 2021. With new listings for townhouse reported to be down seven per cent with the average property price of $756,684.

Sales of apartment-style properties had decrease of one per cent, with new listings seeing an 11 per cent decrease compared to September 2021. The average price of an apartment-style property was $600,912. That’s a four per cent decrease when compared to the previous month.

“Following September’s momentum, October posted a new average sale price record for residential properties. The number of sales are down significantly from last October’s highs and up slightly from the typical activity we usually experience in October. The level of active listings and months of inventory available remains concerning as demand continues to drive the market. We do not anticipate this to change as 2021 comes to a close.” – RAHB President Donna Bacher.”

Contact Lori VanDinther and Team Today

If you want to learn more about the October real estate statistics you can learn more by visiting the REALTORS® Association of Hamilton-Burlington website. They have a full report and more charts and in-depth reports.

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

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!