Ontario’s real estate market is still in a very health place. Although many forecasts predict that Canada’s real estate sector is heading towards a softening and a dip in housing prices with a rise in interest rates, one of the variables that will actually help keep prices up is urbanization. With the cost of living rising, the time spent commuting getting longer and the wish for a balanced lifestyle becoming more prevalent, younger buyers are trending towards moving back into the city.
There was a time when Toronto families and first time buyers would automatically ditch their urban digs to scout out a home with a yard and for a quieter existence away from the bustle. Not only were they looking for the dream of white picket fences and a haven away from the work-a-day world, they knew that their real estate investment dollars would go a longer way outside the core. Today’s home buyers, however, are eschewing the path of their parents and are increasingly looking to put down roots in metropolitan areas. Favoring a short commute and easy access to services, the younger demographic is keen on staying close to their workplaces and connected to the lives they already know.
The push towards urbanization means that developers are increasingly looking towards plots for building that are close to urban centers. The trend for such housing has also come to Toronto where growing numbers of young families are choosing to renovate their existing property instead of selling for something bigger; they are choosing location over space.
Such a trend is good news for Toronto’s property market as it means that prices will not flatline or fall as is being widely projected for the Canadian housing market in 2015. Should a rise in interest rates occur, it will impact new homeownership as well as affect those with looking to renew their existing mortgages, which will in turn put pressure on housing prices. However, with low availability in urban markets with mixed high demand for residential units, prices are not expected to drop significantly, if at all.
For those interested in urbanization and emerging trends in Canadian real estate, there is a good article over here //pwc.to/11PsNw2 that covers it in a global way.