The housing market has been wild all over Canada for the last couple of years: but Ontario has seen tremendous changes that it’s never seen before. From people fleeing the cities where they usually flock to being valued as overpriced by 22.6% on average, there’s a lot to dig into with Ontario to figure out if it’s a worthwhile investment.
Often Viewed as the Most Overpriced in the Country
Canada as a whole is considered the most overpriced country in terms of housing in the entire world. Unfortunately, Ontario is the worst offender in the country. With real estate overpriced at 22% in 2021, many fear the growth that it’s projected to see over the next couple of years.
Fortunately, just because properties are overpriced doesn’t mean you need to buy at that price, submitting offers and being competitive can help lower costs.
Prices Increased 22% in 2021
Overall prices grew by 22% over what they were in 2020. This affected everything from Ottawa to Halton real estate and is seen in both single-family homes and in condos and multi-residence buildings.
These prices are part of a global phenomenon, where people have become desperate to own land and have personal property after the first year of the COVID-19 pandemic, which set off the major market frenzy in the spring of 2021. As a result, these prices are expected to continue to rise, especially in Ontario.
Homes Aren’t Staying on the Market Long.
Unfortunately, because of the dense competition, homes aren’t staying on the market for long. Buyers are making quick decisions and not waiting for someone else to grab the house before they do.
This means more buyers are likely to accept the asking price and to avoid bartering for fear of losing out on the house. This is seen the worst in areas like Ottawa, where the suburbs have been in a huge uproar of people buying homes as quickly as possible.
People Are Leaving the Larger Cities
Since the pandemic started, people have been desperate to have personal space that they own, where they can go outside without being around people from outside of their household. This can be seen the most clearly in how people have migrated out of cities like Ottawa and Toronto since the beginning of the pandemic.
Instead, they’re seeking out properties in smaller towns and cities, looking for larger plots of land, and willing to pay Toronto prices for it despite looking in rural areas. This has changed how the market operates in many small towns that weren’t prepared for this influx of interest and has sparked construction in many of these areas that are now having to compensate for the suddenly larger population.
There’s No Crash in Sight Yet for Ontario
Although Ontario’s housing market has been wild for the last couple of years, there’s no sign in sight that these prices are going to slow down any time soon. Because of that, more people are investing, boosting prices further.