One of the best places in Canada to live and work is Ontario. You will fall in love with its diverse landscape, natural beauty, artsy culture, and rich history. Toronto, the province's economic power player, is one of North America's most populous cities- not to mention it has a booming real estate market! You can find anything you want here: from small-town charm or big-city excitement; stunning lakeside mansions lined with snowcapped mountains just outside your door; up north wilderness where tranquil silence is only interrupted by the sound of wolves howling at night.
Quick Facts:
- As the most populous region, Ontario has 14,789,778 people.
- The cost of living is high but gives the highest salary to workers.
- Ontario, Canada, is so big that it has 2 time zones.
- The average sold price is $857,754.
- The real estate market sides with the sellers.
Ontario, Canada, in a Nutshell
Economy
The farming industry makes Ontario famous. Aside from that, the region is also a leader in the manufacturing industries. They produce auto-parts and textiles like clothing.
Moreover, the service industry is also in demand in Ontario. That is to say, the province works well in business, finance, arts, and culture. As a result, 79% of the population is working in the service industry. Thus, it is 76.9% of Ontario, Canada's economy.
Education
Public funds are available in Ontario, Canada. In fact, the government shoulders the primary and post-secondary education of its residents. Moreover, they follow the Catholic and French ways of schooling.
Weather
On average, the temperature varies from 20F to 77F - and rarely below 5F or above 84F. Then, the annual rainfall is 16.7 inches.
Real Estate Condition in Ontario, Canada
Note: The following data contain national real estate stats for it reflects Ontario's overall market/trend.
Shrinking Inventory
The home sales in Canada last June 2021 dropped by 20% from March 2021. That is to say, home sales in the Canadian MLS Systems fell by 8.4% month-over-month in June 2021.
Moreover, the number of newly listed homes shrank to 0.7% in June 2021 than in May 2021. As a result, more and more buyers join the bidding wars - and it's becoming tighter than ever!
Many experts also predict that the median home prices in Ontario, Canada, will rise up to $1M. To clarify, here's what Jason Mercer, TRREB market analyst, has to say:
"A persistent lack of inventory across most segments of the market will keep competition between buyers strong, resulting in an average selling price well above $1 million through the end of 2021," through CBC news.
Experts are past the post-pandemic effect in housing. Therefore, they point out that the housing shortage is due to the growing population and slow house construction. This is no surprise since many people want to move to Ontario to experience the high quality of life it offers.
Nationally, Canadian real estate recorded only 2.3 months of house supply at the end of June 2021. Nonetheless, it's still high compared to 1.8 months of house supply in March 2021.
Real Estate Trends
At present, the average sold price in Ontario, Canada, is $857,754. It is relatively high compared to June 2020, where the sold price is only $680,415. That is to say, there is an annual increase of 26.1%. Furthermore, the average home price in Toronto is $1,089,536 and $659,929 in Ottawa. While Ontario is a seller's market, agents see a strong decline in the sales of single-family homes. As a result, the trend follows the growth of rental units. Whereas the average rent in Toronto is $1,622 and $1,517 in Ottawa.
Mortgage
One of the possible solutions that experts see in low inventory is the mortgage loan application. Mortgage officers say a stricter stress test could be the solution. Therefore, home buyers will not easily have their loans.
Hence, to regulate and prevent the buyer frenzy, Canada Mortgage and Housing Corporation said that they will raise their standards to:
- Higher credit scores
- Lower debt ratios
- Banning borrowing money for a down payment to ensure a buyer's mortgage.
Final Thoughts
Sure, the low inventory is a challenge for most real estate agents in Ontario. But, they make sure to have a positive outlook on their market. The buyers' frenzy will come to an end. Ontario, Canada, will have a balanced market - slowly but surely.
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