When it comes to affordable housing there is only one questin that comes to mind. Where in Ontario can you currently get the most bang for your buck?
As the Ontario real estate market bounces back from the coronavirus pandemic, many homebuyers may think they may have missed out on the brief opportunity at the height of the public health crisis. In March and April, many of the province’s housing markets experienced modest price declines, offering discounts on detached, semi-detached, townhomes and condominiums.
Prices and sales quickly increased again through the summer in what proved to be a delayed spring market. However, that does not mean all of Ontario’s housing markets are out of range for first-time buyers, families, and newcomers when immigration to Canada eventually resumes its typical pace. With a little bit of due diligence, you can find a region or a city in the province that can present you with the property of your dreams.
DETERMINING AN AFFORDABLE HOUSING MARKET
First, it is important to understand what determines an affordable market. Contrary to popular belief, it goes beyond the average home price. An affordable market takes into account the level of income necessary to afford the purchase of a house, as well as the current home price. For example, the median income in London,ON is approximately $54,000 and the average home price is a little more than $440,000. This makes London an affordable market.
Here are the top five most affordable Ontario real estate markets to consider in 2021.
North Bay, ON
Home Price: $286,114 (CREA NOBA July 2020, year-to-date average price)
Income Required: $39,893
For a long time, homebuyers have overlooked northern Ontario in favour of its southern urban counterparts. Unlike other rural areas, access to typical amenities is not as easy and development is more limited compared to the rest of the province. That said, real estate sales have been climbing in cities like North Bay, possibly because of greater infrastructure investment, improved land development, and lower taxation. With the combination of incredibly affordable homes and the increased flexibility of telecommuting employees, this trend is likely to continue through the rest of 2020.
Sudbury, ON
Home Price: $297,938 (CREA SUD June 2020, year-to-date average price)
Income Required: $33,749
When Sudbury witnessed an uptick in confirmed COVID-19 cases, officials were forced to implement strict safety measures for people buying and selling their homes. That did not stop real estate activity in the area as home sales have been on the rise – and for good reason. Sudbury is one of the province’s most affordable cities to live in in Ontario. As more people exit the big cities amid the work-from-home trend, cities such as Sudbury have a become a prime location for families looking to move, offering more space and an affordable cost of living.
Windsor, ON
Home Price: $383,521 (CREA WIND July 2020, year-to-date average price)
Income Required: $52,192
Windsor is one of Ontario’s best-kept secrets. You can purchase a large property for the average price of a one-bedroom apartment in Toronto, and many young couples are following the smell of savings! The Windsor housing market continued to sizzle even during the coronavirus pandemic, and now that the city has joined the rest of the province by officially moving into stage three or reopening, this boom is expected to intensify. CBC News writes:
“In addition to the lower housing prices… Windsor makes it an attractive city to buyers and investors because of its close proximity to Detroit, low traffic, relatively warm weather and views, the casino, and the imminent construction of the Windsor-mega-hospital.”
Niagara, ON
Home Price: $493,007 (CREA STCA June 2020, year-to-date average price)
Home Price: $493,007 (CREA STCA June 2020, year-to-date average price)
The Niagara Home Builders’ Association (NHBA) said in Statistics Canada’s monthly survey of home builders that retirees and remote workers have amplified demand for new housing in the Niagara region, which elevated prices by one percent last month.
“As working from home becomes more prevalent, we may see an increase in the demand for larger living spaces that single-family homes can offer, causing a shift in demand from condominium apartments towards single houses,” the NHBA noted in the monthly survey.
Peterborough, ON
Home Price: $505,998 (CREA PETE July 2020, year-to-date average price)
Income Required: $69,072
Sales activity has been strong in Peterborough and the Kawartha Lakes in the aftermath of the peak COVID-19 period. In April, residential home sales plummeted 58.1 per cent, but they have rebounded as much as 34.5 per cent since. The contributing factor has been GTA buyers fleeing the region and seeking homes in smaller, quieter cities like Peterborough. The problem? Not enough supply, says Chiarina Payne, president of Peterborough and the Kawarthas Association of Realtors, in an interview with MyKawartha.com.
With interest rates at historic lows and demand expected to remain healthy, residential prices in the region are expected to rise by three per cent by the end of 2020.
CONCLUSION
Ontario’s slogan is “Yours to discover,” but the concept is more than just a garnish on our license plates. There is a lot of the province that most people have yet to see, and this is important if you are searching for a property to purchase. For Ontario real estate hunters, Toronto is an ideal location but the cost of a Toronto home is unaffordable for many. Exploring or expanding your home search to other parts of the province is more doable than ever before: public transit routes are expansive, remote work is more common, and a lot of cities in Ontario offer comparable amenities to what you would find in Toronto or Hamilton. Ready to make the great escape from big city life? Time to start discovering Ontario real estate!