Homeownership in GTA: Toronto Vs. Nearby Cities
Toronto homebuyers may feel that the road to homeownership in Toronto has become bumpier in the past couple of years. It all started with the price hike that was caused by an over-demand when inventory was scarce. To bring things back into order, the government introduced different measures. In addition, the interest rate was increased three times within the past six months and the new stress tests are in force since January 2018.
Even if Canada’s economy has significantly improved with the lowest unemployment rate since the 1970s, homebuyers still feel priced out of the market. Nevertheless, they can count on a stable market in 2018 as prices won’t climb at last year’s rapid pace, but slower.
Homebuyers have been very resourceful in trying to get their dream home in the dream city, while others started to look around in nearby cities where prices are more affordable, especially since the new mortgage stress tests limited their purchasing power by 20%.
It’s not only buyers, but renters also have a hard time with Toronto rental costs. A one bedroom in Toronto climbed to an average of $2,000, while one could get the same for half the price in other GTA cities. That’s why many young professionals and families started to seriously look for alternatives in cities like Brampton, Newmarket, Oshawa, Burlington and Hamilton.
While Brampton and Newmarket have already drawn a large number of buyers in the past two years, Oshawa and Hamilton are now expected to follow suit.
The Benefits Of Living In One Of These Five Communities
All of these cities are very close to Toronto (from 30 to 60 miles, depending on the city) and one can reach Toronto in less than an hour by car or public transport. Of course, the rising demand led to a price increase in these communities as well. For example, real estate prices rose by over 30% in the last two years in Newmarket, but they are still lower than in Toronto. Prices in Hamilton and Burlington are also expected to go up this year by 4%, while in Toronto the forecasted price increase is only around 2.5%.
These cities are great alternatives because they have lots to offer to their residents. They give a suburban feel but are yet all-around communities with big city-like amenities. In fact, Newmarket and Burlington have been ranked very high as Canada’s best cities to live in due to low crime rates, lots of green spaces and parks, great schools, and other top-notch
Average Home Prices In These GTA Communities
All of the five communities offer great housing options for great prices whether you are looking for a detached or townhouse or a condo. According to last month’s stats, Newmarket remains a bit more expensive than Brampton and co. The average home price in Newmarket last month was $772,000, while in Brampton it was $648,000. Oshawa and Hamilton are more affordable and you can get a home under $500,000 in the fast-developing and lovely community of Oshawa, while in Hamilton it’s somewhat above $500,000.
The forecast for 2018 predicts price increases across Canada (with a few exceptions), but also a balanced and healthier market that will benefit all Canadians in the long run.