For the past year, real estate news has sounded like a broken record. You would have to have been living under a rock to be unaware of the soaring prices of real estate in Canada, namely in Vancouver and Toronto. Some buyers are being forced out of the bigger cities because they simply cannot afford to purchase a home in highly populated cities. Not only are buyers being forced out of certain urban areas, a lot of buyers are also forced to look for different types of homes due to the exorbitant prices of single family homes.
Now, more than ever before, condo living has become very popular and desirable. Perhaps not as a primary option, but with prices so high, buyers are beginning to consider condo living because purchasing a house in a city like Toronto is not feasible for many. So for this reason, buyers are willing to consider looking at an MLS® listing for a condo. There was a time when condos were primarily for single men and single women or couples without children. That has changed a lot in recent months as families are looking at condos more frequently because they cannot afford to purchase a house, but do not want to leave the city. This trend is causing condo prices to skyrocket because demand is so high and there is a shortage of inventory. You would think that supply would be ample in Toronto seeing as there are hundreds of buildings in the construction phase, but supply simply cannot keep up with demand, and this is why the prices are so high.
The popularity of multiple family dwellings is increasing drastically. In the past, multiple family homes were primarily attractive to investors looking for a return on investment. Now, these homes are attractive to many other types of buyers such as foreign investors, empty nesters who are looking for a bit of a backyard that cannot be obtained in a condo, and finally, multiple generation families and friends cohabiting due to issues of affordability. These types of homes are generally the most affordable, providing an alternative for buyers who wish to remain in city, but cannot afford to purchase a single family home.
Another trend is that buyers are beginning to consider purchasing a home in neighbourhoods outside of the big cities; the outskirts are becoming more acceptable. Places like Mississauga and Brampton are the main targets because they are still close to Toronto but the prices are much lower than in Toronto. However, because of this trend, the prices in those areas have increased as well, not to the extent of the prices in Toronto, but they are on the rise. Buyers are willing to increase their commute time in order to be able to afford the home that they have always wanted. They would rather have a nicer home and a longer commute than a smaller home with a quicker commute.
These trends are all occurring due to the skyrocketing prices in big cities. A large proportion of the younger generation cannot afford to buy a house, so they are forced to turn to other options such as looking for apartments for rent. Big cities are home to lots of jobs, so the younger generation are generally attracted to these areas, but for most, the only option is to sign lease agreements.
As time passes, we see a number of new trends developing and real estate is no exception. Many buyers feel that they are being pushed out of the market and are turning to other options. We are seeing more and more buyers turning to alternatives such as, high rise living, multi-family dwellings, living in the outskirts, and renting as opposed to buying a house. As long as the price of real estate continues to climb, we will continue to see these trends developing and may even see some new trends emerge to provide buyers other alternatives.
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