Entering the Canadian housing market as a homebuyer can be both exciting and nerve-wracking. With so many factors at play—like shifting trends, changing economic and political landscapes, and fierce competition—it’s important to understand the ins and outs of the market.
At Ourboro, we know that a house is more than just an investment; it’s the place where memories are made, milestones are celebrated, and connections are fostered with your community. We also know how important it is that each of our homebuyers feels a sense of stability in their home purchase. We’re here to help you realize that stability, despite the market’s challenges. Your dream of homeownership, and all that comes with it, is possible through co-investment.
Factors like job and population growth, housing demand, and affordability can vary from one Ourboro co-investment region to another. As a homebuyer, it’s crucial to stay attuned to these variables so that you can make informed decisions about where to invest in a property. In this article, we’ll break down key market indicators to help you navigate the market and secure the best home for your investment.
Key Market Indicators
Key market indicators offer insights into market conditions and help you with your homebuying decisions. When you decide on the area you’d like to buy in, these can be helpful metrics to keep an eye on.
Average Home Prices: Keeping track of average home prices in your desired neighbourhood helps you determine local affordability levels and the potential for property appreciation over time.
Price-to-Income Ratios: This ratio calculates the affordability of housing by comparing the average property price to the annual household income. A higher ratio indicates reduced affordability, while a lower ratio suggests increased affordability within a given market.
Sales-to-Listings Ratios: This indicator compares property sales to listings within a specific time frame, reflecting the balance between supply and demand. A high ratio typically means a sellers’ market, while a low ratio indicates a buyers’ market.
A great resource for these stats is the Toronto Regional Real Estate Board’s monthly reports, which provide excellent insight into the market! We also keep you up to speed with all the market happenings on our Instagram, Linkedin and TikTok each month.
Regional Trends and Variabilities in the Housing Market
Trends in the housing market are always evolving, and it’s important to be aware of the changing variables that can impact affordability, demand, and housing supply.
Affordability: Housing affordability largely depends on median household incomes and average property prices within a region. Locations like Toronto are known for higher property prices, reducing affordability for the average earner. On the other hand, regions like Barrie and Kitchener-Waterloo typically have more balanced pricing structures.
Demand: Population and job growth drive housing demand. For example, cities experiencing significant growth, such as Ottawa and Toronto, show increased property demand and appreciation, making them attractive markets for co-investment.
Housing Supply: Regions with constrained housing supplies typically experience more competition and increased property prices. On the flip side, cities with a lot of supply available may have more affordable options and favourable conditions for buyers.
Understanding these regional trends can help you make the decision of what city and neighbourhood you’d like to purchase in. You can also always reach out to a mortgage professional or—if you choose co-investment—a team member at Ourboro, for more insight on how to use these trends to your advantage.
Market Influencers
Economic and political influences and interest rates can also affect the market.
Economic and Political Influences: Tax policies, government incentives, and local zoning regulations can significantly impact the housing market. Stay up-to-date with any proposed legislative changes or economic policies that may shape local real estate markets.
Interest Rates: Interest rate decisions directly impact mortgage rates. Fluctuating interest rates may affect buyers’ borrowing power and overall demand within the market. The Bank of Canada makes multiple announcements regarding interest rates throughout the year.
Positioning as an Ourboro Homebuyer
When you decide to work with Ourboro’s unique co-investment model, our support and resources position you for success in the housing market.
Improved Affordability: By removing the burden of saving for the full 20% down payment, we help you break into the market with less financial stress and into the neighbourhood of your choice. The decreased monthly payments can also help homebuyers adapt to market fluctuations confidently.
Collaborative Partnership: When you partner with Ourboro, you’re promised continued support and access to resources like our partnerships with insurance provider Co-operators and home maintenance company Caboodl. Our shared values and goals, along with our partners’, allow our homebuyers to feel secure in their new investment.
Break into the Market with Confidence
The Canadian housing market can be daunting, but with the right tools from Ourboro and knowledge of the market, you can feel confident in making the jump into homeownership. Co-investment allows you to reap the rewards of homeownership while enjoying increased financial security and long-term value appreciation!
