Top 5 Cities for Home Buyers Market in Ontario
Thursday May 27th, 2021
It is not a secret that most home buyers are looking to suburbs to find more affordable homes. Urban exodus is one of the trends pushed by the low inventory and high prices in the metro areas, forcing home buyers to go outside of the GTA.
According to recent April 2021 data, the number of home buyers have dropped way faster than the number of home sellers. This is can be attributed to the incoming stress test rates going higher (from 4.79% to 5.25%) in effect this June 1, 2021. This means this will discourage some home buyers to be on the market due to qualification issues.
On the bright side, this can lead to more slowing down of the market which inevitably should get the markets balanced if not low in SNLR in due time. This is good news for home buyers who might see a decrease in average listing prices in the months to come. This is already reflected in a report by the Canadian Real Estate Association (CREA) show national home sales were down from March to April 2021.
These cities are based on SNLR (sales to new listing ratio) in each city. This number is the sales divided by the number of new listings. As a general rule, all these cities should have a lower or under 0%-39% SNLR that means fewer homes were sold compared to newly listed (buyer’s market) or a balanced SNLR between (40%-60%). Any SNLR that is 61% and higher means more homes were sold compared to newly listed ones a (seller’s market).
Here are five cities to consider with low or balanced SNLR numbers based on Dec 2020.
Toronto: 45% (heavily influenced by the cool-down of condo sales activity)
Richmond Hill: 54%
These numbers would have significant changes when CREA will be releasing their new report in early June 2021 for the market activities in May 2021. At this time, it is safe to say to home buyers to look into these cities in looking for listings.
The real estate market is ever-changing and you need a professional real estate agent to guide you through the different demands in the market. Talk to JoAnn Visaretis for her expertise in home selling and home buying so you can get reliable advice on how to handle your real estate needs.