Repositioning the housing market is one of those annual conundrums.
According to C.M.H.C, if the market place is to restore the factor of Affordability Canada will need to build approx. 3.5 million additional housing units by 2030.
Fortuitously most people have heard the federal government announcement that immigration quotas will be reduced in 2024 from > million per year to 400,000. This sizable reduction should in theory mitigate the demand on housing, particularly rentals.
Despite some poly-amorous political rancor between the Federal & Provincial governments. These respective levels of government are now collectively facilitating greater funding for the fast tracking of residential developments.
Numerous Municipalities have been beneficiaries of this trickle down economics. Whereby they are now affirmatively delivering dialogue & support about modestly increasing urban densities. { Lot severances where applicable}
In very mature neighborhoods there are credible discussion about homeowners downsizing into an adjacent Lane-way homes or converting single family homes into legal duplexes & triplexes. A subject that C.A.R.P has been strongly advocating about for years.
Meanwhile on busy public transit corridors there is greater affirmative rhetoric about encouraging private investors to build 4 storey mini apartment buildings.
Simply, this void in the market place is a by-product of the existing oligopoly of builders. who by default never demonstrated any interest in this genre of housing.
So why not encourage entrepreneurs to fill this void ?
Feeling frustrated about the prospects, know that you are not alone. Just last year C.M.H.C`s Chief Economist stated that “ there must be a drastic transformation of the housing sector, including government policies & processes, & an ‘all hands on deck” approach to increasing the supply of housing to meet demand.
Regrettably, nearly 1 in 4 homes in Ontario are still owned by investors. Unlocking this Keg of homes would Facilitate a boon of listings which would modestly lower home prices for a short spell.
Please note that the superintendent of Financial Institutions has recently decreed that starting in early 2025, mortgages can not exceed 4.5 times the borrowers annual income. This is on top of the existing mortgage qualifications.Know that nearly 50% of all residential mortgages will come due thru 2024/25.
Especially when the new mantra for the central banks remains: Higher for Longer !
Questions;
The professional appraisers & realtors at Accurate Peel Appraisals (AA) & Heritage Caledon Reality (HCR) have decades of experience which can better assist you in navigating forward in this ever changing real estate market.