It’s an unprecedented time in Ontario’s real estate market. While some parts of the province are seeing development halts and pivots, areas like Simcoe and Grey County are exploding at rates nearly impossible to keep up with. So, what do we see changing as 2021 sits just around the corner?
Read on to see where the COVID-19 real estate market is headed and how it will affect residents in and around Collingwood.
As a well-trusted mortgage broker in the South Georgian Bay and Lake Huron area, Gerard Buckley, team leader of Buckley Mortgage Wellness, has a lifetime’s wealth of financial knowledge. He’s spent many decades navigating the uncertain waters of Ontario’s financial markets, all the while helping his clients weather storms of uncertainty.
Here are key economical points that Buckley is keeping tabs on during the pandemic, Canadian lockdowns and the effects on consumers all over the province.
Suburban & Rural Areas Continue to Boom
It’s no mystery that we’re experiencing unprecedented growth as a community North of the GTA. Counties from Caledon all the way up to Huntsville and beyond are experiencing growth like no other point in recent history. One look at the real estate market will show prices skyrocketing, houses selling in record time and, for areas in Simcoe, Grey and Bruce Counties that offer both forested hills and water views, the number of offers coming in is overwhelming, to say the least. So, where do we go from here?
In Collingwood and the surrounding communities, housing supply will continue to be an issue even though we technically are “over-housed” compared with the occupant density seen in Ontario cities. This takes into account that mere single or double occupancy in the Southern Georgian Bay region occurs in homes with 4-12 bedrooms.
With extensive material delays and issues with municipal permit restrictions, those looking to build in Simcoe and Grey County have an uphill battle. To properly accommodate the current housing demand, we hope to see greater efficiency in these processes as more pressure is applied to local town and township planning offices. Red tape surrounding building permits leads to higher housing costs for builders, buyers and renters alike. A better permit process could create more affordable housing solutions with greater home availability and, as a result, affordable rental units.
Cost of Borrowing Won’t Stand in the Way of Builders or Buyers
One key factor that won’t be adding pressure to individuals and families seeking a home is the cost of lending. The Bank of Canada has indicated that we can expect interest rates to stay low well into 2023. This will allow many homebuyers or those seeking to get construction mortgages in or outside Collingwood to fund their purchases and projects.
While we can be confident about interest rates and the cost of borrowing staying low for the next two years, beyond that remains to be seen. If the government continues to spend money by supporting both residents and businesses, this should continue to drive the economy and avoid any catastrophic fallouts.
Toronto’s Housing Market Set to Stay Stagnant
As Toronto and Peel find themselves as continued COVID hotspots and many other GTA regions enter triple-digit daily cases, fewer residents are looking for city rentals. Unsurprisingly, listings that have been affected the greatest include the entire micro-condominium market, as the draw of a 300 – 600 square-foot space loses its appeal when city social life has ground to a halt.
While rates of immigration to Canada would regularly offset this oversupply of rental units, 2020 saw a great decrease in those who made Ontario their new home as COVID travel restriction limited -- and continues to limit -- country-to-country movement. Should current vaccination campaigns be successful worldwide, as is hoped by summer 2021, new immigrants to Canada will once again surge. That being said, unit owners may be faced with a difficult winter and spring season as many look to secure longer-term renters in what were once AirBnB listings.
Looking to buy or sell in Simoce, Grey or Bruce County? Make a smooth transition with the help of Buckley Mortgage Team — a group dedicated to helping people of Huron & South Georgian Bay access the right home for their lifestyle. Contact them to learn more or use their handy online pre-qualification tool to get started!