That’s according to Royal LePage’s latest House Price Survey and Market Survey Forecast, which shows Windsor just had the biggest increase on home prices across the country: a gain of 17 per cent in the third quarter, year-over-year.
Windsor is the hottest market for homes in Canada!
Dated: October 17 2020
Windsor home prices have risen the most in Canada, says Royal LePage
Windsor home prices increased 17 per cent in this fiscal year's third quarter — the biggest jump in any region in the country, according to Royal LePage. We're officially the hottest house market in Canada.
That’s higher than the increases in Oshawa (15 per cent), Kitchener-Waterloo-Cambridge (13.9 per cent), Hamilton (13.7 per cent), and Mississauga (13.5 per cent). If you want to talk about demand driving up home prices, Windsor is the top spot in the nation.
“It’s a bit hairy. We’ve got a lot of craziness going on.” said Frank Binder, broker of record for Royal LePage in Windsor.
In apparent defiance of the economic shock of COVID-19, Canadian home prices have been on the rise in general, according to Royal LePage. Of the regions surveyed, 97 per cent had an appreciation in home prices in the third quarter.
The national median price on a home is up by 8.6 per cent, and Royal LePage forecasts that figure will finish the year higher than 7 per cent — despite what the second wave of COVID-19 may bring.
What that means locally, Binder said, is that Windsor homes with list prices under $400,000 — which is still well below the aggregate price of a Canadian home, $692,964 — will continue to be in high demand.
“Homes like that get multiple offers on a regular basis,” Binder said. “We shouldn’t be surprised… People are still very much in buying mode. We are getting a lot of people showing a lot of interest.”
Binder said he has seen a house in that range attract as many as 21 offers. “There are all kinds of stories. That doesn’t happen every day. But we are seeing multiple offers on houses. Four or five is common.”
But who is doing all this buying? Binder said it’s no secret that “out-of-town investors” are a real factor in Windsor. “Very often, if you are buying, you are competing with more people than just the local market.”
Some of these investors are looking to quickly renovate and “flip” the home, Binder said. Some are looking for income properties, and plan to rent the house out.
“A lot of people coming from the Toronto area. They can’t find buys like that in the Toronto area at all,” Binder said.
“And one thing that has happened in our market is we’re now seeing higher rents. Think about that. That’s what an investor sees and keys on.”
As for why COVID-19 hasn’t negatively affected the real estate business the way it has affected nearly every other business, Binder believes the industry was pivoting before the pandemic reached North America: More and more of what happens in real estate is being handled online, from the documents to the showings.
“We’ve been doing electronic agreements and virtual showings for some time,” Binder said. “We were already well-placed to carry on doing business in this pandemic.”
“We don’t need to have an open house. We’re getting even better at virtual tours… That’s not replacing an in-person visit, but now you don’t need to see the place two or three times. You can go online and remind yourself of all the details. It’s a huge benefit to the buyer.”
All that said, how long can this heat last? Will Windsor forever be a seller’s market? At what point will things cool off?
“Listen, this could go on for some time,” Binder said. “Right now, we still have affordability. We’re still below the average Canadian home price, below the average Ontario price.”
“We don’t know what long-term economics will come out from the pandemic — permanent job loss and things like that. But we’ll see in the next year how that comes into play.”
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