The real estate market in general is a very dynamic and shifting market, but that doesn’t mean that you can’t learn quite a bit from forecasts! The Halton region, which encompasses Burlington, Oakville and Milton, looks like it will be a popular destination for families looking to move out of Toronto and into a quieter, more family friendly setting in the coming year. And with interest rates holding steady and property numbers on the rise. 2020 looks like a great year to get in.
5 Predictions for the 2020 Halton Region Housing Market
FYI! In Burlington, Oakville and Milton Patty’s Team has every new condo construction project on their radar. Our clients get access to buy units early and maximize returns on their real estate investments. Once built, Patty even helps buyers rent out their units for top dollar!
1. We’ll see a seller’s market
With only about 3 months worth of inventory currently available in the Oakville housing market, buyers are going to find themselves in a very competitive situation. While this makes things more difficult for buyers, sellers will find themselves benefiting from the competition. More properties are expected to hit the market as the year progresses though, so this balance could shift as time move on.
2. Home sales will continue to rise
After the federal mortgage stress test was introduced in early 2018, home sales slowed both in pricing and the percentage of successful listings. After a relatively steady early 2019 and the beginnings of a rebound in the second half of the year, 2020 is looking to continue the upward trend. Low interest rates have helped borrowers justify going through the mortgage stress test process and thanks to the apparent readdress to the stress test in 2020, the trend should continue.
3. We’ll see an urban migration
The increased affordability of the Halton region and the improvement of the GO train schedule to reach Burlington and Oakville will lead to an increased migration of people from the Toronto area. Younger homebuyers looking to start families, new buyers wanting an affordable purchase price and those looking for something more affordable than what Toronto offers will spread into the Halton region, helping boost selling prices through competition.
The suburban offerings of cities like Oakville and Burlington are appealing to GTA residents thanks to the ability to still reach all wanted amenities, but with a lower cost of living and easier lifestyle.
4. Mortgage rates will stay low
After a consistent mortgage rate throughout 2019 it’s thought that the Bank of Canada will likely keep the same rate throughout 2020 as well, allowing Ontario borrowers to benefit from some of the lowest mortgage rates in the country.
5. Qualifying for a mortgage might get easier
The stress test that has historically required borrowers to qualify for a higher mortgage rate than they’d actually be paying will be getting a second look this year, which might allow for more flexibility for homebuyers. Young and first-time buyers might feel some relief with this change and be more likely to consider applying for a mortgage in 2020.
Since millennials are starting to finish college and are moving into a more stable earning stage, they will likely drive the buying market this year.
How to get into the housing market in 2020
One of the easiest ways to break in the housing market this year is to set your sights on a pre-construction condo rather than a house that’s already on the market. There are many benefits to buying a pre-construction home including:
- Ability to customize your home in a way that you can’t with existing properties. Having input on your floorplan, unit location, countertops and cupboard finishes is a major selling point for some.
- Ability to put down a smaller down payment than you might have to on an existing home.
- Chance to save up money before having to assume the mortgage. With a pre-construction home you often don’t start making mortgage payments until the unit is complete.
- Your home has a chance to appreciate before you even start paying the mortgage.
2020 is a great year to invest in property
If you are looking to invest in a new home in the Halton region, whether for yourself or as an investment property to rent or flip, the forecasts are indicating that 2020 will be a great year to make the move. Though the first half of the year might feel like more of a seller’s market, as we move toward summer more properties will hit the market which will level out the playing field.
When considering the options for purchasing your next property in Oakville or Burlington, a pre-construction home is often an investment that can prove fruitful. With extra time to build up your finances before you have to start making mortgage payments, your investment is off to a great start from day 1.
Investing in real estate can feel like an overwhelming commitment but there are many reasons why it’s a great move. Whether you are a young family looking to start out a life in a new home or an individual looking to make smart financial moves, real estate in the GTA is a promising commitment this year.