Where are the buyers coming from? Realtors share their insights

It’s no secret that the dream of buying a home is becoming harder for many families and first-time homebuyers, yet the housing market is still doing well and homes are still selling at all price points. It begs the question: Who are the buyers? In the luxury market, prices vary depending on the location, but homes priced appropriately are still selling quickly. We know that real wages in Canada have not kept up with home prices, and most first-time homebuyers cannot afford a $250K down payment, but some are still able to enter the market for the first time.

SO, WHAT’S HAPPENING OUT THERE?

WE ASKED SOME OF OUR TOP REALTORS TO WEIGH IN AND PROVIDE THEIR INSIGHT. HERE’S WHAT THEY HAD TO SAY:

KIERAN MCCOURT, SALES REPRESENTATIVE WITH THE GOODALE MILLER TEAM
CENTURY 21 MILLER IN OAKVILLE:

Your team are experts at selling luxury homes in Oakville, Burlington and the surrounding area. Can you tell us where your buyers are coming from? Are they international or moving out of Toronto, or are people still able to “move up” in our local area? Are young families still able to afford to buy a home in the better neighbourhoods in our area?

We are seeing far fewer foreign investors buying property in Oakville these days. Speculation has died down and the government regulations restricting real estate purchases by foreign buyers have had an impact.

Our typical buyers for $5 million + homes are in their 40’s or 50’s, often with teenage kids. They value the great schools in our area, and have benefited from steady appreciation in home equity over the last 20 years. They likely have high income careers or have sold their businesses and have the capital to invest in a dream home. Some may also be taking advantage of generational wealth transfer as their parents move into smaller homes.

We estimate that about 50% of our buyers are local to the area, and the remaining 50% are coming from Toronto, Markham, Richmond Hill or are transferring to jobs in the GTA from the US or overseas. Higher interest rates are not really an issue for these buyers. We currently see no storm clouds on the horizon for Oakville. It has become a favourite destination for affluent buyers and the lifestyle is arguably one of the most desirable in the whole GTA.

ANITA SULLIVAN, BROKER WITH ROYAL LEPAGE
REAL ESTATE SERVICES IN OAKVILLE:

You do a lot of work helping seniors downsize and buy condos in Oakville, Burlington and the surrounding area. Can you tell us where your buyers are coming from? Are retirees still able to afford to buy a smaller home or condo in our area and release some of the equity they have tied up in their homes?

Our buyers are local and also coming from Mississauga and Toronto. For the majority their goal is to downsize from a detached home to a condo and put some equity in the bank.

But downsizing is more complicated than it was a few years ago. In the past, retirees would buy first, knowing their home would sell. This mindset has changed, and now they are uncertain about selling their homes. We are seeing more offers with a ‘condition on sale of property,’ something we haven’t seen for a while. The number of sales is down in the luxury condo market, and some condos are taking longer to sell.

MICHAEL BREJNIK, SALES REPRESENTATIVE WITH
ROYAL LEPAGE BURLOAK REAL ESTATE SERVICES
IN BURLINGTON:

You do a lot of transactions for homes that would normally be attractive to first-time buyers in Burlington and the surrounding area. Can you tell us where your buyers are coming from? Are they international investors, people moving out of Toronto, or are young people still able to “get a start” in our area? Are young families still able to afford to buy a home and how do they finance it?

The cost of a down payment for a first-time homebuyer has increased exponentially compared to a generation ago, and many young buyers need help affording it. It’s almost impossible without family help.

We are not seeing many international investors, but we do see buyers relocating from the GTA, Mississauga, and Brampton as prices continue to be more affordable in the Burlington area. We have also seen many young people put their search on hold because of interest rates and house prices, and some believe that house prices have further to fall, so are unwilling to risk entering the market at this time. The small interest rate drops recently will help, but more is needed for first-time homebuyers to start looking again.

By: Julia Achtermeire