In the first two months of 2022, the average monthly price for a home had risen $129,043. With interest rates rising, will it slow rising prices?
Most buyers are out-of-town investors who are driving the market making housing become a commodity.
OUT OF TOWN INVESTORS
Where are the out-of -town investors coming from? The largest source is the Greater Toronto area, but there’s also interest from Vancouver and Montreal. Windsor’s housing market has become so hot that out of town agents are doing listings in Windsor – and not just representing buyers. Despite the rising prices, there remains a steady stream of buyers willing to invest which is also making local buyers become discouraged.
Immigration and migration have also increased the demand for housing. Windsor has seen thousands of international students come to attend St. Clair College and the University of Windsor. Many of those students are staying for three years or longer and after graduation, taking advantage to seek employment and secure permanent residency. Windsor is also a popular choice for migrating immigrants looking to move after initially settling elsewhere.
The trend of migration from the Greater Toronto Area began a decade ago with a drive to attract retirees to Windsor and has been accelerated by COVID. People are cashing in their GTA homes, buying something larger with more outdoor space in the Windsor area and are able to maintain their big-city salaries with remote working.
The housing market is supplied through two primary channels: purpose-built rental (PBR) housing and privately-owned condominium rentals. During the pandemic, short-term rental demand dried up and first-time buyers flocked to the suburbs and smaller towns to work from home. The rental market is rebounding after the pandemic driven decline. Now there are more renters in the market and in some cities, fewer options, especially affordable options. University towns reported with the return of on-campus learning, university students returned in large numbers, contributing to the increase in the small, student-dependent rental. White-collar employees returning to the offices, students returning to colleges and universities, sectors that employ young workers (for example, hospitality and tourism), one can expect a steady rise in the demand for rental housing.
Condominium markets in some of Canada’s biggest cities have rebounded this year and new condo developments are taking place. More people are returning to condo living and having the amenities – especially after prices for bigger homes surged during the pandemic.
For over 20 years, Huron Shores Property Management has specialized in managing condominium complexes across Southwestern Ontario from Windsor to London.
Looking to hire a professional condominium management company in Windsor Essex? Contact us for a no obligation consultation meeting today.