As Prices continue to rise in Toronto, Buyers are refocusing their search to Oakville.
Toronto real estate prices have been increasing steadily as demand continues to outpace supply. According to the Toronto Real Estate Board, Toronto home prices are now accelerating at their fastest pace since 2017. This has caused buyers to turn to Oakville for more affordable housing options.
The turn to more affordable housing was largely caused by the expansion of the mortgage stress test rules imposed by the OSFI (Office of the Superintended of Financial Institutions). Under the stress test rules, buyers with 20% must qualify for an extra 2% on the contractual rate. This was enacted to ensure buyers could afford their mortgages in the event of an economic downtown.
Another drag on affordable housing is the double land transfer tax that applies when you purchase a property in Toronto. Unless you’re a first time buyer taking advantage of the land transfer tax rebate, in Toronto you pay both the provincial and Toronto municipal Land Transfer Tax. The cost of which may be considerable. However, when you purchase a property in Oakville, only the provincial land transfer tax applies. This is another reason Oakville is enticing buyers from Toronto.
Oakville offers a variety of amenities for its residents including restaurants, shops, and community centres. Also, the easy access to the major highways and go transit makes the commute to Toronto that much more feasible. The town of Oakville has also been working to attract more companies both international and national to relocate their headquarters to Oakville. This will allow business professionals to work in the town in which they live.
Toronto residents are hitting the highway to look at what Oakville real estate has to offer. With growing demand and a lack of supply, now is a great time to sell. If you or someone you know is considering taking advantage of this sellers market, call us to help you through the process, and accomplish your real estate goals.
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