The Canadian Real Estate Market has been in flux over the last few years. The Covid pandemic brought significant changes, including unprecedented demand, bidding wars, and fast sales. The West GTA was no stranger to the strong seller’s market. In the future, experts predict a more balanced market heading into 2024, as demand has been levelling out over the last year. Read about how the West GTA Compares to the Canadian Real Estate Market.

The Canadian Real Estate market is diverse, representing the vast geographical and cultural differences throughout the country. Some areas like Vancouver and Toronto are facing housing shortages and sky-rocketing prices. Other, more rural areas in the country face a lack of employment options, leading to lower home prices but bleak work opportunities.  

Canadian Real Estate Challenges

One of the biggest challenges in the real estate market during the last few years was climbing interest rates throughout the country, including the West GTA. During the early days of the pandemic, interest rates were at a low to keep the economy humming during a time of uncertainty. This led to a boom in the real estate market, with a high demand for properties.

In early 2022, the Bank of Canada began to increase rates to combat inflation, which had been at its highest point in the last 40 years. The borrowing cost rose substantially, meaning fewer buyers were looking for new homes.

The high cost of borrowing means housing is not affordable for many, especially those looking to enter the market for the first time. The lack of demand led to a shift in the market as things quieted. Many people, both buyers and sellers, seemed to pause in 2023, taking a wait-and-see approach.

A higher cost of living has also impacted the real estate market in the last few years, as many Canadians struggle to make ends meet.

Emerging Real Estate Trends in Canada

1. Shift to a balanced market. The last few years have been a strong seller’s market when demand for inventory was high and interest rates were low. That shift means a return to a balanced market for 2024 – one that benefits both buyers and sellers, with enough demand from buyers to equal out the inventory listed by sellers.
2. Increased demands for houses with tenants. As affordability is still a significant deterrent for many, especially first-time home buyers, many want to offset the cost of home ownership with tenants. Houses that have either separate apartments or rooms that can be rented are appealing to many buyers.
3. Stabilizing interest rates. The Bank of Canada asses the interest rate 8 times every year. The rates have held steady, with no additional increase in the last three cycles. Hopefully, this trend continues, and we will see a drop in interest rates, making it more affordable for buyers in 2024.
4. Adult children living at home longer. The higher cost of living has brought many birds back to the nest. Living with parents provides the opportunity to save up for a down payment. As many families struggle to make ends meet, multigenerational living can ease the burden.
5. A return to urban living. A shift to remote work during the early days of the pandemic brought many people to the suburbs and more rural areas, as proximity to work was not a huge priority. As businesses increasingly mandate back-to-work or hybrid models, we expect to see more buyers prioritizing location and public transit on their home buyers’ checklist (which makes many areas in the West GTA the perfect option).   
6. Increased demand for homes. Many experts predict a drop in interest rates in the spring of 2024. A drop in interest rates, coupled with pent-up demand from buyers taking a wait-and-see approach, will hopefully light a fire, encouraging more people to take the leap.

Canadian Real Estate vs. The West GTA

Comparative Affordability

While real estate prices in the West GTA are high compared to many parts of Canada, when you look at options close by, like the heart of Toronto, areas like Mississauga and Waterdown come out on top in terms of affordable options.

Diverse Housing Options

You can find pockets of small-town living throughout the West GTA like Milton, Waterdown or Dundas, urban areas like Mississauga, Hamilton and Etobicoke, and suburban areas like Burlington and Oakville. The West GTA has many options, from impressive mansions and comfortable family homes to high-rise apartments and condominiums.

Robust Employment 

The West GTA has a unique location, sandwiched between two major cities, Toronto and Hamilton. This gives people living in the area plenty of employment options within commuting distance. The area is close to major highways for drivers and has ample public transportation for those looking to take the train or bus.

Cultural Diversity

The West GTA reflects Canada’s multicultural identity, boasting a rich tapestry of cultural diversity. Community–centric developments, parks, cultural centres, places of worship, and recreational facilities offer a welcoming environment for residents of all backgrounds.

The West GTA is a wonderful place to live, offering its residents every amenity. Its diversity, economic culture, proximity to major centres, and sense of community appeal to many Canadians. While the last few years have placed many challenges and unprecedented changes in our way, the Canadian real estate market continues to flourish, including that in the West GTA. When looking at how the West GTA Compares to the Canadian Real Estate Market, the trends are clear. The West GTA offers the best of both worlds, combining urban convenience, small-town charm, and a sense of community.

If you’re looking for a realtor in the West GTA, reach out to us – we love to chat all things real estate.