However, supply issues remain a perennial challenge
Interest in detached homes and properties with more space has exceeded pre-pandemic levels, according to the Ontario Real Estate Association.
Over the course of the pandemic year, Ontarians’ appetite for this asset class intensified due to increased savings (19%), a desire for more space (19%), and a sense of urgency to buy amid a rapidly growing market (23%).
“For some Ontarians, the pandemic has led to increased savings or a shift to remote work, but has also accelerated major life decisions. For many, that has meant buying a home that accommodates their new space needs,” said Tim Hudak, CEO of OREA.
OREA also found that as many as 19% of Ontarians are planning to buy a home in the next 12 months – a level essentially similar to that seen a month before the pandemic. Among those who are planning to upgrade, 75% said that they are looking for a detached home.
Read more: HelloSafe reports on Ontario’s home price levels
However, these aspirations have to contend with the reality that there simply isn’t enough supply on the market.
“In the last year, the desire among buyers for detached homes has grown stronger, but unfortunately, seller intentions for such properties have receded, so inventory is not keeping up with demand, making it tougher for buyers to find a great place to call home,” said David Oikle, president of OREA. “The current situation we’re facing in Ontario – increasing prices, demand for more space and larger homes – all during a once-in-a-century pandemic, points to a much larger systemic issue facing Ontario’s home buyers: a serious lack of housing supply.”
Only 18% of Ontarians said that they are planning to sell in the next 12 months, while only 62% of sellers are planning to sell detached homes.
