Toronto's Cooling Housing Market: Implications For The Home Improvement & Renovation Industr
According to The Globe And Mail, a series of recent measures announced by the Ontario provincial government have resulted in average home prices falling 6 percent in May, with the overall number of houses changing hands falling by twice that amount during the same month.
What does this mean for homeowners? The implications of this policy adjustment and subsequent market reaction are two fold. Firstly, this means that many people who may have been considering selling their property to "cash in" on the huge run-up in real estate prices are now more likely to stay put on the sidelines. Secondly, this means that those who do decide to list their property will want to have more differentiated features to add value and make their home stand out to prospective buyers in more conventional market conditions. Up until very recently, it was not uncommon to hear of outrageous bidding wars driving prices through the roof on all kinds of properties, whether they were in tip top shape or old, outdated, and in need of repair. If this behaviour subsides, it will mean that only the better houses with extra amenities, upgrades, and features will be able to command higher prices, while the older "builder's special" models without any notable improvements may be more apt to become stale listings.
This coming buyer's market is by no means a mirage; a recent report out of The Royal Bank on Canada's housing market seems to confirm this very reaction in the coming months, although the report did say that this next phase will likely be a "soft" landing. Be that as it may, this phase in Canada's real estate market will bring some interesting changes to Canada's renovation industry as a whole. Home renovation firms will now be serving homeowners who have some different goals in mind. This might mean that more people will renovate to their own tastes and desires in order to increase their level of comfort and enjoyment inside their current home, rather than doing quick fixes and cover ups with the intention to sell. Furthermore, those who do find themselves thinking about selling will be in need of higher quality home improvements and upgrades in order to make their property stand out and command top dollar in a buyer's market. This will be a niche that many reputable home renovation contractors in the Greater Toronto Area will be able to fill and take advantage of.
What could this mean for you, specifically? If you were on the fence about selling and are now deciding to stay put, you may be considering some home improvements in the near future so that you and your family can live in greater comfort and style. This is a fantastic idea for those who may have older homes (15-25 years +) and are overdue for design updates and material changes. Kitchens, bathrooms, and basements are all spaces that see regular use and experience wear and tear with everyday living, especially if you have a larger family. If you see yourself staying put for the time being, as many now do, why not boost your own comfort and pleasure in your current house? You might be surprised at the options that are available with current building materials and products that just didn't exist even ten years ago!
Why not see what a qualified home improvement company like Tremendous Tile Installations Inc. can do to help make you fall in love with your Toronto home all over again?
Sources:
https://www.theglobeandmail.com/real-estate/toronto/torontos-housing-market-feels-chill-from-provincial-measures/article35200680/)
http://www.rbc.com/economics/economic-reports/pdf/canadian-housing/TREB_REBGV_results_may2017.pdf)