Immigration Continues to Lift Real Estate Market
Posted By: Rachel Kavanagh
October 24, 2019
Immigration Continues to Lift Real Estate Market – Each year Canada welcomes more and more immigrants into the country. Over the past two years, Canada has admitted 313,580 immigrants, which was one of the highest volumes ever recorded. Markham is Canada’s most diverse community. The demographic population, when broken down by ethnic origins, includes Chinese, Canadian, English, East Indian, and smaller numbers of Scottish, Irish, Italian, and Jewish residents. In Stouffville, the demographic breakdown includes Canadian, Chinese, Italian, British with smaller groups of German, Irish and Scottish.
New Canadians account for one in five of all housing purchases and newcomers in Ontario account for 21%. The expectation is that in the next five years new Ontarians are projected to purchase 286,000 homes and will lift the markets in the Toronto region and across Canada.
Ontario and specifically the Greater Toronto Area has greatly benefited from international migration to Canada. Neighbourhoods across the greater region are blossoming with the continued influx of newcomers who are looking for good schools and job opportunities in thriving communities. This ongoing demand will support increases in residential real estate values in Toronto and surrounding areas.
Of all the international migration that comes into Canada, 46% of the individuals choose Ontario. However, homeownership for this group is 29%, 3% lower than the national average. This is due to the relatively higher cost of homeownership in the GTA.
In Markham as of September 2019, the average sale price for a detached home was $1,285,156. In Stouffville as of September 2019, the average sale price for a detached home is $1,024,740.
Demand for homes in Toronto and the surrounding area continues to grow amid lower interest rates and limited supply — and as buyers adjust to stricter mortgage-lending rules. The combined impacts of a growing economy and strong jobs market along with growing demand for affordable housing among younger and new Canadians make it crucial that housing supply keeps pace in a market where supply is already tight.
The most recent survey of 1,500 immigrants indicated that 51% purchase a detached home, 18% buy a condominium, 15% a townhouse and 13% semi-detached. The survey also found that newcomers are likely to be a family with children (31%), a student (25%) or a sole applicant (20%). Three-quarters arrive with savings to help purchase a property, although the study showed on average newcomers wait three years to buy a home.
With all the new immigrants coming to Canada the nation’s mortgage credit load has seen significant expansion. Bank of the Canada figures showed that the outstanding balance reached a new high of more than $1.59 trillion as of August, increasing by 4% annually and by 0.6% from July 2019.
Over the next five years, Canadian immigrants are expected to purchase 680,000 properties. With that much sales volume expected in the future, the real estate market will continue to be healthy and strong for each diverse community.
* Immigration Continues to Lift Real Estate Market – written by Benczik Team Realty
For more information on your home, visit our website and get a free home evaluation to ensure you get the best seller’s service! With experience around Markham, Stouffville, Unionville, and all of York Region, Benczik Team Realty works to serve you in the best way possible! Act now, and don’t miss out on this ever-growing market.