Ontario is one of the biggest real estate hotspots in Canada at a regional level and attracts buyers for its diversity of offerings in terms of suitable micro markets and pricing. Toronto is quite naturally the biggest draw in the Ontario market and is one of the most attractive cities to live in for most buyers. Additionally, there are several other markets which are doing well and are part of the Greater Toronto Area (GTA) including Brampton, Mississauga and many more.
The real estate sector in Canada has been witnessing a period of extreme fluctuations with sales volumes and prices showing both upward and downward movements over a comparatively shorter period of time. However, recent budgetary announcements and economic growth combined with healthy employment levels are expected to boost the realty market in the country this spring and beyond, particularly across its major cities. Ontario is expected to be a major region at the forefront of this revival.
Can you buy a home for $500,000 in Ontario?
Ontario does offer housing options below the $500,000 mark if you have the time and energy to invest in looking for suitable picks across diverse micro markets. The type of housing unit available for this price point is majorly dependent on the location where you purchase the same as per experts. Half a million dollars is not a bad sum by all means although you have to weigh the options very carefully. As per reports, average selling prices touched $468,350 for homes in Canada for the month of February this year. This was confirmed by CREA (Canadian Real Estate Association) and experts have seen that an average price threshold of $500,000 works best when it comes to buying homes in Canada, particularly in the detached category.
There are disparate market trends that are evident across 15 of the biggest cities in the country and even across multiple provinces. For Ontario, there are major disparate trends and availability differences for housing units priced up to $500,000 across micro markets such as Toronto, Ottawa, Hamilton and Windsor. Toronto is one of the costliest and in-demand housing markets in Canada and there were several alternatives that industry experts and buyers had to take into account as compared to detached homes which are available at much higher prices here. This price point will yield good quality townhouse condominium units, mostly with one bedroom and a single bathroom and measuring roughly anywhere between 600-700 sq. ft. or slightly more as per reports.
Affordability is certainly on the lower side if you take Toronto into account. The lower supply levels and even lower rates of vacancies are major factors which have kept home prices really high over the years. The sole option available in the city for buyers with a budget of $500,000 is a home that is smaller in size and more affordable. There are micro condos that are also starting to become popular amongst buyers within this price bracket in Toronto. This could be a good option as opined by several experts.
Prices have increased considerably over 2018 in reality and real estate developers are now returning towards offering smaller housing units and studio apartments since condos are becoming costlier propositions with price growth being fuelled by steady demand and lower supply levels. Micro condos can be purchased in Toronto for roughly $400,000 and they usually offer anywhere between 300-400 sq. ft. on an average. However, $500,000 can go further in Hamilton which is not very far away from Toronto. You can actually find homes with three bedrooms and two bathrooms here for this price point as per experts. This equates to space going up by more than 200% for the same price as compared to Toronto.
Shifting a little more to Windsor and Ottawa will also help buyers get higher sized units for the same price. In Ottawa, this sum can help one buy a home with four bathrooms and bedrooms alike and at least 3,500-4,000 sq. ft. of overall land area. In Windsor, this goes up to 5 bedroom and three bathroom homes with at least 1,526 sq. ft. in liveable space. Vancouver is the sole city in Canada where $500,000 gets you even smaller housing units as compared to Toronto. This sum can help buyers find only one bedroom and one bathroom condos that are sized lower than 550-600 sq. ft. on an average. However, the most value for money area is Ottawa and also other locations like Fredericton and Saint John’s among others.