Amidst the pandemic, a recent trend has seen many Toronto homeowners wanting to move away from the high priced city.
An article by MoneySense, a Canadian online personal finance and lifestyle magazine, has ranked Guelph, Ont. the best city in Canada to buy real estate in 2020. It was given the top spot because the market value is currently very reasonable and is projected to appreciate in value over the next couple of years.
The average housing price in Guelph, according to Zolo, a real estate company in the GTA, is now just under $672,000, an increase of nearly 25 percent from last year.
Ethan White, a recent buyer of a home in Guelph said although the commute isn’t as convenient, he doesn’t mind spending more money on gas.
“Going to work is a bit of pain but it’s ok,” he said. “The living conditions in Guelph are a lot more reasonable and fit my needs much better, so spending an extra $50 on gas isn’t a huge issue for me.”
White is not alone. Toronto home listings, as of this August, have shot up nearly 60 per cent from last year to a total of 18,491, with an average selling price just above $950,000, nearly $400,000 more expensive than the housing market in Guelph, according to the Toronto Regional Real Estate Board.
Alejandro Baez, a real estate agent for Remax Ultimate in Toronto, says that COVID-19 has impacted the real estate market dramatically.
“Due to COVID a lot of companies are allowing people to work from home, or for the most part,” he said. “A lot of people now are moving away from the city and into bigger homes for less money because now they don’t have to commute as much.
In an article by Guelph Today, the demand for housing in Guelph has increased dramatically but supply is scarce, leading to bidding wars and homeowners purchasing real estate at 70 percent over asking value.
“We thankfully didn’t have to pay more than asking price but there were a couple of other families that were interested in the house,” White said.
Remax, an international real estate agency, said Guelph is currently in the seller’s market and has the potential to break records for the average selling price.