If you’ve been reading the news or just talking to your friends and neighbours lately, you might have heard the stories about young urban families packing up their downtown homes and moving to Newmarket, Aurora, Caledon, or even far flung locales like Niagara or Collingwood.
Toronto and many other urban cities across Canada are undergoing an unexpected and intense real estate trend that will certainly only happen once in a lifetime. Young families, resigned to working remotely for the foreseeable future, are fleeing busy urban centres, and ditching their city homes in exchange for more space and a slower pace of life.
The demand for detached homes in places that offer more space and are still close to amenities is skyrocketing, making this the perfect time for you to start thinking about leveraging the equity you’ve built in your home and transition to your next chapter.
Financial impacts of staying in your home now
If you’re not planning to move, and have decided to age-in-place, you’re not alone. Research has shown that Baby Boomers are often choosing to hold on to their family homes and real estate equity longer. However, considering the opportunity in the market right now, and the impact of a post-pandemic economy, this choice could be harmful to your future ability to find the leverage to follow your dreams.
A look at the data shows the enormous potential waiting for anyone with a detached home in the suburbs and exurbs.
In Newmarket, the number of detached three- or four-bedroom home sales doubled year over year, from 67 sales in November 2019 to 114 sales November 2020. The price increase of a four-bedroom detached increased 24% over the same time period.
Another area to the west is Milton, where there has been a similar increase in detached home sales, from 68 to 106 sales year over year. The area has also seen a 24% increase in sale price for four-bedroom homes and 18% increase in price for three-bedroom homes.
“Although we can’t tie demographic data to sales, the evidence is clear that there is a heightened demand right now for the type of homes Baby Boomers raised their families in,” said Keisha Telfer, President and Broker of Record, Transitions Realty and downsizingexperts.ca.
The simple math adds up – your home will always continue to increase in value over time, but this is a once in a lifetime opportunity to truly maximize your leverage in a seller’s market and kick start the transition to whatever it is you want next in your life.
What does this type of increase mean for my own purchase?
While home sales and prices are going up, the key thing to remember is that planning what you want works alongside the task of assessing the financial equity in your home. We call it right-sizing your life – downsizing space, but upsizing your fun and enjoyment of life. There are so many options for Baby Boomers, you’ll be able to choose your own adventure whether that’s winters in Morocco and summers in Ontario or a year-round dwelling in a downtown retirement community with a walkable neighbourhood.
If you’re still uncertain about downsizing right now, Transitions Realty can help you better understand how the pandemic real estate market impacts your future and whether a transition is right for you. Get started with our free Rightsizing Workbook or call 647-948-7415 to book a consultation with the downsizingexperts.ca team.