Although townhomes have been around for a long time, there has been a massive surge in demand lately in Canada. Many buyers today are looking for low-maintenance single-family homes in good neighbourhoods.
Brampton, one of the best cities in the greater Toronto area, is one of the places experiencing a huge surge in demand for townhouses.
Many first-time homebuyers prefer new townhomes because they offer more square footage and less density at a relatively lower cost when compared to other types of houses.
Some townhomes in Brampton also have additional perks like access to a private backyard, a shared common space between the homes, and relatively more privacy.
But in case you are sold but are just wondering whether now would be an ideal time to buy new townhomes in Brampton, continue reading to find out more.
Brampton Townhomes Market
The housing market in Brampton across all different house types is expected to operate on the seller’s market conditions throughout this year. A seller’s market is one where there are more buyers than there are houses. This has been the trend all over Ontario.
Hikes in prices have been reported in all housing markets, including Brampton. This has been caused by a lack of housing supply leading to a rise in property prices.
Experts predict this trend will continue, especially now that more first-time and move-up buyers are joining the market. Coincidentally, both of these groups tend to prefer single-family homes like townhomes over other house types.
They are all in search of more space and bigger properties. They also want bigger green spaces, less crowding, and lower prices, especially in the aftermath of Covid-19—a trend that is reflected throughout Canada and internationally, not just Brampton alone.
Some of the neighbourhoods in Brampton that are in high demand include Fletcher’s Meadow, Northwest, and Sandringham Wellington. This is expected to continue.
Why A New Townhome In Brampton?
Brampton has a population of 603,000 according to recent data. That puts the city at number 3 on the list of the most populated areas in the greater Ontario area, dubbed the Greater Golden Horseshoe.
It is also very ethnically diverse and offers a cosmopolitan feel without being as densely populated as the other cities. Consequently, since Brampton is not as crowded as the other cities, housing prices here are relatively lower than in other cities in Ontario.
Another reason why buying a townhome in Brampton now is good is that the city is located a short distance away from downtown Toronto—Canada’s largest city. The Pearson International Airport is also just nearby.
In short, in addition to saving money, you get to own a townhouse in a great location with access to urban living. You will also enjoy the proximity of work and other amenities.
This closeness to Toronto also means you have access to some of the largest lenders in Canada. There is also a large pool of mortgage brokers who can help you get the best deal to fit your situation. This makes the task of buying a home way much more effortless.
Do you see why it would make sense to buy a townhouse in Brampton now?
The Demand for Townhouses in Brampton is Rising
The housing market in Brampton is growing fast. Home sales have been growing at an exponential rate year over year. And although this trend was reflected across all house types, single-family homes like townhomes have seen a steady increase in demand annually.
A forecast from the Toronto Regional Real Estate Board (TRREB) shows that house sales totals in 2021 will hit 105,000, up from 95,115 in 2020. And yet, the new listings are projected to be half that. This means that the demand will continue to outstrip the supply.
This surge in demand is being attributed to a combination of factors. They include the rollout of Coronavirus vaccines and the low mortgage rates.
The Prices Are Going Up Too
Because the demand for housing in Brampton has not cooled down despite the pandemic, the prices are going up too. For example, single-family homes are more expensive than they were at the beginning of 2020.
The main reason behind this continued rise in prices is the shortage of supply of new units. The supply simply cannot meet the demand.
According to TRREB, the average price for single-family homes went up by 27 percent year-over-year.
Move-up buyers, the majority of whom are families, are also joining the fray. So the competition in the Brampton townhome market is becoming stiffer. This can only mean one thing; higher prices.
All this information is not meant to dissuade you from buying new townhomes in Brampton. If anything, it should serve as a forewarning that the prices are bound to go up from here.
So, you might as well buy your home when the prices are still low and while you can still enjoy the low interest and mortgage rates.
And if you are afraid of a repeat of the housing crash of 2008, worry not. The housing market today, particularly in Brampton, is being propped by different factors, namely low interest rates and supply scarcity. This is unlike 2008 when factors like subprime mortgages and overleveraging propped the prices. So you can buy your home without worrying too much about another price tumble.
The Brampton Mortgage Market is Very Competitive
Brampton is so close to Toronto, meaning that the housing and mortgage markets have been impacted heavily by the Toronto economy. And this has come as a boon to potential homebuyers in Brampton.
To begin with, because some of the largest mortgage lenders are based in Toronto, there is intense competition among them as they seek to tap into the same housing market. This means that mortgage shoppers in Toronto get to enjoy some of the best rates in the country.
Also, since the housing markets in Toronto and Brampton are intertwined, home buyers in Brampton get to enjoy these juicy rates as well.
And as mentioned earlier, the Greater Toronto Area, which Brampton is a part of, has arguably the highest number of mortgage brokers. New townhome buyers can, therefore, leverage this to get good deals.
Still, want more good news? Here goes; at the moment, the interest rates throughout the country are at a historic low.
In addition, there is a consensus among economists and experts in Toronto that these rates will remain low through 2023 as the country recovers from the COVID-19 recession. And now that the two markets are intertwined, the forecast for Toronto applies to Brampton as well.
Even experts agree that it would be prudent to buy a house now since all these factors show that this is the best time.
With the inevitable rise in interest rates and, consequently, housing prices, start thinking of getting your property as early as possible and lock down a rate now.