With interest rates rising just a week before the Ontario election, the real estate market in Windsor-Essex is cooling.
However, the price of a house is still significant, with many members feeling left out of the market but hoping the election will bring some improvement with it.
“Hope and optimism will always be there, because that’s all we have, right?” Shanike Garden, a single mother with two children, said she rented an apartment in Windsor.
Gordon hopes to enter the housing market soon.
“That’s the goal at the end of the day – you and your kids can call home,” he said.
According to Windsor real estate firm Abe Al-Hakim, the latest figures indicate a change in the local real estate climate, with buyers taking a more conservative approach and sellers not seeing as much competition for their homes as before.
Alhakim, who works at LC Platinum Realty, explained, “We have been watching the market slump for the past few months.”
“We noticed buyers holding off on their plans, especially with the Bank of Canada’s interest rate hike, an interest rate hike already planned and many more planned in the next few months. There’s an Ontario election coming up, so people want to see how things work in the next few months.”
After several months of rising prices, the average price of a home in Windsor-Essex fell to $ 692,759 in April. This is the first decline in the average selling price of a home since September 2021. At its peak, the average price of a home in March reached $ 723,739.
Sales in April were down 16 percent compared to the previous month. Sales are down almost 19 percent compared to April 2021.
Al-Hakim describes this as a “mixed market”, with some homes still selling well enough with many offers and auction battles, while other homes do not see the same kind of demand.
Regarding what is expected in the coming months, Alhakim noted, “This is a golden question.”
“I expect the market to remain stable and balanced over the next few months, but it remains to be seen how the expected interest rate hike will affect the market – and the Ontario elections.”
He noted that the decline caused some “fear” when others jumped at the chance to buy a home at a lower price.
Housing is a major election issue
Housing costs have been a major issue for voters across Ontario, with auction wars and limited supplies raising prices in recent years. To address the issue, PC, NDP and Liberal leaders have all pledged to build 1.5 million homes if elected.
According to Terry Mayuri of Leamington, he is concerned about the impact of rising prices on his son.
“Buying housing for the younger generation is ridiculous,” Mayuri said.
His 20-year-old son is nearing the end of his university studies, and Mayuri is worried about what will happen next.
“That day I said to my wife, with the price of the house,‘ My God, he is going to live with us until he is 40 years old. Apart from apartment rent, how can someone who is starting out as an adult buy a home? ”He asked.
“It sounds a little ridiculous.”
He said that although politicians felt that there was a problem, no party had acted sufficiently to solve the problem.
Windsor voter Lisa Lam says affordable housing is important to her in this election. He said he had been living in a Walkerville home for eight years and had recently been evicted because his landlord had sold the rented duplex.
Now, she has a new home in the same area, but it is much smaller and pays $ 500 in rent.
As for whether she wants to buy on the road, she does not believe it will be realistic considering the state of the market.
“I can’t because of the auction wars that are here,” he said.
“I mean, homes you bought for $ 120,000 five years ago, now when you buy for five and $ 600,000, how do you get an advance?”
While he is hopeful that more can be done by political leaders to address rent control, he is not optimistic that much will change in the real estate case.
According to Gordon, she is not sure if she will vote in the provincial election, but explained that strong action on housing could distract her.
“I’m in need of a home, families, single families, whatever,” he said.
Meanwhile, Alhakim continues to monitor the market, not expecting a major revision in the market, but expects the market to settle on a plateau this year.