Ontario has set an ambitious goal to build at least 1.5 million homes by 2031, and Oshawa is playing a significant role in this initiative. With a 10-year housing target of 23,000 new homes, Oshawa has made steady progress since 2022. As of 2024, the city has added 3,408 new homes, including 1,135 in 2023, and 294 so far this year, reaching 15% of the 2024 target of 1,917. This blog explores the benefits and challenges of this growing housing inventory for buyers and sellers in Oshawa.
The Benefits of Increased Inventory
Greater Choice for Buyers
For homebuyers, the increase in new homes means more options. Whether you're looking for a cozy starter home, a spacious family residence, or a lucrative investment property, the expanding inventory offers a variety of choices to suit different needs and preferences.
Quality Development Incentives
Ontario’s $1.2 billion Building Faster Fund is designed to encourage municipalities to meet their housing targets. Municipalities that achieve at least 80% of their annual target receive funding, with additional bonuses for those exceeding their targets. This initiative not only promotes the construction of new homes but also ensures that these developments are of high quality and livability.
Curious about new builds? Click here to discover exciting new developments in the Durham Region and GTA.
The Downside: Increased Competition for Sellers
Shift to a Buyer’s Market
With more homes on the market, buyers gain more power, potentially driving down prices. Sellers may find it more challenging to achieve their desired sale price and might need to invest in home staging, marketing, and possibly adjusting prices to attract buyers.
Longer Time on Market
As the inventory grows, the average time homes spend on the market may increase. Sellers should be prepared for a longer selling process and consider strategies to make their homes stand out in a crowded market.
Looking Ahead
Ontario’s housing strategy is comprehensive, encompassing not just new home construction but also the creation of additional residential units (ARUs) and the development of more than 58,000 long-term care beds by 2028. These efforts aim to address both immediate housing needs and the long-term care requirements of our aging population.
Why Selling Your Home in Oshawa Makes Sense Now
The increase in new homes in Oshawa is a double-edged sword. For buyers, it's an opportunity to find the perfect home in a growing community. For sellers, it's a reminder of the need to stay competitive in a buyer's market. As Oshawa continues to develop and grow, it remains crucial for all stakeholders to stay informed and adapt to the evolving real estate landscape.
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Capitalize on Current Market Conditions: While increased inventory means more competition, it also signifies a healthy and growing market. If your home is well-maintained and competitively priced, it can still attract serious buyers.
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Benefit from High Demand: Even with more homes available, Oshawa remains a desirable location. If your home offers unique features or is in a prime location, it can stand out and sell quickly.
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Leverage Quality Improvements: The Ontario government's incentives ensure new developments are of high quality, which can elevate the overall market standards. If your home is in excellent condition, it can compete effectively.
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Potential for Upgrading: Selling now allows you to capitalize on the current value of your home and move into a new property that better fits your needs, especially with the increased choices available.
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Take Advantage of Strategic Timing: Selling before the market gets too saturated with new homes can position your property more favorably, avoiding the peak of competition.
Conclusion
Whether you're buying or selling, staying updated on market trends and understanding the dynamics of supply and demand will be key to making informed decisions in Oshawa's real estate market. The growing inventory offers many opportunities, but also presents challenges that require strategic planning and adaptability. Find out about how many new homes have been started toward Ontario’s housing goals for other areas of Durham Region here.
Stay tuned for more updates and insights on Oshawa’s housing market and how you can navigate the changes effectively.
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