The region of Windsor-Essex has enjoyed an almost 20% increase in house prices in July 2020 over July 2019.
Red Hot Windsor Real Estate Market
According to Aditya Soma, a Windsor real estate agent, the real estate market of Windsor-Essex is red hot. The agent says he has never seen prices get this high in the area.
The average home price in the region is $401,465, according to the latest report by the Canadian Real Estate Association (CREA). It has enjoyed an increase of 19% - $65,422 - from the prices of June 2020.
One of the reasons for the price increase is the growing demand of buyers from outside of Windsor-Essex. The people no longer need to live in a big city and would instead work from home.
Soma said, "A lot of people who've got flexibility to work from home — who are living in bigger cities, like Toronto and Vancouver — those are the ones looking to move."
He added, "With the amount of rent they used to pay in Toronto and Vancouver, ... now they can buy a house in Windsor and literally that rent can cover the mortgage and expenses."
House Boom In The Region
According to Soma, the boom in the Windsor real estate market was "not at all expected because so many people lost jobs, and so many people are suffering."
However, one of the factors might be the law of supply and demand. There are plenty of buyers in the Windsor real estate market, but there's only a handful of properties up in the market.
Soma added that this is an excellent time for sellers to list their homes.
According to an investor in Windsor who's originally from Oakville, Savior Almeida said that he came to Windsor because of its housing market.
He explained, "If you look everywhere else in the GTA or closer to the Toronto area, houses are unaffordable. People can't afford to buy houses, and can they afford to rent them."
Almeida added that the entry barrier to the Windsor real estate market is lower than most cities in Canada.
He said, "From the investor point of view or for a homeowner point of view as well, if they want to buy something, they can still get big homes or big lots versus in the Toronto area where you're getting a tiny piece of land ...and it costs maybe double, triple even."
Almeida has five properties in Windsor. He says that he has a great feeling about the rapid increase the market is experiencing. However, he warns that there will be times that the market will dip. On the other hand, this is perfectly normal, and it will be negated in time.
Almeida said that he also noticed a steady increase in the number of interested buyers in and out of the region.
An Attractive Region
Aside from the lower prices of real estate properties, the Windsor real estate market is attractive to investors and buyers due to its closeness to Detroit. The city also has warm weather, amazing views, and relatively low traffic. Plus, it boasts a casino and ongoing construction of a mega-hospital.
All in all, Windsor is an attractive region. Lower prices and its other features make it an ideal place to invest your money in. According to Almeida, it's hard to foresee where the Windsor real estate market will go in the next few months. However, he is optimistic that the region will continue to enjoy growth.