Oshawa real estate prices have been on a slow but steady incline in recent years, but despite the growth, the city’s housing market ranked #9 of 16 Canadian cities when it comes to housing affordability, according to the 2020 RE/MAX Housing Affordability Report. While affordability is one of the greater region’s biggest draws, cost-conscious home hunters in search of even better prices can find them in the communities of Central, Lakeview and Vanier, which have been named the most affordable neighbourhoods to buy a home in Oshawa.
Factors contributing to Oshawa real estate prices
Oshawa real estate prices have been on a slow but steady increase, with Durham Region experiencing a 2.6-per-cent increase from 2018 to 2019, and another three-per-cent increase expected this year (source: 2020 Housing Market Outlook Report). Despite the price growth, Oshawa is still one of Canada’s most-affordable housing markets, according to the new RE/MAX Housing Affordability Report.
In its inaugural Housing Affordability Report, RE/MAX examined 16 of Canada’s most-populous regions and ranked them on an affordability scale, with #1 being the most affordable and #16 being the least affordable. RE/MAX brokers were surveyed about average home sale prices and whether they believe real estate in their region is overvalued, undervalued, or right on the money. Oshawa real estate came in at #9 of 16 cities. Canada’s most affordable city to buy a home is Regina (#1) and the least affordable place to buy a home is Vancouver (#16).
RE/MAX’s affordability ranking was determined by assessing the percentage of a buyer’s monthly income needed to carry a mortgage, assuming a down payment of 25 per cent, and based on the forecasted 2020 average sale price per region and the forecasted 2019 average household income.
Unlike many regions across Canada, Oshawa real estate is currently accurately valued. The average price of homes in Oshawa in 2019 was $509,446.
First-time homebuyers typically seek townhomes, which fall in the average range of $300,000 to $400,000, and semi-detached homes with an average price range from $350,000 to $450,000.
To enhance housing affordability in Oshawa even further, co-ownership between parents and children has become a common trend, allowing new homebuyers to enter the market. For first-time buyers, factors such as increased buyer competition and successful financing qualification are two of the greatest hindrances in being able to afford a home in the neighbourhood they desire.
At the high end of the affordability spectrum, the region’s least affordable neighbourhoods include Windfields, Centennial and Taunton.
Despite the commonly held notion that housing in Canada is unaffordable, the report finds that the vast majority of Canada’s largest urban centres (75 per cent) are currently undervalued, according to a survey of RE/MAX brokers in 16 of Canada’s most-populous cities.
In its report, RE/MAX explored the most popular property types sought by first-time homebuyers, the least and most affordable neighbourhoods in each of the 16 housing markets, factors preventing buyers from entering the market, and methods homebuyers are using to enhance the affordability of homes. Current and prospective Canadian homeowners were also surveyed about their sentiments around home ownership, barriers to owning a home, financial factors impacting home ownership, and what could potentially improve housing affordability.