Windsor real estate prices have been on a steady incline, but despite the growth, the city’s housing market ranked #5 of 16 Canadian cities when it comes to housing affordability, according to the 2020 RE/MAX Housing Affordability Report. While affordability is already one of the region’s biggest draws, cost-conscious home hunters in search of even better prices can find them in the communities of Harrow, Essex and Windsor West, which have been named the most affordable neighbourhoods to buy a home in Windsor.
Factors contributing to Windsor real estate prices
Windsor real estate prices have been on the rise, experiencing an 11-per-cent increase from 2018 to 2019, and another nine-per-cent increase expected this year (source: 2020 Housing Market Outlook Report). Despite the price growth, Windsor has been named 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. Windsor real estate came in at #5 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.
Windsor real estate is currently regarded as undervalued, based on high demand and lack of housing supply, particularly in the resale home sector. This is especially the case in the single-detached and townhome segments, which are favoured by homebuyers. Meanwhile, new-home construction is relatively active in the region.
Common issues facing homebuyers around affordability include competition due to multiple offers on single-family homes, resulting in a general sentiment of discouragement. Some successful buyers have ended up paying anywhere from $10,000 to $50,000 over the initial asking price.
At the high end of the affordability spectrum, the region’s least affordable neighbourhoods include LaSalle, Tecumseh and Kingsville.
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.