For two years, many potential home buyers stood on the sidelines, watching with discouragement as housing values skyrocketed throughout the country. Now, even more people have stepped back as interest rates and inflation began to climb. However, the timing is right for many people to jump back in as prices become more reasonable. A condo in Peterborough could be the perfect solution for first-time buyers and those looking to downsize. Let’s take a closer look at the current market and what it takes to succeed in these challenging conditions.
Competition is Waning
A few months ago, breaking into the housing market was nearly impossible unless you had access to vast funding. Prices were sky-high, but the competition was even worse. A listing would no sooner hit the market, and dozens of hopefuls tried to scoop it up. It wasn’t uncommon to get outbid many times over.
As a result of fierce competition, some people decided to put off buying. Others moved into cities even further away from the GTA. Then, the Bank of Canada began raising the interest rate, which caused the market to slow down even more.
Now, there are more options to buy than at any point in the last two years. You no longer have to jump on the first opportunity, which means you can hold out for a place that’s just right for you.
Want to know more about all the ways the market has changed? Here are a few informative articles to help you:
Prices Have Fallen
Looking back, it’s hard to believe that the average price of a Peterborough home once peaked at $885,153! There was no refuge anywhere. Housing values soared all over the country in response to ultra-high demand during the pandemic. Now there is some relief in sight.
As of July, the average price has dropped to $770,305, about half of the cost of a house in Toronto.
The news is even better if you’re looking for a condo or townhouse. It’s not unheard of to find a listing starting at $400,000, making Peterborough an ideal place for first-time buyers to get a foot in the door. Even as interest rates go up, the monthly payments will be lower, thanks to the lower purchase price of the home. How does this compare with Toronto?
The last time you could get a condo in Toronto for $400,000 was around 2015. Now, the average price is far above $700,000 for even the tiniest living space. In Peterborough, your dollars go much further, and $400,000 could get you three bedrooms and two bathrooms. No matter how you look at it, you have more options here!
Want an even more detailed side by side comparison of Peterborough vs Toronto? Read our analysis right here.
Lower prices are likely the result of a combination of factors, from higher interest and inflation to market seasonality. With any luck, we may not see any more interest rate hikes for a while, but competition may increase as the Fall approaches.
Sooner Is Better Than Later
Though housing values fluctuate, they’ve consistently increased over time, making real estate one of the most profitable and stable investment vehicles available. The sooner you get into the market, the more you will be able to grow your equity.
Your net worth grows two ways:
- As your house naturally increases in value
- As you pay down your mortgage
For example, in 2017, the average house cost in Peterborough stood at $373,310. Imagine if you had bought then and sold in July (even after prices “dropped.”)
You would have built up thousands of dollars in equity as you paid down the principle of your loan over four years. Plus, you’d have a profit of $406,995 ($770,305 – $363,310). If you were lucky enough to time the market perfectly, you’d have cleared over $500,000, which would go a long way towards funding your next step.
The point of this isn’t to make you think of what could have been. It’s to let you know the financial possibilities that open up to you once you break into the market.
Buying your first home can be challenging, but there is help available. Find out more about government programs right here.
For many people, homeownership represents financial security and is the foundation of their retirement plan, where they will one day sell and live off the proceeds.
The Joys of Living in Downtown Peterborough
Whether you’re just getting started by purchasing your first home or downsizing to a smaller place, downtown Peterborough has so much to offer. Nearly everything you could ever want is within easy walking distance. Step outside your building, and you’ll find dozens of restaurants, cafes, shops and convenience stores.
Peterborough is a fun place to live in every season. Take a look at some of the exciting activities to enjoy:
- The Lakes Near Peterborough You Have To Visit In The Summer
- Exciting Peterborough Events To Look Forward To In Spring
- Fun Things To Do In Peterborough This Fall
If you drive, you’ll quickly notice one of Peterborough’s most enviable features. There is free parking everywhere, and lots of it. This is sweet relief for anyone used to the traffic and ludicrous parking fees in Toronto.
No matter where you are in downtown Peterborough, you’re also steps away from entertainment, including live music, theatre and art festivals. And you’re minutes away from the beautiful waterfront and beautiful scenic parks.
Want to know more about the benefits of owning a condo in downtown Peterborough? We are native to the area and are happy to tell you all about this great city. Reach out to us here with any questions you may have.
