Oshawa, ON real estate market outlook 2023
Oshawa is conveniently located just east of Toronto, making it a prime choice for commuters who want to enjoy suburban life while staying connected to the job market of the GTA. The city is easily accessible via major highways, including the 401 and 407, and is conveniently serviced by GO Transit giving commuters a direct route to the downtown core of Toronto.
We sat down with our realtor partner Desiree Wilson to give us an outlook on the Oshawa real estate market for 2023.
Here’s how the Oshawa real estate market has fared in 2023
The Oshawa, Ontario real estate market was experiencing positive growth and had become a popular destination for homebuyers looking for more affordable housing options compared to neighboring cities like Toronto. Here are some key trends and factors I’ve seen reflected in the Oshawa real estate market, year-over-year from 2022 to 2023:
Price Appreciation: Oshawa had been witnessing steady price appreciation in the years leading up to 2023. It was becoming a seller’s market, with increasing home values.
Population Growth: Oshawa’s population had been growing, partly due to its proximity to Toronto and its appeal as a more affordable place to live while still offering access to urban amenities.
Increasing Mortgage Interest Rates: Low mortgage interest rates of 2022 were encouraging buyers to enter the market, boosting demand for homes. In the past year the Bank of Canada has increased the interest rates multiple times.
New Developments: New housing developments and communities in North Oshawa were being built to accommodate the growing population, including single-family homes and condominiums.
Inventory Levels: Inventory levels and housing supply could impact the market. A shortage of available properties can drive up prices and create competition among buyers.
Commuter-Friendly: Oshawa's location with easy access to highways and commuter rail services to Toronto made it attractive to those working in the Greater Toronto Area but seeking more affordable housing options.
"Keep in mind that real estate markets can change over time, and various factors can influence the market's performance from year to year. For the most accurate and up-to-date information on the Oshawa real estate market in 2022-2023, I recommend reaching out to a local real estate agent who can provide you with specific data and insights for that period." says Desiree.
It is essential to understand that the real estate market's behavior is the result of a complex interplay of various economic, social, and political factors. The interest rate adjustments are just one aspect of a broader landscape that includes supply and demand dynamics, regulatory changes, economic growth, and consumer confidence, among other factors.
How has the market responded to the rate hikes from the Bank of Canada?
While homeowners who went with a fixed rate mortgage are unaffected by the recent rate hikes, those with variable and adjustable rate mortgages are feeling the heat. The consistent rise in interest rates has been tough for mortgage holders and in some cases is challenging their ability to meet their monthly payments. If we see rates keep rapidly appreciating we may start to see prices drop as homeowners are forced to sell their properties.
Luckily the Bank of Canada has paused rate hikes for the time being as of the latest interest rate announcement in September. Analysts are predicting that this could signal the end of rate hikes for the time being until an eventual reversal in policy sometime in 2024.
Check out our interest rate forecast for an up to date outlook on the mortgage market, including where our analysts predict rates will go over the next 5 years.
Thank you to Desiree Wilson for these insights into the Oshawa market. If you’re looking to buy in the Oshawa area, reach out to Desiree for personalized advice and an expert realtor.
You can reach Desiree here: