6 homebuyer profiles driving today's housing market

This is a story about love and investment in the Greater Golden Horseshoe, where the wind rolls in from the west over Hamilton Mountain and twists its way through the towers and tracts of Burlington and Brampton and Mississauga. It carries with it the hopes of homebuyers, tracing the highways and following the GO train out to the smaller towns and villages where prices settle a little closer to the ground, and that golden dream can take root.

It’s been the same story for decades – demand outstrips supply. But now, there’s a change in the wind. A year of pandemic will do that, and the golden dream has been misted over by the fog that our facemasks bring to rose coloured glasses. This market is different. Who are today’s buyers? What is driving them? How do we meet their needs?

Right now, there are six distinct buyer profiles driving the market (not just investors), and each is worth investigating:

Condo escapers

These are singles or couples who feel trapped in their boxes in the sky and can’t leave their apartments without passing through common areas and touching elevator buttons. The pandemic has made them rethink whether being within walking distance of their favourite cafe is really worth the high cost of city living. Working from home affords the opportunity to buy in more affordable options such as Oshawa, Kitchener-Waterloo, Hamilton or Barrie, and commute into the city a few days a week. We have seen interest and sales quadruple in sites outside the city, and many of those buyers are leaving their condos.

Home haters

These are families who have been stuck 24/7 in a home that just doesn’t work for their needs. Everything they disliked about their home has been in their face day after day. These are buyers who have been making their dream home list and cannot wait to get out looking at new-home options.

Marriage breakers

The pandemic has been difficult on relationships. Spending all day, every day together can be the last straw for some marriages, and divorce and separation are trending up. For the real estate industry, a divorce can mean three transactions.

Baby-makers

Love and marriage have always been the prime drivers of new-home sales. Starting with first homes, to moving up to more bedrooms to accommodate a growing family, this is a needs-based purchase that even a pandemic can’t slow. Luckily, there has been extra time for baby-making this past year, so look for a boom late in mid 2021 for this group.

Baby Boomers

Boomers are planning for retirement, or have already retired, and they have incredible equity in their homes that protects them against any possible price fluctuations. We’ve been waiting for years for this buying group to make the big move, and right now, they want more space around them and more life in their lifestyle.

The ‘Desperati’

These are the people who need to buy a home, not just want to. They either have to downsize for financial reasons or have already sold their home and need a place to move. Right now, the resale market and builders with inventory are benefiting from these buyers.

Keep in mind that with each of these buying groups, the sales cycle is going to increase. We have had it good in the GTA market for many years, with relatively short time between when buyers begin their search and when they actually purchase. But today, with job uncertainty and the limitations of lockdowns, the groundwork is being laid for them to make this decision when they’re ready. And they will be ready, because the golden dream is still there.