Expert homebuying advice from Fred Losani, CEO of Losani Homes

By Wayne Karl
December 24, 2022

Housing supply, rising interest rates, affordability, inflation, the economy, the lingering effects of COVID… there’s a lot on prospective homebuyers’ minds these days, when it comes to things that may impact their purchasing decisions.

To help you understand all the factors to make a better, more informed homebuying decision, our 2022 Builders' Annual sat down with some of the industry’s top builders and developers for expert advice.

Given the various characteristics of today’s housing market, what is your outlook for 2023?

Some of the most significant factors behind Ontario’s housing market correction include record high housing prices attained during the COVID pandemic, inflation, supply chain issues and recent successive increases in interest rates. Further policies were implemented, including mortgage stress test changes, vacancy tax, zoning, housing supply and an erosion of affordability – all of which are compounding the issue of accessibility for potential homebuyers. This may have created a temporary lack of consumer confidence, and some buyers may opt for “waiting out” the impact of new mortgage lending rates, hoping for what they believe will be further price reductions.

The rental market, multi-family, luxury market and townhome products remain strong. In fact, we are seeing an influx of investors taking advantage of the increased demand for rentals. There are foreign students returning post-pandemic, along with immigration levels returning to normal, with an increase of up to 450,000 new permanent residents in 2023 and 2024. The net result is more people requiring housing, which boosts demand. This phenomenon is further exacerbated by a shortage of inventory, and a surge of homebuying will ensue. I expect that the market will begin correcting by summer of 2023.

What advice would you offer to buyers?

The economy and labour markets are still performing strongly, with personal income on the rise. Ontario homebuyers have also accumulated more savings during the lockdowns of the pandemic, enabling more financial capacity for down payments and mortgages. Despite the current correction, Ontario home prices will remain approximately 15 per cent higher in 2023, compared with the onset of the pandemic. It is currently a buyer’s market; now is the best time to take advantage of incredible pricing and incentives offered to purchase a home to live in or as an investment before the market corrects.

How is your company addressing the affordability issue?

The unaffordability of housing in Ontario will keep some potential homebuyers in the rental market, which also has low inventory. At Losani Homes, we have always had a diverse portfolio of properties to accommodate these needs, with additional rental developments in the pipeline addressing the affordability issue. All of our communities have been strategically selected in southern Ontario, offering affordable housing options for families compared to the GTA housing market. We have remained focused on creating townhome communities, offering an affordable solution to a multitude of homebuyers.

What is it about your company that you would like prospective buyers to understand as they go through the homebuying process?

Losani Homes is a family-owned and operated company with 47 Years of building excellence. Our organization has been committed to building affordable, award-winning homes with quality craftsmanship, exceptional designs, superior features and finishes, superb customer service – all in desirable locations. We are here for our purchasers, holding their hand throughout the entire process. We offer homebuyers’ manuals, educational buying process videos and community events, and we have dedicated departments to serve our homebuyers throughout their journey.

Losani Homes has retained the best team of talented, passionate professionals to assist in this journey, while having access to the best resources. In addition, our Losani Pronto product offers already-built homes with up to 120-day closings. This offers an opportunity to walk through, experience and validate the quality of each home prior to purchasing it. We are committed to our mission of a “customer-centred” approach, building trust while ensuring that we eliminate any fears of homes not being completed.

About Wayne Karl

Wayne Karl is an award-winning writer and editor with experience in real estate and business. Wayne explores the basics – such as economic fundamentals – you need to examine when buying property.

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