Housing supply, rising interest rates, affordability, inflation, the economy… homebuyers have a lot to think about 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, we sat down with a select group of Industry All-Stars for our 2023 Builders' Annual for their insights and advice.

Heading into 2024, the opportunities will be endless for new home and new condominium buyers. In short, the show must go on.

To understand this almost unprecedented time in history, one needs a quick cursory look at where we have been in recent years. The onset of COVID drove prices up everywhere in and around the GTA. We almost believed we’d never leave our homes again; permanent retreat to cottages and places afar was where we were all heading. We believed it. Pour all your money into your home, nest egg and only tax-free asset you might ever own. Pay whatever the price is; the shortage of housing remains a steady principle and reality. Multiple six-figure immigration, negligible costs of borrowing, modest inflation, prohibitive pricing of single-family homes… buy a home if you can find and afford one, be it an urban townhome, a conventional town, semi or a condominium.

Uncomfortable situation

And then reality kicks in. Builders’ costs increased, due to higher land prices and the costs to build and market new homes. Borrowing costs tripled. Inflation, economic and political unrest….
Among other things, this left homebuilders with the need to sell more product, while at the same time causing buyers to question prices or put their homebuying plans on hold.

What followed was an uncomfortable situation. Builders couldn’t afford to sell homes at prices that would inspire consumers to buy. And that caused delay in new projects that were ready to come to market.

However, in the homebuilding business, time is money. Builders’ typically finance land purchases, and all aspects of the development and building process, and realize their profits at the very end when everyone has moved in. The cost of waiting is enormous and often unbearable. So, as this past year has shown, many projects have opened, offering opportunities that buyers haven’t seen in many years. Favourable pricing, creative deposits, rental guarantees, discounted closing costs and other early purchaser incentives characterize much of what has sold.

Lots of opportunities

Remember, costs aren’t likely to come down and the future is uncertain. Builders need to presell their projects with that in mind, and with the realities that lie ahead. If you believe the pricing is volatile, and are worried about the future, it may be challenging to think about buying a property that is years away from being completed.

Based on my experience, however, it is unlikely that pricing will drop much further. Builders can’t afford to sit forever, and I expect in this largely healed market, pricing could soon begin increasing. The opportunities at this juncture should be plentiful and appealing for buyers. Look for more of this in 2024. There are lots of opportunities around the corner. Because… the show must go on.

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