Timing is everything: The trick to homebuying in 2015

Buying the perfect home is largely a game of coordination, where timing is everything. We chatted with Scott McLellan, vice-president at Plaza, the developer of Toronto condos such as 50 at Wellesley Station and 1 Yorkville, who points to three factors that affect a person’s decision to purchase a home and drive the housing market: demographics, location, and affordability. "The key is to make sure that they are in sync with each other," he says.

“With the rate of immigration coming into the GTA, the issue will become one of supply and demand, which suggests that new home and condo prices are not expected to go down. If people do not make a buying decision soon, many will be left behind and unable to purchase,” says McLellan.

Demographics:The age and stage of life of purchasers can be determining factors in the home-buying decision. What type of home will suit their lifestyle? What amenities are important to them? Is there access to transit and highways? In addition, the significant numbers of people who are immigrating here are influencing the areas where existing and new members of the population settle.

Location:Location plays a vital role in a purchaser’s buying decision. Of great importance to more and more people is close proximity to the subway or GO train. Because of the Greenbelt Plan, we are seeing more and more intensification south of the Oak Ridges Moraine forcing development into the city. As a result, purchasers are sacrificing space for convenience and things such as walkability are playing an ever increasing role in determining where people want to live. Additionally, the supply of housing, whether lowrise or highrise, is becoming a challenge to meet the needs of the population.

Affordability:Today with mortgage rates being at an all-time low, housing in the GTA will never be more affordable. On the other hand, single-family homes are almost unaffordable and the price difference between a new single-family home and a new condominium is just under $300,000. With the rate of immigration coming into the GTA, the issue will become one of supply and demand, which suggests that new home and condo prices are not expected to go down. If people do not make a buying decision soon, many will be left behind and unable to purchase.