Why Now Might Be a Good Time to “Move Up” to a More Expensive Home
If you’ve been thinking about upgrading to a larger home, now may be a good time to explore your options. The Toronto real estate market is shifting, and several factors are making it more accessible to move from a townhouse to a detached home.
While townhouse prices have remained relatively stable, detached home prices have come down. At the same time, mortgage rates are beginning to ease. Together, these trends create an opportunity for homeowners looking to make the transition to a more spacious property.
What’s Changed in the Market?
- The Price Gap Between Townhouses and Detached Homes Has Narrowed
In recent years, the price difference between townhouses and detached homes made moving up a challenge. Today, that gap has become more manageable.
For example:
In 2022, a typical townhouse might have been priced at $950,000, while a detached home averaged around $1,500,000—a difference of $550,000.
Today, that same townhouse might be worth $900,000, while a detached home has adjusted to $1,200,000—reducing the gap to $300,000.
For those considering a move, this shift means that upgrading requires less of a financial stretch than it did a couple of years ago.
- Lower Mortgage Rates Are Easing Borrowing Costs
After rising over the past few years, mortgage rates are gradually coming down. A small reduction in interest rates can have a meaningful impact on monthly payments, making it more affordable to take on a larger mortgage.
For example, a 1% decrease in the mortgage rate on a $1,000,000 loan could lower monthly payments by $500–$800, making the cost of upgrading more manageable over time.
- A Calmer Market Means More Opportunities for Buyers
The real estate market has been quieter recently, giving buyers more time to explore their options and negotiate favourable terms. However, as mortgage rates continue to ease, demand may start to increase again, which could put upward pressure on prices.
For those considering a move, the current market conditions offer the chance to take the next step without the competitive pressures seen in past years.
What This Means for You
If upgrading to a detached home has been on your mind, the current market presents an opportunity to make that move under more favourable conditions.
Of course, every situation is different, and the right time to move depends on your personal goals and circumstances. If you’re curious about how these market changes might apply to you, we’d be happy to talk strategy and see if this is the right time for you.