The Canadian real estate market is evolving, and for families who’ve outgrown their current homes, these shifts could mean it’s time to make a strategic move to upsize. Whether it’s extra bedrooms for growing kids, more storage, or simply the room to breathe and grow, understanding the changes in the market today could help you plan your next steps with confidence.
Key Trends Changing the Landscape
1. The Game-Changer in Mortgage Policy
Canada’s recent adjustment to mortgage rules is reshaping the market boundaries. By allowing buyers to purchase homes worth up to $1.5 million with less than a 20% down payment, it bridges a gap that was previously out of reach for many aspiring homeowners. Families looking for bigger homes often faced a daunting barrier in terms of upfront costs. Now, this rule change is offering a clearer path forward.
The effects are already rippling through the market. Properties in the $1 million to $1.5 million range are seeing unprecedented activity, with increased competition and rising sale prices. For families, this means keeping a sharp eye on listings in this price tier and being ready to act decisively. This is where having an experienced team by your side really matters. Success in this fast-paced market depends on timing, strategy, and negotiation expertise.
But what does this mean for upsizing? It means that families looking to sell a smaller, mid-range property and step into this market need to plan for bidding scenarios, but also stand to benefit from the heightened demand at the lower end of this price range.
2. A Slower Luxury Market Offers Hidden Potential
On the other end of the market, homes priced above $2.2 million tell a much different story. Luxury properties are sitting on the market longer, often selling below their original asking price. For homeowners in the mid-range market looking to upsize, this slower movement at the high end creates an opening.
Sellers in the luxury sector are becoming more flexible, offering the potential to negotiate better deals. This could be your chance to secure the larger, well-appointed home you’ve been dreaming about without overextending your budget. Strategically combining a strong sale on your existing home with a well-negotiated purchase at the higher end of the market can make upsizing more accessible than it’s been in years.
3. The Shrinking Price Gap is a Breakthrough
The “delta,” or price gap, between selling a mid-range home and buying a higher-end one is narrowing. The unique combination of rising values in the mid-range and slower growth in the luxury market means the financial leap to upsize is smaller than it was even a year ago. What used to feel like an insurmountable financial stretch may now be within reach.
Additionally, with interest rates trending downward, borrowing to finance that leap is becoming more affordable. Lower monthly payments can translate to long-term savings, adding even more incentive to make your move now.
Planning to Move This Year?
What This Means for Families
At its heart, real estate decisions are about finding the right fit for your family and your future. Whether it’s a bigger backyard for your kids to play in, an extra room for a home office, or a kitchen that can handle all the chaos of a busy household, now could be the moment to transition into a new space.
Families should start by evaluating their current situation. Is your home’s layout still working for your needs, or are tight spaces beginning to add stress to your daily life? Are you feeling squeezed for storage? Does your neighbourhood no longer serve your long-term goals? If you answered “yes” to any of these questions, it’s a sign it might be time to explore your upsizing options.
Actionable Advice for Upsizing in Today’s Market
If you’re considering making a move, here are some key steps to take:z
- Know Your Home’s Value
The current demand in the mid-range market means you might sell for more than you expect. A proper valuation is critical to understanding what your home could net in today’s conditions. - Understand Your Financing Options
With new mortgage policies and shifting interest rates, it’s essential to speak with a mortgage broker or financial advisor. This will help clarify what’s possible for your budget and how it aligns with your goals. - Monitor the High-End Market Closely
Luxury properties often require patience and negotiation. Keep watch for listings sitting on the market beyond the typical duration. These could present opportunities for price reductions or extra allowances. - Work with Experts Who Specialize in Upsizing
Upsizing requires not just market knowledge but precision. Families often have unique timing concerns, like planning moves around school years or transitioning with minimal disruption. When you choose a team focused on families, you get support that prioritizes your needs every step of the way.
Could This Be Your Moment?
The current market conditions provide a once-in-a-decade opportunity for families ready to adapt and grow into a new space. While no market is without its challenges, these trends are creating pathways for families who are ready to take action.
If you’re pondering whether now is the right time, let’s have a conversation. We’ll walk you through the latest data, explore your options, and craft a plan to ensure your move is strategic, efficient, and successful. When you’re ready to upsize, we’re here to make sure your next step feels like the perfect fit for your family.
