House prices on the rise

Young people are finding it more difficult to purchase houses in today’s climate due to the increase of housing prices.  

According to the Windsor-Essex County Association of Realtors, the average price of homes in the Windsor-Essex area was around $298,975 in December 2018. Realtors expect that number to jump between $304,000 to $313,000 throughout the year.

“As the prices go up and the interest rates go up their ability to buy will go down,” said Eddie Azar, a real estate agent in the Windsor area.

 

In 2014, residential houses cost around $200,000. Azar said it is much more difficult to buy a house today compared to five years ago.

“There is a pent up demand to purchase, but the supply is just not there,” said Azar. “Young people should go to the bank first and find out what they can afford to buy.”

Azar also said the number one mistake young people seem to make when buying a house is getting overly excited and not realizing the expenses that come with buying a house.

“A lot of people make the mistake of biting off more than they can chew, especially if they are still students or graduating, they may have debt, car loans and credit card loans. You just want to make sure you do not over extend yourself.”

Although the prices of homes continues to increase in Windsor and London, Lucas Roy an 18-year-old game design student at Fanshawe College is not concerned.

“I’m not worried too much about house prices going up by the time I graduate. I’ve always known prices for most things will go up eventually, so I have already accepted it,” Roy said. “Money for groceries and rent are things I’m still working on and as for loans, I won’t have any seeing as I’m not receiving any government funding.”

Roy originally moved from Pennsylvania for schooling and said house prices are a lot more expensive in the United States. He also said living with roommates has made his life a little easier.

“There are problems with roommates for me as well and that is when it comes down to chores or groceries. If we don’t work together to complete those things it could cause tension which isn’t fun,” said Roy.

According to the RE/MAX 2019 housing market outlook, house prices in Windsor in the last year have increased by 13 per cent in comparison to 2017. This increase is only second to London’s 17 per cent increase.