Oshawa: From factory bungalows to high-end luxury homes

By Lindsay Smith/Real Estate Columnist

There was a time when Oshawa catered to a community based around factory workers and their families. Homes were valued in affordable ranges that most locals were able to buy and live in their own detached home. Certainly there were areas where people who had financial means above the average could settle into – one of the areas I was well aware of as I attended Eastdale CVI, was just a bit north called Maxwell Heights. As Oshawa has transitioned from a “factory” town to a commutable suburb and one attracting high paying jobs for our university, colleges, hospitals and the local nuclear facilities, the values have shifted upwards.

When I started my career in 1986, Whitby had the highest sales prices, followed by Oshawa and then Clarington. This has shifted over time where Clarington consistently holds the number two place for values. Not to be outdone, Oshawa has seen skyrocketing prices that have placed demands on the high end and lower range home options.

Let’s begin with some averages; the average detached home in Oshawa is $858,000. This is up from $724,000 when we began the year and up from $601,000 at the beginning of 2020. An increase of $134,000 for the first two-and-a-half months of this year and $257,000 since the beginning of 2020. This increase may shock people, however equally as shocking is what is being sold to create this average. When we look a little closer at what is being sold, we see it is becoming difficult to purchase a home below $700,000 or above $1,000,000. Here are some thoughts to digest:

Detached homes sold in Oshawa over $1,000,000 in the past seven days: 14

Detached homes sold in Oshawa over $1,000,000 year to date: 122

Detached homes sold in Oshawa over $1,000,000 Total 2020: 63

The demand for homes north of one million is incredible. We have sold twice as many homes above a million in the first 75 days of the year as we did all last year! Not only that, since the first of the year, the average home selling for over $1M sold for a record 14 per cent over the asking price.

Now let’s dig into what is happening to homes priced lower than the average in Oshawa. With the increases in prices, the more affordable homes have shifted leaving fewer homes available below $700,000. Here is what the under $700,000 segment of the market looks like.

Detached homes sold in Oshawa under $700,000 in the past seven days: 15

Detached homes sold in Oshawa under $700,000 year to date: 131

Detached homes sold in Oshawa under $700,000 Jan 1/20 – March 15/20: 330

What this “snapshot” shows is that there has been 131 homes under $700,000 sell this year and 330 homes sold at the same point in 2020.  (Remember this was pre-lockdown.) This is a drop of 60 per cent, making it challenging for first-time buyers to enter the market.

The increase/decrease ratios are somewhat glaring. Million-dollar homes have doubled in sales and homes below $700,000 have literally been cut by more than half. Both price ranges are challenging at best.

We have seen inventory build a bit over the past month, with only 28 available detached homes for sale at the beginning of the year to 207 active properties currently. Buyers with money to invest in their futures see new beginnings in a warm community.

A recent social media post had many comments from locals about Oshawa that reflected old attitudes, based on negative stereotypes. I read them thinking about the 122 families who have bought homes in the million plus range, excited about moving into a town they will love and call home. Oshawa is an amazing town and people are lining up to plunk down their life savings to live here. Maybe the newcomers see a different Oshawa than many locals do.

If you have any questions about the above information or if you have a real estate emergency on the horizon, I can be reached at lindsay@buyselllove.ca.