Oshawa housing to move into buyers’ market thanks to GM closure
By NextHome Staff
November 27, 2018
November 27, 2018
In one fell swoop, General Motors Canada’s announcement on Nov. 25 that it plans to close all assembly operations in Oshawa, Ont. effectively has pushed housing there into a buyers’ market.“The announced General Motors plant closure will certainly impact Oshawa, and the trickle-down effect will be felt across the province,” Christopher Alexander, executive vice-president and regional director, ReMax Integra of Ontario-Atlantic Region, told Homes Publishing.“However, it’s important to remember that GM isn’t the economic driver that it used to be in Durham Region. The area boasts a growing education sector and a new casino is slated to open in 2019, which will boost new condo development and housing demand. With the rise of remote work and no relief expected for Toronto house prices in 2019, Oshawa will continue to be a popular choice with first-time and move-up buyers who have been priced out of the 416.”There you have it, prospective home buyers.
Opportunity knocks
While such a major employment hit is hardly an occasion to celebrate, these developments could mean opportunity for those looking to buy a home.“The fact is that more than 2,500 GM workers will be left in the lurch come 2020, and the looming loss of income will likely prompt a softening of the market at a local level, as existing residents and prospective homebuyers digest the news and what it might mean for them,” says Alexander. “This coming closure, coupled with further interest rate increases in 2019, is likely to trigger a market shift from the current balanced territory, as homebuyers delay purchases, scale down lower-priced properties or move away in search of employment.”Also read: What the GM plant closure means for Oshawa economy and housing
Also read: Focus on Whitby and Oshawa
Another real estate expert, Don R. Campbell, says the impact of the closure could take 18 to 24 months to play out fully in the region.