In the Greater Toronto Area last year, 84,145 consumers bought a used house, 42,606 bought a new house. Does this mean there is a market preference for used? On the surface it would appear that the Toronto buyer will buy used at a ratio of two to one!
But as you know, real estate is a regional phenomenon with preferences driven primarily by location. The total used homes stock represents 1,1031,820 ownership households in the GTA. So only 7% turn over each year.
This ratio of two used homes sold to one new home sold is unusual to Toronto. Most major metropolitan areas reflect a ratio of at least five to one - used to new.
The Toronto consumer prefers to buy new for a variety of very logical reasons. The ratio of used to new might be more even if it weren't for the very limited supply of new homes on the market.
So why does today's home buyer prefer new?
- Innovative Design!
New homes today incorporate the most innovative designs - from kitchens open to family rooms, vaulted ceilings, and grand entry foyers with sweeping staircases to elaborate master ensuites.
But most importantly, new homes have great closets! I can't tell you the number of used home buyers who complain about storage - from clothing to cars.
- Have It Your Way!
Burger King's motto is just as applicable to new homes. Choosing your finishings, the way you want them is limited in a new home only by your budget!
Buying yesterday's used home means you really have no choice of finishings - you must live with the last purchaser's selections - or spend a big buck on
Many new home builders, Arista included, have very extensive and elaborate Design Studios which allow you to have your home finished according to your dreams - not somebody else's nightmare!
- They don't build them like they used to! Thank Goodness!
Today's new homes are a technological wonder compared to product built even just 10 years ago.
From energy-efficient heating and air conditioning to state-of-the-art insulation and air circulation to weather sealed windows and advanced electrical components, today's homes are vastly superior to yesterday's used product.
Arista Homes has always been on the leading edge of technological innovation, and their product often stands ahead of the competition in this energy conserving era.
- When you buy new, you have a Peace-of- Mind Warranty.
TARION, Ontario's new home warranty, provides peace of mind protections to the new home purchaser.
This warranty is available only on new homes. Your deposit is protected, your home is protected and there is a process for arbitration should you ever have a dispute with your builder.
Theses protections are not available on a used home. The warranty alone is a primary reason why so many thousands of consumers by new as opposed to used.
In conclusion, every builder has access to the Tarion Warranty. But not every builder pays so much attention to design, the quality of specifications, and technological innovation as Arista Homes.
It may be that the market prefers new homes to used for the above noted reasons - but when it is an ARISTA HOME, that is indeed something special.
Marketing & Sales Consultant
to the New Home Industry