Greg Aziz on Home Builders Running Low on Inventory in Caledon
Greg Aziz went to school in the 1990s for mechanical engineering and became a well-respected leader in his field. After retiring from Caledon Engineering Solutions, he went into day trading. Greg has many skills and interests and is a proud home improvement enthusiast. He’s a homeowner and has seen home prices rising higher recently. The issues stem from a lower amount of available housing units. House sales have dropped in both the renter and owner markets, but create a need for new construction.
The Lack of Inventory and Rising Interest Rates
As of the second quarter of 2023, the median for a home was $416,100 because of shelter inflation. Since mortgages are around 7% now, there has been a decrease in purchasing power. Greg Aziz, already owning a house, can attest that older homeowners have lower mortgages than newer homeowners. The rising interest rates and lack of homes create a better environment for homebuilding.
The Struggles to Keep Up With Demand
Caledon, Ontario, Canada, noticed a spike in home construction in May but began cooling by July. While more construction is ongoing, building permits and housing completions are down from the prior year. The lack of homes boosted the industry, but the rising bank rates could kill consumer demand. Greg Aziz from House Caledon has commitments to his community and loves maintaining his home, but high construction costs hurt repairs and maintenance.
Long Term Effects of Rising Costs
Construction costs and a lack of supplies may hurt house repairs and construction. Areas with strict zoning laws won’t close the gap between building and buying houses. The economy will dictate whether new construction trends continue, but rates may rise higher. The higher rates will raise the median price of a home, which could deter future home buyers. As Greg Aziz finally relates, if rates don’t fall, then building more homes would be the only way to lower the price of a house in Caledon.