In areas outside the GTA, homebuyers are wary

In parts of Ontario outside the Greater Toronto Area, many people looking to buy a home are moving carefully. They’re worried that jobs in their region might not be steady, and that makes them hesitate before taking on a big commitment. Rising interest rates also are adding to their concerns, making monthly mortgage payments feel less affordable.

Robert Hogue, senior economist at RBC, says many communities beyond Toronto are seeing weaker job growth. That’s key because a healthy local job market gives people the confidence to buy a house. But with slower hiring and fewer opportunities, buyers often pause, choosing to wait until things look more stable .

Another factor adding to buyer unease is the possibility of trade-related troubles affecting Ontario’s economy. Hogue points out that potential U.S. tariffs pose a real threat to jobs in manufacturing and other industries common in towns outside the GTA. That risk makes future income feel less certain .

On top of job worries, higher interest rates have made borrowing more expensive. Even those who are employed may find that today’s rates squeeze their budget. For many, it means they either delay buying or look for smaller, cheaper homes further from big cities.

At the same time, home prices in these regions haven’t fallen as sharply as in the GTA. That means buyers still are paying a lot, without the same feeling of stability or job security they might have in Toronto. The result is a cautious market: people are out searching, but few are ready to sign on the dotted line.

Overall, homebuyers outside the GTA are stuck between a rock and a hard place. Job uncertainty and higher borrowing costs are pushing them to the sidelines, even when they want to buy. For the housing market, that means slower sales and more bargaining for those sellers willing to deal—and plenty of patience required from buyers.