Owning a home in Toronto has never been easy, but now it’s going to be even tougher owing to higher interest rates. According to some experts and housing market analysts, the cost of an average home in Toronto surpasses the buying capacity of an average income household by 210 per cent. That said, the number of active listings has seen a rise of over 50 per cent.
Home prices have not seen much of a rise, in fact, in many cases, there has even been a good price decline. So much so, that more buyers qualify to buy them. But, it’s the high mortgage rate that is taking a toll on the housing market of Toronto, and discouraging people from buying new homes. Simply put, homes are more affordable todya, but the same can’t be said for loans.
As per Ratehub, Toronto’s home affordability saw the second-largest rise between September and October only behind Hamilton
Other places in Canada have been noticeably more expensive for example Halifax and Calgary have seen an increase in price by $5,300 and $2,100, respectively. The average home price in Toronto, on the other hand, has dropped by $23,400 – from $1,127,000 to $1,103,600 over the course of the month.
So how much does a household need to easily afford a house in Toronto? Based on stress test and loan cost analysis, a household must now earn $230,450 per year to cover the cost of the average home – it’s a $4,650 drop from the previous month.
Future of Toronto housing market relies upon Bank of Canada interest rates. Should the rates comes down, the demand is going to escalate which will eventually lead to surge in prices.
Since before the Budget Day on April 16, Prime Minister Justin Trudeau has been making announcements addressing the housing crisis facing the North American nation. From incentivizing the construction of affordable housing to reconstruction, these plans promise to improve the housing infrastructure of Canada.
The real estate sector’s most influential leaders and innovators will be gathering in Calgary for a conference that, in all probability, is going to be the biggest real estate event in Alberta. Titled, ‘Rock’N REAL ESTATE 2024’, the BUZZ conference will be taking place in Carriage House Hotel & Conference Centre on Thursday, May 2. The meeting will open at 7:30 am with a light continental breakfast. The discussion will go from 8 am to 5 pm followed by an hour of networking session at the end of the event. Cocktails on the house!
Canadian housing activity was largely stable in March, but a key spring selling season lies ahead. Existing homesales edged up 0.5% in March (seasonally adjusted) and were up a modest 1.7% from sluggish year-ago levels (although an early Easter long weekend likely reduced volumes somewhat). While current activity might seem quiet compared to the exuberance in 2021 and early 2022, sales volumes are trending about in line with pre-COVID norms, albeit at the low end of that range.
“We are changing the way we build homes in Canada. In our housing plan and Budget 2024, we are delivering ambitious action and investments to build more homes, make it easier to rent or own, and help the most vulnerable with stable housing. This is about restoring fairness for every generation, and housing is at the heart of that”, said Canadian Prime Minister, Justin Trudeau about the country’s new housing plan.
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