Canadian home prices just keep rising at a faster and faster rate. US Federal Reserve (The Fed) data shows real home prices in the country surged in Q2 2021. Actually, that’s really underselling what happened. Residential real estate prices in Canada are growing at the fastest rates in the G7. Not just over the past year, but over the past 3 decades, nothing in the G7 even comes close to this rate of price growth.
Now that the dust has settled and the Liberal government is back at the helm, you may be wondering what to expect and whether anything will change. Time will only tell, but as housing prices continue to rise and supply dips to an all-time low, it’s important to understand what promises the Liberals made during their campaign and how we can best prepare for some of these changes that could roll out shortly.
Despite the sky-high prices of homes in major Canadian cities, the fact that most residents will never be able to afford them, and the trend of homeowners carrying way more debt than non-homeowners given the hefty mortgages needed to acquire those expensive homes, Canadians who own are spending way less per month than renters.
The competition for Toronto pre-construction condos is high and the process can feel quite rushed. To ensure you fully understand the process and the steps to purchase, let’s take a closer look at builder worksheets, or as we like to call them, suite request worksheets.
The end of summer housing report is here, and situation of supply continues to hunt house hunters. In 2020, the International Airport in Toronto nearly shutdown, reducing population growth. By the Summer of 2021, Pearson International Airport is only seeing 8% of the normal flight traffic. Meanwhile the demand of housing continues, due to the existing demand for affordable housing.
Housing affordability has been at the forefront of Canadian’s minds for the last eighteen months and it’s even more important now during this federal election. But what exactly does affordability mean in the context of housing, mortgages as well as what has gone into changing affordability? A basic definition of housing affordability is the cost of housing, whether renting or owning, relative to the household or family’s income. So, in Canada, affordability has decreased due to the increase in rents or home prices while incomes have not adjusted accordingly.
With almost 9,400 sales reported in July 2021, demand for ownership housing remained well-above average for the time of year despite being below the record July result set a year earlier. Market conditions actually tightened relative to July 2020, with sales accounting for a greater share of new listings compared to last year. The sellers’ market conditions sustained a double-digit annual rate of price growth.
The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home for yourself or for a related read more | login or register to post comments
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