housing market Archives

A hint on change in Canada’s ‘stress test’ rules before year’s end

Blogs / Amy / 8 October 2022 / banking regulator, Canada, Canadian banking, Canadian housing, Canadian housing market, Canadian lending industry, home prices, Homebuyers, housing market, housing season, interest rates, Mortgage brokers, mortgage insurance, mortgage practices, mortgage rates, Toronto Regional Real Estate Board

A hint on change in Canada’s ‘stress test’ rules before year’s end Mortgage brokers argue that given the slowdown in the housing market, the Canadian banking regulator should relax its “stress test” qualifying rate for mortgages and make it easier to qualify for a mortgage. This week, the Office of the Superintendent of Financial Institutions issued a statement in which it alluded to the possibility that it might make “adjustments” to its qualifying rate before the end of the year. A review of the qualifying rate is performed by the regulator and then communicated to the general public every December, in advance of the hectic spring housing season that follows the following year. This week, however, the office, which is an independent federal agency that is responsible for supervising hundreds of financial institutions and over a thousand pension plans in Canada, suggested that an announcement may be forthcoming before the end of this year. According to a statement released by the regulatory body on Thursday,“Throughout the rest of the year, OSFI continually monitors the Canadian housing market and mortgage practices, and may make adjustments at any point if necessary for the health of the Canadian lending industry.” Some people working in the real estate industry see this as a sign that the office ought to take action and, in all likelihood, will do so given the rise in interest rates that has occurred this year and the resulting decrease in home sales. The most recent statistics released by the Toronto Regional Real Estate Board indicate that the housing market in the region reached its highest point in the month of February when houses and condos sold for an average of $1.33 million. The average price in the region dropped to $1.25 million as a result of a number of factors, including the Bank of Canada’s decision to raise interest rates in April and the expectation that they will do so again soon. Despite this, prices are still 15% higher than they were at this time last year. “The market is softening, prices are coming down. They (OSFI) did the stress test to cool the market. They don’t need any cooling of the market anymore. It’s already there now,” said mortgage broker Kim Gibbons. In order to avoid having to pay for mortgage insurance, homebuyers are required by the rules to demonstrate that they are able to afford mortgage payments at an interest rate of 5.25 percent or their mortgage contract rate plus two percent, whichever is higher. Homebuyers who have made a minimum down payment of 20 percent are exempt from this requirement. They were implemented in 2016 and 2017 with the goal of reducing overall market activity and preventing buyers from feeling overly pressured by rising interest rates. According to comments made by mortgage brokers in Thursday’s edition of the Star, the current average interest rate for mortgages with fixed terms of five years ranges from 4.19 to 4.25 percent. A borrower would need to demonstrate that they are capable of paying an interest rate that is as high as 6.25 percent in order to qualify for a loan with the requirement of a two percent plus contract. Gibbons believes that this is unreasonable and that it “doesn’t make sense” given the current state of affairs. “As things stand now they have got to do something,” Gibbons added. “Clients are going to alternative sources of lenders, credit unions where you don’t have to do two percent above the contract rate to qualify. People can qualify with credit unions much easier,” she said. “The stress test takes away about 20 percent of your purchasing power. Not always, but that’s kind of the rule.”Mortgage broker True North Mortgage, headquartered in Toronto, and its chief executive officer Dan Eisner are both of the opinions that the Office of the Superintendent of Financial Institutions will step in before the end of the year. According to Eisner if the “If the current housing market continues on a downward trend in home prices, that will give a lot of headroom to OSFI to reduce the stress test rate and requirements for the contract rate plus two percent before the end of the year.” ”I wouldn’t be surprised if they just eliminate the contract rate plus a two percent portion of the stress test; it’s a bit too aggressive. It doesn’t make sense when the fixed rates are in the four percent levels,” Eisner said. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Is the Housing Market Going to Cool Down in 2022?

Blogs / Amy / 5 August 2022 / housing market, housing prices, Mortgage rate

Is the Housing Market Going to Cool Down in 2022? We’re off to a good start in 2022 with rising housing prices. Buyer demand may dwindle as interest rates rise, causing property values to fall.The amount of inventory that enters the market will also impact whether or not prices cool. Are you looking to purchase a home this year? Here’s all you need to know about real estate prices. The housing market in 2021 was scorching, and many people who had hoped to buy a home were forced to put their plans on hold when skyrocketing property prices made it impossible. This year, we’re in a similar situation, but without the benefit of historically low mortgage rates to help offset rising home prices. According to the National Association of Realtors, the median existing-home sale price in January 2022 was $350,300. This represents a 15.4 per cent increase over the previous year. It’s apparent that demand is still high because buyers are willing to pay such a premium for a home. Will this pattern continue in 2022? Is it possible that housing demand may begin to diminish in the near future? Mortgage rate hikes may deter buyers. The average 30-year mortgage rate currently stands at roughly 4.5 per cent. Given that the 30-year loan didn’t even approach 4% in 2021, it’s a frightening number, especially at a time when home values are at an all-time high. But it isn’t just that mortgage rates are rising at the moment. Borrowers should instead expect rates to rise as the year progresses. For that, we can thank the Federal Reserve. The Federal Reserve recently boosted its federal funds’ rate and intends to raise it again this year. While the Federal Reserve does not determine mortgage rates, its activities certainly have an impact on them. As a result, it’s reasonable to expect that borrowers will pay more to finance a home in the months ahead. It’s also reasonable to predict that rising mortgage rates will cause some buyer reluctance. It remains to be seen if the decline is severe enough to cause home prices to fall significantly. However, there’s a risk that prices will gradually cool throughout the course of the year. Of course, housing inventory will influence whether or not home prices fall. Right now, we’re in the midst of a typical low-supply, a high-demand scenario that favours sellers. However, if more properties come on the market this year, buyers will regain some bargaining power, causing home prices to rise in a more positive direction for purchasers. Cash offerings will continue to reign supreme Whether you’re looking to buy a home for yourself or as an investment, one thing to keep in mind is that cash is king in today’s housing market. If you can make a cash offer on a home, even if you end up mortgaging it later, you’ll have an advantage over other buyers who must rely on finance to complete the transaction. Cash offers, on the other hand, may not be as easy to get by these days. When a need for cash arises, many real estate investors turn to their stock portfolios. And, given the current state of the stock market, now is not the best moment to liquidate stocks in order to free up funds for a home purchase. However, if you can pay cash, you’ll have a better chance of beating out other buyers at a time when housing inventory is still at an all-time low. Where should you put $1,000 instantly? REITs have routinely outperformed the stock market over the last 20 years or so. With the recent announcement of our top 5 preferred REIT investments, we believe now is an excellent moment to invest. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Severe Impact on Mental Health Thanks to the Canadian Real Estate Market

Blogs / Amy / 5 August 2022 / Canadian Real Estate Market, housing market, Market News, Mental Health

Severe Impact on Mental Health Thanks to the Canadian Real Estate Market Both bank balances and mental health are being impacted by the housing market. Most recent, and also would-be new homeowners don’t really need reminding that the Canadian real estate market has shattered price records, spectacular bidding battles have become commonplace, as well as supply has tightened to unprecedented levels in the last two years. This February, the average home price in Canada broke the $800,000 barrier for the first time in human history. As per the latest stats from the Canadian Real Estate Association(CREA), homebuyers in Canada can now expect to spend $816,720 for a property, up 20.6 percent from last year. Home values in the Greater Toronto Area (GTA) rose so high that almost all young people — including those with high-paying careers — only could afford them if they had been among the fortunate few who got down payment gifts from their parents’ bank. The GTA experienced another month of double-digit price rises in February. The average cost of a property in the area has risen to a difficult-to-believe $1,334,544, up 27.7% year over year and 7.3 percent month over month. This implies that purchasing a standard detached home in the GTA would now need a down payment of $359,441. If you want to live in Toronto proper, the cost climbs to $414,798. Yikes. Former GTA residents have recently been enticed to relocate to more inexpensive pastures within the Maritimes. Nonetheless, this province-hopping tendency is really not helping locals in the property market, since newcomers drive up house rates, pricing countless individuals out. The consequences of a failing housing market, one that has been labeled a catastrophe, are having an unavoidable impact on mental health for many people. Despite the fact that the ongoing epidemic has made Canadians’ mental health more vulnerable than ever before. Homeownership, previously considered a life accomplishment in Canada, would no longer be a regular phenomenon. Indeed, one-third of Canadians under the age of 40 have given up on the idea of owning, as per RBC’s Spring Housing Poll from last year. In the year after, prices have so far only risen to record-breaking levels throughout the majority of the nation. Housing expenses are worrying consumers throughout the country, as per new RBC Annual Home Ownership Poll data. Almost half of the respondents (47%) say that thinking about purchasing or saving for a home as prices increase is stressing their relationship, while the majority (54%) are worried about having to buy a property further away from family and friends. Furthermore, 30% said they would have to and may have to live with their parents longer due to the rising cost in order to save enough money to buy a property. Despite the immense differences in time, younger people invariably compare themselves to their parents, who’ve been able to purchase homes while they were their age, when housing prices and mortgages were far more affordable. “Many young people are feeling like home-ownership is an impossible reality,” says Dr. Saunia Ahmad, Director and Clinical Psychologist at the Toronto Psychology Clinic. “The critical thing to remember is that a house is supposed to be a place where you can set your roots and have a long-term place to live. It’s not just that a real estate investment can make you money; stocks can do that too. With real estate, you have a home and there’s a psychological sense of safety in that.” House-hunting is really not exactly a peaceful procedure for individuals who really do attempt to enter the market, particularly if they are on a restricted budget. “The bidding wars have been demoralizing for people,” says Ahmad. “Think about the amount of time looking for houses, getting excited, and then not getting it.” According to Ahmad, this might have a significant impact on one’s health. Most individuals who have even considered purchasing in this rising market would surely agree. “It has been tough on some of my clients,” says Toronto-based realtor Ian Matthews. “In the past few months, the inventory has been so low that it has been very discouraging for some, with many properties selling with 10 or more offers. I think this, combined with two years of Covid lockdowns, and recent news from Ukraine has caused some people to feel like they have no control of their future in a crazy time.” Numerous Toronto houses, particularly those below $2 million, are selling with multiple offers or pre-emptive bids just one or two days after being listed, as per Matthews. He additionally mentions the recent tendency of real estate brokers offering houses at ridiculously low prices in order to garner more attention from potential purchasers. “This is causing buyers to rush to see places with hope, many of which are priced to go $500K or more over asking,” says Matthews. “When this happens week in and week out, it becomes really discouraging. I have been trying to manage expectations for clients and have been encouraging them to take time off to reset when it is needed.” Matthews claims that some of his clients are now house hunting in spurts as a result of his advice. “They’re seeing a number of properties in a few weeks and then vanishing for a period of time,” he says. “I think for a lot of buyers, it has become a bit of a rollercoaster and it can get pretty emotional, so taking breaks is often needed.” Move-up purchasers are also under pressure. However, first-time purchasers aren’t the only ones who are concerned. “I have a few clients looking to buy and then sell,” says Matthews. “They are concerned that they will buy at these prices and the market will shift, leaving them in an awkward position. Buying in this market and not being able to sell in this environment could make their purchases unaffordable. I am hoping the spring market will bring with it more inventory which will offer more stability. Though I don’t forecast prices coming

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CIBC: Housing deficiencies linked to undercounted demand

Blogs / Amy / 2 August 2022 / Canadian housing, Canadian market, Canadian Mortgage and Housing Corporation, Capital Markets, development costs, home prices, household sizes, housing affordability, housing market, housing stock, housing supply, large-scale infrastructure, supply issues, toronto

CIBC: Housing deficiencies linked to undercounted demand Even though interest rates are moving higher, some economists think that a change in rates won’t have much of an impact on the housing market until something is done to address Canada’s chronic supply issue. This is because interest rates are negatively correlated with home prices. Benjamin Tal, managing director and deputy chief economist at CIBC Capital Markets, and Katherine Judge, director, and senior economist at CIBC Capital Markets, recently collaborated on a new article for In Focus with CIBC Capital Markets in which they explained why an increase in interest rates might not necessarily help the struggling housing market. There has already been a reaction in the market as a result of increasing borrowing costs; nonetheless, this will not solve the problems associated with housing affordability. Instead, a pause in market activity may simply alleviate symptoms or “worsen the supply-demand imbalance in the market.” “Entering a more relaxed housing environment should not ease the urgency in which the chronic lack of housing supply in the Canadian market is dealt with,” said the In Focus report. “After years of fighting supply issues using demand tools, governments at all levels finally recognize that over time, the housing affordability crisis will worsen without adequate supply policies.” The question then is, what causes the problem with the supply? Both Tal and Judge pointed the finger at the faulty methodology that was used to formulate housing policy as well as the industry’s inability to satisfy provincial and federal housing goals as a part of the problem. Comparison of Canadian Housing to others Comparison of Canadian housing performance to other countries is an overly simplistic method to use when attempting to evaluate the state of the housing market in Canada. A comparison between the housing stock and the population is typically done using the database maintained by the Organization for Economic Co-operation and Development (OECD), which is used in order to present a picture of the housing supply difficulties that Canada faces on an international scale. Comparing Canada to other countries was the approach that was taken for the drafting of the federal budget for 2022. This comparison, on the other hand, is susceptible to oversimplification due to the fact that variations in household formation and demographics can cloud its conclusions. According to the economists working with CIBC, “Furthermore, taking housing stock as a share of the population doesn’t account for differences in demographics or cultural preferences that shape household sizes or formation rates.” “Nor does it account for the different propensity to rent, as countries with higher shares of renters generally have more abundant housing supply.” the report states. Even when the housing market in Canada is compared to that in the United States, the results may not be realistic. According to Judge and Tal, both countries have housing stock that is comparable when measured against the norms of the OECD. However, this does not explain why property prices in Canada have increased at a rate that is twice as fast as those in the United States during the previous 20 years. According to the reports, “These shortcomings of international comparisons suggest that it’s more informative to look at Canada’s housing market in isolation to determine what’s behind the market’s imbalance” Inadequate picture of demands due to undercounting of households Tal and Judge highlighted that household formation is the most important element to evaluate when it comes to estimating the demand for housing; yet, the statistics that they provide are typically not correct. The Canadian Mortgage and Housing Corporation (CMHC) collects data on household formation by converting population growth into the number of households using the quality of households formed from a given number of individuals and then translating that number back into population growth. On the other hand, some information is being lost in the translation, which is leading to a “gross underestimate of the real number of households in Canada, and thus demand for housing.” “And if demand is undercounted, then of course the supply released by municipalities to meet that demand will be inadequate,” explained the report. For instance, the Demographic Division of Statistics Canada counts all individuals whose non-permanent residence visas have expired and who are still in the nation as having departed the country 30 days after their visas have expired. Nevertheless, during the epidemic, non-permanent residents who had expired visas were allowed to stay in the country through extensions. This means that those people are not included in any official figures, despite the fact that they still require housing. In a different example, Tal and Judge said that the estimates done by CMHC assume the same headship rate for new immigrants, non-permanent residents, and long-term residents. According to Tal and Judge’s estimation, the existing need for housing is undercounted by 500,000 households. Limitations imposed on the industry to meet the demands of housing The issue of housing supply in Canada “is serious and needs action” as implied by the undercounting of the demand for homes. Tal and Judge emphasized that although there is no shortage of ideas to generate housing, not enough attention is being paid to the reality that the industry’s means to meet higher housing targets is limited. The rise in the typical amount of time needed to finish a building project is one facet of the problem. “It takes twice as long to complete both low-rise and high-rise units today than it did two decades ago. And a lack of labour supply is a major cause of those delays,” said the report. “While large developers are usually able to secure their own labour pool, that’s not the case for mid-sized and small operators that account for 30 to 40 percent of activity.” Competition for labourers has intensified as a result of large-scale infrastructure projects, an issue that has become even more difficult as a result of shortages imposed by COVID-19. The construction industry did not return to its pre-pandemic employment levels until January 2022. This was a

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April witnessed a fall in home sales as mortgage rates increase

Blogs / Amy / 2 August 2022 / bank of canada, benchmark price, Canadian housing, Canadian Real Estate Association, fixed rates, Greater Toronto, home price, home price index, home sales, Homebuyers, housing market, interest rates, mortgage rates, mortgage stress test, single-detached homes, townhomes, Vancouver

April witnessed a fall in home sales as mortgage rates increase The Canadian Real Estate Association reported on Monday that rising mortgage rates caused a slowdown in the pace of home sales in April compared to the frenetic pace they started the year at. According to the findings of the association, the number of homes sold in May 2022 fell to 54,894 from 73,907 in April 2021, which was the month that the nation set a record for the number of sales in the month. Compared month-over-month, sales in April were down 12.6% when compared with sales in March; however, April still ranked as the third-highest sales figure ever recorded for the month of April, just behind 2021 and 2016. “The demand fever in Canadian housing has broken and, who would have thought, all it took was a nudge in interest rates by the Bank of Canada to change sentiment,” said BMO Capital Markets senior analyst Robert Kavcic, in a note to investors. According to CREA, a significant portion of the slowdown can be attributed to rising fixed mortgage rates, which have been on the rise since 2021 but have had a more significant impact in the most recent months. Over the course of one month, the association noted that the typical discounted five-year fixed rates increased by approximately three to four percent from their previous levels. The rate also has an impact on how well buyers perform on the mortgage stress test. This test used to require buyers with uninsured mortgages — borrowers who had made a down payment of at least 20 percent — to carry a mortgage rate that was either two percentage points above the contract rate or 5.25 percent, whichever was greater. The rate currently has an impact on how well buyers perform on this test. According to CREA, the stress test for fixed borrowers has recently moved from 5.25 percent to the low 6 percent range, which represents another increase of approximately one percent in just one month. “People are nervous. They are thinking, ‘if I take on this mortgage when mortgage rates are going up and the price to (live) is more, what is going to happen?” said Anita Springate-Renaud, a Toronto broker with Engel & Völkers. She observed that many homes were still receiving multiple offers during the previous month, but the typical number of offers was now between two and three rather than twenty. “For buyers, this slowdown could mean more time to consider options in the market,” said Jill Oudil, CREA’s chair, in a news release. It is possible that for sellers, this will necessitate a return to marketing strategies that are more traditional. This shift in sentiment was reflected in the number of newly listed homes, which fell by 2.2 percent to 70,957 last month from 72,557 in March. On a seasonally adjusted basis, this decrease was due to a decrease in the number of newly listed homes. The number of newly listed properties fell to 91,559 in the most recent month, which is a decrease of 10.5% compared to April 2022’s total of 102,294 listings. Despite the fact that the CREA reported a slowdown in sales and a reduction in the number of listings, Canadians spent even more money on homes than they did in 2021. In April, the average price of a home across the nation was just over $746,000. This represents a 7.4 percent increase from the average price of about $695,000 in April of the previous year. The Greater Toronto and Vancouver areas were not included in this calculation, which resulted in a $138,000 decrease in the national average price, according to CREA. On the other hand, when taking into account seasonal factors, the national average home price dropped by 3.8 percent from $771,125 in March to $741,517 in the most recent month. In the most recent month, the home price index benchmark price reached $866,700. This represents a decrease of 0.6% from the previous month, but an increase of 23.76% from one year ago and 63.96% from five years ago. The benchmark price was the least expensive in Saskatchewan, where it amounted to $271,100, and it was the most expensive in the Lower Mainland of British Columbia, where it was greater than $1.3 million. The housing markets in Ontario’s suburbs are the “shakiest” because of the way prices have dropped since their peaks in February, but he said that single-detached homes and townhomes appear to be cooling off the quickest. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Suburbs lead Canada’s housing boom as downtown falls behind.

Blogs / Amy / 1 August 2022 / Canada, Canadian bank, downtown districts, housing market, housing prices, housing supply, Market News, mortgage rates, suburban properties, suburbs, urban regions

Suburbs lead Canada’s housing boom as downtown falls behind. Canada’s suburbs had an increase in home values that outpaced downtown areas during the pandemic, according to a new study. Many downtown businesses closing and people’s desire for greater living space are driving the rising demand for suburban properties, according to research released on Monday by the Bank of Canada. Proximity premiums associated with metropolitan regions, where land is limited and commutes are shorter, have been undercut by this shift in the housing market, according to the central bank. In most neighbourhoods, housing prices rose significantly during the epidemic, but the gain was particularly pronounced in the suburbs, according to the data. Canada’s suburbs and downtown districts had already been decreasing progressively pre-pandemic, but now the distance has shrunk significantly, the bank says. As an example, research by a major Canadian bank found that, on average, suburban residences sold for 33% less than those in the city centre in 2016. By 2019, the price difference had shrunk by 26%. In 2021, if the current trend continues, properties in the suburbs will sell for around 21% less than those in urban regions. According to a report from the bank, the difference in price between the suburbs and downtown districts has narrowed by around 10% in the past year. There has also been an increase in businesses reopening or transitioning to a combined working environment, wherein the staff is only required in the office part of the week. There have also been reopenings of services and amenities that had been closed during the pandemic like salons, gyms, and restaurants. Workplace changes and the reinstatement of downtown offices and businesses may have an impact on the housing market once again. Mortgage rates could be affected in suburbs because of the shift toward larger residences outside the city centre, according to the bank. According to the report, “if this preference shift is transient, the proximity premium could return partly to its pre-pandemic level,” the bank stated. In anticipation of rising local demand, a significant change in housing supply in more suburban locations could be particularly troublesome. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Low-interest rates are causing housing affordability problems for 80% of Canadians, according to a survey

Blogs / Amy / 31 July 2022 / home affordability, housing market, low interest rates, Market News, mortgage rates

Low-interest rates are causing housing affordability problems for 80% of Canadians, according to a survey During the outbreak of the pandemic, the Bank of Canada dropped its Overnight Lending Rate — which consumer banks use to determine their mortgage and line of credit rates — to a record low of 0.25 per cent to position the country for a strong economic recovery following COVID-19. According to a new report, low-interest rates, combined with Canadians’ desire for more space during lockdowns and stay-at-home orders, fueled housing demand, driving prices upward throughout 2020-21. National sales activity increased by 235 per cent between April of last year and March of this year, pushing the average home price up by 44 per cent. According to the results of the study, Canadians are increasingly dissatisfied with the notion that today’s cheap cost of borrowing makes it simpler to purchase a home. However, while 47 per cent of respondents agree that low mortgage rates have benefited home buyers’ affordability (a little reduction from February), 34.4 per cent of respondents disagreed with that assertion, representing a 12.1per cent increase from the previous month. Canadians, on the other hand, are unanimous in their belief that low mortgage interest rates are driving up the price of homes. 80.5 per cent of those polled said they agreed with that assertion (up 32.8 per cent). At the same time, 38.1 per cent of those who answered the survey believe that low mortgage rates have influenced their willingness to purchase a home. Canadians are increasingly concerned about affordability, with a significant majority of 77.2 per cent of respondents saying that property prices in suburban areas and smaller towns have climbed to “unsustainable levels.” This is a 25.4 per cent increase from when the issue was first posted in February. When asked what their primary concerns were when purchasing a home, respondents stated that affordability (78.2 per cent), participating in a bidding battle (70.3 per cent), and timing the market (51.9%) are the most important considerations. In addition, given that the national average home price reached $662,000 in July, an increase of 15.6 per cent year on year, potential buyers will need to have increasingly higher income levels to be competitive in the marketplace. According to the study, of those who indicated they are interested in purchasing a home (56 per cent), 50 per cent now have a family income of more than $100,000 per year. Twenty per cent of those surveyed earn more than $160,000 per year, with the remaining 32 per cent earning less than $100,000 per year. As the economy continues to reopen and firms announce their post-lockdown strategies, 7.1 per cent fewer respondents said they would continue to work from home following the end of COVID-19, bringing the total number of respondents who said they would continue to work from home to 29.7 per cent. An additional 24.2 per cent stated that they have a hybrid working arrangement, representing a 6.4 per cent rise over the previous year. Meanwhile, the number of respondents who are currently working solely from their workspace has stayed steady since the February survey results were released. However, even though many Canadians continue to work from home, homes with office space continue to be in great demand – albeit at a somewhat lower rate than it was in January. Following this, a total of 43 per cent of respondents reported that office space had become a more desired housing attribute, representing a decline of 15.9 per cent from the previous year. On the other side, 65.8 per cent of respondents indicated outdoor space is still at the top of their home-buying wish lists – however, this represents a 10.5 per cent decrease from the previous month. In light of the next federal election, which is less than a month away, and the pressing issue of home affordability, it will be interesting to observe how Canadians feel about the housing market in the months to come. Image Source: updater.com Related posts. Low-interest rates are causing housing affordability problems for 80% of Canadians, according to a survey by admin123 More vital than ever are residences with a backyard and an office by admin123 The rise in resale condo prices in the GTA isn’t what you’d anticipate by admin123 Condos in other parts of Toronto are more valuable by admin123 The rise in Demand calls for an increment in the average rent by 5% in Toronto by admin123 Five Ontario Cities that will Surprise you with their Low Property Tax Rates by admin123

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