Buyers and sellers continue to face a slippery slope as the housing market flourishes and demand increases.
An average family earning $183,594 per year would need to save up 25 years to save for a down payment on a million-dollar home, reveals a recent National Bank report. A detached home in April sold for an average price of $1.7 million, which means that the listing price for that Little Italy bungalow is quite reasonable.
However, recent discoveries has us understanding the source of despair which comes from the affordability crisis in Toronto. Toronto real estate is allegedly only affordable for former owners who gained significant equity in their properties during the price boom.
Tim Hudak, CEO of the Ontario Real Estate Association, published a statement on May 12 suggesting that the provincial government is working to allow open auction processes instead of blind bidding. Despite this, he opposed forcing sellers, who generally favor blind bidding, to do so.
He goes on to say: “All levels of government need to work together and make it easier for first-time buyers to own a home, through increasing housing supply, eliminating unnecessary government red tape, addressing affordability and giving both buyers and sellers a choice in how they engage in the offer process.”
A recent report from Oxford Economics found that real estate in Toronto, Vancouver, and Hamilton is less affordable than in New York or Los Angeles.
Housing in Toronto and the GTA should cater to the needs of every resident. Housing demand is real, and it continues to spike. Despite this, the statement presented in this blog post represents a voice of worry and cry for those who are still struggling to afford their first home.
What are your thoughts?