Housing Market Pricing Customers Out of Home Ownership
Published: April 26, 2016
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Industry News
The housing market in Ontario (and indeed across Canada) is thriving and growing, contributing to an economy push. The problem with a booming house market is that prices tend to mean many people cannot purchase a home, especially those entering the market for the first time.
So, with a great many Canadians economically unable to enter the housing market, when can the situation expect to be different? According to the Huffington Post, it may never get better.
The media outlet offers gloomy projections for the housing market in 10 years’ time, and the average cost of a family home in Toronto and other major cities will be prohibitive to many. In Toronto, Canada’s largest and most populated city, the average price of a home could soar to between $2.26 million and $3.582 million, food for thought for all those who think the current $1 million average is dizzying.
So should alarm bells be ringing for would-be homeowners? At some point yes, but it is always worth noting that predicting the housing market long term is a thankless task. In other words, it is unlikely the market will progress as the Huffington Post predicts, but the growth in Canada’s population centers suggests demand will only increase and prices will soar.
The Bank of Canada is left doing a balancing act of not raising rates in case the economy collapses under the weight of the housing market. The offshoot of this is that consumers are unable to borrow enough money to get onto the ladder, and that situation is also unlikely to change.
The average price of a home in Canada has now risen to over $500,000. Yes, not everywhere is as expensive as Toronto or other cities, but the fact remains that getting a home anywhere in the country is impossible for the majority of Canada's citizens.