Canadian housing prices are being discussed at length by people across Canada. Residents of Toronto in particular are concerned about climbing prices and the viability of home ownership today and in the future. These concerns are not unfounded but, thankfully, there are still some affordable condo projects in Toronto. While the overall market looks to be due for a correction, you can always find suitable accommodations and living arrangements that can go beyond expectations for a comfortable home.
Indicators of the Level of Canadian Housing Prices
Are you wondering if all the talk and contemplation is justified? Here are a few factors that can help indicate whether or not it is right to believe that the cost of housing is currently excessive:
- Double the Price in a Decade: In a typical housing market, prices increase in relation to inflation. That gradual increase can be expected, but Canada’s housing market has doubled in the past 10 years. Costs are rising out of line with economic growth and increasing faster than they have in the past 60 years.
- Income: Average family income figures are used to gauge the current status of house prices. For the past four decades, the ratio has been fairly stable at 3.5 times the average income. This ratio has jumped significantly in 5 years, though, and is now sitting at approximately 5.5 times. That steep increase certainly points toward a ‘high’ price scale for homes, but also reflects what a worthwhile investment real estate has become.
- Rent: Another indicator of housing prices is a comparison with current rental rates. If the same property were rented, how much income would be brought in? Using this method, it has been shown that Canadian housing prices have increased in just 5 years by 20 percent.
- Mortgage Changes: While mortgage changes are being put in place to mitigate the continued growth of Toronto real estate, analysts estimate that it will have the biggest impact on properties that fall within the lower end of the price range. Condo projects within $250,000 to $350,000 will face the biggest change, but these effects are still predicted to be mild.
The verdict? There is not a whole lot to worry about when it comes to buying. While some predict major fluctuations, many real estate experts foresee little change. Shortage of rental spaces, appropriate units, and condos for sale in Toronto mean that buyers will not notice a huge impact. While expectations and financial plans may need to be altered to account for minor adjustments and a slight dip, first-time buyers can still expect a valuable return on investment.
If you are looking for a luxury condo project in Toronto that combines elegance, convenience, space, and location, look no further than The Davies. This luxury living over the park project provides access to green space and amenities for an affordable price, all within walking distance of Yorkville, great schools, shopping, and more.
Contact The Davies at 647-360-9588 to book an appointment or Register online to request information. Check out our beautiful Condos for Sale in downtown Toronto and contact our team to discuss your goals and learn more.