Industry experts will tell you we’re in the midst of the housing market ‘correction’ that has been foreseen for some time now, but they will also tell you that no matter how much the market corrects real estate is still going to be by and large unaffordable for a lot of people. This will be especially true for popular metro areas in and around Toronto and Vancouver especially. Many seniors today were lucky to be able buy their first home with a very reasonable mortgage, but the high prices attached to residential real estate today don’t allow for that.
Remax Canada’s 2022 Housing Affordability Report was put out on Wednesday of last week. Among findings were survey results that ever greater numbers of Canadians would now be more open to relocating to a different city or town. Of the 1,500 or so respondents, most said they would make the move if they felt they needed to buy a home, but many also said they would continue to rent until they were able to buy a home. That of course comes with their having concerns about rising rental rates in these same densely-populated metro areas.
This potential trend of more people considering living where housing is more affordable can have benefits of course, and looking at it from the angle of working as real estate agent working in these locations it can be a potential uptick in business as well as in the values of homes there for locals who might consider putting their home on the market or downsizing into a smaller home for retirement. Here at Real Estate leads our online real estate lead generation system is excellent for being first in-touch with potential clients, and that may be even more true now for mid-sized cities in Canada.
Back to topic, the Report also found that respondents might consider co-owning with friends or family or renting part of their home for additional income.
For some people work or study doesn’t allow them to have the choice of moving out of the big city, and that’s fair enough. But for those who can it’s increasingly a smart choice. But for most they would prefer to not move too far. 64% of respondents would be willing to relocate to find a more affordable home, but 50% would not go further than 100km from where they currently live. About 40% said that moving to different city or province would also be an option.
This report also indicates Canadians are also weight buying a new home amid rising interest rates, which may cool record-high inflation but are resulting in increased mortgage rates. 68% replied saying they won’t be able to afford to buy a home where they’d like to live over the next 6 months, and 63% said higher interest rates may have them delaying their purchases.
There are economists who believe Canada may be entering a recession, and 57% of those same survey respondents said they are going to hold off on purchasing a new home or sell their existing one until stabilization returns to the economy.
Most Affordable Spots
Currently Brandon is the most affordable housing market in the country and coming in with a $310,252 average sale price for 2022. The remainder of the top 5 are Regina, St. Johns, Moncton and Red Deer. As for the most expensive, you can almost surely guess. The average price in Vancouver is $1.31 million and for Toronto it is $1.257 million. This comes following the Royal LePage House Price Survey last week has a new national market forecast for 2022 with projected growth now at 5% rather than 15%.
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