Jeanette Grant

MARKET UPDATE FOR THE WEEK ENDING MARCH 19TH, 2021

22 March 2021
Jeanette Grant

MARKET UPDATE FOR THE WEEK ENDING MARCH 19TH, 2021

Toronto has been ranked among the five most expensive cities for real estate in the entire world. A new report which looks at average income versus housing prices, found that housing affordability worldwide continued to deteriorate throughout the pandemic. Toronto scored 9.9, compared to the worst offender, Hong Kong, which scored 20.7, Vancouver was ranked second at 13.0, followed by Sydney 11.8, Auckland at 10.0 and San Francisco at 9.6. Other stats have shown you now need to have an annual income of at least $178,499 to afford to enter the Toronto market, with the average price for a detached home in the city now more than $1.5 million.

Thanks to low interest rates and a desire to have more space during pandemic lockdowns, the housing market has followed up a decade of steady gains. The term bubble is starting to be used in connection with real estate. The effect of rising prices on affordability is a worry among some who feel they will never be able to afford a house.

Older generations, especially those who bought homes during the high-interest-rate era of the early 1980’s experienced affordability problems of their own. Imagine paying over 18% interest on a 30-year fixed mortgage? Affordability dropped to an all-time low and priced most Canadians out of the market. So why are current buyers unwilling to equate the challenges of previous generations to the current situation?

While some economists are warning the Toronto housing market could be approaching a bubble, others are stopping short of using that term. What’s different now? Economists believe the "fundamentals" of the Toronto market -the economy, interest rates, population growth and the sources of demand for housing are far more solid than they were in the late 1980s.

Bosley Real Estate Ltd. is a full-service boutique brokerage operating in Toronto, Muskoka, Niagara-on-the-Lake, Port Hope and Cambridge, Ontario since 1928. We have three centrally located offices in Toronto and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.

HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:

No cooling in sight for sizzling home market, says real estate association
“Average Canadian home price expected to rise more than 16% in 2021.”



Average Canadian home price expected to rise more than 16% in 2021
 
The real estate market will keep heating up this year, with the average price of a Canadian home expected to rise by more than 16%.
 


One COVID-Year Later: Everything That’s Happened in the GTA Single-Family Home Sector
“It’s been a wild ride for the single-family home real estate market in the Greater Toronto Area (GTA) in the year since “social distancing” became a common term in our collective vocabularies.”

Bosley's Market Insight For The First Week Of May 2018 - Urbaneer - Toronto  Real Estate, Blog, Condos, Homes

New forecast says a record-shattering 700,000 homes will sell across Canada in 2021
Canada’s housing market was so hot in February that it forced the Canadian Real Estate Association (CREA) to revise its national home sales forecast for 2021 significantly higher.”



Records Broken Yet Again in Muskoka’s February Real Estate Scene
“While February was frigid in northern Ontario, the Muskoka region real estate market was — yet again — on fire.”