Toronto Condo buyer needs $100,000 in income to buy a Condo in 2019
Condo rents up 10.7 per cent as fewer buy homes
One-third of would-be buyers have exited the market
Some relief ahead for homebuyers, Urbanation predicts
The income needed to qualify for a mortgage (mortgage qualifying) on an average Greater Toronto Area condo has soared by nearly a third over 2017, according to a new report, and it’s due to both rising prices and tougher new mortgage rules.
Homebuyers needed an income of at least $100,000 to qualify for a mortgage on an average-priced condo in the first quarter of this year, according to numbers released Wednesday by real estate consultancy Urbanation.
As recently in 2017, that figure was just $77,000, Urbanation noted, and two years ago, it was $64,000.
The new federal mortgage rules — which require buyers to qualify for a mortgage rate at a higher interest rate than the one being offered by the lender — also played a role, Urbanation said.
Without the new mortgage rules, qualifying income for a mortgage would have been $86,000, the report said.
Evidence is mounting that a great deal of would-be homebuyers have been priced out of the market. A study from realtor Re/Max, released this week, found one in three prospective buyers has simply given up on buying a home in the wake of new mortgage rules and higher prices, while another four in 10 have scaled back their home-buying ambitions.
That’s having an impact on the housing market. The Toronto Real Estate Board reported that condo sales in the region were down 32.7 per cent in March, compared to a year earlier — though prices were still up by 6.1 per cent year over year.
But Urbanation senior vice president Shaun Hildebrand says homebuyers can expect at least some relief in the years to come.
“Close to 60,000 condos are under construction right now, and another 40,000 are pre-sold and awaiting construction,” Hildebrand told HuffPost Canada. “So I would anticipate that supply is going to be better than what it is right now, and that will have a dampening effect on price growth over the next few years.”
Condo rental prices soar 10.7%
With a growing number of would-be buyers priced out of the market and staying put in rental housing, pressure is growing on the rental market, Urbanation’s data shows.
Average monthly condo rents jumped 10.7 per cent over the past year, to $2,206 for a typical 740-square-foot condo, the report found. (The numbers don’t include the city’s rental apartment stock, which is overall less expensive than the rental condo market.)
There’s relief coming for tenants in the rental market as well, Urbanation says, albeit at a slower pace. It notes that the number of rental units under construction rose to a 25-year high of 7,937 in the fourth quarter of 2017, up from 5,832 units in the same period a year earlier.
Source: HuffPost Canada
Thinking to sell your house or Condo in Central Toronto areas and/or in downtown Toronto areas? Please call, text or email Max Seal, Broker at 647-294-1177. Please visit http://www.TorontoHomesMax.com for a FREE Home Evaluation“.
Thinking to buy a House or Condo in Central Toronto areas and/or in Downtown Toronto areas? please call or text Max Seal, Broker at 647-294-1177 to buy your dream home or Condo. I offer you a 30-min “FREE buyer’s consultation” with NO obligation.
Please visit my website http://www.centraltorontorealestate.com/ to find out available homes and Condos for sale in Central Toronto areas and/or in downtown Toronto areas.
This Toronto housing market may be a better time for “Move-up”, “Move-down” or “Empty-nester” Sellers and Buyers. Want a “Market Update” of your home in 2018? Please click the image below or call or text Max Seal, Broker at 647-294-1177 or send an email.
Easy Related Posts
Condo mortgage rates increasing despite bank rate moved down to 0.25%
Condo mortgage rates increasing despite bank rate moved down to 0.25% “The соѕtѕ оf fundѕ for ...read more
Apartment Condos now cost more per square foot than a detached home
Apartment Condos now cost more per square foot than a detached home Cаnаdіаn соndоmіnіumѕ mау bе ...read more
GTA Condo Construction Reaches Record High in Q1
GTA Condo Construction Reaches Record High in Q1 Urbanation Inc., the leading source of information and ...read more
Toronto Buyers Are Buying Up Condos In All GTA Areas But Not In The 416 Area
© Jorge Vasconez Toronto Buyers Are Buying Up Condos In All GTA Areas But Not In ...read more
Downtown Toronto Condos for Sale week March 31, 2019
Downtown Toronto Condos for Sale week March 31, 2019 For Buyers, Downtown Toronto Condos for Sale, ...read more
New Rent control rules may bring back sky-high rent increases for Toronto condo tenants
New Rent control rules may bring back sky-high rent increases for Toronto condo tenants With new ...read more