Money You Now Need $100,000 In Income To Buy A Typical Condo In Toronto

11:30  13 april  2018
11:30  13 april  2018 Source:   huffingtonpost.ca

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Condo towers near Toronto 's downtown core. The income needed to qualify for a mortgage on an average-priced condo in Toronto has now reached $ 100 , 000 , according to Urbanation. Condo rents up 10.7 per cent as fewer buy homes.

First-time homebuyers now need a six-figure income to get a foothold in Toronto ’s heated condominium market, a new analysis shows. And those being priced out of home ownership are leasing apartments instead — driving up already soaring rents in the city, according to Urbanation

a view of a city: Condo towers near Toronto's downtown core. The income needed to qualify for a mortgage on an average-priced condo in Toronto has now reached $100,000, according to Urbanation.© Provided by AOL Inc. Condo towers near Toronto's downtown core. The income needed to qualify for a mortgage on an average-priced condo in Toronto has now reached $100,000, according to Urbanation.

If this keeps up, home ownership in Toronto could soon be solely for the wealthy.

The income needed to qualify for a mortgage on an average Greater Toronto Area condo has soared by nearly a third over the past year, 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.

Toronto homes sales, prices slump in March

  Toronto homes sales, prices slump in March Toronto homes sales sagged in March, tumbling 39.5 percent from the previous year, as tighter mortgage rules and higher borrowing costs dampened demand, data showed on Wednesday. Sales of detached homes plunged 46.3 percent and condo sales dropped 32.7 percent, as many would-be buyers put their plans on hold, the Toronto Real Estate Board (TREB) said.The average selling price in the Toronto area was C$784,558 ($613,799), down 14.3 percent from C$915,126 in March 2017, though up 2.1 percent from February 2018.The average selling price for a detached home, the most expensive segment of the market, plunged 17.

You Now Need $ 100 , 000 In Income To Buy A Typical Toronto Condo . Toronto condo renters are facing sticker shock amid a supply crunch as new mortgage rules have been pushing more prospective homebuyers into the condo market.

You Now Need $ 100 , 000 In Income To Buy A Typical Toronto Condo . Congressional Candidate In Virginia Admits He’s A Pedophile. Trudeau Had 'No Choice' But To Buy Trans Mountain Pipeline: Chretien.

As recently as a year ago, that figure was just $77,000, Urbanation noted, and two years ago, it was $64,000.

a screenshot of a cell phone© Provided by AOL Inc.

The new federal mortgage rules — which require buyers to qualify for a mortgage 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.

Lower Mainland condo prices soar but there are signs of softness at the top end

  Lower Mainland condo prices soar but there are signs of softness at the top end Lower Mainland condo prices soar but there are signs of softness at the top endPrices for condos are on a tear across the Lower Mainland but there are signs of an emerging peak at the top end of the market.

So in essence, it means we now have to take to heart an old adage that has been long forgotten in Toronto 's real estate market: Buyer beware. You Now Need $ 100 , 000 In Income To Buy A Typical Condo In Toronto .

The income needed to qualify for a mortgage on an average Greater Toronto Area condo has soared by A Week In Buffalo, NY, On A Joint 1, 000 Salary. buy a couple and save them for splurge nights in the tub! I get three and it sets me back

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.

This article originally appeared on AMP: HuffPost Canada at https://www.huffingtonpost.ca/2018/04/11/you-now-need-100-000-in-income-to-buy-a-typical-condo-in-toronto_a_23408796/

Here’s the income you need to pass the mortgage stress test across Canada .
What's the bare minimum that will allow you to buy an average-priced home? We did the math.The latest set of federal mortgage rules has been blowing a cool wind over almost every Canadian real estate market. With the exception of Ottawa, Montreal and a few others, home prices have slowed down or dipped, sometimes upsetting the calculations of homeowners counting on windfall sales. The average price of a home in Canada stands at $491,000, down 10 per cent from March of last year, according to the Canadian Real Estate Association (CREA).

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