Around four in five Canadians in Toronto perceive the city to be in a housing bubble, according to the latest study by Zillow and Ipsos.
Eighty percent of Canadians living in Toronto think the city has inflated housing prices and is at risk for a correction. Due to this reason, 77% of buyers doubt their ability to own a home.
Canadians in Toronto cited several barriers to homeownership, the biggest of which is coming up with a down payment. Other challenges include high mortgage repayments, home-loan qualifications, debt, and lack of job security.
Despite these challenges, the majority of Canadians in Toronto still believe homeownership is a good investment. In fact, the proportion of city residents who still think homeownership as a viable investment rose from 79% in 2018 to 83%.
Toronto’s house prices are expected to remain on an uptrend due to a supply crunch. According to the Toronto Regional Real Estate Board (TRREB), the average selling price in Toronto is forecast to increase by 10% to $900,000 this year.
“The end result will be an acceleration in price growth over the next year, as an increasing number of homebuyers compete for a pool of listings that could be the same size or smaller than in 2019,” TRREB said.
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Written by Canadian Real Estate Wealth.
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Canadian Real Estate Wealth