Statistics released by Ratehub.ca on April 17 reveal that more income is required to purchase a home in cities such as Toronto and Vancouver as of March 2023, compared to the same time last year. Ratehub.ca co-CEO James Laird says buying a home has become more expensive year-over-year due to rising mortgage and stress test rates.
“Even though home values are down in nine out of 10 cities we looked at, affordability has actually gotten worse because rates have increased so much that Canadians now qualify for less compared to a year ago,” Ratehub.ca co-CEO James Laird said in a press release.
While average mortgage rates in Canada have begun to creep downward, they remain higher than they were a year ago.
Based on MLS home price index benchmark prices released by the Canadian Real Estate Association on April 14, the average price of a home in the Greater Toronto Area, for example, was $1,118,500 in March 2023, compared to $1,335,000 in March 2022. Despite this drop, the minimum annual income required to buy an average home in the city has increased by $6,250 within the same amount of time, due to a rise in average mortgage rates.
The additional required income is calculated using a mortgage rate of 5.54 per cent in March 2023 and 3.14 per cent in March 2022. These figures represent an average of five-year fixed-rate mortgages offered by Canada’s five largest banks at the time, according to Ratehub.ca. They also take into account stress-test requirements that must be met before obtaining a mortgage.
The data is also based on a mortgage with a 20-per-cent down payment and amortization period of 25 years. Additionally, $4,000 in annual property taxes and a monthly heating bill of $150 are included in the final calculations.
Data compiled by Ratehub.ca shows homebuyers must make between $5,650 and $21,360 more per year to purchase a home in major Canadian cities in March 2023, compared to March 2022.
Residents of Vancouver are seeing the largest change in income required to purchase a home, while Hamilton was the only city in the report to see a drop in the minimum annual income required to purchase an average home year-over-year. As of March 2023, $165,940 was needed to buy a home in Hamilton. Exactly one year prior, an annual income of $170,400 was required to purchase a home.
According to Laird, a limited supply of new listings, combined with strong demand from homebuyers, means housing affordability is unlikely to improve in the months to come.
CTVNews.ca has compiled a list of homes currently on the market in major Canadian cities, as well as the minimum annual income needed to purchase a home in these areas.
VANCOUVER
(ONIKON Creative / Pouria Sadeghi, eXp Realty)
Type: Apartment
Price: $1,099,000
Year Built: 1993
Property Size: 88.56 sq. m
Lot Size: N/A
Minimum annual income required (as of March 2023): $221,580
This renovated penthouse is situated in Vancouver’s Yaletown neighbourhood and offers panoramic views of the city. The open-concept floor plan includes a kitchen with an oversized island, wood cabinets and stainless steel appliances. The apartment building is located near stores, restaurants and public transit, offering quick access to the downtown core.
VICTORIA
(Matt Lawson, All In One Real Estate Photography / Veronica Crha, Re/Max Camosun – Oak Bay)
Type: Apartment
Price: $875,000
Year Built: 2006
Property Size: 127.56 sq. m
Lot Size: N/A
Minimum annual income required: $168,750
On the main floor of this Victoria penthouse is a combined kitchen, dining and living area with three large picture windows. Also on the main level is a bedroom and four-piece bathroom. An additional bedroom and bathroom are located on the upper level and at the top of the unit is a rooftop deck.
Recently renovated to include a suite on the lower level, this Calgary bungalow has a total of five bedrooms and two bathrooms. On the lot is a fully fenced backyard with a concrete patio and a separate two-car garage. The house is situated near schools and playgrounds, and remains a short drive away from downtown Calgary.
EDMONTON
(Square Feet Photography / Wendy Hamel, Re/Max River City)
Type: House
Price: $399,900
Year Built: 2020
Property Size: 150.66 sq. m
Lot Size: 222.12 sq. m
Minimum annual income required: $81,950
Built in 2020, this two-storey home in Edmonton has three bedrooms and three bathrooms across more than 150 square metres of space. Recent upgrades include new quartz countertops and vinyl plank flooring throughout. The main level offers access to the garage, and on the upper level, the primary bedroom leads to a five-piece bathroom with two sinks and a soaker tub.
WINNIPEG
(Eric Curt Peters, UnReel Creative / Jesse Carlson, Royal LePage Prime Real Estate)
Type: House
Price: $349,900
Year Built: 1911
Property Size: 104.05 sq. m
Lot Size: 457.18 sq. m
Minimum annual income required: $75,650
In addition to three bedrooms and two bathrooms, this Winnipeg home also includes a kitchen as well as dining, living and family rooms on the main level. In the finished basement is space for a recreation room or home office. Outside the home, the backyard is fully fenced and a detached garage has room for two cars.
TORONTO
(Hagop Anjrkouchian, Koush Media / Russell Willer, Willer Real Estate Group, Royal LePage Signature Realty)
Type: Apartment
Price: $1,100,000
Year Built: 2018
Property Size: 71.91 sq. m
Lot Size: N/A
Minimum annual income required: $217,000
Located in Toronto’s Annex neighbourhood, this one-bedroom, one-bathroom apartment also features a den that can double as a home office. Hardwood floors run throughout the unit, which also features a balcony with access from the living room and bedroom. Building amenities include rooftop gardens and the unit is situated near parks, schools and public transit.
OTTAWA
(InsideOut Media / Irina Popova, The Agency Ottawa)
Type: Apartment
Price: $699,900
Year Built: 2012
Property Size: 92.9 sq. m
Lot Size: N/A
Minimum annual income required: $127,350
This two-bedroom, two-bathroom corner unit is approximately 93 square metres and located southeast of Ottawa’s downtown core. Attached to the main bedroom is a walk-in closet with custom built-ins, while the main bathroom has a walk-in glass shower. Building amenities include a fitness centre and courtyard.
HAMILTON
(Will Stewart / Paulo Ribeiro, Re/Max Real Estate Centre)
Type: House
Price: $899,999
Year Built: 1935
Property Size: 161.37 sq. m
Lot Size: under 0.2 hectares
Minimum annual income required: $165,940
Originally built in 1935, this single-detached home in Hamilton has since been updated with a new kitchen, staircases and flooring. Three bedrooms and three bathrooms are situated across more than 160 square metres of space. In the basement is space for a recreation room and in the backyard is a concrete patio overlooking Hamilton Harbour and Pier 4 Park.
This corner apartment in Montreal includes two bedrooms and two bathrooms. Large floor-to-ceiling windows run throughout the unit, allowing sunlight into the combined living, dining and kitchen area, as well as the main bedroom. Located near the Old Port, this apartment unit is also situated near restaurants, shops, and other amenities.
In this 96-square-metre apartment unit are two bedrooms and two bathrooms. Throughout most of the unit are new vinyl floors, and the kitchen has been upgraded to include new tile flooring, cabinetry and quartz countertops. The apartment overlooks Nova Scotia’s Long Lake Provincial Park and is a short drive away from downtown Halifax.
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
(ONIKON Creative / Pouria Sadeghi, eXp Realty)
(Matt Lawson, All In One Real Estate Photography / Veronica Crha, Re/Max Camosun – Oak Bay)
(Dylan Hunt, Calgary Photos / Wendy Niefer, Re/Max Realty Professionals)
(Square Feet Photography / Wendy Hamel, Re/Max River City)
(Eric Curt Peters, UnReel Creative / Jesse Carlson, Royal LePage Prime Real Estate)
(Hagop Anjrkouchian, Koush Media / Russell Willer, Willer Real Estate Group, Royal LePage Signature Realty)
(InsideOut Media / Irina Popova, The Agency Ottawa)
(Will Stewart / Paulo Ribeiro, Re/Max Real Estate Centre)
(Corey Kaminski, MTL Interiors / LJ Aguinaga, LJ Realties-LJ Immobilier)
(Sean McMullen / Jake Hubbard, Viewpoint Realty Services)
