More than 6 in 10 real estate brokers say they are seeing buyers priced out of their markets despite better housing affordability.
A Leger survey for RE/MAX reveals that the reason many would-be first-time buyers are struggling to get on the property ladder is not always about home prices.
In fact, just 38% of consumers responding to the survey cited high house prices as one of their biggest barriers to ownership. Other factors included insufficient salary making it hard to save for a down payment (26%) and fear of rising interest rates (17%).
More than half of brokers said that low inventory was a more common reason for buyers not making a move with 72% saying that their local housing market is actually undervalued.
“Despite the many challenges that continue to plague Canadians when it comes to the prospect of home ownership, such as record debt loads, there is promising opportunity across the country to enter the market,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “That said, the national housing market still has challenges to overcome, especially in centres like Toronto where demand is far outstripping supply, pushing prices up considerably as a result. We need to continue to push for an increase in housing supply for buyers and renters, but we have yet to see a comprehensive national housing strategy to help facilitate this shift.”
The full report is available at https://rem.ax/2tJBwE2
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate