Toronto Loft Conversions

Toronto Loft Conversions

I know classic brick and beam lofts! From warehouses to factories to churches, Laurin will help you find your perfect new loft.

Modern Toronto Lofts

Modern Toronto Lofts

Not just converted lofts, I can help you find the latest cool and modern space. There are tons of new urban spaces across the city.

Unique Toronto Homes

Unique Toronto Homes

More than just lofts, I can also help you find that perfect house. From the latest architectural marvel to a piece of our Victorian past, the best and most creative spaces abound.

Condos in Toronto

Condos in Toronto

I started off selling mainly condos, helping first time buyers get a foothold in the Toronto real estate market. Now working with investors and helping empty nesters find that perfect luxury suite.

Toronto Real Estate

Toronto Real Estate

For all of your Toronto real estate needs, contact Laurin. I am dedicated to helping you find that perfect and unique new home to call your own.

 

Tag Archives: affordability

Affordability of Toronto Housing Is a Matter of Debate

David George-Cosh – Wall Street Journal

Is buying a home in Toronto still affordable?

According to the Toronto Real Estate Board, it is. The group, which represents real estate agents in Canada’s largest city, made the claim when releasing January’s monthly housing resale figures on Wednesday.

Comment: For interest’s sake, take today’s average Toronto price of $526,528 and current best rates of 3.14% – with 10% down, that would be $2,276.77 per month. Let’s go back 30 years to 1984. Back then, the average price was $102,318 and mortgages were as high as 14.96% – that works out to $1,272.06 in 1984 dollars, $2,542.05 today. So a house now is actually 10.4% MORE affordable today than it was for the previous generation.

But some economists say rising prices have pushed affordability in Canada’s housing market toward the breaking point, and that an increase in interest rates from current rock-bottom levels would erode affordability even further.

Comment: Mortgage rates would have to rise to around 4.19% to get currently monthly payments to $2,541.73, almost the same as in 1984. That would be a 33% bump over current rates. Certainly possible, but it is not going to break the bank for most people, that is only $265/month. Never mind the fact that banks are now flirting with sub-3% rates again.

TREB said home sales in Toronto were down 2.2% in January compared to the same month in 2013, largely due to a lack of available homes on the market. New home listings slumped 16.6% in the month, from January 2013.

Comment: I am sure the cold and snow did not help either!

Despite the decline in sales and listings, prices continued to go up. The average cost of buying a home in Toronto rose more than 9% year-over-year to $526,528.

“Home ownership in the Greater Toronto Area remains affordable and there are many people looking to purchase a home,” TREB said in a statement.

Comment: Heck, when people are paying $848,000 for a semi in The Junction, and $1,561,000 for a detached in Playter Estates, people are obviously finding the money somewhere!

Jason Mercer, senior manager of market analysis at TREB, said that the average cost of owning a home, which includes mortgage, property tax and utility payments, comes to about 32% of a household’s monthly income.

“Even though we saw strong price growth last year, we’re still seeing a share of household income going toward major monthly costs which are still well within generally accepted lending guidelines,” Mr. Mercer told Canada Real Time.

Comment: Uh… obviously. That is the guideline the bank uses. If you are over that, you no get mortgage.

But Robert Hogue, senior economist at Royal Bank of Canada, said affording a home in Toronto has become “somewhat stretched.”

Comment: For the bigger ones, the nicer ones, those in the preferred neighbourhoods, sure. But there are lots of affordable options out there.

“It’s not quite at the point where it’s clearly worrisome, but certainly housing is not cheap in the [Greater Toronto Area],” said Mr. Hogue, who co-authors a quarterly report on housing affordability in Canada.

As prices keep rising, the appeal of buying a condo Toronto will start to increase for first-time homebuyers, who will find that affording a single-family dwelling in the city will gradually become out of reach, Mr. Hogue said.

Comment: First-time buyers have been buying condos for quite some time now.

“Soon the only option to own will be a condo,” he said.

The average price of a condo in Toronto was $346,369 in January, up 8.7% from the prior year, while the cost of a detached home climbed 12% to $686,688.

Comment: And $200,000 more for a detached in the 416.

Buyers in pursuit of more affordable housing could look to the Atlantic Canada region, whose housing prices have remained stable, Mr Hogue said. And despite high prices, homes in Alberta are also considered to be affordable, as incomes in the western province are among the highest in Canada, he added.

Comment: Sure, that makes TONS of sense for someone wanting to live in Toronto. Just go buy in Nova Scotia! Calgary is in an incredible housing boom right now, oil money is driving prices through the roof. And most people thinking about Leslieville are not too open to Edmonton as an alternative.

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Contact Laurin Jeffrey for more information – 416-388-1960

Laurin Jeffrey is a Toronto real estate agent with Century 21 Regal Realty.
He did not write these articles, he just reproduces them here for people who
are interested in Toronto real estate. He does not work for any builders.

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