Real Estate Price Increase Causes Chaos Among Millennial Homebuyers
Real estate research had revealed that although millennials were still flocking to cities, many will eventually aspire to own a home. However, prices in Toronto and Vancouver had pushed many first-time buyers further into the suburbs.
This exasperation resonated throughout a generation rushing to put down roots before the chance of owning a house in the city or somewhere close to it was completely impossible. Most millennials feel an urgency to get into the market as soon as possible, because they could not save fast enough compared to how fast prices were going up.
The average cost of a detached property in Toronto was nearly $1.2 million, and a semi-detached was priced more than $800,000. About 71.4 percent of household income was needed to cover the price of a family home in the city, according to a feature from Time.com.
The real estate market's surge in value started out sluggish this year, but it did not look like a market correction was coming any time soon. David Fleming, a real estate agent and avid blogger, explained that this was making the bulls more bullish, and those who were bearish before were coming around.
Real estate buyers were taking on risky debt loads without a hefty capital. Others were being forced to move farther away from the city. This experience was not unique among potential buyers trying to survive in the city's difficult real estate scene.
A common compromise had been to move away from the downtown center, but even that was becoming impossible for many buyers. Demand for detached and semi-detached properties in Toronto far outpaced supply. The result had been strict competition among buyers.
Real estate buyers, most of them, thought buying closer to their workplace would be achievable, but they were now facing the reality that costs had increased in the greater Toronto area, according to a feature from CBC News.