With the huge price increases month over month for Toronto real estate, it is no wonder everyone wants a piece of the action. Just in August, home prices have gone up 5%. With fewer listings for sale and demand greater than ever before, it is expected that the price appreciations will continue. We have not seen the same with the price of condominium units as they have not appreciated as much. Condo units have a downside as you are stuck paying the monthly maintenance fee per month. All the demand is going towards town homes, semi-detached homes, and detached homes.
This demand is proving to be tough on the low income population. Governments are having a tough time keeping up with the demand for low income housing units. Especially now that land prices have soared, it is increasingly difficult to find cheap land for sale in the Toronto area.
The main areas seeing growth are Toronto, Mississauga, Brampton, Vaughan and Richmond Hill. If interest rates were to ever increase, it would be problematic for the local population. Those who have bought homes and are non-residents would be fine as these people who bought homes are usually wealthy to begin with. It is the Canadian population that we must be concerned about.
Local food banks in the area are jammed for lunch and dinner every night as many cannot afford to buy food. Even if you are earning an average salary, you still cannot make ends meet while making your mortgage payments. Huffington Post Canada has released an article detailing how much income you need to purchase a house and the numbers are staggering. You can see the article here http://www.huffingtonpost.ca/theredpin/homebuyer-income-gta_b_11475576.html