First-time home buyers in Toronto being pushed out by investors
At a time when a for sale sign seems to instantly turn to a sold sign, the biggest driver in the market may now be investors.
According to Teranet, the largest segment of the real estate market is now multi-property owners at 25 per cent, higher than first time home buyers at 22 per cent.
“We're up against not only first time home buyers but also investors,” first-time home buyer Amanda Moriera told CTV News Toronto.
Moriera and her partner Ivan Opacak have been searching for four months and that search has pushed them out of the Greater Toronto Area to Waterloo Region.
“Coming to the GTA, I mean it's almost impossible,” Opacak said.
Today, they bid on a home, only to find out they are competing against multiple offers.
“I believe there's like 12 offers on this particular unit,” said Moriera.
Up until 2016, first time home buyers made up the largest market share in Ontario. Since that time, multi property owners have shot up and through the pandemic, they are the only segment gaining market share.
“In most cases, especially in the pre-construction world, it's the investor winning,” realtor Denis Klapiric says.
Klapiric says that with the steep increase in prices, many GTA homeowners who have gained equity are using that money to buy more property.
“A lot of them are wanting to buy one-bedroom condo's because they're quick to rent, so quickly first time home buyers are priced out of the market,” he says.
The combination of multi property owners and steep price increases has some experts warning about possible vulnerability for the entire market.
In an address to the Bank of Canada today, Ontario Securities Commission Deputy Governor Paul Beaudry says a sudden influx of investors “likely contributed to the rapid price increases we saw earlier this year.”
And that the those high prices could “expose the market to a higher chance of a correction. And, if one occurs, the damage can spread far beyond the investors,” he says.
While Ivan and Amanda are used to seeing multiple offers, Opacak says, “it's a little discouraging, right we're hopeful.”
If not, they'll continue their search.
CTVNews.ca Top Stories
Deaths of 4 people on Sask. farm confirmed as murder-suicide
The deaths of four people on a farm near the Saskatchewan village of Neudorf have been confirmed a murder-suicide.
Grandparent scam: London, Ont., senior beats fraudsters not once, but twice
It was a typical Tuesday for Mabel Beharrell, 84, until she got the call that would turn her world upside down. Her teenaged grandson was in trouble and needed her help.
Calgary bridges remain closed due to ongoing police incident
Calgary police have shut down a number of bridges into and out of the downtown core as officers deal with a distraught individual.
Kinew, Poilievre meet at Manitoba legislature, discuss each other's priorities
Premier Wab Kinew and federal Conservative Leader Pierre Poilievre met at the Manitoba legislature Thursday afternoon.
George Washington family secrets revealed by DNA from unmarked 19th century graves
Genetic analysis has shed light on a long-standing mystery surrounding the fates of U.S. President George Washington's younger brother Samuel and his kin.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.
'We won't forget': How some Muslims view Poilievre's stance on Israel-Hamas war
A spokesman for a regional Muslim advocacy group says Conservative Leader Pierre Poilievre's stance on the Israel-Hamas war could complicate his party's relationship with Muslim Canadians.
Humboldt Broncos bus crash survivor qualifies Canada for Paralympics in rowing event
Former Humboldt Broncos goaltender and bus crash survivor Jacob Wassermann has qualified Canada for a rowing event for the 2024 Paralympic games in Paris.