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
'State or state-sponsored actor' believed to be behind B.C. government hacks
The head of British Columbia’s civil service has revealed that a “state or state-sponsored actor” is behind multiple cyber-security incidents against provincial government networks.
Here's how much more Canadian landlords are asking for now, according to a just-released report
A new report says the average asking rent for a home in Canada in April was up 9.3 per cent compared with a year ago, while a slight month-over-month increase was also recorded for the first time since January.
Rare severe solar storm Friday could bring spectacular aurora light show across Canada
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
What is basic income, and how would it impact me?
Parliamentarians are considering a pair of bills aiming to lift people out of poverty through a basic income program, but some fear these types of systems could result in more taxes for Canadians who are already financially struggling.
Canada abstains from Palestinian UN membership vote but supports two-state solution
Canada was one of 25 countries that abstained from a United Nations vote on Palestinian membership that passed with overwhelming support on Friday.
'I may have some nightmares:' Man survives being bitten by 2 sharks in Bahamas
A man who was bitten by two sharks in the Bahamas said Thursday he's 'thankful that I'm here' while sharing his story of survival.
Out-of-control wildfire burning near Fort McMurray
As of 9 a.m. on Friday, the wildfire burning 28 kilometres southwest of the northeastern Alberta city was 25 hectares in size.
Mexico's president accuses press and volunteer searchers for missing people of 'necrophilia'
The administration of Mexico's president has accused the press and volunteer searchers who look for the bodies of missing people of 'necrophilia,' comments that drew criticism this week.