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
Snow-covered bodies of 2 men from Senegal found in New York woods near Canadian border
Two men from Senegal froze to death were found in the snow of a wooded area close to the Canadian border, New York state police said.
For years she thought her son had died of an overdose. The police video changed all that
Austin Hunter Turner died in 2017, on a night that his mother has rewound and replayed again and again, trying to make sense of what happened.
This historical tavern in Toronto is closing after nearly 200 years
An historic downtown Toronto bar is closing its doors next week after nearly 200 years in business.
Vancouver rapper falls on ice during Canucks game performance
The Vancouver Canucks weren’t the only ones who stumbled during Thursday night’s game against the Dallas Stars.
Niagara Region 'proactively' declares state of emergency ahead of total solar eclipse
Niagara Region says it has declared a state of emergency 'out of an abundance of caution' as it prepares for an influx of visitors for next month’s total solar eclipse.
Ontario homeowner on the hook for $27,000 when contractor severed power line
An Ontario man who built a garage on his property has been locked in a battle with his electricity provider for a year and half over a severed power line.
Montreal doctors' breakthrough discovery about causes of cerebral palsy giving hope
A breakthrough discovery made by doctors at the Montreal Children's Hospital about the causes of cerebral palsy is giving new hope to one West Island family.
Feeling older than you are? It could be how you sleep
Not getting enough sleep may cause you to feel five to 10 years older than you really are, according to two new studies.
Social media can alter children's brains and impact mental health: neuroscientist
Neuroscientist Emma Duerden says social media can alter children's brains and have negative impacts on their mental health.