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
Air quality advisories issued in 5 provinces, 1 territory
Air quality advisories are in effect across Western Canada as smoky conditions plague some areas, according to the latest forecasts. Here's where.
Just how bad are ultraprocessed foods? Here are 5 things to know
Many foods fall under the category of ultraprocessed foods, depending on their exact ingredients. This type of food has been studied a lot lately, and the results aren’t great.
Steve Buscemi punched in the face while walking in N.Y.C.
Hollywood actor Steve Buscemi has been treated for injuries after being punched in the face while walking in New York City.
No refund for travellers who cancelled flight already scrapped by airline: regulator
Four years on, the controversy over whether airlines owed refunds to passengers after cancelling hundreds of thousands of flights during the pandemic continues to simmer, aggravated by a sluggish, opaque complaints process.
opinion Harry and Meghan's Nigerian adventure: traditional attire to warm welcomes
For her latest column on CTVNews.ca, royal commentator Afua Hagan writes about Prince Harry and Meghan Markle's recent visit to Nigeria, calling it a 'deeply meaningful campaign' that was about aligning their ongoing efforts to foster mental-health awareness and promoting the Invictus Games.
Ontario's need for nurses, PSWs to top 33K and 50K by 2032: document
Ontario will need 33,200 more nurses and 50,853 more personal support workers by 2032, the government projects — figures it tried to keep secret but were obtained by The Canadian Press.
'Oh my God, you're my brother': Man in his 70s discovers 6 unknown siblings
After receiving a DNA kit one Christmas from his son-in-law, Hugh McCormick soon discovered that he had six unknown siblings, with whom he shared the same birth parents.
DEVELOPING Michael Cohen takes the stand as testimony in Trump hush money case enters 4th week
The star prosecution witness in Donald Trump's hush money trial is set to take the stand Monday with testimony that could help shape the outcome of the first criminal case against an American president.
'It happened so fast': Evacuees describe fleeing Fort Nelson, B.C., wildfire
Thousands have been forced to flee a wildfire burning near Fort Nelson. Meanwhile, some experienced volunteers are staying behind to fight the fire.