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
DEVELOPING Person on fire outside Trump's hush money trial rushed away on a stretcher
A person who was on fire in a park outside the New York courthouse where Donald Trump’s hush money trial is taking place has been rushed away on a stretcher.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
Senators reject field trip to African Lion Safari amid elephant bill study
The Senate legal affairs committee has rejected a motion calling for members to take a $50,000 field trip to the African Lion Safari in southern Ontario to see the zoo's elephant exhibit.
CFIA monitoring for avian flu in Canadian dairy cattle after U.S. discoveries
The Canadian Food Inspection Agency is encouraging veterinarians to keep an eye out for signs of avian influenza in dairy cattle following recent discoveries of cases of the disease in U.S. cow herds.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
DEVELOPING G7 warns of new sanctions against Iran as world reacts to apparent Israeli drone attack
Group of Seven foreign ministers warned of new sanctions against Iran on Friday for its drone and missile attack on Israel, and urged both sides to avoid an escalation of the conflict.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
Vancouver firefighter in rehab at home after losing leg to flesh-eating infection overseas
A family trip took a frightening turn for Christopher Won when he was diagnosed with flesh-eating disease while in Hong Kong and now, after weeks of treatment overseas, the Vancouver firefighter is back home recovering.