The Toronto housing market bubble is showing no signs of cooling
Looking for a place to call home is a dream many would like to experience one day. However for some Torontonians the reality of owning a home feels like nothing more than a pipe dream. The fact is home prices in Toronto are on the rise and for some it is simply unaffordable. The average home price for most housing type’s year-over-year, for the month of November is $776,684; this is an increase of 23 per cent from the same time last year according to the Toronto Real Estate Board.
If you’re in the Toronto housing market searching for a detached house, you’re looking at an average price of almost $1.35 million; an increase of 32.3 per cent from the same time period of last year. Toronto isn’t the only city on the rise. Home prices are increasing in the 905 region too. A detached home in the 905 area will run you on average $957,517 which is an increase of 25.5 per cent from last November.
“As home prices increase, Torontonians need to look in the mirror and determine if this is a fiscally responsible move at this time,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Service of Canada.
“If home ownership is something that’s important for you, you may have to take a step back and consider renting longer than you’ve planned or consider purchasing a home out of town,” says Schwartz.
If you want to make home ownership more than a pipe dream for your family consider the following tips: How much can you afford?
Before you make Realtor.ca your best friend, take a step back from your home search and look at your monthly budget. If you don’t have one, create one. This will help you determine how much home you can reasonably afford. Just because the bank says you qualify for a $600,000 mortgage doesn’t mean your budget will allow for that much. Instead use your budget as a more accurate guide.
Consider buying a home out of town
Taking your search for a home out of Toronto may help you to achieve your dream of home ownership faster. Emerging cities are trying to entice urbanites to their town on a regular basis. Last year the average detached home in Barrie, Ontario sold for $382,321. Or consider other 705 cities – your options are endless.
Buy with your head, not your heart
Searching for a home can be stressful and very costly if you buy a home with your heart and not your head. Buying more home than you can afford can put you into debt. Instead of trying to keep up with the Joneses, try keeping up with your budget.
If you’ve crunched the numbers and home ownership is unattainable for you at this present time, realize it is okay to not own a home. Many Torontonians are considering renting as home ownership is out of their grasp.
If you would like to own a home one day however you are frustrated with your growing mountain of debt, you can give one of our trained credit counsellors a call at 1-888-294-3130 or go online to complete a debt analysis.