Is the Bank of Canada in a position to help the real estate problem in Canada? Many cities are facing extremely high prices, and they continue to surge.
Your average family is getting continually priced out of the market and average incomes cannot sustain these levels, so what is going to be done? The more of an issue that there is the more pressure there will be from the public to try and seek a solution.
Who has the tools to help though? Some suggest the Bank of Canada but even they might not be able to provide a long term solution to the problem here. However, there might be some light at the end of the tunnel, as some suggest that we could see a return to normalcy in the real estate market after the pandemic is over.
There are houses that are increasing in price not just in main cities like Toronto or Vancouver either, the demand is making its way into other areas around BC and elsewhere in Canada.
The average price of the Canadian home could reportedly rise over 16 per cent just this year
The average Canadian is struggling to keep up with that, how can they save for a down payment when they are being just as quickly priced out of the market and that goal continues to go higher and higher? It’s a problem that many say needs a solution. Is there not enough supply? Some say they are building enough while others contend that more supply is desperately needed.
Now they are also floating the idea of micro apartments in areas like Port Moody to further try and help the problem of affordable housing for British Columbians, but it is a concept that has raised some concerns. Is the bubble ready to burst? Will it ever burst? Are we in a real estate bubble? If it bursts how much will it decline and how long will it take to make a comeback?
These are some questions that Canadians might be asking themselves over the years and increasingly as they struggle to afford a home for themselves or their family.
What is the average cost of a home in BC?
The average cost of a home in BC today is over 700k and that means that the median income needs to be multiplied by several years to equal the cost of the home. The average family is never going to be able to afford a detached home, no matter how hard they work and save.
If prices are only expected to go up from here and never decline then what future does that paint for those in BC and around Canada? It shouldn’t be this hard for people with great degrees and careers to be able to realize a home-owner dream for themselves, a detached home that is.
Many in BC and around Canada have simply given up on the dream of owning a home altogether.
Millions of Canadians have Given Up on Home-Ownership Dreams
Over 62 per cent of Canadians feel that over the next decade they will be priced out of the market if they aren’t already. Those who are looking to buy are saving hundreds of dollars every month to try and do it, while others don’t have that luxury right now during this pandemic to put away that sort of savings.
Many renters are going to increasingly find it difficult if this affordability crisis isn’t addressed. Might any speculation in the real estate market be driving rental prices up any? In Victoria, Vancouver, New West, and other areas of BC and around Canada, there has been repeated stories about hard-working Canadians and their families facing a true housing crisis. Not much in the way of significant solutions is being done to address that.
If most renters are spending more than half their income on just having a roof over their head then how can they save to potentially get ahead for the future? They’re essentially just working and living to survive. Years ago it was reported that the cost of housing had hit crisis levels and here we are again facing the same headlines.