We have been hearing about a potential housing market correction coming to Canada for some time now. It has been years that stories have circulated about a housing bubble in Canada and both Vancouver and Toronto are among the most expensive places to live in North America.
They aren’t the only areas of BC or ONT that are expensive either. The cost of living has been getting arguably worse and it is on the minds of many Canadians.
The recent talk of a rate hike from the Bank of Canada also has some worried, with reports suggesting that a housing correction is potentially taking hold and that it could be significant, according to some experts.
Critics have suggested however that no matter how much those prices might fall, or for any correction to finally show itself, it might not be enough to bring home prices anywhere close to affordable in places like Vancouver and Toronto.
Prices on new homes being built in the country have also reportedly become more expensive too, growing 7.9% compared to June last year. It isn’t uncommon to see homes around the Metro Vancouver region for well over $1 million, including apartments and townhomes.
There are not many young working professionals who can afford these prices and many young adults today have already given up on the dream of eventually ever owning a home.
Even those families who are earning over $100k per year might still struggle to afford a detached home of their dreams in the city.
Decades To Save The Down Payment
For those expensive homes around Vancouver, Toronto, and other areas, according to a previous report from report from the National Bank of Canada (NBC) it could take decades for individuals and families to save up the necessary down payment.
Is the housing market correction coming? Is it already here? Does Canada need a housing market correction?
While home ownership is completely out of reach for many Canadians in areas like Vancouver, Toronto, and other cities, there are millions of Canadians who do own their homes.
Trying to navigate that situation of addressing the problem of a housing bubble, while also not making it worse with those actions that might be taken, has appeared to be a difficult task to balance. Things aren’t rapidly getting better right now in terms of affordability for many Canadians who are struggling with gas, rent, food, and more.