More than two-thirds of Canadian buyers are willing to make at least one sacrifice to purchase a home they can afford, according to a new report conducted by market research firm Leger.
The most common concession is relocation, as identified by 64% of survey respondents. However, most agree the farthest they would go is up to 100 kilometres away — 56% would move to a different neighbourhood, while 38% would relocate to a new city, province or region regardless of distance.
This is followed by 56% indicating they would be willing to give up the type of home they purchased; purchasing a home under co-ownership with family and friends, as identified by 29% of survey respondents; and renting a part of their home for additional income, at 27%.
According to the same survey, 43% of Canadians said the high price of real estate in their area is a barrier to entry into the market. Other hurdles include the greater cost of living (35%), a shortfall in salary (24%), market volatility (24%) and rising interest rates (24%).
The real estate market is starting to cool and balance itself out after its red-hot pandemic pace, bringing some much-needed relief from the sky-high prices experienced over the past two years. This trend is largely being driven by higher interest rates, particularly the pace at which they are increasing, which poses a risk to the housing market and economy. Given the possibility of a recession, 57% Canadians have decided to wait to purchase and/or sell their home.
The shift in the housing market, with the easing of prices in tandem with softening demand and sales, is an overdue adjustment. A healthy housing market is characterized by price appreciation in the mid to high single digits, not the double digits experienced throughout much of the pandemic.
Based on residential average selling price, Oshawa, Orangeville and Essa currently rank as the most affordable markets in the Greater Toronto Area (GTA).
Smaller regions outside the GTA experienced the highest year-over-year price increases in the first half of 2022, due to rising demand and limited supply. These include Windsor, Barrie, Sudbury, London, Thunder Bay, Kingston, Ottawa and Hamilton, the latter of which is bucking the current trend of easing prices. GTA prices increased 16.9% year-over-year in the first half of 2022 to $1,257,257, from $1,075,636 in 2021.