Most People Can't Afford These Homes (Toronto Real Estate Market Update)

[@bayindir06]

Prices are crazy but sales volume is so low if there are high scale homes (even at discounted rate) they will push the averages way up. Ex: home is sold at 2.5M but it was 3M last year.

[@Pink-Sushi-jp]

Bank of Mom and Dad. I saw a lot of young families buying expensive houses, far from what they can pay from their salaries.

[@mariannerichard1321]

A couple of friends of mine, they got quite a bigger house that their salaries would allow, but his mother gave him the inheritance from his grandmother (he was the only grand-kid) and she got more money from her parents, because the house they were looking was not far from theirs.

[@johnnyboyvan]

It is called parents or grandparents. Or cosigner.

[@teamsessa]

Perhaps

[@msingleton]

Nothing says housing bubble like you must own and sell a home to be able to afford to buy a home. Eventually this loop breaks down and housing prices will mirror incomes. We are not vampires and will not live forever. First time home buyers will one day rule the market again.

[@bobbiejoe4726]

Not if the government tells immigrants they can buy their way into the country and the first thing they do is buy an overpriced house with dirty money.

[@sandhawan]

Great and very honest advice which is even better than mortgage agent.

[@vert911]

their friends were given 400k as a gift from family, combined with their 20k savings they put 420k down. payments then are affordable on what they earn.

[@donm2067]

So as long as everyone's parents give them 400k$, everything should work out. Genius!

[@999teach]

Poor people logic 😅

[@muffy205]

It is only a matter of time, and they will lose that 420k as prices continue to decline.

[@halborchardt6547]

If only 2 % of Canadians make over .$$$200,000 how many people are actually buying houses somethings suspicious here. How is it possible the BANKS are approving these million dollar mortgages if the income DOSNT support the payment. Houses doubled in value in a short period of time, I think once all the profiting home sellers start to loose there shirts when the interest rates renew, the has to be a price correction.

[@teamsessa]

It doesn’t look like the renewal cliff is going to be a big deal.

[@Matt-YT]

How did they afford: BoMaD

[@BlagoP]

How did they afford it? They put down a helluva lot more than 20%. The average mortgage in Toronto is $550k. They probably put down at least a million.

[@quixomega]

It's hard for me to think that there won't be point where people will get spooked and start fire selling. I'm not sure where the point is, but it's clear that these prices don't make logical sense.

[@donm2067]

I live in the interior of BC and I am visiting family in southern Ontario, both places prices are re started and both places in hearing "I don't have to sell, I know what I have". 1M$ everywhere for a basic house, why is a house in Meaford 1M$? Lol

[@baseline6786]

Now a home worth 950 will be worth 1m come spring. More buyers qualified to buy a 1m.

[@stephenfermoyle4578]

it is non of their business...unless they tell you

[@igorhariton3112]

The lenders target is down payments, after if u can't afforded u can sell and other with another 20% down payment, in 25 years lenders make more money on houses doing this fliping sistem.

[@AndreInThe416]

I'd refer to their help as interest free loans.

[@markmussington4131]

Imagine putting $750 K or 50 percent down on a 1.5 million dollar property and having a mortgage of 3600 per month not including property taxes at 4 percent amortized over 30 years OUCH people and we wonder why people are having debt problems ….,, i guess they better hope they don’t have car payments or any other debts

[@johnnycroat]

and its not even a Estate home with Pool, Ravine in the GTA

[@muffy205]

Crazy and sad 😢

[@partOfaMadWorld]

I can afford 450k on my savings and salary. I guess I'll continue to live in my car.

[@EshkinKott1]

If they are really close friends why then buyers of the 1.5 million house didn't share some important and sensitive details on how and where they are going to get money?

[@teamsessa]

For many people, sharing financial information is taboo.

[@johnnycroat]

$5755/mth for 25 years 1,000,000 mortgage plus everything theres no way , 2876/mth for 500,000

[@hashoes3294]

Man never count your friends money just be happy for them and move on

[@teamsessa]

I agree.

[@Mrjones1905]

Cant afford the unaccountable system, is a better description.

[@justnoob82]

I probably live in a van if I’ll go back to Canada.

[@redeye1773]

1.8 million 2 years ago today 1.1 million and dropping 700 grand plus loss great depression

[@ianwally818]

They probably have more down, got a little help from a relative.

[@teamsessa]

That’s usually the case.

[@redeye1773]

90% over valued mud huts

[@10mudpuppy]

No1 😛

[@imiemsc2197]

Good luck paying hundreds of thousands of taxes to qualify for the 10% down mortgages for 1.35M mortgages