toronto affordability home pricesToronto building condo

How affordable are Toronto home prices really?

By Ilan Joseph, Broker, ABR®, e-PRO®, AMP® |
February 28, 2013 | © All rights reserved

toronto affordability home pricesToronto building condoWith home prices in a state of limbo, how affordable is Toronto and the GTA's real estate market really?

Two of Canada’s biggest banks released reports this week examining the affordability of homes across the country, and Toronto didn't come out looking good. The city’s one of the least affordable in the country, second only to Vancouver (which is one of the priciest markets in the world). We break down the numbers below. • Real estate watchers gauge affordability by the proportion of pre-tax family income required to pay the mortgage and other related costs like home insurance, utilities and property taxes. Anything over 39 per cent is considered unaffordable. In Toronto, mortgage payments on the average single-family home account for 43 per cent of household income alone, according to a recent BMO report. That number is closer to 50 per cent when other costs are included, which makes the market vulnerable to a correction if interest rates spike or incomes fall. • An RBC Economics report further breaks down the numbers by type of home. At $545,6000, the average detached bungalow in Toronto devoured 52.8 per cent of median income in the fourth quarter of 2012. That was slightly (0.4 percentage points) better than the quarter before, and RBC attributed the minor improvement in affordability to slower market activity in the second half of 2012. • Two-storey homes are the most unaffordable of all. Housing costs for a standard two-storey comprise over 62 per cent of household income with an average price of $640,500, according to RBC. In other words, it takes an annual income of $131,300 to qualify for a benchmark mortgage. • Condos are still reasonably affordable. BMO says housing costs on condos account for just 31 per cent of median income. RBC put that number at 33.1 per cent. -source   If you have any questions about the the Toronto or Vaughan real estate markets, feel free to contact me.  

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  first time home buyer toronto ontariotoronto real estate vaughan real estate for sale   Ilan Joseph is a Real Estate Broker with Sutton Group and is co-founder of a 10-person award-winning Toronto real estate team. You can find him on TwitterYouTube and . For over 10 years, Ilan has provided more than 1400 buyers and sellers valued advice and service, enabling them to reach their real estate goals. He’s kind of like the Bruce Willis of real estate. HOMES, ILAN JOSEPH, ILANJOSEPH.COM, THORNHILL CONDO FOR LEASE, THORNHILL CONDO FOR RENT, THORNHILL CONDO FOR SALE, THORNHILL HOMES FOR LEASE, THORNHILL HOMES FOR RENT, THORNHILL HOMES FOR SALE, THORNHILL REAL ESTATE FOR SALE, toronto, TORONTO CONDO FOR SALE, TORONTO HOMES FOR SALE, TORONTO REAL ESTATE FOR LEASE, TORONTO REAL ESTATE FOR RENT, TORONTO REAL ESTATE FOR SALE, VAUGHAN CONDO FOR SALE, VAUGHAN HOMES FOR LEASE, VAUGHAN HOMES FOR RENT, VAUGHAN HOMES FOR SALE, VAUGHAN REAL ESTATE FOR SALE