Whether they’re priced out of the market completely or simply outbid by competing investors, some prospective homeowners have been forced to either sit on the sidelines, settle for less, or pool their resources to enter the market. Meanwhile, higher construction costs and home prices have limited both supply and satisfaction.
Read about this and more in Livabl’s weekly roundup of Canadian housing news and trends.
Home co-ownership offers a pathway for purchasers: Faced with rising property prices, a growing number of Canadians are turning to home co-ownership as a way to enter the housing market. But how does it work having multiple people on a title, sharing not only the same roof but the same mortgage?
The Globe and Mail examines the reasons behind the growing co-ownership trend and how some have found a mutually beneficial living arrangement, whether teaming up with friends, family, or in some cases, complete strangers.
Price growth expected to slow in 2022: What impact will higher interest rates have on both pocketbooks and home prices? According to Moody’s Analytics, the Canadian housing market swings from severe overvaluation in places like Toronto and Vancouver, to homes in Calgary, Edmonton and Saskatoon being “seriously undervalued.”
Next year’s anticipated rate hikes are expected to level things out a bit and slow price growth after red-hot markets sent it surging during 2021.
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Deep pockets force competition for Ontario properties: Investor money has increased housing prices in Ontario, where recent data indicates people who own more than one property in the province make up more than 25 per cent of buyers. In fact, investors have become the biggest segment of buyers in Ontario, a stark contrast from 10 years ago.
CBC News details how that shift has impacted the province’s prospective buyers, who face bidding wars and bloated budgets to enter the housing market.
Northern housing markets hampered: A recent report by the Canada Mortgage and Housing Corporation (CMHC) noted affordability issues and a lack of housing options have impacted northern housing markets like Iqaluit, Whitehorse and Yellowknife.
High costs of land, labour and lumber have reduced housing supply in northern regions. For example, nearly 43 per cent of households in the Northwest Territories reported experiencing housing problems related to adequacy, affordability or suitability.
Recent immigrants find less housing satisfaction: Statistics Canada released findings from its 2018 Housing Experiences in Canada report this week, noting that while 82 per cent of Canadians were satisfied with their housing arrangement at the time, that number dipped to 63 per cent among recent immigrants.
The report also digs into the nation’s demographics, breaking down home ownership rates among visible minorities. The findings also uncovered that senior renters are most susceptible to unaffordable housing.