As he assesses the real estate market, Annapolis Royal, N.S., resident Colin Riggs said trying to become a first-time homeowner in 2023 “would be very, very difficult.”
Riggs bought a home five years ago. Since then, real estate prices have skyrocketed and interest rates have gone up.
Many homeowners are struggling and it is near-impossible for young people to even dream of homeownership.
“It scares me because when I was their age and in my 20s it was hard to get a house, but it was achievable,” said Riggs.
According to Ratehub.ca, in Vancouver, the income required to buy an average home is $250,000.
In Halifax, the required income is more than $117,000.
A new survey from ratefilter.ca shows Canadians are now spending an average of 37 per cent of pre-tax income on housing.
Sixty-two per cent of Canadians have exceeded the CMHC recommended guidelines to spend no more than 30 per cent of pre-tax income on housing.
“And 51 per cent of homeowners say they would miss a mortgage payment if they lost their primary source of income, within three months,” said ratefilter.ca co-founder Andy Hill, who added Canadians are living paycheque to paycheque without much savings. “When you raise interest rates to 20-year highs, people are close to their breaking points.”
Halifax-based mortgage broker Clinton Wilkins urges patience and some historic perspective.
“I think the big thing to remember is that rates go up and then rates go down,” said Wilkins.
According to Wilkins, it is a double-layered pressure point.
“It is not only challenging for people who hope to be homeowners, but it’s also even more challenging for people who own homes already,” said Wilkins.
There is some positivity to focus on.
Wilkins said Maritime-housing prices are still more affordable compared to many areas in Canada.
