Huge win for REALTORS® in Ontario’s fall 2021 economic update. Breaking news on Canada’s housing crisis.

There is a housing crisis in Ontario, it’s not that we don’t have homes or we don’t have buyers, but we have a lot of problems that shouldn’t and don’t normally exist with housing.

The first big issue is buyers are being turned down by the banks. I would never argue the bank needs to take on more risk than normal, but when buyers are being turned down that’s not a good sign.

The second issue I see is, where do you go when you sell? If you own a portfolio of real estate then it’s a different matter altogether, but for those who have one family home, selling is very attractive right now, especially if you purchased before covid, but where do you go, and can you afford the change?

The third issue is inventory, the reason we have no inventory is very simple. It’s cheap to finance a home in Canada right now. So buying a portfolio is a popular investment strategy and if those properties have some tenancy disruption the property carrying cost is mild. If interest rates change and go from 1.9 to 3.9 or 5.9+ this is going to affect so many property owners who own 3 or more properties.

The last issue is rental rates, I have seen a nice 3 bedroom Ottawa townhouse, average around $1700-1900 now going for $2400-2700, that’s upwards of a $1,000 a month increase. $12,000 a year more income generated is a big rate of return for any investor.

It’s a housing crisis when Canadians cant get approved to buy, need to rent, and are paying more than ever for the privilege.

Read more @ : OREA

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