Tuesday, January 12, 2016

Are Homes Really Too Expensive or Are Your Expectations Too High?

For my latest Market Manuscript report, a 60-page analysis of the Canadian housing market released this week, I took a hard look at interest rates, high house prices, and speculative buying activity. When considering the issue of affordability, I came across a report by the Canadian Association of Accredited Mortgage Professionals (CAAMP) which included a survey of recent homebuyers. The study asked what compromises they were willing to make when buying a home. The respondents were willing to accept a longer commute to work, a smaller lot size, and a lower quality of interior finish. However, buyers did not want to budge on proximity to amenities, community setting, type of residence, and unit size. This is where we have a problem. If people are not willing to settle on the type of residence (i.e. condo vs. single-family) or the unit size, prospective buyers are going to really feel the sting of unaffordability.

To read the complete article, by Ben Myers, please click here...

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