Canadians Hold Off on Home Purchases Amid Economic Uncertainty and High Prices
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A recent article from BlogTO discusses how many Canadians are delaying home purchases due to economic uncertainties and affordability challenges. Despite anticipated interest rate cuts by the Bank of Canada, mortgage costs remain high, and home prices continue to outpace wage growth, making homeownership unattainable for many. This trend is particularly evident in major markets like Toronto and Vancouver, where high prices and weak spending power are deterring potential buyers.
Even with easing interest rates, the decline in mortgage costs has been insufficient to offset the steep home prices. For instance, the cheapest five-year fixed mortgage rates have decreased by 150 basis points from the previous year, but many prospective buyers still find monthly payments unaffordable. Additionally, recent government measures, such as extending amortization periods for first-time homebuyers, aim to alleviate monthly payment burdens but may inadvertently increase demand and push prices higher.
Read the full article on: blogTO
