Housing market increasingly difficult to get in and move up
Posted Sep 8, 2014 04:58:46 PM.
This article is more than 5 years old.
Moving up in the Canadian housing market isn’t as easy as it used to be.
A new report from CIBC World Markets finds the price increases in mid and high-end homes are far outpacing those of lower-priced ones.
That’s putting an upgrade out of more people’s reach and a growing number are choosing to stay put and renovate or buy condos and townhouses.
CIBC Deputy Chief Economist, Benjamin Tal, explained how it’s affecting the market.
“We are seeing a situation in which the market is really tighter than people believe,” he said. “Because you don’t have the same supply that we have seen in the past, in the move-up market.”
He found the percentage of people between the ages of 25 and 35 being able to afford a home has fallen five per cent in the past two years.