First-time buyers find Toronto real estate market hot as ever
April 5, 2013 1 Comment
First-time homebuyers Jody and Michael Fegelman have heard a lot of talk over the last year about Canada’s cooling housing market. All the couple have felt is the sting of its heat.
During their 1½-year search for a home for their two young children, the Fegelmans have been on the losing end of three grueling bidding wars. They have paid for a home inspection on a place someone else got by paying $80,000 over the asking price.
They’ve felt heartache, disappointment and fear that their children Jack, 5, and Lilly, 2½, would be renters for life.
“My parents just kept saying, ‘Wait. Prices are going to come down,’ says Fegelman. “But the truth is, there is a boom going on in Toronto. I don’t think things will change or bidding wars will stop.”
Over the last four years, Finance Minister Jim Flaherty has tightened mortgage lending rules in a desperate bid to bring reason to the red-hot housing market, especially in Toronto and Vancouver where prices have hit the stratosphere during the last decade, propelled largely by low interest rates.
Echo boomers, immigration, population growth. How else could the market really be?