In 1988, my parents purchased their newly constructed 5-bedroom home (includes dining room, second family room & games from, etc.) in Vancouver for about $200k. The average Canadian household income in 1988 was $56,366 [1]. Hence, my parents’ house in 1988 would cost 3.5x of a regular family income.

In 2021, these houses in the same subdivision are well over $2M, and the Canadian household income today is approximately $90k. [2] Hence, that same house in 2021 would cost well over 22.2x of a regular family income.

So, I am often asked, “Where are buyers getting all the money to buy a house nowadays?”

In my opinion, the biggest factor is The Great Wealth Transfer.

According to Forbes, Baby Boomers (born between 1944 & 1974) are expected to transfer $30 trillion in wealth to younger generations. [3] And according to RBC Wealth Management, their numbers report $150 Billion is set to change hands by 2026 [4]

Right now, Millennials (born between 1981 & 1996) are flooding the housing market. They are the largest demographic in history and making up ~37% of buyers. Millennials are bypassing the traditional 1st time homebuyer home and going directly to their home of choice, the single family home. [5]

As much as we like to think that it’s foreign money that is scooping up properties and driving up housing prices, it’s the Great Wealth Transfer that is the key influence here.

Do you agree? Disagree? As always, I’d love to hear your thoughts.

 

Toronto Stats this Past week

MLS activity from April 15 to 20 for residential properties:

↑ For Sale:
5,058

↑ Newly Listed:

1,551

↑ Sold:
658

↓For Rent:
7,506

Compare the above to the week before from April 7 to 14 when there were
4,803 for sale, 1,524 newly listed, 652 sold & 7,880 for rent.

 

Today’s newest listings

 

TORONTO HOUSES FOR SALE 

Under $950k $950k to $1.2M $1.2M to $1.6M
$1.6M to $2M $2M to 3M Over $3M

 

 

TORONTO CONDOS FOR SALE

Under $500k $500k to $600k $600k to $700k
$700k to $800k $800k to $1M Over $1M

 

 

OTHER

GTA Fixer Uppers Ontario Foreclosures Map Search

 

(Email or call me directly for specific sold or off-market properties)

If you would like me to look up any other numbers for you, just call or text me 647-804-8601. Let me know how I can help with your (RE)search.