A recent Ratehub study showed that the annual income required to purchase an average home in Vancouver had surged to $235,650 in June, while Toronto buyers needed $229,800 on average to buy in the region.
The “astronomical” amounts illustrate the challenges facing aspiring homeowners in those regions, Westlake said, even if there is still a cohort of buyers that can afford the outlay.
“There are still people who actually are able to afford those homes, but it’s getting increasingly difficult – particularly in those key market areas, the GTA [Greater Toronto Area] being one of them, the GVA [Greater Vancouver Area] being the other marketplace,” he said.
“People will always find a way to buy a home, but as we are seeing, home sales are slowing, listings are slowing, because people know and understand that they can’t necessarily afford to upsell or downsize because of what’s happening in the marketplace.
“The nice thing about this business is we will always see home selling, we’ll always see people buying, we’ll always see mortgages – but it is getting tougher out there for people.”