![]() (c) The jobless rate stays at 5.5%, however, because we’ve added 800,000 more working-age people to the country in the past year, we need about 50,000 extra jobs per month to keep the employment rate stable. That means the average income-earner is beating the rate of inflation (3%). The bottom line was (a) twice as many new positions were created as economists had expected. ![]() The cost of money going forward will be determined by economic data. ![]() It’s the we’ve-got-equity, move-up crowd keeping the realtors afloat. New buyers (traditionally 50% of sales) are pooched. Whatever that means.) And these are not first-time buyers, since the median age is 53.Ĭonclusion: the real estate market is on life-support. (Interestingly, 84% of the wealthy men are married, compared with 67% of the women. So double that and you’re qualified to buy the average detached house in Etobicoke or Burnaby.īut, as it turns out, there are only 288,000 1%ers in Canada (population 38 million), of which 74.6% are men and 25% women. The latest StatsCan numbers are a couple of years old, but they tell us that to be a 1%er by income in this country takes an income of at least $253,900. So, to qualify requires an annual household income of… tada… $500,000. But the stress test means you must prove the ability to handle payments of $10,200. Thus, to afford the average detached in the GTA or LM at $1.8 million requires 20% down ($360,000 in cash) plus closing costs (that can run to $70,000 including the double LTT) and a mortgage of about $1.4 million. So, the hurdle buyers must leap is 7.5% or higher. The stress test is 5.25% or the contract rate + 2%, whichever is more painful. A decent five-year mortgage rate at one of the Big Six these days is around 5.5%.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |