Canada’s homebuyers need help from 'bank of mom and dad'
BNN Bloomberg
A buying frenzy is reemerging in Canada after one of the steepest housing price declines in the nation’s history.
A buying frenzy is reemerging in Canada after one of the steepest housing price declines in the nation’s history. In Toronto, properties are selling the day they hit the market. In Vancouver, lines for open houses are stretching down the block. Homes are now once again selling for hundreds of thousands of dollars over asking.
The mystery is where the money is coming from.
Despite what was a nearly 16 per cent drop in home prices over 11 months, Canadian housing is the least affordable it’s been in more than four decades, according to Oxford Economics. That’s because mortgage rates rose at a faster clip than prices fell last year, leaving most gauges economists use to measure affordability worse instead of better. So how are buyers bridging that gap? It may be that they’re getting help from their parents.
