If you are looking to buy a home in the Toronto area, you may have to dig a bit deeper in your pockets and prepare yourself to write a much, much bigger check. What was once on average a one million dollar market is now quickly turning into a two million dollar housing market.
According to the Toronto Real Estate Board, the two million dollar range market has increased by almost forty percent over the past year in the greater Toronto area. While the two million dollar market is relatively small in comparison to overall listings and sales, the demand is clearly there. As million dollar homeowners sell their current homes and buy up into the two million dollar homes, they are driving up the demand and in turn driving up the prices. In many cases, the land that the home resides on is worth one million dollars in and of itself. Which tends to leave many people thinking of the familiar real estate mantra: It is all about location, location, location.
While this burgeoning market may be new to Toronto, Vancouver is all too familiar with the high price of homes, and what finances it takes to enter the market as a homebuyer. The average home in Vancouver just surpassed more than $1.2 million as of May 2014, according to the Real Estate Board of Greater Vancouver. Toronto is not far behind, with the average home price closing just under one million also in May of 2014, as cited by the Toronto Real Estate Board. How do prospective homebuyers afford these real estate prices, especially as first time homebuyers? Oftentimes, it comes down to help from family.
Financial assistance from family, whether it is in the form of a gift or a loan, is an important component to new homebuyers entering the sky-high markets. The record-low interest rates only continue to drive prospective homebuyers into the house hunting market. With family help, finances in order and a good mortgage, the one million dollar property can go from a dream to a reality. Investing in these million dollar properties is certainly considered an excellent asset, especially in the growing housing markets of Vancouver and Toronto. As the trend in home prices increases, we may just see an increase in the trend of families helping one another purchase a piece of the real estate pie.
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