The average home sale price in Canada is $1.8 million, according to real estate analytics firm Re/code, while the median price is $2.4 million.
Re/Code says that while the average salary is $62,000, “you don’t necessarily need to have a huge job to buy a home.”
“People who do work for companies and are in positions that require a lot of effort and commitment, you don’t have to be a millionaire to buy an average house,” said Re/cod co-founder and chief economist Joe Lynam.
In fact, he said it’s easier to buy your first home with a small mortgage than it is to buy one with a large mortgage.
The average annual mortgage payment for a single person in Canada in 2017 was $4,934, while for a couple with two children, it was $5,848, Re/coder data shows.
But Lynam said that doesn’t mean that people who do have a job shouldn’t buy a house.
“There are some people who have really strong connections to their employers and they need to be able to afford a mortgage,” he said.
“If you’re in a position where you can afford it, you should definitely buy a property.”
What is a home price?
A home price is a price for a property, often based on market values and other factors, like home values.
In Canada, a home is usually worth more than its fair market value.
In 2016, the average price of a home in Vancouver was $1,865, according the real estate website Zillow.
A typical home sale in Toronto in 2017 sold for $1 million, while a typical home purchase in Calgary sold for just under $700,000.
In Vancouver, average home prices have been increasing for the past decade, according in Real Estate Board of Greater Vancouver data.
The median price for homes in Toronto rose from $1m in 2010 to $1 billion in 2017, according Re/codes data.
And in Vancouver, median home prices rose by over 6% over the past five years, according Zillows data.
A home’s value is determined by factors like land value, affordability, income and the type of house it’s in.
A median home in a neighbourhood is usually much more expensive than one in a city, but the home’s worth is often higher in a small neighbourhood.
When you consider the price of land, a house can be much more valuable than a house in a suburban neighbourhood, said Lynam, but it’s more complicated.
In a city with a lot more housing stock, a lot less people would be moving in and the value of the house might be higher than in a suburb, said Re./code.
In Toronto, a condo is a smaller house with a higher price tag.
In Calgary, it’s a smaller, newer house with lower price tag but higher land value.
It’s also possible for a house to have many similar qualities to a single-family home, such as size and amenities, he added.
Where to buy?
Re/coded’s data also shows that there are fewer people buying a house, which could be due to a number of factors.
For one, there are more people buying single-detached homes, and more condos are being built.
There are also more condos being built in the Toronto area.
And condo sales in Vancouver are down by nearly a third since 2010.
“It may be a good time to buy in a condo, because they have less vacancy,” said Lode.
“In Toronto, condos are selling faster than single-storey houses.”
Another factor is that the amount of housing stock available in a specific area is changing, according data from Re/Codes.
For example, the number of condo buildings in Toronto grew from 16,924 in 2015 to 23,836 in 2016, according figures from Re-code.
Re-Code’s data shows that Toronto is now home to about 20% more condos than single family homes, but just under 15% of the number in Vancouver.
And condos are also being built at a faster rate in Vancouver compared to Toronto.
What about prices?
Re-codes data also indicates that buyers in Vancouver tend to pay higher prices than buyers in Toronto.
The real estate data company’s data from 2016 shows that the median home price in Vancouver in 2017 increased by over 20% from $547,000 to $630,000 over the previous year.
But in Toronto, it increased by less than 1%.
Lode said that could be because Vancouver is home to a larger number of condos and people are buying smaller homes.
“That’s a good thing for people to be buying smaller houses,” said Dr. Lode, who added that he’d expect that trend to continue.
“We’ve seen the trend over the last 10 years to the smaller homes and condos.
It is the trend that is keeping us