People's enthusiasm (and ability) to purchase a home in Toronto has justifiably hit a record low point, with more supply on the market than there has been in more than a decade, but meagre sales numbers compared to previous years.

Prices have remained defiant, though, falling only slightly in response to buyers sitting on the sidelines and waiting for affordability to change.

With slightly lower lending rates this summer and marginal declines in average prices in the city, the amount you now need to earn per year to be able to float the typical mortgage and other costs of being a new homeowner has gone down slightly — but is still a lot more than most salaries.

According to the newest report from Ratehub.ca, which crunches the numbers every month based on the average home prices and relevant rates in cities across the country, as of June 2024, you need to take in $214,360 per year to cover a standard Toronto mortgage. This is 

This is based on the $1,110,600 pricetag of a home of any type in the region last month — which was $6,800 less than in May — and mortgage and stress test rates of 5.47 and 7.47 per cent, respectively.

The number accommodates for a 20 per cent down payment, 25-year amortization, $4,000 in annual property taxes and $150 monthly in heating. 

Here's one more key sign that Toronto's real estate market is in distress right now https://t.co/HdpvxA5vKU

— blogTO (@blogTO) July 11, 2024

"A slight dip in interest rates led to easier home buying conditions for some Canadians in June, as affordability improved in nearly half of the nation's major markets," Ratehub.ca says.

"Fixed mortgage rates softened slightly in June as bond yields dropped in response to a quarter-point rate cut from the Bank of Canada on the 5th, with growing market optimism that more cuts are to come in the coming months. That, combined with softening home prices, led to improved affordability, even among Canada's priciest cities."

Toronto demands the second-highest income of any city for home ownership, after only Vancouver ($231,700), and far ahead of places like Fredericton ($70,230), Regina ($72,010) and St. John's ($76,880).