Overheated housing market difficult to cool off, officials say

Buyers who continue to overwhelm the number of houses for sale across the region are tripping over themselves to close deals by offering over asking and presenting firm offers.

There is already an initiative to bump up the stress test, first introduced in 2018, which sets out a formula attached to the affordability of a home purchase, capping the amount people can spend on a home proportionate to their income.

That means buyers applying for a mortgage must qualify at the higher of either 5.25 per cent or two per cent above the prime rate.

Godard points out that a home buyer with an annual income of $100,000 can now buy a $700,000 home with 20 per cent down.

Sarah Stevens, who teaches economics at Georgian College and is a realtor, said it all comes down to supply and demand.

“A lot of people work their whole lives, their home is their investment.

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