According to a recent study by CIBC, 62% of current Toronto home owners are reluctant to sell their homes due to the high price of purchasing another.
That means fewer buying options for investors.
"In today's market, homeowners are facing a conundrum as to whether to buy, sell or stay put," says David Nicholson, Vice-President, CIBC Imperial Service. "Buying or selling your home is one of the biggest decisions you'll make. That's why it's important to make the decision for the right personal and financial reasons and see past the noise in the marketplace. Evaluating the pros and cons as part of an overall financial plan can help you decide what's best for you."
However, there is a cohort of current owners looking to cash in and sell their homes.
The study found as many as 67% of baby boomers plan to sell their homes in the hopes of downsizing.
Still, boomers are also wary of the high cost of buying a home.
"Your home is where your heart is, but it's also likely your biggest financial asset, so there is a lot to consider as you enter or near retirement that can affect your decision to sell or not," says Mr. Nicholson. "It's important to determine what income you'll need in retirement to live the life you want and prepare for the unexpected."
A new study finds a majority of current owners in one of the country’s blooming housing markets are reluctant to sell their homes.