New data shows that an average household income of $97,665 is required to buy a home in Sault Ste. Marie — making the border town one of the cheapest places to buy a home in all of Ontario.
According to a report from finance and insurance website HelloSafe, the Sault is the second least expensive area in the province to buy a 1,500 square foot house — coming in second only to Timmins, Ont. — at $299 per square foot.
In Ontario, the average gross annual income to purchase a 1,500 square foot home is $175,491.
Toronto, meanwhile, is at the very top of HelloSafe rankings with an average of $591,828 in gross annual income needed.
“Ontario's real estate market has reached unprecedented heights, with soaring prices that have left both experts and aspiring homeowners astounded,” said Alexandre Desoutter, editor-in-chief of HelloSafe Canada, in a news release.
She said limited housing supply, demand fueled by population growth and low interest rates are contributing factors to cause property values to rise.
“This has resulted in a challenging landscape for buyers, particularly first-time purchasers, who face formidable barriers to entry,” Desoutter said. “The high real estate prices in Ontario not only underscore the pressing need for innovative solutions to increase housing supply but also highlight the urgent necessity for comprehensive policies aimed at fostering affordability and equitable access to housing for all residents.”
The calculations by HelloSafe are based on an Ontario mortgage loan with a five to 20 per cent contribution at a five year fixed rate of 4.89 per cent over a 25 year-period with a debt-to-income ratio of 36 per cent of disposable net income.
- with files from GuelphToday