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The 2021 real estate market saw month after month of record high home prices as buyers fought over limited inventory. But with detached homes now well out of reach for many GTA buyers, an en masse shift towards condos is likely in store for the near future, according to a new report from Strata.ca.
“Throughout this pandemic, detached home values have sprinted like a hare, while condos have moved like a tortoise,” said Strata.ca Broker Cliff Liu. “But condos will likely become the dark horse in 2022, especially among those who missed out last year.”........
Toronto saw record-breaking increases in home prices in 2021 but things are looking a bit different for 2022.
Toronto's real estate market put home purchases way out of reach for millennials over the past 12 months and, unfortunately, most experts are predicting housing prices will continue to grow next year.
Canadian home values are expected to rise strongly again in 2022, however at a slower pace compared to 2021, according to the Royal LePage Market Survey Forecast.
The median price of a single-family detached property is expected to rise 10 per cent to $1,564,200, while the median price of a condominium is forecast to increase 12 per cent to $763,800 by the end of 2022.......
The Canadian real estate boom has produced a gold rush, and now everyone is trying to sell you a home. It’s a country-wide phenomenon, as people see a low barrier of entry and large commissions. However, nowhere has taken to the trend like Toronto, which now has more Realtors than teachers. A lot more.
Not even global real estate hubs like NYC and LA come close to the concentration of Realtors in Toronto. It might seem harmless, but experts say this is typical of a bubble. The same experts also found the surge in Realtors also amplifies housing corrections.
Looking south of the border at global real estate hubs like New York City and Los Angeles is sobering. In New York City, 1 in 164 labor force members is registered to sell you a home. Los Angeles, a notorious real estate hub, has 1 in 257 labor force members working as agents or brokers. Global real estate Meccas have fewer agents per worker than Canada........
The soaring cost of buying or renting a home in Ontario — and what to do about it — is likely to be a major theme in the 2022 provincial election campaign.
The premier has a housing summit with the mayors of Ontario's 29 largest cities scheduled for January, he's urging municipalities to speed up development approvals, and the PCs' polling firm has been surveying voters on what the government should do to make housing more affordable.
The latest figures from the Canadian Real Estate Association show the average home in Ontario selling at a price 44 per cent higher than it did two years ago, and forecast to rise another 11.5 per cent in 2022.
While the Ford government is focused almost entirely on boosting the supply of new housing as the way to rein in those skyrocketing prices, the opposition New Democratic, Liberal and Green parties are floating a range of other ideas as well. .....
Councillor Mike Colle proposed a new speculation tax at Toronto City Council on Dec. 15.
With the goal of making housing in Toronto more affordable, the thinking appears to be that a new levy (in addition to the already existing capital gains tax) to the sale of homes that are not principal residences would deter speculation and eliminate “home flippers” from the tightest, most competitive housing market on record.
According to Colle, “These people are just essentially blowing up the market in Toronto … There are other factors, but this is one factor that I want the provincial government to wake up and look at.”
Speculation in Toronto real estate has probably been underestimated for too long as a significant force contributing to the current housing crisis. It is now estimated that a full quarter of the buyer pool is made up of investment buyers. Such investors compete with end users and drive-up prices........
A proposal to turn one house into two is all it took to transform the quiet Toronto neighbourhood of St. Andrew-Windfields into a battlefield..
Neighbours flooded local authorities with letters pleading to be saved from the “lot division nightmare,” denouncing it in all caps and insinuating the dangers it could pose to local school children. They hired a lawyer, commissioned a planning study, and enlisted their city councillor to stop the project. The crux of the opposition was that homes in St. Andrew-Windfields are large, and the two that Farrokh Zahedi and his wife proposed to build in place of their current one were small. This, the neighbours charged, would negatively alter the neighbourhood’s character......
The Toronto Regional Real Estate Board (TRREB) is opposing councillor Mike Colle’s motion to implement a speculation tax on investment buyers who are driving up property prices and making the city impossible for first-time home buyers trying to gain a footing.
“A speculation tax could primarily impact small-scale ‘mom and pop’ investors who also happen to be a key source of supply for an already tight rental market,” said TRREB president Kevin Crigger, painting a quaint picture of the investors bidding up prices in the Toronto real estate market. The average price for a home was $1,163,323 in November, with detached 416 homes averaging $1,807,983. “Experts, including TRREB, agree that policies aimed at the demand side of the market will not have any sustainable long-term benefits.”
In an open letter directed to Colle, TRREB warns that a speculative tax could chase away independent investment property owners putting homes on the rental market..........
For those curious about how seriously our government is taking housing affordability, one need only look to the recently announced Ontario Housing Affordability Task Force.
According to the government, the members, formally announced earlier this month, represent a “diverse range of experts” in not-for-profit housing, indigenous housing, real estate, home builders, financial markets and economics.
To read their bios, it’s quite a group. If the goal is to turnaround quick, practical advice on concrete steps that can be considered ASAP to get the ball rolling on the decades of delayed housing construction in this province, I am all for hearing from the people who specialize in the doing.
The critics wasted no time in turning to Twitter to voice their indignation. Evidently experts from the real estate and development industry were overrepresented in the nine, while voices with expertise in co-op and social housing were wholly lacking.........
The condo market in Toronto took the hardest hit of any city in Canada when residents fled in the early days of the pandemic. Listings soared, prices fell and a flood of vacant units sent rents downward. Now they are not only rebounding, they are also expected to outstrip the price gains of much-coveted detached homes in Canada’s biggest city.
Royal LePage’s 2022 forecast, out this morning, predicts that the median price of a condo in Toronto will rise 12% to $763,800 by the last quarter of next year, beating the 10% gain that will take a detached home to $1,564,200.
The Greater Toronto Area is the only region in the country where condo gains are seen outpacing detached homes, but the gap is narrowing in other centres.......
Skyrocketing costs for real estate during the pandemic are hitting Canadians hard, turning finding a home into an ordeal.
The excitement of shopping for their first home this past year quickly turned into a daunting task for Kathryn Quirk and her partner Tom.
“[We] started booking appointments for viewings, going to two or three a day, and very quickly realized that half a million dollars does not get you what you imagined in your head,” Quirk told CTV News.
The couple, who live in Waterloo, Ont., kept encountering what’s become a common occurrence: finding homes listed within their price range that would then go on to sell for $100,000 or $200,000 over asking..........
The Canadian Real Estate Association says housing sales will moderate next year in 2022, but prices aren't expected to ease any time soon.
The association said in its 2022 forecast released on Wednesday that it expects tightening supply conditions to push housing costs even higher in 2022.
“While price growth is not expected to be as extreme in 2022, many of the conditions that supported it right up until the end of 2021 will still be there on New Year's Day,” the association said in a release.
CREA's forecast indicates that the heated conditions that have plagued the country for years and been exacerbated by the COVID-19 pandemic won't fully subside soon.........
Now that we’re into December and 2021 is almost behind us, it seems only fitting that this wild, record-setting year of Toronto real estate is winding down with more records being set.
The November, 2021 sales figures, released last week by Toronto Regional Real Estate Board, will come as no surprise to those who have been even casually following this market. Inventory remains low, prices continue to rise, and in the absence of any strong and decisive moves on the interest rate front, there is little indication that much will change any time soon. With 9,017 sales, the most, in fact, ever reported by TRREB for the month of November, the seasonal slow-down that once characterized our market appears to be a thing of the past.
Eager buyers, evidently keen to lock in limited-time-only rock-bottom interest rates, don’t appear to have the option to take a break.
Thus, demand remains insatiable while the supply of new listings, an essential component of any healthy and balanced marketplace, is far below adequate........
Discontented would-be homebuyers often take out their frustrations with housing markets on federal or provincial governments instead of municipal governments, but the dynamics of real property markets are inherently local, in that prices might rise in one part of the country, but remain steady or decline in other regions.
Nevertheless, the rapid escalation of housing prices emerged as a hot national issue during the federal elections held in September. Critics of the incumbent Liberals were quick to point out the average housing price had risen by almost 70 per cent since 2015 when Justin Trudeau first assumed power in Ottawa.
Housing affordability is also likely to surface as a critical concern in provincial elections, and incumbents will face similar criticism for not being able to cool off the market. Realizing this, the Ontario government recently announced an expert panel to identify ways and means to address the issue........
OTTAWA, Dec 9, 2021 (Reuters) - Canada hopes more immigration can boost economic growth and allay a worsening post-pandemic labor shortage, but new migrants could pour gasoline on that red-hot housing market that the central bank has warned was stoked by "a sudden influx of investors."
Prime Minister Justin Trudeau's administration is on track to meet this year's goal of 401,000 new permanent residents and is set to revise up next year's target of 411,000, a government source said.
Canada's successive governments have relied on immigration to drive economic growth in the face of a declining fertility rate, which hit a record low last year. With the pandemic triggering early retirements among aging Canadians, attracting immigrants has grown more important. Also, the country targets high-skilled immigrants who tend bring in money and earn enough to compete for desirable housing........
As Toronto’s real estate market remains hot with prices rising and home sales hitting new highs, a new report is claiming that more than half of the city’s ‘Generation Z’ residents have given up on the dream of ever owning a single-family home.
The report, released Wednesday by Sotheby’s International Realty Canada and Mustel Group, surveyed 1,502 Canadians between the ages of 18 and 28 living in Vancouver, Calgary, Toronto and Montreal.
According to the report, 52 per cent of the Toronto residents surveyed do not believe they will ever buy a single-family home.
This is higher than in Montreal and Calgary, where 48 and 39 per cent, respectively, of young residents share the same sentiment, but lower than in Vancouver where 56 per cent of respondents reported having given up on the idea of single-family home ownership.........
Greater Toronto real estate prices are moving at one of the fastest rates in history. Toronto Regional Real Estate Board (TRREB) data shows home prices hit a new record in November. The result was home prices soared by tens of thousands, printing a fifth of annual gains in just 30 days. Excess demand, driven by easy monetary policy to entice investors, has put a big strain on supply.
Greater Toronto real estate prices are soaring again and doing it at a record pace. The TRREB benchmark (i.e. typical) home reached $1,172,900 in November, up 3.92% ($44,300) from just a month before. Composite home prices across the region are now 28.31% ($258,785) higher than last year. This is a record high for prices in the region and nearly a record for the rate of price growth.......
Home prices hit another record average last month, soaring 22 per cent annually as the 9,017 transactions also marked a new November sales high, says the Toronto Regional Real Estate Board (TRREB).
The average selling price for a resale house or condo rose to $1.16 million as this year’s shortage of listings persisted into the late fall, pushing up prices, the real estate board said on Thursday.
That compares to last November’s average of $955,889 and a month-over-month gain of about $8,000........
TORONTO — The Greater Toronto Area’s heated real estate market further intensified last month as home sales topped a November record and average selling prices reached a new all-time high.
The Toronto Regional Real Estate Board reported Friday that 9,017 homes changed hands last month, up three per cent from 8,728 during the prior November.
The average home price in the region stretched to $1,163,323, an almost 22 per cent jump from $955,889 in November 2020........
Perhaps you have been wondering how a young family living in a detached home in Toronto or Vancouver can afford it. It could be that they already own another home. In fact, they may possess multiple homes as part of their investment strategy, new research has discovered. It’s no secret that the red-hot Canadian housing market has been driven by a number of factors including enormous demand, tight inventory and historically low borrowing costs. And in some markets, investors are a bigger factor than in others, with federal proposals to rein in accelerating prices.
Are investors making it more difficult for first-time homebuyers to get their foot in the door, amid sky-high valuations and bidding wars? For now, the industry is processing the data to determine how the situation is unfolding across Canada........
Homeowners purchasing investment properties are driving up prices in Toronto real estate and making the housing market even more vulnerable to a correction, according to the Bank of Canada.
In a November 23 speech summing up a trend across Canada but especially felt in Toronto and Montreal, Bank of Canada’s deputy governor Paul Beaudry says investors are flocking to buying secondary or multiple homes with expectations for future price increases, which he says can become “self-fulfilling” in the short term but catastrophic later.
The damage from a drastic fall in house prices can “spread far beyond the investors” because so for many households have their wealth tied to low-mortgage rates and the value of their home........
It is neither dramatic nor alarmist to say that housing affordability in Toronto has reached crisis proportions.
The steady rise in property values since the aftermath of the financial collapse of 2008 really exploded once the pandemic began. The surge in prices we’ve witnessed over the last two years almost blows the mind.
The conditions that pointed us here were in plain sight.
Money has been essentially free. So much so that not taking full advantage of the low interest rates has been viewed as foolish.........
OTTAWA, Nov 24 (Reuters) - Canadian housing prices are set to surge again in the coming months as investors and first-time buyers scramble to buy before interest rates go up, ignoring a warning from the Bank of Canada that there is a high risk of a sudden price drop.
Central bank Deputy Governor Paul Beaudry told would-be home buyers on Tuesday to consider if it is a "good time to buy or not," pointing to market frothiness in certain cities and renewed investor activity.
Those conditions could "expose the market to a higher chance of a correction," he said........
Toronto's sizzling real estate market may be entering its annual winter chill, but that doesn't mean we can expect a broader market cooldown to persist, the market still simmering through an expected seasonal dip.
Extreme highs in housing prices, sales activity, and demand have Remax agents suggesting that despite the expected seasonal cooldown, Toronto is experiencing "hotter-than-ever conditions" in autumn 2021.
As usual, real estate experts are pointing to a critically low supply of homes, which fuels competition and drives up housing prices.
Even with the eternal procession of new residential developments reshaping skylines around the region, the GTA just isn't building the among of housing necessary to snap us out of the insanity that residential real estate has devolved into in the 416 and 905........
his is usually about the time of year where Toronto's scorching real estate market takes an annual dip, though the seasonal market "rules" that governed pre-lockdown housing demand seem to have gone out the window, the ebbs and flows no longer so easy for analysts to predict.
Home sales typically peak in September and stagnate as the holiday season approaches, and while overall sales are indeed in decline, certain home types and areas of the city are still expected to see high demand atypical of winter trends.
Strata.ca realtor Cyrus Ghazvini, who represents clients in areas like North York and downtown's east end, acknowledges the overall slowdown, saying, "In general, yes there's definitely a cooling of the market."......
At the onset of the coronavirus pandemic, there was a widespread belief that one of the world’s hottest housing markets was going to witness a steep decline in sales and valuations. Yet, fast forward to autumn 2021: housing prices are at all-time highs, sales activity is strong, the condominium market is rebounding, and demand is high.
If you thought the Toronto housing market was sizzling before the COVID-19 public health crisis, then perhaps you haven’t seen the latest numbers, which suggest hotter-than-ever conditions.
While this market heavily favours sellers, it is increasingly frustrating for prospective and move-up homebuyers trying to purchase a residential property in the city or surrounding regional municipalities. Industry experts contend that the primary panacea to cooling down this environment and ensuring more young families and first-time homebuyers can attain a home is more housing supply.......
Having an offer night has seemingly become standard practice in Toronto, but for some of the city’s realtors, the sales strategy is starting to backfire.
A new report from Strata.ca says that realtors are beginning to notice an increasing number of condo units being re-listed after the offer date — the specific time when the seller will accept offers on the property — has passed. And it’s not necessarily just because they’re hoping to get even higher offers by holding out longer.
“I’m seeing offer dates listed by overly optimistic listing agents, but then many of those same listings are being put back on the market at a higher price a week later,” said Strata.ca realtor Cyrus Ghazvini. “It’s likely because no offers came in on offer night, period.”.......
As the price of detached homes rises considerably, condos have become the affordable alternative.
Condominium and townhome sales in the GTA have “roared back to life” in both the city and the suburbs this year, findings from RE/MAX Canada’s 2021 Condominium Report reveal.
The report, which was released last month and examines trends in five major centres across the country, notes that the rising cost of a “freehold” home was the key reason for a whopping 71 per cent increase in sales in both the 416 and 905 areas.
Christopher Alexander, senior vice president with the real estate firm, said that “affordability, coupled with availability, set the stage for the exceptional rebound of condo sales........
Being able to afford a house in Toronto already feels like an impossible task for many, but according to a new report from the National Bank of Canada, it’s even more out of reach than many residents may think.
The bank recently released its Q3 Canadian Housing Affordability Monitor, and in its breakdown of Toronto affordability, it revealed that a household would need a very high annual income of $205,342 and a whopping 330 months’ worth of savings – or 27.5 years – in order to afford the representative non-condo home, priced at $1,195,744.
To get to these numbers, the National Bank of Canada assumed that a buyer would be saving 10% of their salary every year for their downpayment and would be paying the minimum downpayment required.......
For all the talk of Toronto’s bananas pandemic real estate market, one might simply assume this wild market has been uniformly on the rise since the early days of the post-lockdown reawakening.
With the average price of all property types in the GTA now nearly 20% higher than last year, that year-over-year increase is simply the average. Detached homes, for instance, are actually up 28% from this time last year, while townhouses have risen 45%.
The condo market, up 30%, has been a different ride entirely, comprised instead of peaks and valleys, valleys and peaks. And as once-unaffordable Toronto is now almost prohibitively so, condominiums are what we should be watching in the weeks and months to come........
TORONTO — Canadians are scrambling to get mortgage pre-approvals and rate holds before the era of low interest rates comes to an end, as some economists predict.
Real estate and mortgage brokers say their clients are increasingly seeking ways to hold on to current rates because many housing markets like Toronto are facing heated conditions making it hard to keep purchase prices down.
"It's a seller's market and you barely have the opportunity to put conditions (on a purchase) because there are 400,000 people waiting for their permanent residency, 200,000 of them are already here and there's buyers lined up around the corners," said Estée Zacks, the Toronto-based owner of Strategic Mortgage Solutions Inc........
Well, it happened: Toronto will finally be moving forward with a long-discussed Inclusionary Zoning (IZ) policy designed to make living in the city more affordable.
This afternoon, city councillors voted overwhelmingly to approve the implementation of guidelines that will force developers to build affordable rental and ownership units within certain residential developments in portions of the city starting in 2022.
This long-discussed planning tool aimed at improving housing affordability in one of the most expensive cities on the continent took a leap forward in late October when the city's Planning and Housing Committee voted to approve a staff report that advanced the policy.........
Council members on Tuesday approved a motion that would force developers to build more affordable units. City staff say the move could result in more than 17,000 new affordable units on the market by 2026.
The Inclusionary Zoning Policy would require developers to make between five and 10 per cent of new units affordable in 2022. By the year 2030, the bylaw requires as much as 22 per cent of new units to be affordable. The city estimates roughly 42,000 units are under construction right now.
The new rules would focus on three zoning areas in the city. It applies differently to buildings with a minimum development size of 100 units.
Under the plan, rental and ownership prices will be based on an individual’s household income rather than average market costs.........
Everyone seems to think they have an answer to the housing crisis and runaway prices plaguing Toronto, and one group in the building industry is proposing a much easier way to fast-track new housing that doesn't even require new construction.
Politicians imposing taxes to dissuade foreign real estate investment investment, rules forcing developers to build affordable housing, and most recently, promises of task forces to study a much-studied problem have all been touted as solutions to a mounting issue.
But what if the fastest path to cheap, quick housing has been hiding under our noses on Toronto's plentiful quiet, tree-lined side streets all along?........
RBC Economist doesn’t see Canadian homes becoming cheaper anytime soon.
To the contrary, a report by bank economist Robert Hogue anticipates that residential properties are going to get more expensive, at least in the near term.
It’s all got to do with the lack of homes for sale.
Hogue’s report is partially titled “Wanted: homes for sale”, which basically says everything.
Sifting through October 2021 market reports by real-estate boards across the country, Hogue noted that inventory dropped eight percent.......
It’s been established that Toronto’s real estate market is, by and large, buoyed by seemingly indomitable fundamentals rather than being propelled by irrational exuberance — although those signs do exist — but with such enormous valuation increases, there’s a persistent feeling that everything inevitably has to come crashing down.
“If prices doubled in seven years, that’s about 10% a year,” Scott Ingram, a realtor and chartered accountant in Toronto, said. “The Toronto and Vancouver markets have become more detached from the traditional fundamentals. We’ve been in a historically low interest rate period for the last seven years. Money is cheaper and people are throwing it into housing.”
Toronto and Dallas-Fort Worth keep jockeying for the mantle of North America’s fastest growing city, and with arguably the most imperative fundamental, population growth, showing nary a sign of abating, the city’s well-documented supply and demand imbalance will persist. That resultantly means housing prices will keep escalating, but doesn’t logic dictate that there has to be a cap?.........
Home prices across the Greater Toronto Area were sent skyrocketing once again, as lack of supply created competition among potential homebuyers.
According to data published by the Toronto Regional Real Estate Board (TRREB) on Wednesday, a total of 9,783 properties traded hands in October, marking an 8% increase from the month before, but a 6.9% drop from October 2020, as a tighter inventory was unable to keep up with demand.
The number of new listings slumped 13% month-over-month, and compared to October of last year, inventory was down 34%. Market conditions remained tight across all home types last month, with prices sustaining significant double-digit growth, once again. “The only sustainable way to address housing affordability in the GTA is to deal with the persistent mismatch between demand and supply. Demand isn’t going away. And that’s why all three levels of government need to focus on supply.” said TRREB president Kevin Crigger.......
Another month down, more of the same.
Or rather, more of the same elements continuing to drive an already challenging marketplace into the tightest market in decades, and one that shows little indication of cooling anytime soon.
October 2021 market data, released last week by Toronto Regional Real Estate Board, revealed last month to be the second-strongest October on record.
With an average sale price of $1,155,345, up nearly 20% from October of last year, only 11,740 new listings came to market, down 34.1% year-over-year.
So, to break that down to the simplest possible terms, we have just over two-thirds of the inventory as last year driving prices 20% higher over that same period........
TORONTO — Prospective homebuyers in the Greater Toronto Area found dramatically fewer homes on the market last month than they did a year ago, pushing sales down and prices up.
The Toronto Regional Real Estate Board said Wednesday that 9,783 homes in the region changed hands last month, down nearly seven per cent from a record 10,503 in October 2020.
Despite the fall, the result was still the second highest level for the month of October even as the number of new listings fell by about a third compared with a year ago.
.TRREB interpreted the numbers as a sign of tightening conditions in a market that is already among Canada’s most expensive and prone to some of the country’s most fierce bidding wars........
After taking a breather during the height of the pandemic, it’s been full steam ahead for the Greater Toronto Area’s condo market ever since.
Demand for condominium apartments — both resale and new — is up, with sales for both condo segments up notably year-over-year during the third quarter, according to industry leaders.
During Q3-2021, GTA realtors recorded 7,819 condominium apartment sales, a 10.6% year-over-year increase, according to the Toronto Regional Real Estate Board (TRREB). At the same time, Urbanation says new condominium apartment sales in the GTA totalled 7,773 units, increasing 22% year-over-year from the previous Q3 high in 2020 of 6,386......
Sales of new condominiums in the Greater Toronto Area (GTA) hit a record for the third-quarter as buyers continue to flock back to the high-rise segment of the housing market.
The latest data from market research firm Urbanation show 7,773 new condo units were purchased in the GTA in the three-month period, up 22 per cent compared to the same time last year, marking a new all-time high for the third quarter.
According to Urbanation, the suburbs accounted for more than half of the total sales, but the City of Toronto saw stronger overall sales growth at 40 per cent......
Pandemic-related influences continue to fuel growth in luxury real estate market numbers in the Greater Toronto Area (GTA), according to Sotheby’s International Realty Canada fall market report released this month.
Consumer confidence is rising, the report says, and that translates into rising confidence in city living. However, constraints on top-tier supply have tightened the screws on sales across multiple market segments, leading to short sales cycles and price gains.
Toronto developer Brad Lamb says supply constraints are particularly keen in the detached home luxury market in such neighbourhoods as Forest Hill, South Hill and Rosedale........
The Greater Toronto Area (GTA) rental market shows signs that the pandemic’s volatile days are well in the past, as average rents throughout the region have increased for the sixth straight month in a row in September.
While the month-over-month increase is minor, up just 0.9% to $2,116 from $2,097, it shows that the GTA rental market is making a comeback after hitting a two-year low of $1,971 in March, according to the latest Bullpen Research & Consulting and TorontoRentals.com Toronto GTA Rent Report.
Despite the monthly increase, average rents are still down 0.7% year-over-year, but this is a significant improvement from just eight months ago when GTA rents were down a staggering 17% annually........
After condo sales cooled off at the start of the pandemic, sales are once again through the roof.
It’s another obstacle for first-time buyers who may have turned to condos as a relatively affordable option, while semi-detached and freestanding home prices across the GTA show no sings of slowing.
There has been a 71 per cent increase in sales between January and August 2021 over last year. During 2020, the COVID-19 pandemic led many homebuyers to look for detached homes with more space.........
When it comes to buying condos in downtown Toronto — something that’s no small (or cheap) feat — it’s nice to know what’s available on the lowest possible end of the price spectrum.
With prices climbing higher and higher, it can start to feel like an impossible market to break into, especially when there are fierce bidding wars for units listed on the lower side.
“My clients looking downtown are still finding the competition tough for well-presented units,” said Nathaniel Hartree-Hallifax, a realtor at Strata.ca. “There’s still strong demand driven mainly by lack of inventory. So even if demand has fallen off due to higher prices, it hasn’t dropped as much as supply. So there’s still strong competition for prime, well-presented units.”......
After lockdowns prompted a mass exodus of people from Toronto to nearby towns or cheaper Canadian cities — which in turn spurred a drop in average rents and a rise in vacancy rates in the city — the city's rental market has been on the upswing for some weeks now, even though many residents are still considering leaving.
The latest data from the industry experts at Urbanation proves that the time to rent an apartment for a bargain price in Canada's biggest metropolis has indeed come and gone, with prices continuing to climb quarter-over-quarter this year amid declining supply.
The overall vacancy rate among GTA purpose-built rental apartment buildings has, as of Q3 of 2021, dropped to three per cent (from 5.1 per cent in Q2 and 6.4 per cent in Q1), according to the firm's latest market survey.........
It’s the combination of community infrastructure and public space that are making it work.
Located on 55-acres of land, the odds of a residential complex called CityPlace turning into a massive example of urban blight seemed quite possible when Vancouver-based developer Concord Adex first submitted its ambitious plans to the city in the late 1990s.
With a proposal that would include 31 residential towers once all were built – 29 exist now – an estimated 12,000 units, critics of it at the time ranged from architects and urban planners to municipal politicians.
During a recent webinar organized by the Toronto chapter of the Urban Land Institute (ULI), Lynda Macdonald, director of community planning with the city, said that at the time, there was a “negative response from the community at large......
Swiss investment bank UBS might think twice about lending out $4 million for that Toronto bungalow, since the multinational deems the city’s real estate market the second biggest risk in the world.
The UBS Global Real Estate Bubble Index ranks Toronto just behind Frankfurt, Germany among major urban markets with overpriced housing that is not supported by incomes and demands outsized mortgages.
As a result Canada, alongside Hong Kong and Australia, has seen the most significant increase in debt-to-income ratios.
The index gives markets with a fair value a score between -0.5 and 0.5, and overvalued homes a score between 0.5 and 1.5, which is where New York (0.54) and Los Angeles (1.2) land. Higher than 1.5 is deemed a bubble risk. Vancouver is at 1.6 and Toronto is 2.02, not far behind Frankfurt at 2.16.......
Ontario homes are currently selling for way over the asking price in some cities and it might hurt your wallet if you're looking to buy.
The top five cities in Ontario where homes are currently selling for way over asking are Ottawa, Whitby, Windsor, Oshawa and Ajax.
Ottawa is the worst, with an average price spike of 27.88% and average listings of $523,842 selling for $669,874.
Meanwhile, Whitby has seen an average list-to-sold increase of 16.42%, with listings of $938,831 selling for over $1 million, on average.
"Notably, three of the top-five markets are located in the Durham Region, long considered a hot alternative to the City of Toronto, at a commutable distance," an excerpt from the report reads......
Historical homes associated with paranormal tales may not be for everyone. But there can be benefits for those who are brave enough to take on the eerie and the unknown.
If a property is believed to be visited by otherworldly forces, it may be considered “stigmatized” by some potential buyers. In the context of real estate, a stigma can be defined as a non-physical, intangible attribute of a property that may elicit a psychological or emotional response on the part of a potential buyer. Something may have occurred in or near the property that does not affect the property’s appearance or function but might be considered by some as emotionally unnerving........
When the economy begins to fire on all cylinders, buyers tend to show more interest in the housing market.
And over the past several months, the gradual reopening of the economy, high vaccination rates, historically low interest rates and government support programs have all fueled job recovery, savings and propelled many more buyers into the market.
Before falling on hard times and moving to Schitt's Creek, the Roses lived in the lap of luxury.
The mega-mansion featured on the hit show is for sale in real life for $21,888,000. It was listed for sale for less in April at $19,880,000 before the owner took the listing off the market. Property taxes will set the buyer back $62,000 a year.
It's located in Toronto's swanky St Andrew-Windfields neighbourhood.
The cheaper list price on this piece of Canadian TV history from April might be considered a 'steal', as long as one is among the ultra-rich, of course.
La Belle Maison is a massive 24,000 square foot building with three storeys, and sits on half an acre. No wonder the rundown Rosebud motel just wasn't cutting it..........
Anyone who's a sucker for mid-century design is going to fall in love with this home.
Originally built in 1958 this home was possibly one of the early Don Mills homes, or at least that's what Colin Graham, the current owner and architect, thinks.
Graham bought the house 16 years ago and renovated it to his taste.
"I like to work with what's there and expand on it. You can pull quite a bit of inspiration with what remains," he told blogTO........
Investors are taking over Canadian real estate markets, especially in Ontario. Teranet, the private operator of the province’s land registry, looked at buyers from January 2011 to August 2021. Their analysis shows the largest segment of buyers is now multiple property owners. Armed with cheap money, these investors now represent one in four Ontario home buyers. The share is even higher in Toronto, where first-time buyers dominated the market just 10 years ago.
Ontario Real Estate’s Biggest Buyer Is Owners With Multiple Properties
The largest group of home buyers in Ontario already have at least one other home. Multiple property owners represented nearly 25% of Ontario home purchases in 2021. This was a new record, with their share of the market advancing 8 points over the past decade, about a 50% increase. That’s right, one in four Ontario property buyers already owns at least one other home.........
The average price for a detached home in the Toronto real estate market is higher than ever.
That shouldn’t come as a surprise to anyone browsing local listings, where a Scarborough bungalow sitting on a large lot is pegged at $3.2 million (this is not hyperbole).
According to the Toronto Regional Real Estate Board (TRREB), the average selling price for a detached home in the 416 area reached a record high $1,778,928 in September, which is a 19.5 per cent year-over-year increase and a six per cent jump from the month prior.
The average selling price for a semi-detached home in the 416 rose seven per cent since August to $1,304,504, which is a 13.9 per cent per cent year-over-year increase but below the record high of $1,326,153 in May.........
It’s like we’re hamsters on a wheel. With each passing month, the market that the pandemic abruptly seized-up only to astonish us all and light on fire has somehow settled into a ho-hum new-normal.
We’ve gotten so used to being shocked by it all that it’s like we’ve stopped registering the astonishment.
It’s almost as if we’ve entered the grim acceptance phase.
Nonetheless, now that we’re safely into October, the Toronto Regional Real Estate Board’s September market stats are in and they’re ripe for analysis.......
The housing supply shortage is the prevailing theme in the Toronto housing market, much like the rest of Canada, where seller’s market conditions are present in 26 of 29 regions analyzed in the RE/MAX Fall 2021 Housing Market Outlook Report.
These conditions are expected to continue in the fall, particularly as COVID-19 restrictions continue to ease. Mr. Forbes, broker at RE/MAX Realtron Realty Inc., says open house activity this fall will be a good indicator of market strength, and a gauge for the level of confidence in the market among both homebuyers and sellers.
Young families are expected to continue driving demand in the Toronto housing market, with first-time and trade-up buyers active in the region.
Single-detached homes have seen the largest increase in average residential sale prices, up 14.6% year-over-year. Meanwhile, townhomes saw average price growth of 10.6 per cent; and condo prices increased 4.2%........
The Toronto-area real estate market is moving into the fall in fits and starts.
Sales dropped 18 per cent in September from the same month last year, while new listings contracted by a sharper 34 per cent in the same period, according to the Toronto Regional Real Estate Board.
Meanwhile, buyers pushed the average price in the Greater Toronto Area up 18.3 per cent in September from the same month last year to stand at $1,136,280.
The combination of scant supply and peak prices is tempting some investors to test the market.
But sellers who think that every property sells quickly for an eye-watering price often confront a different reality.........
Buying an affordable home in downtown Toronto feels just as rare as finding a four-leaf clover. Prospective homeowners who are looking for a house in the 6ix will apparently need another stroke of luck because a recent report reveals that housing affordability in the GTA has gotten even worse.
The Toronto Regional Real Estate Board (TRREB) just put out its data about the GTA's housing market conditions for September, and it shows that the average selling price for all types of homes was up 18.3% year-over-year at a whopping $1,136, 280.
As prices soar, active listings on the market are also plunging. TRREB reports that the number of active listings in September was cut by half with just 9,191 homes up for sale at the end of the month. New listings sank 34% compared to the year before.........
Greater Toronto Area (GTA) real estate has entered the typically busy fall market with higher sales volume, while price growth is starting to pick up again.
The Toronto Regional Real Estate Board (TRREB) says 9,046 homes were sold in September, which is 18 per cent lower than the same month last year. But it's 5.2 per cent higher than the 8,596 homes sold last month.
It was also the third most sales ever recorded in the month of September.
Prices, as measured by the MLS Home Price Index Composite Benchmark, were up 19.1 per cent year-over-year and 2.1 per cent month-over-month to $1,082,400......
Keeping in line with seasonal trends, Canada is on track to have a strong fall housing market, with activity poised to remain steady and average sale prices set to rise further by the end of 2021.
High housing prices, driven by low supply and high demand, have created challenging conditions for many homebuyers across Canada, especially in Toronto and Vancouver. However, this has also created favourable conditions for sellers in most major markets, according to a new fall housing outlook from RE/MAX.
According to the report, the average sale price for all home types in Canada could increase by 5% between now until the end of the year — driven by the sale of single-detached homes.
This housing segment has already experienced the most significant price gains when comparing 2021 to 2020, rising between 6.8 and 27.3% across 26 housing markets surveyed in the report — a trend expected to continue well into the fall, propelled by strong demand by young families..........
Toronto’s housing market is heating up, with resales climbing for the first time in five months as “fierce” competition for houses in the suburbs pushes prices higher.
There were 9,046 home resales in the Toronto region in September, down 18 per cent from the same period last year. But it was the first month-over-month increase in activity since March, according to the Toronto Regional Real Estate Board, or TRREB.
Across the Toronto area, the average selling price of a home was $1,136,280, an 18-per-cent jump over September of last year. On a seasonally adjusted basis, the average price was 1.8 per cent higher than in August.........
Critics of the blind bidding process for real estate are pushing for what they say are viable alternatives that could create a better system for both sellers and buyers.
In provinces across Canada, blind-bidding is the default practice when a home attracts multiple offers. In this scenario, buyers compete to offer the highest purchase price on a home without knowing the dollar amount of the other bids.
"I think there are serious issues with the way we are conducting things right now," said Murtaza Haider, a professor of data science and real estate management at Ryerson University.
Haider says an end to blind bidding could have some impact on volatility in housing prices, but more importantly, "greater efficiency and transparency would bring more trust to the industry, and that should be a priority for the real estate sector."........
Toronto Regional Real Estate Board says the market kicked off the fall selling season with an 18 per cent increase in homes sold in September and a 34 per cent drop in new listings.
The Ontario board revealed Tuesday that 11,033 homes changed hands in the region last month, up from 9,046 last September.
The uptick in sales is typical when autumn arrives, but the board said this year’s spike was the third-highest on record for September and signals that the market is still facing tightened conditions.
Demand has remained incredibly robust throughout September with many qualified buyers who would buy a home tomorrow provided they could find a suitable property........
Oct 5 (Reuters) - The average selling price of a home in the Greater Toronto Area jumped in September from August, as the fall market picked up steam and a lack of supply led to more competition from buyers for all types of housing, the Toronto Regional Real Estate Board (TRREB) said on Tuesday.
The average price of a resale home jumped 6.1% in September from August, and was up 18.3% on the year. Sales rose slightly on a month-over-month basis, but fell 18% on the year as new listings plunged 34% from a year ago.
With new listings in September down by one third compared to last year, purchasing a home for many is easier said than done. The lack of housing supply and choice has reached a critical juncture
It feels as though when it comes to Toronto real estate lately there are few subjects gathering as much attention as our worsening affordability crisis.
he eye-popping average sale prices. The dearth of inventory. Bidding wars on everything, even crummy rentals. And not just downtown but throughout the GTA and well into the surrounding markets.
We now read stunning projections of how long it would take today’s average family to save the bare minimum down payment to qualify for a mortgage. How much of their income goes to rent and childcare rather than savings........
The Greater Toronto Area real estate market, where a two-bedroom bungalow in need of TLC is listed for $2 million, remains at a high degree of market vulnerability, according to the Canada Mortgage and Housing Corporation (CMHC).
According to the CMHC’s latest Housing Market Assessment, price acceleration and overvaluation as home prices keep rising above income levels is leaving the entire real estate market in Canada at a high degree of vulnerability. That means Canadian real estate is primed for a significant downturn with big consequences. And it’s primarily the hot real estate markets in Ontario like Toronto and Eastern Canada that are pushing the entire country to the current high degree of vulnerability.
Toronto, Hamilton, Ottawa, Halifax and Moncton have all been at high degree of market vulnerability for a while. They are now being joined by Montreal, which recently moved from moderate to high, with sharply rising prices. Vancouver, on the other hand, went from a moderate to low degree of market vulnerability.......
The Toronto housing market is highly vulnerable as more evidence of overheating was found during the second quarter of the year, according to the Canada Mortgage and Housing Corporation’s (CMHC) latest report.
Market conditions all across the GTA have tightened, CMHC says, with demand remaining highest in suburban areas as buyers continue to favour larger homes to accommodate teleworking. Although low inventory levels have been an issue in Toronto over the past year, the sales-to-new-listings ration for all house types dropped even further during the second quarter of 2021......
Canada Mortgage Housing Corporation (CMHC) has finally acknowledged a high level of vulnerability in the national housing market.
According to CMHC, the degree of vulnerability in the Canadian housing market moved from moderate to high during the second quarter — a direct result of national price acceleration and persistent overvaluation imbalances.
he federal housing agency says the high level of vulnerability felt across the country reflects the problematic conditions in several local housing markets throughout Ontario and Eastern Canada, including Toronto, Ottawa, and Montreal, while Vancouver’s level is low.......
The Toronto real estate market has dialled back the record-breaking drama we saw earlier in the year.
And, while that has some breathing a sigh of relief (well, almost, at least), it may be wishful thinking to confuse a cooling market with a lack of interest — or significantly falling prices.
It’s Toronto, after all. And it’s returning to life in all of its pricy glory as the pandemic recovery continues.
The reality is that the Toronto market remains tighter than it has for years on the supply front and many would-be homebuyers have simply given up on it, as evidenced by the drop in frenzy and headline-making bidding wars. But the minimal supply of inventory in Toronto is currently keeping prices high — although not drastically increasing — in the notoriously pricey city. This lack of supply is relentless and, likely, lasting. .......
Hogg’s Hollow residents Shannon Rancourt and Laura Lamarche knew something strange was happening in their neighbourhood after a heritage home was demolished without a city permit during the May 24 long weekend.
“It really rattled us that things like that could easily happen,” Rancourt said.
Then one day in July, while they were both walking their dogs, they noticed some activity happening at 7 Knightswood Rd. — a home Rancourt said has been abandoned for about five years.
A massive 200-year-old sugar maple tree, which she said is likely the oldest tree in the heavily green neighbourhood, had been cordoned off on its way to being cut down.
Soon, Rancourt and Lamarche embarked on their own investigation that Rancourt describes as “peeling an onion.”.......
Toronto real estate is known for making the most out of tight spaces, and a 14-ft-wide home that just hit the market really shows that off.
The property, located at 716 Adelaide Street West, spans a total of just 14.4 ft, putting it on the narrower side of things. On it sits a five-bedroom, three-bathroom townhome that came on the market last week with an asking price of $1,699,900.
Although 14 ft may sound restrictive, the listing photos show that the home makes the most out of the space. It has three storeys above ground with two full kitchens, living space, and three bedrooms. There’s also a finished basement with two additional bedrooms......
Housing costs, COVID fears drive demand for multi-generational housing.
It’s described as a “house within a house” – a multi-generational design that strikes the balance between “privacy and proximity.” As the idea of several generations living under one roof returns, “it’s an idea whose time has come.”
Builder Craig Marshall predicts demand for the house-within-a-house concept will grow as families choose options other than retirement or nursing homes. Marshall Homes’ multi-generational design, the Flexhouz™, resonated with buyers when it was recently included among potential designs in a Pickering enclave......
The dust has settled on an election that did little to change the parliamentary makeup in Ottawa, as the federal Liberals again take their seats as a minority government.
One of the cornerstone campaign issues was the housing crisis. But it is not a new issue. Many have argued there was little improvement under the previous government, and are skeptical it will be any different under the new one.
According to the Canadian Real Estate Association, the average price of a home in this country has gone up more than 50 per cent over the last five years. And it's not slowing. Nationally, the average home price in August was up 13.3 per cent from the same month last year.......
A Toronto-area real estate broker laughed when asked about what a third-term win for the federal Liberal government means for affordability in Canada’s housing sector.
John Pasalis, president of Realosophy Realty, said he thinks the Liberal policies proposed during the election campaign about housing will likely stimulate more demand than is already present.
And it could lead to higher prices in the future, at a time when inventories and listings are the tightest they’ve ever been in major cities across the country, he said.
“I don’t think anything’s making sense in terms of bringing affordability,” Pasalis said in an interview Tuesday. “Our population is growing a lot faster than our ability to build homes and that’s really what's causing this sort of rapid acceleration we’re seeing in prices.”.......
Costs of rental housing in Toronto have increased, waiting for subsidized housing can take close to a decade, and all but a handful of private rentals are unaffordable for social assistance recipients.
Yet practical and viable private sector solutions exist that could use but don’t require government subsidies.
One such solution is the legalization of multi-tenant dwellings, also known as rooming houses, coming up for a city council vote in early October.
Rooming houses exist throughout Toronto, but are only legal largely in the city’s core.
Following a relatively slow summer, the real estate market has reawakened, with buyers and their agents zooming from showing to showing, sellers and their agents prepping houses to bring to market, all while everyone else is doing their best to keep the calm.
Managing expectations while leaving room for the market to work its alchemy is pretty much the name of the game these days.
Even with the welcome surge of new activity, Toronto is still besieged by the tightest real estate market in recent memory. Active listings are at a 25-year low while demand, bolstered by record-low interest rates, remains fierce. These market conditions don’t bode well for those clinging to the hope that prices will come down any time soon........
Initially known as Google Places for Business, Google My Business is an important tool for businesses looking to leverage location-based marketing. It is a free marketing tool from Google that enables business owners to manage the visibility of their business on search engines. GMB is best suited for businesses looking to improve their brand awareness and visibility to local clients.
However, like other digital marketing strategies, making the most from Google My Business goes beyond setting up your account and waiting for results. You should optimize your business listing to enable search engines to display your business as part of the search results. Below is a guide on how to optimize your GMB and its benefits.
Google My Business is part of Google’s Knowledge Graph. This is a service that businesses and individuals can optimize to position their services on the first page of Google search results. Knowledge graph displays various information, including phone numbers, operational hours, address, customer reviews, offers/promotions, and photos.......
Chrome users beware, just days after I warned attacks on Google’s browser are increasing, another critical hack has been confirmed.
Google published the news in a new blog post, where it revealed Chrome’s 11th ‘zero day’ exploit of the year has been found (CVE-2021-37973) and it affects Linux, macOS and Windows users. A zero-day classification means hackers have been able to exploit the flaw before Google could release a fix, which makes it significantly more dangerous than most security flaws. Google confirmed this saying it “is aware that an exploit for CVE-2021-37973 exists in the wild”.
In response, Google has released a critical fix. The company warns all Chrome users will get it at the same time, but to check if you are protected navigate to Settings > Help > About Google Chrome. If your Chrome version is 94.0.4606.61 or higher, you are safe. If the update is not yet available for your browser, keep checking regularly for the new version. .......
After a prolonged home-buying frenzy lead to month after month of record-high sales all over the country, the Canadian real estate market is expected to slow down significantly next year.
RBC released its Macroeconomic Outlook for September and in it, predicted that the number of Canadian home sales will decline by 20% in 2022. Even with this sizeable drop, though, the number of sales would still be above the 10-year-average........
The frenzied pace of home buying Toronto experienced in 2020 has waned but prices continue to increase.
And it is not just in Toronto. Across Canada, home sales dipped -0.5 per cent from July and -14 percent compared to 2020's scorching summer market but it's still the second-best August in history for real estate transactions, according to a new report from Zoocasa.
"Canadian housing markets appear to be stabilizing somewhere in between pre- and peak-pandemic levels – which is to say, still extremely unbalanced," said Canadian Real Estate Association senior economist Shaun Cathcart .........
Home sales in Canada fell a significant 14 per cent year over year in August, the Canadian Real Estate Association (CREA) reported Sept. 15. Great news, right? If sales are down, doesn’t that mean demand is weakening?
Not when it comes to Canadian real estate at this strange juncture in history. While some buyers may indeed be stepping away from the market with a mixture of frustration, sadness and disgust, the sales dip can largely be attributed to the lack of homes for sale.
New listings in August were 22.2 per cent lower than they were a year ago. That works out to about 18,000 fewer homes on the market — for just one month. So long as the number of houses for sale keeps shrinking, prices have only one way to go.......
Canada's housing market continued to show signs of a slow cool-down in August, as the number of sales ticked lower even as selling prices still headed higher compared to where they were a year ago.
The Canadian Real Estate Association said Wednesday that 48,379 homes changed hands in August, down 0.5 per cent from July — and down by about 14 per cent compared to the number of sales clocked this time last year.
About half of all markets are seeing more houses change hands, while the other half are seeing fewer. Shaun Cathcart, chief economist for the group that represents more than 100,000 realtors across the country, said the market seems to be moving into a new phase.
"Canadian housing markets appear to be stabilizing somewhere in between pre- and peak-pandemic levels — which is to say, still extremely unbalanced," he said in a release........
The rush of new listings that typically signals the start of the fall real estate market in the Toronto area is behind schedule this year.
Homeowners seem hesitant to list their properties for sale, agents say, and prospective buyers looking for fresh supply aren’t seeing the influx they were hoping for.
One week after Labour Day, broker Christopher Bibby sold a downtown condo unit that had been listed for 45 days. The unit, with an asking price in the $1.5-million range, is located in a luxury building in the King Street West neighbourhood.......
The summer came to a close showing strong signs that in the fall we will continue to see a competitive market for homes in the Toronto area.
While house sales were down 30% on a year over year basis, sales were well above the pre-COVID levels in 2018 and 2019 for the month of August.
The big factor that is keeping Toronto’s housing market very competitive is the declining number of homes coming on the market for sale. New listings were down 46% over last year and well below levels in 2018/19.
At the end of August, the Toronto area had only 4,001 houses available for sale, a 56% decline from inventory levels last year and well below the 11 to 12,000 active house listings that are more typical for the month of August. ......
Popular outrage at the soaring price of Canadian housing has a fix that almost no one is talking about — certainly not those aspiring to be Canada's prime minister.
While they have not framed it specifically as a method of curbing Canada's property sector, central bankers are the exception to that rule. Bank of Canada governor Tiff Macklem insists he is preparing to push a lever expected to have a real effect on the escalating price of houses: hiking interest rates.
People with a stake in Canada's diverse housing sector, including homeowners, investors and those aspiring to buy, will be paying close attention to Wednesday's latest data from the Canadian Real Estate Association.
They will also be watching Canada's inflation numbers coming out on the same day, expected by economists to hit 3.9 per cent. If so, that will be the highest Canadian inflation figure since 2003.........
There’s an abundance of zoning bylaws in this country that restrict the supply of homes and too many agencies involved in the approval process.
Famed theoretical physicist Albert Einstein is credited with saying that the definition of insanity is doing the same thing over and over again and expecting different results.
He was right. If we are to get a handle on the current housing crisis in Ontario, we need to think out of the box and find new ways to boost supply.
The current way of doing things is not working. We have the lowest number of housing units per capita of any G7 nation. To match the average ratio of the G7, we would need to build 1.8 million homes. That will not happen, as we have averaged 188,000 home completions a year for the last decade........
Real estate has become a key issue in the upcoming federal election, with all three parties tossing out ideas and committing to boosting housing supply and finding ways to make accommodations in overpriced cities like Toronto more affordable.
The Liberal Party promised to introduce a home buyer bill of rights that would banish blind-bidding (which caused some commotion in Toronto real estate circles) and ensure access to home inspections. They also want to implement a two-year ban on foreign investors, to prevent people from parking their money in Canadian real estate and driving up prices.
The Conservatives want to follow a similar tack, but also encourage foreign buyers to invest in rental housing instead. Meanwhile, the NDP wants to implement a foreign buyer tax, much like the one that is already applicable when purchasing homes in the Golden Horseshoe area. NDP leader Jagmeet Singh has also promised to crack down on “renovictions.”........
This election cycle, housing affordability has emerged as one of the most unifying yet paradoxically most polarizing issues among Canadians.
We have all watched housing prices skyrocket over the past decade, many of us shaking our heads in amazement as real estate markets inexplicably powered on through the uncertainty and instability of a global pandemic.
With Vancouver and Toronto now among the world’s most unaffordable cities, it’s not alarmist to call this a crisis........
The long, hot days of summer brought yet another month of cooling as August sales in the GTA were down about 800 units from the month before — a trend that has continued since May.
While the market definitely took a summer break, it’s clear that demand for home ownership remained strong and average sale prices continued to hold steady.
At the same time, the supply of listings showed a downward trend which resulted in tighter market conditions and sustained competition between buyers............
A two-bedroom bungalow at North York’s northern edge is listed for $1.685 million, which is roughly the average price for a detached home in the city according to the Toronto Regional Real Estate Board (TRREB).
The listing for the cozy and renovated home at 70 Abitibi, near Willowdale and Steeles, boasts its “premium” location in North York, a separate entrance to an unfinished basement and a detached garage. For that, sellers are asking for slightly more than the average.
Detached homes averaged a $1,674,641 selling price in August, which is up three per cent from July and 11.2 per cent from last year but down from some of the peak levels we saw earlier this year (the average was $1.75 million in March, 2021).........
TORONTO -- The Toronto Regional Real Estate board says August home sales slowed from the frenzied pace seen earlier in the year, but market conditions have tightened as supply plummeted by 43 per cent and prices rose yet again.
The Ontario board said Friday that 8,596 homes were sold in August, a 19.9 per cent drop from 10,738 at the same time last year and an eight per cent fall from 9,368 in July.
New listings in the region fell to 10,609. That was down 43 per cent from 18,599 last August and 15 per cent from 12,551 in July, 2021.........
TORONTO — The Toronto Regional Real Estate board says August home sales slowed from the frenzied pace seen earlier in the year, but market conditions have tightened as supply plummeted by 43 per cent and prices rose yet again.
The Ontario board said Friday that 8,596 homes were sold in August, a 19.9 per cent drop from 10,738 at the same time last year and an eight per cent fall from 9,368 in July.
New listings in the region fell to 10,609. That was down 43 per cent from 18,599 last August and 15 per cent from 12,551 in July.
As the year 2021 progressed, the pace of sales slowed, but the market has remained heated with bidding wars still the norm and fewer people putting their homes up for sale.
“Most houses right now that I am looking at have 10+ offers on them and that’s in any price point,” Simon said.
“There is still a huge demand for any type of house right now.”..............
Every Canadian politician will solemnly swear on a stack of real estate flyers that there will never ever be a home equity tax, but Canadians are rightly worried that governments want to take a chunk of the cash when they sell their homes.
The Liberals have explicitly denied they would ever consider a home equity tax and yet this election promise has popped up in the party’s platform:
“We will establish an anti-flipping tax on residential properties, requiring properties to be held for at least 12 months,” reads the document on the Liberal Party’s campaign website.
It’s important to know what this new tax has lurking beneath it, just as one needs an inspector to examine the foundation of a house.
This so-called anti-flipping tax would be a new federal tax on the sale of your primary residence. Your home. The one you live in. Right now, it has a caveat requiring owners to live in their house for a year before they can sell it tax-free. But that caveat could change with the stroke of a pen........
According to a new report from RBC Economics, Canada is now less at risk now of overheating to the point of a housing bubble than it was earlier in the year, meaning that the government likely won't have to make an intervention, as some were calling for.
But, despite things slowing from a frenzy, the data shows that there is still record high demand, tight supply and historically strong sales, leaning toward a seller's market with conditions that will keep prices high, especially in the two aforementioned metropolises.
RBC calls the current lack of affordability "severe" in both T.O. and Van, and "becoming more problematic" in Montreal.
"After reaching sky-high levels at the start of the year, activity has slowed since spring. But so have listings, which have kept the market extremely tight and prices under intense upward pressure. The heat has extended to the condo segment where prices are now firming," the report notes of Toronto........
Staying on pace with seasonal trends, the Greater Toronto Area new home market was quiet in July — typical for the month — as the price of new construction homes continued to hit records, with single-family homes leading the way.
The benchmark price for single-family homes, including detached, semi-detached and townhomes, soared 28.4% year-over-year in July to an average of $1,517,841, while the condo benchmark also climbed nearly 10% to $1,091,648 on average, the Building Industry and Land Development Association (BILD) — which represents homebuilders — announced Monday.......
If you've always longed to buy a new home that nobody has ever lived in, Toronto might not be the best place to put down roots at the moment — not even in from way up in the sky, where your roots literally have no land beneath them to grow.
For newly-built single-family homes in particular, the benchmark price (defined by realtors as the price of a typical home in an area) reached an average of $1,517,841 — a flabbergasting hike of 28.4 per cent over the same time last year.
This category includes not only detached homes, but linked and semi-detached houses and townhouses.
New condominium apartments, meanwhile, posted a benchmark price of $1,091,648 in July, 2021 according to BILD, representing an increase of 9.8 per cent since July of 2020.
Remaining inventory, which includes units in preconstruction projects, in projects currently under construction, and in completed buildings, dropped on a month-over-month basis, leaving some 9,483 condo units available and just 1,598 houses across the entire region........
It was only a few years ago that "moving to the suburbs" was an automatic option for millennials in Toronto who were ready (or forced) to go "settle down."
Markham, Brampton, Oshawa, Mississauga — these were once the outlying cities young couples flocked to for the purpose of buying houses and starting families. It was simply what one did upon retiring from the downtown "lifestyle," and people seemed more likely to struggle with a loss of identity than securing a mortgage.
Today, in a post-pandemic world, you'd be lucky to score a detached home in even the most far-flung regions of the GTA for less than seven figures on average......
Year-to-date sales in York Region rise close to 110 per cent while Peel and Central Toronto almost double over 2020 levels,
Nearly half of 60 TRREB districts reporting year-over-year average price increases in excess of 25 per cent
MISSISSAUGA, ON, Aug. 16, 2021 /CNW/ - A steady decline in the supply of single-detached housing in the Greater Toronto Area (GTA), coupled with mortgage rates hovering well-below three per cent, hastened demand from first-time homebuyers and galvanized the city's move-up market in the first half of 2021, according to a report released today by RE/MAX Canada.........
A shortage of single-detached homes in the Greater Toronto Area, Canada’s largest real estate market, has seen prices in some district surge above 40 per cent, according to real estate broker Re/Max Canada.
The area saw 11,297 active listings in June, the lowest level for the month in at least a decade and down 35 per cent from the 10-year average of 17,260, surpassing the previous low of 12,327 reported in June of 2016, Re/max said in a report published Monday.
“As a result, the average price for single-detached homes soared, with values in almost 97 per cent of TRREB communities well-ahead of year-ago levels, with nearly half reporting an increase of 25 per cent or more compared to the same period in 2020,” Re/max noted........
TORONTO, Aug 16 (Reuters) - Condominium markets in some of Canada's biggest cities have rebounded strongly this year, and agents and analysts say the market could once again return to pre-pandemic red-hot conditions as rental demand surges and inventories evaporate.
The condo market, which had been hot for years, cooled quickly last year during the pandemic as investors fled, spooked by the exodus of renters from cities to live with families or find cheaper places elsewhere.
Short-term rental demand dried up and first-time buyers flocked to the suburbs and smaller towns to work from home.........
Toronto condo prices broke records across the city over the past year, but as much of the condo market begins to stagnate, one neighbourhood is heating up, and it’s not where you might expect.
A new report from Strata.ca found that the condo market in North York has seen consistent growth over the past four months, rising from an average one-bedroom sale price of $503,000 in March to $528,000 in July. Two-bedrooms have also risen, hitting a yearly high in July of $698,400.
Properties here are also going consistently over asking, with one-bedrooms going for 3.32% over asking in July. This, according to the report, is a stark contrast to the beginning of the year when they were selling under asking.........
They were supposed to cool a scorching housing market by decreasing the pool of qualified buyers but more than two months after being introduced, new mortgage stress test requirements may not be working quite as expected.
“This new policy is well intentioned, but it just adds a greater burden for would-be buyers,” says Romana King, director of content at Zolo.ca, a brokerage that compiles multiple-listing data.
“There was no increase in housing sales before the June 1 increase on the mortgage stress test qualifying rate for uninsured mortgages,” she says.
“This doesn’t mean the higher qualification bar won’t impact the nation’s housing markets. By reducing the number of qualified buyers, the new rate will help moderate the sales activity – just not as dramatically as many were predicting.”.........
But the tides began to turn in 2021.
According to the Toronto Regional Real Estate Board’s (TRREB) latest data, condo apartment sales soared 155 per cent year-over-year during the spring quarter and the average selling price rose 10.8 per cent during the same timeframe.
“A lot of that has to do with first-time home buyer activity. Younger households were a little bit slower to recover or bounce back from the initial phase of the pandemic,” Jason Mercer, TRREB’s chief market analyst, tells Global News.........
Canada’s largest housing market is beginning to show signs of cooling off, as sales levels continue to slump from record highs.
According to the latest data published by the Toronto Regional Real Estate Board (TRREB), there were a total of 9,390 properties that traded hands in the Greater Toronto Area (GTA) in July, marking a 14.9% decline from year-ago levels. However, sales levels were down 40% from the record 15,652 transactions that occurred in March, suggesting that the peak in real estate activity has waned.
The average selling price in July remained modestly unchanged at $1,062,256 from a month earlier, but was still 12.6% higher compared to July 2020. “The annual rate of price growth has moderated since the early spring, but has remained in the double digits. This means that many households are still competing very hard to reach a deal on a home. This strong upward pressure on home prices will be sustained in the absence of more supply, especially as we see a resurgence in population growth moving into 2022,” explained TRREB chief market analyst Jason Mercer........
Buying a house in Toronto is no easy feat, and according to a new report from the National Bank of Canada, you now need almost $200,000 in annual household income to afford it.
The National Bank of Canada released its quarterly Housing Affordability Monitor on Tuesday and, unsurprisingly, found that housing affordability has worsened across the country. The typical mortgage payment now eats up 45% of household income.
And compared to every other major market in the country, affordability in Toronto dropped by the greatest amount..........
The plight of young adults who want to buy houses in Toronto continues to capture the attention of analysts nationwide as housing affordability deteriorates even further into the crisis zone, but is yet another report on how millennials can't afford property what we need?
Not exactly, no, but it should be somewhat comforting to those in this demographic to know that they're not alone in failing to plunk down more than $300,000 for a downpayment on an average detached home.
In some parts of Canada, you can buy an entire house for what it costs just to secure the right to keep paying off a mortgage in Toronto for the rest of your life.......
Despite cooling prices over the past few months, buyers should expect to face multiple offers when bidding on homes and condos for at least the rest of this year.
Low inventory, continued high demand and low interest rates are just some of the factors fueling the current seller’s market.
So having a buying plan can help you land the right home when you finally find itand avoid the stress and frustration of having an ideal property slip through your fingers.
Landing a home starts with understanding your local market, the house you want and the seller.
Buying a home for most people isn’t just an investment, it’s a deeply personal and emotional commitment. And for many sellers, leaving their home also carries emotional attachment.......
The rental market is a different story: Rents across the country started declining shortly after the pandemic hit — to a national average of $1,770 in June 2020, compared to nearly $2,000 the year prior — and further sank in early 2021. While they haven’t quite returned to pre-COVID levels (average prices are still down nearly 3% from last year), they’ve been creeping up since April. Which is problematic. Like housing prices, rents in Canada are still deeply inflated and unaffordable for many — especially lower-income tenants. According to pre-pandemic research, 40% of Canadians spend more than 30% (the benchmark the Canadian Mortgage and Housing Corporation considers affordable) of their income on rent.......
Summer has arrived in Ontario. As we move outside to enjoy the season, thoughts may be turning towards financing different housing objectives.
C lenders- Private lenders are classified in the mortgage industry as C lenders. There are well-established and experienced private lenders in Ontario who will be able to negotiate private mortgage financing despite poor credit and non-traditional income such as freelance, contract-based, and self-employed. High debt ratios can also be overlooked when approving private mortgage financing........
While the Greater Toronto Area’s (GTA) housing market continues to show early signs of cooling, the market still remains a competitive seller’s market.
House sales in June were up 22% over last year but have been trending down since March. New listings have also been declining since March and were down by 4% in June year-over-year.
There were 6,353 homes available for sale at the end of June, a decline of 27% over the previous year and down over 50% from the pre-Covid times of 2018/19.
The months of inventory (MOI) has continued to be at or below 1 for the past eight months, but we are seeing a decline in the number of homes selling for over the owner’s asking price, down from 79% in March to 66% in June.
The price for an average GTA house in June 2021 was $1,305,092 and has remained close to the $1.3M range since February 2021........
Not long after COVID-19 hit and forced most Toronto office employees to start working from home, people living in cramped downtown condos got the bright idea to leave the city and rent (or even buy) a bigger place for less money somewhere else.
Whether they flocked to the country, the suburbs or smaller cities like Guelph and Burlington to buy, at least some of these people are now facing the possibility of lengthy commutes when they're called back to the office.
And they will be called back to the office, if what major employers are saying is any indication.......
The Toronto Regional Real Estate Board (TRREB) says a potential hike to the Municipal Land Transfer Tax (MLTT) will make purchasing a home even more difficult for would be home buyers. An MLTT increase on homes costing more than $2 million was proposed in the city’s budget. According to CTV News, council will consider reports on the matter this week.
“Any MLTT increase has a ripple effect on all market segments, and would further constrain inventory, making it an even more challenging environment for buyers,” TRREB CEO John DiMichele said in a statement. He cites an Ipsos online poll conducted in June, which surveyed 801 Toronto residents. 54 per cent of the respondents said they oppose a potential MLTT increase on $2 million plus properties, while 63 per cent said they believe the hike will tighten the supply of homes across all price points.
“Housing affordability is one of Toronto’s most serious challenges and City Council should be doing everything it can to make it more affordable, not less,” said DiMichele........
Greater Toronto’s 3-month annualized price growth is slowing very fast these days. The rate fell to 11.61% in June, down significantly from the peak of 43.10% in March. The most recent period is seeing about a quarter of the kind of growth seen earlier this year.
More important, the 3-month annualized rate is much lower than the annual price growth. The composite benchmark saw home prices rise 19.92% in June, compared to a year before. It’s only the first month since it’s plunged below, but it was a sharp drop. One that appears to be difficult to reverse.
For Toronto’s annual growth to rise, the 3-month annualized rate needs to climb to 13.09% in July. It doesn’t sound like much, but keep in mind the monthly move needs to be powerful enough to swing 3 months of data.
A rough estimate shows home prices need to rise 1.95% in July alone to prevent deceleration. That’s roughly a $20,500 price increase for the composite. It’s not impossible, but it’s a big change from the $4,500 climb made last month. Especially while some segments produce negative monthly price growth.......
According to the Toronto Regional Real Estate Board (TRREB), residential sales for Toronto condominiums soared 159.1 per cent year-over-year to 1,881 units in May.
The average price of a condo unit in the 416 area rose at an annualized rate of 0.1 per cent to $694,152. However, TD Bank believes that benchmark prices are doing even better than industry data, pegging the number at 10.6 per cent from the same time a year ago. This would be the strongest gain since 2018.
“Though overshadowed by the superheated detached market, condos are quietly making a comeback,” said TD economist Rishi Sondhi, in an interview with the Financial Post. “Should condo sales consume a rising share of the market moving forward (as we expect), downward pressure on average home prices from these lower-priced units would be applied.”
Overall, it has been a great start to the year for the city’s condo industry. In the first quarter, sales advanced at an annualized rate of 79.7 per cent to 9,398 units. During the January-to-March period, the median sale price for condominium apartment units climbed 1.4 per to $592,000 compared to the same time last year........
Frank Zirone heard about the Toronto-wide rooming house legalization proposal, and quickly wrote a letter to his councillor, Nick Mantas, expressing opposition.
The letter became a petition: in four days, Zirone, his wife, Diana, and Elizabeth Brown, a neighbour in Scarborough’s leafy Bridlewood area, gathered 270 signatures.
It had 1,200 a few days later, when Mantas displayed the petition at an online public meeting after speaking against the proposal, now heading to a close decision July 14 at Toronto City Council.
On his deck last week, Zirone said Bridlewood, a subdivision of looping drives and crescents, was built for cars and low-density.
“This is a machine that was made for single-family dwelling,” he said, motioning at his house........
Headlines and group chats are alive with talk of a cooling real estate market in Toronto — perhaps even a bubble burst happening sooner than later.
Inevitably, this gets potential buyers’ hopes up.
Not to burst any bubbles (no pun intended), but — despite a decline in sales since the market’s March peak — the reality is that Toronto’s real estate market is still red-hot by many measures. Subsequently, buying a house still remains a challenge for many frustrated young would-be first-time homebuyers in the second least affordable city in North America.
“I think that a lot of people think the sales decline means we are heading in the direction of a crash,” says John Pasalis, president at Realosophy Realty. “But I don’t think that’s what’s happening. And I think the cooling narrative can be confusing for a lot of buyers.”.........
Toronto saw the lowest number of homes trade hands in a year in June as the pandemic-fuelled demand that drove the market to record highs starts to fade with immigration still muted.
Home sales in Canada’s largest city fell 9.1 per cent in June from the month before to 8,885 transactions, the third consecutive monthly decline, according to data released Tuesday by the Toronto Regional Real Estate Board. Despite the declining number of sales the seasonally adjusted average price of a home remained virtually unchanged last month at $1.06 million (US$859,890), the data show.
The COVID-19 pandemic helped make Canada’s housing market among the hottest in the world over the last year as record low mortgage rates and increased demand for larger living spaces ran up against the persistent shortage of housing stock that has long plagued its largest cities. But now with lockdown measures easing, vaccinations rising, and the economy picking up, the circumstances that created the boom are starting to ease, and the immigration-driven population growth that has long underpinned the country’s housing market remains muted.......
Toronto-area real estate sales and prices continued to boom in June and, although the growth came at a less frenzied pace than earlier this year, the Toronto Regional Real Estate Board (TRREB) has adjusted its annual forecast upward.
The average selling price of a home — including all houses and condos — climbed 17 per cent year over year last month to $1.09 million, the board said on Tuesday.
Detached houses in the 905 areas around the city continued to lead the growth; they were up 29.4 per cent over June 2020 to an average price of about $1.33 million. In the City of Toronto, detached houses sold for 11.5 per cent more than a year ago — going for about $1.7 million on average.......
The price of the average Canadian home that sold in June was $679,000, an increase of 25 per cent in the past year. While sales have risen sharply, too, both figures were lower last month than in the month before.
The Canadian Real Estate Association said in a release Thursday that home sales have now fallen for three months in a row after setting an all-time high in March 2021.
Just over 50,000 Canadian homes changed hands during June. The average selling price, $679,000, was down from $688,000 in May, $696,000 in April and $716,000 in March.
On a monthly basis, home sales fell by 12 per cent in April, by seven per cent in May and then by eight per cent in June. But they were still 13 per cent higher than this time last year and in fact were still the strongest June on record — a sign of just how red-hot housing was earlier this year......
Home sales just dropped in Toronto for the third consecutive month, newly-released MLS data shows, suggesting that recent demand surges caused by COVID may have settled down... for now.
While up on a year-over-year basis, the Toronto Regional Real Estate Board (TRREB) reports that home sales actually fell across the region between May and June of 2021, from 11,951 transactions to 11,106.
It may look like a rather miniscule drop (about 9.1 per cent, when seasonally adjusted), but the fact that GTA sales went down at all is significant considering that they rose by a staggering 78.7 per cent between May and June of 2021 (again, on a seasonally adjusted basis).
Sales were still up by about 28.5 per cent year-over-year though, with condos showing the most growth......
Toronto real estate sales and prices returned to pre-pandemic seasonal trends in June 2021 following a record-setting streak over the spring has “run its course,” according to the latest market report.
Sales were up 28.5 per cent in June compared to 2020, hitting 11,106, according to TRREB, driven by strong condo sales that were up 57 per cent.
Similar trends were seen in prices, as well. The average selling price of all home types combined was up 17 per cent from 2020, to $1,089,536.
Condo prices were up more than eight per cent, “well-outstripping inflation,” the report said.
Prices did drop, though, for semi-detached homes within the 416-area code region of the GTA. They were down 1.9 per cent compared to last year, while sales for the home type were up more than 60 per cent in the same area.......
The Toronto Regional Real Estate Board says the pace of sales and home prices eased in June as COVID-19 cases subsided, but a heated start to the year still pushed it to upgrade its annual forecast.
The real estate board said Tuesday that 11,106 homes were sold last month, down from 11,951 in May but up from 8,645 last June.
The average selling price of a home in June was $1,089,536, a drop from $1,108,453 the month before and an increase from $931,131 a year ago.
The numbers signalled a continued cooling in the Ontario market from the end of 2020 and start of 2021, when sales and prices were routinely breaking records every month despite the pandemic.
Those on the hunt for a home had fewer properties to chose from in June as the number of new listings decreased by almost 13 per cent to 16,189 in June from 18,586 in May. They totalled 16,208 in June 2020.
TRREB president Kevin Crigger said June highlighted that the market has moved from a record pace to a “robust” one over the last three months.......
The Toronto Regional Real Estate Board says the pace of sales and home prices eased in June as COVID-19 cases subsided, but a heated start to the year still pushed it to upgrade its annual forecast.
The real estate board said Tuesday that 11,106 homes were sold last month, down from 11,951 in May but up from 8,645 last June.
The average selling price of a home in June was $1,089,536, a drop from $1,108,453 the month before and an increase from $931,131 a year ago.
The numbers signalled a continued cooling in the Ontario market from the end of 2020 and start of 2021, when sales and prices were routinely breaking records every month despite the pandemic.
But Terry Parkinson, an agent in Toronto, said the region's housing conditions are still among the hottest in Canada and some regions haven't seen a slowdown.......
Toronto saw the lowest number of homes trade hands in a year in June as the pandemic-fueled demand that drove the market to record highs starts to fade with immigration still muted.
Home sales in Canada’s largest city fell 9.1% in June from the month before to 8,885 transactions, the third consecutive monthly decline, according to data released Tuesday by the Toronto Regional Real Estate Board. Despite the declining number of sales the seasonally adjusted average price of a home remained virtually unchanged last month at C$1.06 million ($859,890), the data show.
“The record pace of sales has run its course as pent-up demand has increasingly been satisfied in the absence of normal population growth,” said Jason Mercer the Toronto real estate board’s chief market analyst, in a media release accompanying the sales data. “With this said, a persistent lack of inventory across most segments of the market will keep competition between buyers strong.”....
Canada Mortgage and Housing Corp said Monday that it returned to considering a gross debt service ratio of up to 39 per cent and a total debt service ratio of up to 44 per cent for borrowers who have a strong history of managing payment obligations.
Gross debt service refers to the maximum amount of gross annual income that can be used for home-related expenses like mortgages, heat or condo fees, while total debt service is calculated when these expenses are combined with monthly debt payments owed on items such as credit cards or cars.
The agency will also now request at least one borrower or guarantor seeking insurance have a credit score that is greater than or equal to 600........
The number of homes for sale in the GTA isn’t budging from its historic low, a new report from the Building Industry and Land Development Association (BILD) says.
A shortage of housing inventory has been a persistent problem in the GTA over the past year, fuelling bidding war competitions and driving up prices to never-before-seen highs. According to BILD, that hasn’t changed at all.
The new report analyzes sale data from May and found 12,555 units of remaining inventory, which comes out to about 3.3 months’ worth of inventory. A balanced market, the report says, should have about nine to 12 months of inventory.
“The low inventory levels reported in the May data underline the need for GTA municipalities to address chronic shortages of housing supply,” said BILD President and CEO Dave Wilkes. “Municipalities need to speed up approvals of shovel-ready projects, and as we look ahead to continued population growth in the GTA, they need to evaluate all aspects of the development approvals process to ensure that the new homes the region needs are being built in a timely manner.”.......
Homeowners who have been thinking about selling may be reading the headlines and thinking now is the time to do it. But it’s not as simple as listing your home and waiting for bids to pour in — especially now that the market is beginning to cool down. So here’s some advice on how to sell your home for top dollar during this unpredictable time.
COVID-19 has made the market more unpredictable, said Scaife, so it’s hard to tell how the next few months will play out. But for those hoping to spark a bidding war and get top dollar for their house, Scaife says it’s important to manage your expectations or risk being disappointed.
That doesn’t mean it’s a bad time to sell your house — far from it, she said. It just means you can’t count on the market to do the work for you.......
Like everywhere in 2021, the real estate market is booming in Toronto. And that means property values are pretty high. Toronto’s a well-developed city and prime real estate comes at a premium. Considering most people are a little cash strapped at the moment, it’s important to carefully consider the options to get the best value for your hard-earned money.
In Toronto, condos offer the most bang for your buck. Since space is tight in the highly developed city center, condos are one of the more affordable options. Condos make use of space more efficiently by stacking multiple units on top of the same piece of ground. That allows developers to offer square footage at a discounted price.
Condos have a lot of amenities not available in traditional domiciles like a house. And they allow their inhabitants to live a relative life of luxury. Condos are the most affordable when purchased before completion of the building. And Toronto pre construction is the most reliable approach to finding a real bargain in a highly competitive environment. You can get such a good bargain when buying before completion because the sale of the unit will help the developers complete construction. Developers rely on this technique to raise funds for the completion of the project.....
Think twice before betting against the real estate market.
When the lockdown first hit, it seemed incomprehensible that the market would continue. But it did. Buyers came out in droves, competing fiercely with one another and driving prices through the roof. Few could have predicted that — certainly not the prospective buyers who missed their moment in the early days of the lockdown, confident in the assumption that prices would come down. I can specifically think of more than a few I encountered who are kicking themselves today.
Think twice before betting against the strength and fortitude of buyers and sellers of real estate.
Buyers barely missed a beat. The world shut down and they simply found themselves masks and gloves and asked when they could get into see properties they saw potential in. It was astounding.
Home should be a place you want to spend your time.
Whereas once a fabulous neighbourhood surrounding the home was enough to motivate a buyer, now people want their home to be enough. That tiny condo steps from great bars and restaurants looks a lot different after riding out several lockdowns. People are crystal clear on the value of pools, backyards and rec rooms for the kids to play, and a place to park the Peloton.
There is a craft to selling a home — the pandemic just made it more obvious while simultaneously raising the stakes.....
Home buyers have contended with a series of costly hurdles in this ongoing, high-octane housing market — supply shortages, growing and pent-up demand, red hot prices and bidding wars just to name a few.
It’s been a great time for sellers, but not so great for those looking to get into the market or upsize.
Now the federal government is effectively putting another significant hurdle on the path to home ownership that will especially impact first-time buyers.
In May, the Office of the Superintendent of Financial Institutions (OSFI) and the federal government raised the mortgage “stress test” bar for anyone who applies for a mortgage in Canada.
It was intended in part to slow down the overheated housing market and likely in part because inflation (and higher interest rates) are on the horizon.......
More than a third of boomers in Ontario are on the hunt for a new real estate purchase and are planning to buy in the next few years.
A recent survey carried out by Royal LePage revealed that 37% of boomers — those born between 1946 and 1965 — are considering purchasing a new property within the next five years. In Toronto, that number rises to 41%.
More than half — 59% — said they would purchase a detached house if they were to buy, and only 19% said they would choose a condominium. Fifty-six percent said they would consider moving to a rural or recreational region. And, perhaps surprisingly, 25% said they would consider purchasing a larger home than the one they currently have......
“The single most compelling reason for first-time buyers to consider a pre-construction condominium is affordability.”
Cost, Baker Real Estate Incorporated CEO Barbara Lawlor explains, is a primary explanation as to why the pre-con market is an ideal option for those looking to invest in their first-ever abode.
But it isn’t the only one. The way that cost is managed, too, can serve as an enabling factor in first-time buyers making their big purchase.
“[Pre-construction] provides an entry point to the Toronto residential market not only in terms of price, but also structure,” Lawlor explains. “There are available units in the $400K+ range, something that no longer relates to houses even in satellite cities. Furthermore, payments are made incrementally, according to a schedule of one to two years. This allows buyers to save money as they go, rather than making one very large, lump sum down payment.”.....
An average condo in the GTA went for $437,000 in during the last housing peak in 2017. Fast forward to today’s pandemic buying frenzy and the condo price is now roughly $625,927—a 44 per cent spike in value.
Tech-enabled real estate brokerage, Properly, compared the sale prices of GTA homes during the housing peak of January to April 2017 to their current AI-driven estimate as of June 1, 2021 and found condos appreciated the most, followed by townhouses with condo fees (33 per cent), semi-detached homes (27 per cent), freehold townhouses (26 per cent), and detached homes (21 per cent).
Condo sales felt the wrath of the pandemic most over the past year, but things are looking up for what is still considered the most affordable way into the market.
“While sales are now back up to pre-pandemic levels, it’s relieving for condo owners to know that their investments have appreciated significantly over time,” said Anshul Ruparell, co-founder and CEO of Properly. “Moving forward, it’s forecasted that solid growth in condo sales will continue as pandemic restrictions ease. I anticipate we’ll see people coming back to the city centre and back to our incredible city that offers world class dining, entertainment, and liveability.”.....
A 119-year-old post office on Queen Street West recently hit the Toronto real estate market, and is now being marketed as possible mid-ride condo development opportunity.
The more than 11,000 sq ft former post office is located at 1117 Queen Street West in Toronto’s Little Portugal neighbourhood. And according to Colliers Canada, who is listing the property, it’s in a “prime location.”
The property is zoned for a wide variety of uses including apartment buildings, a seniors’ home, a parking garage, a park, a community centre, some retail and service shops, offices, or a hotel.
But marketing materials for the property emphasize the possibility of condos, showing three possible development concepts for the lot, which include “conservative,” “progressive,” and “aggressive” design plans.
The conservative plan — which has the lowest height and number of units, calls for seven stories and 80 units. The progressive calls for 10 stories and 107 units, and the aggressive calls for 13 stories and 130 units......
Rapidly rising prices for residential real estate in Canada, whether in Montreal, Toronto, or Vancouver, has very tangible consequences for the middle class. In Vancouver, the average price of a house is now $1.7 million, and it's over a million dollars in Toronto. Meanwhile, potential buyers in Montreal are also faced with an overheated sector characterized by bidding wars. What explains this?
"The first thing to understand is that the supply of new properties is not rising as quickly as the demand. The situation has worsened over the past year as Canadians' savings grew significantly," points out Miguel Ouellette, Director of Operations and Economist at the MEI. "One solution would be to build more housing, which means more flexible zoning rules and an end to regulations aiming to impose the construction of social housing in residential towers. Indeed, these measures just drive up the prices of the other units, making them less affordable for the middle class," adds the economist.
"The federal government also put measures in place in 2019 to make access to housing easier for first-time buyers. Even though the intention was good, this just pushes prices higher and makes buying more and more difficult," explains Olivier Rancourt, Economist at the MEI.
"Extremely low interest rates also mean that people are ready to buy more expensive houses than before. We need to remember that interest rates have been at historic lows for more than ten years now. In short, with municipal governments slowing the construction of new housing and a federal government stimulating prices, there's nothing surprising about the current situation. But it could well prove untenable, or at least very difficult for the middle class," concludes the economist.........
Toronto is considered one of the most expensive cities to live in, but for those looking to rent in Canada's largest city, right now is one of the best times to be home-hunting in recent memory.
With more and more people leaving Toronto over the past year due to the pandemic, and an increasingly remote workforce, there's suddenly an overabundance of empty apartments throughout the city with desperate landlords looking for tenants.
These deals aren't just limited to the outskirts either, many can be had downtown in new buildings, and for one and two-bedroom apartments or condos.
Among the perks offered on Rentals.ca and Rentfaster.ca over the past month are gift cards worth up to $1500, a new 128GB iPhone 12 Pro, a stocked wine fridge, two months free rent, and $1,200 in value of 1GB Rogers internet.......
It’s shaping up to be another hot summer in the city. The barometer hit 31 C on June 5, the hottest temperature ever recorded on that day in Toronto, and the Farmer’s Almanac predicts a sweltering summer is on its way. With the pandemic keeping Torontonians at home more than usual, attentions have turned to staying cool, with or without traditional air conditioning.
In some Toronto homes, coolness is built into the design. Sheena Sharp is a principle at Coolearth Architecture, and has a particular interest in energy analysis and retrofits. Many of the qualities that make the homes she works on greener also keep the cold in and the hot out during summertime.
“Most people think of insulation as important in the winter, but it also keeps the home comfortable in the summer,” says Sharp. The homes she designs are “superinsulated,” which means they have been constructed or retrofitted to have extremely high levels of airtightness. Triple-paned windows also keep the cool air in and a white roof reflects heat, rather than absorbing it.......
For the majority of my decade in real estate, it has seemed that all one needs to do to sell a house in this town is stick a sign on the lawn and wait for a herd of crazed buyers to appear.
In what can euphemistically be referred to as a “seller’s market,” the imbalance produced by low inventory coupled with strong demand has simply been our reality in Toronto for longer than it hasn’t. And the COVID-19 pandemic has only made it more pronounced.
Buyers abruptly confronted by a whole new reality, both in and outside of the home, suddenly found themselves motivated in ways we haven’t before seen, spurring such intense demand that prices shot right up.
Almost overnight, those lucky enough to own property in this city found the value of their biggest asset had substantially increased, and with it their financial landscape.
And after a year of seeing frantic bidding wars on houses that in many cases could honestly be described as objectively unremarkable, it’s a safe assumption that anyone deciding to sell right now is doing so because they too would like to get in on this moment.....
Buyers and sellers in the Toronto-area real estate market need a sound strategy and the ability to maneuver quickly in a market that has become unpredictable.
“It has been such a changing market – there’s no consistency,” says Mr. Bibby, broker.
After an eye-watering run-up in prices during the coronavirus pandemic and manic sales in the early months of 2021, the market seems calm – with sporadic outbursts.
Mr. Bibby recently took clients to see houses in desirable neighbourhoods such as Wanless Park and Davisville that sat on the night reserved for viewing offers without drawing a bid.
A week later, a house in Bedford Park sold with 16 offers for $505,000 over asking.
That kind of volatility can be bewildering for buyers, he says. But most are extremely educated about the market these days and that’s why they refuse to bite when an asking price is too rich......
Toronto real estate agents are becoming very familiar with parts of Ontario outside of the Greater Toronto Area (GTA) confines.
As migration continues out of the GTA and into other parts of the province, realtors are doing more transactions outside of their board.
Jason Mercer, Chief Market Analyst of the Toronto Regional Real Estate Board (TRREB), says that the total number of transactions outside of the TRREB Market Watch Geography — namely, the GTA, plus south Simcoe County and Orangeville — are growing and have been for some time.
“This is part of the broader trend we’re seeing not only during the pandemic, but in the years leading up to it. Homebuyers were looking further afield than the GTA proper into the Greater Golden Horseshoe (GGH),” says Mercer......
After more than a decade of debate, Toronto could legalize and regulate rooming houses city-wide — with a cap of six rooms in most areas — by as early as fall of 2022, a new report says.
Right now, rooming houses, which are also known as multi-tenant or dwelling houses, can only legally operate in the former cities of Toronto, Etobicoke and York. In York, they don’t require a licence. And despite bans in other areas like Scarborough, many homes operate illegally.
In the report, staff point to financial strain on Toronto’s low-income tenants — including those on social assistance — as a reason residents rely on illegal and sometimes unsafe homes. Where an average bachelor unit costs more than $1,100, they wrote, a room can cost as little as $400.......
The Canadian property bubble reached the contagion phase, spreading to other areas. Real estate bubbles often spread from the city center to the suburbs. Investors move to regions with cheaper prices, often looking for bigger gains. As the issue becomes more widespread, the odds of a financial crisis rises. It’s no longer a city issue, but impacts whole economic regions.
That is the phase Canada is currently in, even highlighted in the Bank of Canada research. They found home prices in Toronto and Vancouver suburbs are growing at a faster rate than in the city. The assumption is that the pandemic changed consumption habits, and this time is different. Except newspaper archives are filled with articles on urban flight during bubble peaks. Apparently, People suddenly feel the need for more space during every bubble. It’s always different this time. Except when it isn’t.
Canadian mortgage rates are forecast to rise over 40%, with the posted rate hitting up to 7%. Desjardins released its forecast range over the next few years. It shows mortgage rates are more likely to rise than fall within 3 years. This is especially true if the economy keeps its booming pace of growth. While no one has ever paid the posted rate, it can impact things like the penalties and the stress test. Since the posted rate rises with the discount rate, borrowers are likely to pay more as well........
While house sales of 7,825 in May are up 157% over last year, sales volumes have been trending down since their peak of 10,068 in March. House sales typically increase on a month-over-month basis as we move into the spring market, but the effects of COVID-19 reversed this traditional seasonal trend.
This change is largely due to the fact that COVID-19 pulled a lot of demand forward in 2020, meaning that buyers who were planning on buying a home in 2021 moved up their home buying plans and bought in 2020. There were a number of factors behind these accelerated home buying decisions including 5 year mortgage rates falling to the mid 1% range and renters wanting to leave their cramped dense apartments in favour of more spacious houses with outdoor space.
This resulted in a very competitive market during the second half of 2020 and the first quarter of 2021, but the surge in demand is slowly unwinding.........
“There are many moving parts when it comes to staging,” says Kori Marin, a managing partner. “I would say the jumping-off point is the seller’s overall comfort with it. Some are happy to have their homes staged from end to end. Others hope we can use some of their existing furniture and artwork so they don’t have to move all of the contents out of their homes. Still others are only interested in some light styling so they can live at their property while their home is on the market. As you can imagine, a vacant property is basically the dream.”
Once a seller’s parameters have been established, Marin says, an even more important player enters the equation: the potential buyer. Who that may be, she explains, “is determined by location, type of building, size of home and the demographics of an area.” In this regard, staging is to some degree a chicken/egg proposition, since the look of a staged home will be geared toward the people likeliest to visit it, whatever their typological similarities.........
After months of fierce competition and a flurry of activity, Toronto’s once feverish real estate market is finally starting to show signs of slowing down.
Following 2020’s record-setting year for real estate, 2021 started exceptionally strong — both on a local and national level — as hopeful homebuyers regained confidence in the housing market after months of uncertainty amid the pandemic.
While demand returned to pre-covid levels, housing stock remained low, leading to steadily rising housing costs that continue to leave many buyers priced out of Toronto’s market. Subsequently, offer fatigue, buyer frustration, and a lessening of urgency to purchase amid the pandemic have taken hold.......
The condo market, battered by the flight from the city early in the pandemic, is showing signs of recovery, and that could be a good thing for Canadian housing overall.
In the latest data out yesterday, benchmark condo prices were up 10.6% from the year before – the strongest gain since 2018, says TD economist Rishi Sondhi.
“Though overshadowed by the superheated detached market, condos are quietly making a comeback,” said Sondhi. Benchmark prices have climbed month on month for almost a full year, with the gains in the past three months the strongest since the housing boom in 2017.
“Should condo sales consume a rising share of the market moving forward (as we expect), downward pressure on average home prices from these lower-priced units would be applied,” he said.......
Bad news for those looking to get into Toronto's booming real estate market, but good for those who bought a few years ago — condo prices keep getting higher.
Condos took a hit early on in the pandemic when the average price of a GTA condo fell to $610,000 in the fall of 2020.
That drop quickly rebounded a few months ago, however, with the average condo selling price coming up to nearly $700,000.
Prices started to soar this spring with condos seeing record prices and bidding wars.
Of course, you can find condos for much lower — there are several one-bedrooms listed for under $500,000. You can also go much higher with condos priced at anywhere from an $8.9 million condo with an infinity pool to a $15 million penthouse........
More than two in five Canadians (41 per cent) say they’re not knowledgeable about buying or selling real estate, a recent Re/Max survey found.
Considering there were 551,000 home sales in Canada last year, those transactions may have included an awful lot of people flying blind into the biggest purchase of their lives.
“People read the news. They hear that the market is competitive, so they’re aware of that. But they’re not necessarily aware of how the process works,” says David Oikle, president of the Ontario Real Estate Association.
“We have first-time buyers who have never gone through the process. We have older buyers who are selling their properties who haven’t been in the market for 25 years,” Oikle says. “Both of them need a lot of education.”.....
Royal Bank of Canada has revised its housing forecast higher, predicting home prices will rise 13 per cent this year and saying policy makers have done little to cool the frenzied real estate market.
The bank now expects home resales to climb 16 per cent this year, to 636,700 units, and predicts the RPS House Price Index, which measures appraised values, will jump 13 per cent, to $697,400. The bank’s previous forecast had home resales increasing 6.5 per cent and prices rising 8 per cent.
“Canadian policymakers mostly ignored calls for forceful action,” RBC senior economist Robert Hogue said in a note on the updated forecast.
Qualifying for a mortgage became slightly tougher in June, and more homeowners listed their properties for sale, but Mr. Hogue said those two factors would not make a difference to buyers “who continue to try to outbid each other amid exceptionally low inventories and fast-rising prices.”......
Royal Bank of Canada’s regulatory filings for the second quarter of 2021 contain most of what you’d expect, including several best-case/worst-case scenarios that help the banking giant illustrate how much risk the company is exposed to.
It can make for pretty bland reading, but there’s usually a hint of spice when it comes to projecting the worst possible outcome for real estate. And RBC hasn’t disappointed in that area — by saying home prices in Canada could fall by a massive 30 per cent, under certain conditions.
But what are the chances of that happening? Put another way, it’s a question on the minds of most housing market watchers: Can real estate prices in Canada fall as fast as they’ve been rising?......
High vaccine take-up and falling COVID caseloads are cooling the country’s fevered pandemic real estate market, prompting the Canadian Real Estate Association (CREA) to adjust its still record-breaking sales forecast down slightly for 2021.
But there’s no price relief in sight, says CREA, which is predicting a slightly steeper climb of 19.3 per cent to an average price of $677,775 this year, up from its original March forecast of a 16.5 per cent rise this year to $665,000.
Citing fallen month-over-month sales in April and May, the association said Tuesday there is “anecdotal evidence of offer fatigue and frustration among buyers.”.........
While Canada’s banks are mandated by OFSI to enforce the mortgage stress test, provincially regulated credit unions and alternative lenders are not, which can pave the way for would-be buyers to side-step the process, according to the loan comparison platform Loans Canada.
Some alternative lenders offer faster mortgage approval, even to borrowers with low credit scores and high debt-to-income ratio. The drawbacks, however, include higher interest rates, smaller loan limits, and potential hidden charges.......
Always on the precipace between too many freaking condos and yet not enough (affordable) housing for its residents, Toronto is about to become home to yet another megadevelopment if the latest application for two highrises near the ever-evolving Yonge-Bloor intersection is approved.
The towers at 25 St. Mary Street will be unignorable not just because of their stark white exterior, but also due to their sheer size: 59 and 54 storeys with a total of 1,143 new units between them.
Thankfully, at least some of these units will be dedicated rentals, though this is due to the fact that the buildings will be taking the place of an existing rental complex from the '60s that currently houses more than 250 people and families........
Fewer homes are being sold in the Greater Toronto Area (GTA) and Vancouver areas compared to previous months, but prices still haven’t come down as a result.
A few things have to happen before prices start to fall, which are up 30 per cent or more in some areas.
We’ve been getting monthly updates from the ground floor from Realosophy Realty’s John Pasalis and Oakwyn Realty’s Steve Saretsky, who help make sense of it all, with advice for anyone buying or selling a home........
Toronto, June 15, 2021 -- Increased costs to purchasers, decreased new housing supply due to market distortions, and a flawed approach unique to Toronto Inclusionary Zoning (IZ)** are the key findings in a new report released today on the City of Toronto’s (City) proposed IZ policy by the Building Industry and Land Development Association (BILD). The report summarizes four independent studies that found deep flaws in the City of Toronto’s proposed approach to building affordable housing units.
“Using this approach, the City of Toronto is essentially requiring purchasers of market rate housing units to subsidize affordable units at the rate of $65,000 and $116,000 per rental unit over the lifetime of the unit,” said Dave Wilkes, President & CEO, BILD. “Helping to provide affordable housing is everyone’s responsibility and under this proposal the City is placing the burden solely on the back of purchasers of new homes. This, at a time when housing supply is already under great pressure and affordability is more elusive than ever.” ......
Toronto’s housing market recorded its second consecutive month of slowing sales in May, as reduced supply and a lingering lockdown to contain the coronavirus helped to cool off the market.
The number of homes that traded hands in Canada’s largest city fell 8.9% in May from the month before, according to data released Thursday from the Toronto Regional Real Estate Board. The seasonally-adjusted average selling price for a home in the Toronto region still rose 1.1% from April, to C$1,061,987 ($882,300).
“While sales have trended off the March 2021 peak, so too have new listings,” Jason Mercer, the real estate board’s chief market analyst, said in a statement. “People actively looking to purchase a home continue to face a lot of competition from other buyers, which results in very strong upward pressure on selling prices.”.......
Toronto’s downtown core condo sales continued to suffer in May.
Condo listing site strata.ca reports GTA condo sales dropped for a second straight month in May with the biggest declines in the downtown core, down by 19%.
That’s certainly not the alarming 62% decrease recorded in April 2020 immediately following Ontario’s state of emergency that came on March 17, but the drop continues the downward trend after the market’s April plateau.
The number of condos sales was actually up this May compared to May 2020, just a few months into the pandemic, but compared to March 2021 numbers were down 23%.
Strata.ca says May’s decreased activity reflects those who already bought to avoid the new mortgage stress test........
The Greater Toronto Area (GTA) housing market is showing signs it may have peaked in March.
The Toronto Regional Real Estate Board (TRREB) says 11,951 homes were sold in May, which is more than twice as many in May 2020 when a cloud of uncertainty blanketed the market. But sales fell 13 per cent compared to the previous month.
TRREB says May is usually the most active month. However this year, March was the busiest with 15,646 homes changing hands.
"There has been strong demand for ownership housing in all parts of the GTA for both ground-oriented home types and condominium apartments. This was fuelled by confidence in the economic recovery and low borrowing costs," said TRREB president Lisa Patel........
If you ever thought you’d be great at selling any one of Toronto’s many luxury properties (or just want a job where you can oogle jaw-dropping homes all day), then becoming a luxury real estate agent may be the thing for you.
But getting into the luxury real estate game can seem difficult and confusing, especially for anyone with no experience in the field. So, Daily Hive asked two experts, Naz Sala, broker for Royal LePage Terrequity, and Bryan Nunes, co-owner of ListingsTO and sales representative at Right at Home Realty, to share their insights on how to break into the industry..........
Resale activity in the Toronto region’s housing market continued to cool for the second month in a row in May, as buyer fatigue seems to have kicked in. Despite this, prices rose to an all-time record.
There were 11,951 home resales in the Toronto area last month, which was above the 10-year average for May but 12.5% lower than April and 23.6% lower than the record-setting month of March, according to the latest data from the Toronto Regional Real Estate Board (TRREB).
However, despite the ebb in sales over the last two months, market conditions remained tight enough to push the average selling price to a record of $1,108,453 in May.
The board says May’s sales were more than double those recorded a year prior — when the world was still just in the second full month of the pandemic. However, May 2021 sales were below the May 2016 record of 12,789. Often, May is the strongest sales month in any given year; however, 2021 results “bucked” this trend, with sales for the month below the 15,646 deals reported during the housing market peak in March.........
Toronto has long been known for its severe lack of affordable housing, but a new study puts into perspective just how desperate tenants in the city are for rental units — and how desperate homeowners are to help pay off their untenable mortgages.
The Canada Mortgage and Housing Corporation (CMHC) has released what is the first-ever detailed look at basement apartments, laneway homes and other secondary suites across Ontario, with data showing that a high proportion of homeowners in Toronto rent out a part of their property.
The report states that 15.4 per cent, or almost one in six "ground-oriented" homes in the city includes a secondary unit, making for the highest ratio in the province by a long shot with 74,752 total.
Most of these are located in the central southwest of the city, from east of Etobicoke through High Park, Parkdale and bleeding over Dufferin, as seen in the heat map below. Trinity-Bellwoods, Roncesvalles and Little Italy specifically were found to have the highest concentrations.......
A mansion listed for sale in Toronto looks more like a luxury hotel than a home.
For those who can afford it, Toronto mansions come with extravagant features most of us can only dream about. There are homes that come with private forests, 12-car garages, elevators and dreamy backyards.
The mansion at 139 Dunvegan Road in Toronto is listed for nearly $17 million and comes with many of the sought-after features. Located in Forest Hill, this custom home sits on a 100-foot lot.
The home is formal with a circular drive around carefully manicured gardens, hidden from street view with a large hedge for privacy.
There are 16 rooms in total in this hotel-like home. If you like your alone time, you could spend days in this place and never run into the rest of your family........
The May numbers for the Toronto Regional Real Estate Board were released last week and, as anticipated, the raging inferno we’ve been witnessing in the Toronto market appears to have given way to a steady burn.
And thank goodness — we’ve been begging for a little moderation to return to the market and it would seem that our wish has been granted.
With just shy of 12,000 sales in the month of May, sales declined by almost 13% from April and over 23% from March. Nothing sudden or abrupt, just a slow and steady loss of the momentum that powered us through the pandemic and drove our market to its peak in March........
While most consumers are ratcheting back on their credit card debt, homebuyers have pushed new mortgage volumes to unprecedented levels according to Equifax Canada’s most recent report on consumer credit conditions. New mortgages are up 41.2 per cent in Q1 compared to Q1 2020 and the average limit on new mortgages grew by 20.5 per cent to $326,930.
Overall consumer debt now stands at $2.08 trillion, up 0.62 per cent from last quarter and up 4.78 per cent from Q1 2020. Much of the new mortgage growth adding to the overall debt was driven by B.C. and Ontario, which saw jumps of 59.2 per cent and 44.3 per cent in volume respectively compared to Q1 2020.
“Low interest rates and speculation around U.S. inflation impacting our interest rates has fueled mortgage volumes as consumers fear future interest rate hikes,” said Rebecca Oakes, AVP of Advanced Analytics at Equifax Canada. “Competition among homebuyers is fierce in many markets across the country. We’ll monitor whether the new mortgage stress test helps to cool off the hot housing market.”.......
April 2021 marked an exceptional month for the Greater Toronto Area’s housing market, with home sales activity surging more than four-fold from the same time last year, according to the Toronto Regional Real Estate Board’s (TRREB) figures.
Home sales topped 13,663 during the month, far exceeding the 2,957 deals closed in April 2020 – the first full month since the COVID-19 pandemic struck. Sales numbers last April were also 36.6% higher than GTA’s 10-year average for the month, TRREB’s data showed........
As Toronto’s housing market continues to rise, some homeowners are looking to renovate their homes before putting them on the market in order to increase its appeal and value. However, a home renovation can be a big commitment, so you should focus your attention on these areas to increase your resale property value.
Not all renovations provide the same range of return. For example, building an in-ground swimming pool in your backyard seems like a fun way to enjoy your summer. However, it can sometimes restrict your home’s appeal to certain buyers, and subsequent resale value.
The main focuses of any home renovations should be your kitchen, bathrooms, and basement.......
Canada’s largest bank still sees home prices making a steep drop in a worst-case scenario. RBC regulatory filings for Q2 2021 show the bank’s forecast for risk planning. Currently, they see price growth slowing from current levels, but still advancing. If housing surprises to the upside, they see home prices advancing a little more quickly. If housing surprises to the downside, they forecast home prices could drop up to 30% in the worst-case.
Macroeconomic Scenario Assumptions
Financial organizations are required to disclose risk using unbiased and realistic outcomes. As mentioned earlier this week with BMO, they do it by creating forecasts for key indicators. They usually split the forecast into three — a best case, base case, and worst-case scenarios. One of those indicators is housing, and that’s what we’re looking at today......
Canada’s property bubble is reaching the point where few people in the country can buy. Home price growth is still surging across the country, but sales are falling. The odd combination made us curious how many households can still afford to buy.
To the surprise of no Millennials, very few people can afford to buy anywhere across the country. We looked at the National Bank of Canada (NBC) affordability index for Q1 2021. Using their minimum income to carry a mortgage, we found less than a third of households can afford a home at these prices.
Only A Third Of Canadians Could Afford To Buy Any Type Of Home
Less than a third could afford to buy a home across Canada. A composite home across Canada requires at least an annual household income of $130,921. Fewer than 28.9% of households make enough to clear that barrier........
Well, we’ve been wondering when things were going to let up in this bonkers real estate market, and while I don’t want to get ahead of myself, based on what I am seeing out there, it really does seem a trickle of that eagerly awaited moderation may now be setting in.
We still have a few days to go to close out the month, but soon we will have Toronto Regional Real Estate Board’s May market stats and I cannot wait to see if the cooling we observed in April, following the hottest March on record, holds.......
The average selling price for a home in the Greater Toronto Area (GTA) real estate market is $1,090,992, according to the most recent numbers from April. What that could get you ranges from a two-bedroom downtown condo to a three-bedroom executive home in Innisfill.
According to an Ipsos survey commissioned by the Ontario real estate association (OREA), nearly one-in-five (19 per cent) of us plans to buy a home in the next year. Sixty-three per cent of prospective buyers plan to purchase a detached house and 28 per are looking for a home that is larger than 2,500 square feet, which, if your budget is closer to the steep average selling price in the GTA, will most certainly mean you’ll be part of the urban exodus looking for new digs in Pickering, Brampton or Innisfil.......
It’s no secret that buying a house in Toronto is an investment. In the midst of a global pandemic, the market has skyrocketed, with the average home in the city selling at a record-breaking $1 million. But not every home in the market actually lives up to its price tag. If you’re house hunting, these tips will help you make sure you get your money’s worth.
Think beyond the list price
The cost of a house doesn’t start and end with the list price. Things like renovations, remodelling, and repairs can quickly add to your expenses. Talk to your Toronto mortgage broker about whether it makes sense to make a sizeable down payment to secure great mortgage rates and conditions or pay down less upfront and pour the extra cash into upgrades. ......
Laneway housing has long been touted as a key component to gently increase density – or as planners put it, a “missing middle” housing solution. However, prior to 2018, building laneway housing in Toronto was a logistical nightmare.
“Our planning bylaws heavily favour single family development,” says Philip Kocev, a broker and managing officer at iPro Realty Ltd who has been advocating for more multi-unit dwellings similar in scale to single-family and detached homes. “You could take a piece of land and build a big monster house; you can take your historic bungalow and put two levels on it super easily. But the minute you go into two or more units, it’s really challenging to go through the city process.”
Toronto finally passed a bylaw in 2018 to make laneway suites much easier to build for developers (“suite” is the key word there; redefining laneway houses as suites allows them to be considered detached secondary units whose services are still connected to the main unit). Shortly after, the city started its own laneway suite project to work on expanding housing options.......
We can see that the difference between ownership costs and average rents fell after the first quarter of 2020 in the onset of the pandemic due to a decline in condo prices and interest rates — despite the fact that average rents also fell over the same period.
Urbanation’s difference of over $700 during the first quarter of 2021 is above our calculation of $669 due to methodological differences. Firstly, Urbanation uses average rents and sale prices for all properties while we focused exclusively on those bought by investors. But more importantly, the average sale price in our analysis will likely be lower than Urbanation’s because many of the condos that closed during the first quarter of 2021 were actually purchased during the fourth quarter of 2020 when prices were much lower.
So how prudent is it to buy a rental property that is expected to fall short over $700 per month in covering all carrying costs when rented out, before even factoring in vacancy and turnover?.......
One of Canada’s frothiest market indicators surfaced — rents are rising with vacancies. Canada Mortgage and Housing Corporation (CMHC) data from their 2020 rental survey shows a sharp uptick in vacancies. Normally this is expected to bring prices down, but not in a property bubble. Rental prices continue to rise along with increasing vacancies. In some cases, multi-decade highs for rental vacancies are seeing price growth accelerate.
Toronto Rental Vacancies Hit An 18 Year High, Prices Growing 50% Faster Than Normal
Toronto rental vacancies saw a fast jump, pushing to the highest level in over a decade. The rate of primary rental vacancies reached 3.4% in 2020, an increase of 126.7% from the year before. This is the highest vacancy rate since 2005, and the biggest jump since 2002. A whole generation of the city has never seen vacancies this high. About 1 in 29 apartments were sitting empty at the time of the CMHC’s survey........
Given the dramatic scene that’s unfolded this past year in Canada’s red-hot housing market, the word “bubble” has been tossed around in many a conversation.
With its jaw-dropping bidding wars and record-breaking home prices, the Canadian real estate market – especially in places like sizzling southern Ontario – has accelerated at what many consider to be an unsustainable pace for much of the past year. (See: tens of thousands of dollars in price increases per month.)......
Home ownership is becoming more and more of a dream-like fantasy for young Torontonians, on par with becoming a rock star or joining the circus — both of which are actually probably easier right now for a talented arts industry worker than buying a house in Canada's largest city.
The newly released results of Maru/Blue survey commissioned by Right at Home Realty, a Toronto-based real estate brokerage, suggest that 51 per cent of all Ontario residents are "feeling left behind" in the current housing market......
No one likes to scramble to make ends meet. It’s stressful and it’s next to impossible to get ahead financially. But it doesn’t have to be this way. Break the cycle of living paycheque to paycheque permanently with these five steps.
1. Master the budgeting process
Anyone can make a budget. Download a template, scribe in the numbers — money in and money out — and look at what’s left over, your bottom line, then make promises to yourself about doing better. To stop the paycheque to paycheque cycle, you’ve got to live within your means. That means spending what you have and nothing more. The only way to do that is to get darn good at tracking where your money is going, daily........
Toronto and Vancouver condos are starting to attract foreign buyers again… at least the newer inventory is. Canada Mortgage and Housing Corporation (CMHC) data show a mixed movement in 2020. Toronto’s total rate of non-resident condo ownership declined, while Vancouver’s increased. Both cities are still seeing non-resident ownership of new supply climb though.
Foreign Buyers Own Over 1 In 20 New Condo Units In Toronto
The City of Toronto saw a decline in the total number of condos held by non-resident owners last year. Non-residents owned 3.1% of the city’s condos in 2020, down from 3.3% the year before. In terms of condo units, non-residents owned 9,686, down 2.4% over the same period. It would appear older supply is being sold off at a faster rate than it’s being bought.......
The Canadian real estate market has been very tight in terms of supply, but that’s beginning to change. The sales to new listings ratio (SNLR) made a sharp decline in April, according to data from the Canadian Real Estate Association (CREA). Declines were seen at both the national level, as well as the majority of major markets. For the past few months, the number of buyers has dropped much faster than sellers.
Sales To New Listings Ratio (SNLR)
The sales to new listings ratio (SNLR) is the number of home sales compared to new listings. It’s one way to gauge the strength of supply and tells us how quickly inventory is being replaced. Better-supplied markets, where inventory grows much faster than buyers, often see prices fall. Likewise, a tight market with few sellers and many buyers will see prices rise......
Aluminum wiring was popular in Toronto in the 1960s and the 1970s as it was a much cheaper alternative to copper wiring. Aluminum wiring is still in use in many older homes in Toronto, but the homeowners pay more for homeowners’ insurance or even face some insurance companies that will not cover their properties. Aluminum wiring showed problems and that became an issue in the past decades. The issues were not horrendous, but all aluminum-wired homes must now pass an Electrical Safety Authority of Ontario inspection before a property will be insured......
To illustrate how much house values have increased in the Toronto region, real estate agent Mr. Rowlands recently created an infographic comparing the average prices for homes sold in the city between the end of 2010 and the end of 2021.
Based on the graphic, someone planning to buy a detached home in 2021 would need to shell out nearly three times as much as they would have 10 years ago. Prices of semi-detached dwellings have spiked 130%, while condo prices have risen more than two-fold in the past decade.
“Long story short, if you bought any property in Toronto 10 years ago, you’ve likely more than doubled your money, built a fair amount of equity and likely have a mortgage payment well below the average rental price in the city,” Rowlands wrote in an Instagram post featuring the infographic.......
For a city like Toronto, where even those making decent wages struggle to afford a home, the need for affordable housing becomes more and more important.
Multi-tenant rooming houses are an important part of affordable housing, allowing everyone from students to low income workers to live in a shared space at a fraction of the cost of most housing within the city.
Now, the city is looking to modify the framework on these rooming houses allowing for expanded zoning, and better health and safety protections for tenants in these residences.......
The Bank of Canada said on Thursday that high household indebtedness and imbalances in the housing market have intensified in the last year, leaving the economy more vulnerable to economic shocks.
The remarks were the most expansive commentary the central bank has made about the risks posed by a hot housing market since the start of the COVID-19 pandemic early last year.
Canada's housing market boom and the corresponding rise in mortgage debt support economic growth in the short-term but also increase the risk to the economy and financial system over the medium-term, the central bank said in its annual review of financial systems......
If it sounds too good to be true, it almost always is.
A new trend in the Toronto real estate market, in which realtors are listing residential homes in the Greater Toronto Area for only a dollar, has left some buyers with questions.
Just because a property is listed for a dollar, it certainly doesn’t mean that buyers will pay that much, though.
Toronto real estate agent Mr. Poliszot currently has a property at 15 Rebecca St. listed for one dollar. While he’s doing it as a means to attract attention to the property, he says listing prices have not reflected actual property value for some time........
Canada said on Thursday it would tighten rules on mortgage lending starting next month after the Bank of Canada earlier warned that the hot housing market and high household debt levels had left the economy more vulnerable to economic shocks.
The country’s financial regulator and the Finance Department said separately that borrowers of both uninsured and insured mortgages must show that they can afford loans that are the higher of their current rate plus 200 basis points, or 5.25%.
It replaces the earlier benchmark that used banks’ advertised rate – currently 4.79% – to determine the minimum qualifying rate.
Canadian home sales and prices have surged in recent months, as demand has outpaced available supply. The average price nationwide jumped 41.9% in April from the previous year, when prices inched down amid a pandemic plunge in sales.
The housing boom has led to a jump in mortgage debt, sending total household debt up sharply since mid-2020.........
Canada’s federal banking regulator is tightening rules on mortgage stress tests for homebuyers with uninsured mortgages starting June 1.
The minimum qualifying rate for uninsured mortgages – residential mortgages with a down payment of 20 per cent or more – will rise to either the contracted rate plus two percentage points or 5.25 per cent, whichever is higher.
As it stands, any buyer whose down payment on a home is one-fifth of the purchase price or more has to show they can afford mortgage payments if the interest rate was two percentage points higher than what the bank is offering them or the five-year benchmark rate published by the Bank of Canada, which sits at 4.79 per cent — whichever is higher......
Bank of Canada Governor Tiff Macklem warned the housing market is “not normal,” as he released new research that suggests real-estate prices in some of the country’s biggest cities are being driven by a speculative frenzy.
The central bank singled out the Greater Toronto Area, Hamilton and Montreal as experiencing worrisome signs of “extrapolative behaviour,” which is the way Macklem and other policy-makers describe market dynamics they see as out of line with the fundamentals of supply and demand.......
Toronto officially beat out two of the most notoriously expensive North American cities to live in, landing second place on a new ranking of the continent’s cities with the least affordable housing.
According to a new report from Oxford Economics, Toronto has a worse affordable housing index than cities like Los Angeles and New York. Vancouver, however, edged out the top spot as the most unaffordable city in North America.
Two other Ontario cities — Hamilton and Ottawa — also landed on the least affordable list, along with Montreal, which came in ninth place........
The thought of a house in Toronto being priced at $1 seems laughable considering the state of the real estate market. As it turns out, a recently renovated Trinity Bellwoods home is listed for exactly that.
The once eery-looking, dilapidated house located at 15 Rebecca Street recently underwent a transformative renovation. The current owners originally listed the now-unrecognizable home in April for $1.4 million, but just this week, they dropped the asking price down to one singular dollar.
The renovation work was extensive, with the house appearing to have new walls, flooring, and finishings, and the addition of exposed brick. The house was also converted into a two-unit property, with each unit being a one-bedroom, meaning this property will likely be of interest to real estate investors.......
Toronto is filled with old houses that have been chopped up to create quirky rental apartments. Some have poorly divided entrances, others strangely configured living spaces, or laundry rooms that have to be accessed through another tenant’s apartment. And there’s the issue of sound transfer because of the flimsy walls. But the owner gets help with the mortgage, the renter shelter, so most of the time, it’s win-win.
But could this model be improved? The North York Planning Department thinks so. In 2019, it eased restrictions on secondary basement suites in semis and detached houses, says Lee Koutsaris, vice-president of sales and marketing for Metropia.........
As many as three out of four first-time home buyers are worried that they will not have sufficiently large down payments to purchase their desired properties, according to a new survey by mortgage insurance giant Sagen for Royal LePage.
The poll found that this year, 75% of first-time home buyers in Toronto (68% in 2019), 69% in Vancouver (58% two years ago), and 63% in Montreal (60% in 2019) are anxious over the size of their down payments......
Barrie is considered to be one of the fastest-growing cities in Ontario. Over the past year, Barrie has seen such a large increase in real estate prices, but is still much more affordable than other cities similar in its size in the province.
Demand from both local Simcoe County buyers and people moving north from the Greater Toronto Area has been driving the Barrie condo market and continues to thrive as we move through the spring market.
In April, there were 37 condo apartments that sold in Barrie. The average sale price was $530,156, which is up quite a bit from March, and the median price was $500,000.....
Dozens of tenants demonstrated in an east end square in Toronto on Saturday to show their opposition to above guideline rent increases that are happening during the COVID-19 pandemic.
These rent hikes, or AGIs, are "massive loopholes" through which rent is increasing in residential buildings across the city despite a provincial rent freeze, according to Toronto ACORN, an anti-poverty group that organized the demonstration outside Main Square Apartments, 2575 Danforth Ave., at Main Street and Danforth Avenue.
Even though the Ontario government has frozen rent at 2020 levels, landlords can seek approval for these increases from the Landlord and Tenant Board and have them applied to 2021 rents if the increases are covering the costs of capital repairs and security services.......
Buying a home in the often scary real estate landscape of Toronto can be challenging enough, especially with today’s stiff competition, so knowing exactly what mortgage you can afford (and how to even get one) is more important than ever.
To take things back to the basics, a mortgage is a loan from a bank or other lender that a buyer uses to purchase or maintain a piece of real estate that is paid back in agreed upon regular instalments. The purchased property serves as collateral for the loan.......
We’ve all heard it. Everyone’s friend has a friend, that’s making a buttload flipping Toronto real estate. Considering the benchmark home price jumped $155,100 over the past year, flippers must be rolling in cash. Diving through April sales data, flippers definitely make up a big chunk of listings. While they’re making decent money, they aren’t capturing nearly as much as the headline numbers would leave you to believe.
Over 3% Of April Listings Were Bought Less Than 3 Years Ago
The number of homes listed for sale last month that were bought not so long ago, was substantial. There were 661 homes newly listed in April that were bought less than 3 years ago. Recent purchases made up 3.17% of new listings for the month. Surely these can’t be speculators, since I’ve been told those don’t exist in Toronto. Maybe a family just didn’t like the carpets and thought it was easier to just move........
Across the country, first-time homebuyers are getting more anxious about the market they’re facing.
A new survey from Royal LePage and mortgage insurer Sagen conducted in February and March found nearly two-thirds of Canadians who bought their first home within the last two years had feared missing out on a property they were eyeing, simply because the down payment it needed was too high. In Toronto, that anxiety ran higher still at 75 per cent, and it had only increased since the last survey in 2019.
Market data gives a glimpse at why: Last month, aggregate home prices, including condos, in the Toronto area were 33 per cent higher than in April 2020. They rose even faster in the 905 where detached house prices climbed 44 per cent year over year to an average of $1.31 million. Like other city regions around the world, the GTA is facing a tricky question: can housing become affordable again?.......
Toronto’s wildly competitive real estate market has given way to a new trend: buy now, inspect later.
It’s become common for homebuyers in the GTA to make offers on properties without completing their own home inspection. Fewer conditions are attractive to sellers, and scratching out the home inspection clause — a standard condition in an offer intended to protect the buyer — helps buyers outshine their competition.------
Canadians are so alarmed by the red-hot housing market that many say they’d like to see the central bank raise the cost of borrowing to dampen demand for real estate and stabilize prices.
About 70% of Canadians responding to a new Nanos Research poll conducted for Bloomberg News said the sharp increase in home prices was a major problem for the economy. Almost half were at least somewhat in favor of the Bank of Canada raising its overnight rate to slow the rise, even though such a move would also increase the cost of credit lines, credit cards and other debt........
In the current chaotic residential real estate market, buyers are frequently submitting offers well in excess of either the listing price or the realistic market value.
But transactions like this sometimes go off the rails when the buyers are unable to obtain financing or sell their existing houses. The courts, in an increasing number of recently reported decisions, have shown little empathy for defaulting buyers.........
TORONTO, May 12, 2021 (GLOBE NEWSWIRE) -- For the second year, the Toronto Regional Real Estate Board (TRREB) and its Members are supporting COVID-19 relief efforts. The immediate contribution of over $300,000 in concert with the Ontario REALTORS Care® Foundation (ORCF) will help 40 charities and support the most vulnerable during the third wave of the pandemic. This is in addition to the $744,116 donated at the end of 2020, as part of the $1 per Member per Month Every REALTOR® campaign in support of the ORCF.
Women and children faced with domestic abuse have been greatly affected during the pandemic. With the stay-at-home order and province-wide lockdowns amplifying these situations, the increased number of calls to helplines and the use of shelters has been staggering. TRREB recognizes the urgent need for more counsellors and more shelter spaces..........
Home prices have skyrocketed all over Toronto since the start of the pandemic, but according to a new report, it’s Scarborough that’s leading the pack in increased home values.
The report, from real estate technology company Properly, found that the value of homes in Scarborough has increased a whopping 25% since the onset of the pandemic. Pre-pandemic, the average sold price in the area was $710,000, and according to Properly, the average home now has an estimated value of $915,008........
Greater Toronto real estate’s inventory squeeze appears to be rapidly coming to an end. The sales to new listings ratio (SNLR) made a very sharp decline in April, marking the third month in a row. Such sharp corrections in the SNLR are historically associated with falling price growth. Over just the past 3 months, the decline now ranks as one of the fastest seen in decades.
Sales To New Listings Ratio (SNLR)
The sales to new listings ratio (SNLR) is one tool used to figure out how quickly inventory is being absorbed. Higher ratios mean the market is accepting the inventory at the prices very quickly. Lower ratios mean buyers aren’t quite as keen on the inventory being offered at the prices. High ratios mean a tighter market with fewer choices. Low ratios mean a more loose market, with more options. But what’s high and low?
There are some generally accepted industry standards that are thrown around. Markets with an SNLR above 60% are called sellers’ markets, where prices tend to rise. When the SNLR falls below 40%, prices are expected to fall. Between 40% and 60%, and the market is considered balanced, and priced right for demand. Of course, the reality isn’t quite that neat, now is it? ......
TORONTO -- If you bought a home in Scarborough just before the start of the COVID-19 pandemic you could be looking at a 25 per cent increase in value, a new report claims.
Toronto-based real estate brokerage company Properly laid out their findings Tuesday by way of an AI-powered home value calculator called “Instant Estimate.”
The results showed that the value of properties purchased in Scarborough, Etobicoke, and York in the six months before the onset of the pandemic appreciated the most, while homes in the downtown core appreciated the least.......
The federal government will spend more than $12 billion on transit projects in Toronto and Hamilton.
Infrastructure Minister Catherine McKenna said Tuesday that $10.4 billion in funding will go toward four "shovel ready" transit projects in Toronto — the Ontario Line, the Scarborough Rapid Transit replacement, the Eglinton Crosstown LRT and the Yonge-North subway extension. This funding will cover about 40 per cent of each project.
However, none of these transit lines will be completed until at least 2029, said Ontario's Transportation Minister Caroline Mulroney.........
Real estate is hot everywhere in Toronto, but with downtown dwellers looking for more space and more affordability, home values in areas on the outskirts of the city have seen the greatest appreciation. Comparing the purchase price of homes bought in the lead up to the pandemic to their current Properly Instant Estimate, properties purchased in Scarborough have jumped in value by a whopping 25 per cent, followed by York (21%) and Etobicoke (19%). On the other hand, home values in Toronto's Uptown have seen the lowest appreciation at just five per cent, followed by Midtown (7%) and Downtown (8%).
"There has been increased conversation around the skyrocketing homes prices in Toronto," said Anshul Ruparell, Co-founder and CEO of Properly. "But what's happening is actually the reverse of what we usually assume: that people want to be close to downtown. Old Toronto is seeing the overall lowest appreciation within the City of Toronto. It remains to be seen whether this shift away from the core will continue, but the Instant Estimate allows all homeowners in the GTA to easily track the value of their home in real time."......
Canadian home prices grew much faster than American home prices, but did incomes? In Canada, home prices have grown at a rate more than double that seen in the United States. However, disposable incomes over the same period grew at basically the same rate. Let’s take a dive into how shelter costs evolved in the two countries over the past few decades.
Canadian Home Prices Grew 2x Faster Than In The U.S.
Canadian home prices have been on a tear over the past few years, and it doesn’t matter where it’s compared to. From 1975 to 2020, home prices across Canada increased 1,467.3%. More recently, prices have increased 278.0% over the past 20 years. Remember, this isn’t a high-growth real estate market like Toronto or Vancouver. It’s all of Canada.
U.S. home prices also made a decent climb. From 1975 to 2020, home prices increased 692.9%. Over the past 20 years, they increased a more modest 106.0%. If you read this paragraph without knowing how Canada did, it would sound pretty good. In contrast, the gains sound a little tame. They aren’t......
Dividing a house into rooms that can be rented cheaply is a familiar practice in Scarborough, North York, East York and most of Etobicoke — all places where it’s illegal.
Since amalgamation, there has been no legal way for people in those parts of Toronto to live in inspected, multi-tenant housing, as they can in other parts of Toronto.
And yet advocates for tenants call this kind of housing “crucial” in a city where rents are unaffordable for many.
n early April, Garry Chalmers, 71, sold his home in Kelowna, B.C. for $875,000 — roughly $370,000 more than what he paid for the property six years ago.
But that’s the happy ending of a much longer saga. Chalmers, a local business owner, says he and his wife started looking for properties in the early days of the pandemic, but as housing prices started soaring, Chalmers felt he was always one step behind.
“Every time we got serious about something, we missed it,” he says recalling countless lost bidding wars.......
The average home price in Canada rose from $544,284 in March 2020 to $716,828 in March 2021 according to the Canadian Real Estate Association (CREA), a $172,544 increase. Prices in places like Greater Vancouver and Greater Toronto rose $96,100 and $143,000, respectively. Many Canadians are spending an extra $100,000 to buy than they were a year ago, raising an important question: just what is the impact of dropping an extra hundred grand on a home?
In the short run, there are the obvious transaction and financing costs. Land transfer tax and mortgage insurance costs are higher. Mortgage payments are higher as well, mind you, with interest rates at such low levels, most of your payment goes to principal..........
Canada Mortgage and Housing Corp. says the average home price could rise by as much as 14 per cent this year, but the pace of sales could moderate by the end of 2023 if broad immunity to COVID-19 is soon achieved.
Prices across the country could soar to as much as $649,400 by the end of the year and reach as high as $704,900 in 2023, the federal housing agency predicted Thursday as it unveiled its annual outlook.
However, the report showed CMHC's lower-end estimates place the average price at $628,400 by the end of the year and $669,500 by the end of 2023........
Canada’s housing market is on fire right now. More accurately, it has been on fire for a relatively long time, and unfortunately, no serious measures have been taken to tone down the heat. The average housing price in Toronto and Vancouver reached new heights, and no signs are indicating that the prices will come down any time soon.
Several experts drew parallels from Canada’s housing market to New Zealand’s. They speculated that the Canadian government might put its foot down and finally control the rampaging housing market as New Zealand did.
Things are going the other way, it seems.........
The City of Toronto is taking a stand against the skyrocketing price of construction materials, which a local councillor describes as a growing threat to the city's economy.
The concerns are included in a member's motion that received preliminary approval from city council during its Thursday meeting.
The motion calls for Toronto's city manager to ask the provincial and federal governments "to address the increasing costs of building materials, particularly lumber, to determine if action is required to ease the costs locally."........
Parts of the Greater Toronto Area's housing market are finally starting to cool after a torrid pace over the course of the COVID-19 pandemic, while others are playing catch-up and then some.
Broadly speaking, the Toronto Regional Real Estate Board (TRREB) says sales fell 12.7 per cent in April compared to March. April saw more than quadruple the number of sales versus April 2020, but that's coming off an incredibly low level when the market was frozen with fear over COVID-19.......
Momentum in the Greater Toronto Area real estate market has swung back to the city core as buyers feel more optimistic that urban life is undergoing a renaissance.
“It was so surprising and so fast,” Manu Singh of Right at Home Realty Inc., says of the change in sentiment.
The roll-out of vaccines has drawn buyers off the sidelines, he says, while low interest rates are encouraging people to act quickly.
GTA condo resales surged 104 per cent in the city of Toronto in the first quarter from the same quarter in 2020, says Shaun Hildebrand, president of research firm Urbanation Inc........
Home sales for the Greater Toronto Area remained strong in April, but the market is starting to slow from the intense pace seen earlier this year, the Toronto Regional Real Estate Board said Wednesday.
The board revealed 13,663 homes were sold in the region last month, a 362 per cent increase from the 2,957 properties sold in April 2020, which was the first full month of the COVID-19 pandemic.
However, home sales this April were down 12.7 per cent, from 15,652 a month earlier.
While the first three months of the year were full of bidding wars, soaring prices and a mad scramble to snatch up any available homes, Toronto real estate broker Wins Lai said she is seeing conditions cool............
According to The National Bank of Canada (NBC)'s latest housing affordability monitor, released Tuesday, the average annual household income needed to afford a representative house in Toronto is currently around $183,594.
That's the income it would take to buy a house that costs $1,069,111, which was the price of a "representative home in the metropolitan market" over the first quarter of 2021, according to the bank.
And even with that income of more than $183,000, someone would have to save up for a staggering 297 months just to afford a down payment on their seven figure Toronto home........
Whether you can land a mortgage with a low-interest rate or even get any home loan at all often comes down to three little digits: your credit score.
A ho-hum credit score might bring you a higher mortgage rate.
Canada has two main credit bureaus — Equifax and TransUnion — that collect and share data about how you’ve used credit in the country. These private companies draw up credit reports that summarize your activity and use it to assign you a credit score. Lenders like banks rely on your credit score to tell if you’re a good investment........
There's no shortage of expensive condos for sale in Toronto, but this year the city's been setting recent records for the amount people are willing to pay per square foot.
The Toronto condo realty company Strata has just released info on three of the most valuable condos sold in Toronto in the last year.
Condos were measured by price-per-square foot, a more accurate way to measure property value than the final sale price, since size definitely matters in the real estate game...........
The 5,593 new condominiums sold in the Toronto area in the first quarter put sales only four per cent below pre-pandemic levels and surpassed the 10-year average, a sign the market has shaken off last spring’s malaise, according to a condo report released Monday.
Seventy-six per cent of the new condos launched in the first three months of 2021 were sold by the end of the quarter, the highest level since 2017, according to Urbanation, a market research firm that tracks GTA development.
The average selling price in the first three months of this year in the Toronto region was $1,261 per sq. ft. — an 8.8 per cent or approximately $100 per sq. ft. year-over-year increase.
In the City of Toronto first quarter sale prices averaged $1,419 per sq. ft., 5.7 per cent higher than the $1,343 per sq. ft. average in the same period last year........
It’s hard to overlook the opportunity that the real estate market is presenting across Canada. If you’re in the position to create wealth by investing in real estate, Nicola Wealth, who has been managing investments for affluent families, takes a strategic approach to real estate investments and shares many lessons that have resulted in a steadfast investing strategy.
What does it take to build a personal real estate empire?
Building wealth through private hard asset real estate requires financial expectations, investing acumen, and risk tolerance. Let’s assess your position and preparedness to participate in direct ownership real estate by asking a few key questions.........
At the end of 12-hour shifts at St. Michael’s Hospital, working through the early months of COVID-19 on a surgery floor with some patients who’d just recovered from the virus, Toronto nurse Kim Le would board the subway exhausted and spend another 45 minutes commuting to North York.
Two years ago, Le and her husband packed up their apartment in midtown and moved northward to get a bit more space while still saving money in hopes of buying a house. The move tripled her commute time.
But as fierce competition for Toronto houses during the pandemic continues to drive prices ever-skyward, Le — one of the city’s essential, front-line workers — has resolved to leave Toronto altogether.
Le and her husband, who works at a bank job and has PhD income, have a combined salary of around $150,000, and yet she said a house is still out of their reach.
“I find it pretty ridiculous,” Le said. “We both have decent jobs. I feel like we live a minimal lifestyle and it’s not extravagant, but it’s hard to save … we thought it would get easier.”..........
Toronto had 125 cranes actively working on multiresidential towers in March, according to the RLB Crane Index, dwarfing the total of any other North American city.
“The urban density story for our city has clearly not stalled during the pandemic,” Terry Olynyk, president and managing director of Multiplex in Canada, said in introducing a recent webinar presented by Urban Land Institute Toronto chapter........
Despite rent prices plummeting in the city during the pandemic, new competition for value in Toronto's rental market is driving prices up for certain listings.
"Tenants are taking advantage of the lower prices," and are even submitting offers over the asking price, said Hiebert, particularly for spacious units with balconies and nature nearby.
"I would never ask a client to do that, but many are volunteering," Hiebert said. "Seeing multiple offers on rentals is becoming more common, thanks to increased demand and a decline in inventory.".......
Les Otto believes it's hard to get a straight answer from a real estate agent when it comes to the current state of the London region's supercharged housing market.
After all, for the most part, he said, they're feeding the frenzy.
"In many respects, they are. All they care about and, I have a lot of friends in real estate and many of them I respect, but they get paid on a commission they make on a house sale, so the more it sells, the more they put in their pocket."
Otto knows this because he's been working in the real estate business in southwestern Ontario for the last 40 years as an appraiser. In order to get a loan from a bank to buy a house or refinance a mortgage, the bank needs an objective assessment of how much that house is worth since that same house becomes the bank's collateral for the loan. That's where Otto comes in.........
Many experts are astounded at the prices of recent sales in some of Canada’s major markets. Media stories about bidding wars and homes selling as soon as they hit the market for hundreds of thousands over asking are everywhere. Such a frothy market has experts wondering if the bubble will burst and put Canada’s economic recovery at risk.
When we asked our panel of experts, just under one-third (29%) believed Canada’s sky-high real estate prices could send Canada into a recession, while just over a third (38%) did not believe a recession would result, with another one-third (33%) unsure........
A Toronto broker is putting out a call-to-action to cool obnoxiously high home prices, encouraging the real estate industry to mandate offer transparency and end blind bidding.
“It’s time for realtors to be bold and look at ways we can help ensure that as many people as possible realize their home ownership dreams, and that they are protected in the process of doing so,” says Philip Kocev, broker and managing partner at iPro Realty in a statement to media.
“Offer transparency can be simple: Mandate (or at least allow the option) for the disclosure of the best offer on the table to all competing offers.”.......
Regardless of your age, chances are, you’ve heard of ‘hot or not’ lists. (We see you, boomers.) And while these lists often cover celebrities and prominent figures, sometimes they can apply to real estate, particularly here in Toronto.
Such is the case for a new ranking of Toronto neighbourhoods from local realtor and chartered accountant, Scott Ingram. This list looks at ‘Who’s Hot and Who’s Not’ in regards to which of the city’s neighbourhoods saw increases in average sale prices of detached homes sold in 2020 compared to 2019.
Across Toronto, many pockets are recording impressive price growth in the single-detached housing sector, and this momentum is expected to continue.
For this year’s list — which highlights 15 neighbourhoods — the change in average prices varies from 18.6% to 28.9%, showing just how much values shifted from neighbourhood to neighbourhood......
After dropping into the red last year, Toronto’s condo market has now come bouncing back thanks in large part to none other than baby boomers.
According to a new report from Strata.ca, Ontario’s baby boomers are selling their larger homes in this hot market not just to cash in on the high sale prices, but to be able to help their kids enter the housing market.
“When seniors would sell in the past, it was strictly to downsize,” said Galina Sheveleva, a real estate agent at Strata.ca. “But there’s this trend where older homeowners are cashing out so they can help their children with a downpayment.”........
The Bank of Canada opted to keep its benchmark interest rate steady at a record-low 0.25 per cent Wednesday, saying the pandemic recovery "continues to require extraordinary monetary policy support."
At the same time, it significantly increased its growth estimates, forecasting a 6.5 per cent increase this year, up from an earlier prediction of four per cent.
The bank said in a statement that it intends to hold the policy interest rate until the economy is recovered, possibly in the second half of 2022, moved up from an earlier prediction of 2023.
The improved outlook means the likelihood that borrowing costs will rise late next year has increased........
While the federal budget won't make homes more affordable in Canada, average buyers and sellers won't be impacted by policy-induced market shocks either.
Over the past month there have been countless calls for the federal government to introduce policies aimed at cooling Canada’s red hot housing market which saw average house prices rise by 32%/y in March.
But the 2021 federal budget released today had very few measures aimed at improving affordability in Canada’s housing market, as I discussed with BNN Bloomberg's Jon Erlichman earlier today.
In fact, the only measure aimed at targeting the market for resale houses in Canada is the introduction of a 1% tax on vacant homes owned by non-residents.......
Initially designed to measure your likelihood of repaying a loan, credit scores are now used by all kinds of companies to quickly judge how responsible you are as a person.
Even so, a recent poll found that nearly seven out of 10 Canadians don’t know their current credit score and more than half have never even attempted to find it.
These days, checking and monitoring your score is free. And if your score falls below an “excellent” 760, it’s time to start improving it. Keeping your score high will open doors and help you save money in more areas of your life than you might recognize........
The ongoing surge in home prices across the country is discouraging a large number of young non-homeowners, many of whom say they’re giving up on the dream of homeownership altogether.
More than a third (36%) of non-homeowners under 40 believe they will never own a home, while 62% of Canadians believe a majority of people are being priced out of owning a home for the next decade, according to a recent poll from RBC.
“The road to homeownership isn’t always easy, and the last year has created both challenges and opportunities for homebuyers,” said Amit Sahasrabudhe, Vice-President of Home Equity Financing, Products and Acquisitions at RBC.........
Rana Khaled wants you to put on your big girl pants and buy a house.
An agent with Sage-Verity — you’ve seen her host Hot Market on HGTV — Khaled wants more women to experience the sense of power and financial independence that come with owning real estate.
Part of it is socialization — not that long ago, women couldn’t get a mortgage without a male to co-sign; owning a house was perceived as part of the love/marriage/parenting package.
Part of it is practical. Two incomes are better than one for paying a mortgage..........
After rising steadily in many cities across Canada for many years, real estate has been on a particular tear over the past year—and rental property investing has become an area of interest for plenty of people as a result.
But a soaring market isn’t a guarantee of success. If you’re thinking about becoming a landlord, you need to consider not only the purchase price and mortgage repayment costs of your property, but other financial issues as well...........
As Toronto’s real estate market heats up, bidding wars to buy property are becoming more common and fierce.
A bidding war is when multiple offers are made for a property, which is often listed below market value prices to encourage bidding. After a few rounds, the seller decides which bid to go for — some of which can be tens of thousands of dollars over the asking price.
“[Bidding wars] perpetuate and further inflate the pricing each time,” real estate agent André Kutyan said. “Each time a buyer misses out, they look at the next one and say, ‘What if I spent a few more thousands to secure it?’ Then they figure, let’s secure it and stop looking.”.........
The aggressive roller coaster ride that is Toronto's housing market won't be slowing down or levelling out any time soon according to real estate experts, unless something drastic changes in the near future to boost inventory levels.
In fact, housing affordability is expected to continue deteriorating across the entire country for the remainder of 2021 — but not all types of homes will increase in value equally, nor will all regions see the same type of price growth.......
Almost as soon as it was announced, the Canadian government’s first attempt to rein in the country’s pandemic housing boom was dismissed as not enough.
Canada’s banking regulator signalled its intent Thursday to take a small step by tightening qualification rules for uninsured mortgages, worried that low interest rates will put new home buyers too far into debt. The move will effectively reduce by about 4 per cent the size of mortgages households will be eligible to take..........
The chief executive of Royal Bank of Canada on Thursday said that a proposed tweak to a mortgage stress test could have a swift effect on the housing market, which he also noted is currently beset by limited supply and a surge in demand.
RBC president and CEO Dave McKay said during a conference call with reporters that he did think some action will be necessary to cool demand in the market in the short term, but that it should be “modest” and that it could be a change to existing policy........
A quarter of millennials have purchased homes in the past year, as the pandemic has created a near-perfect window of opportunity for them to buy, according to a new poll.
Eye-wateringly low interest rates, bulked up savings and the availability of remote work has made homeownership more attractive, even if affordability is decreasing, said John Webster, Scotiabank’s head of real estate secured lending............
Toronto could see about 2,500 COVID-19 cases per day by the end of April if the current rate of transmission remains the same, the city’s top doctor said Monday.
In a presentation to Toronto’s Board of Health, Dr. Eileen de Villa said that the third wave of the pandemic is “wreaking havoc” on the city.
“All together this says that right now, what we can anticipate of this third wave, is likely going to be worse than we have seen thus far over the course of the pandemic,” the medical officer of health said.
“As I've mentioned already now a couple of times, this is due to increased transmission, and increased severity associated with that B.1.1.7. variant of concern, which is now the dominant strain.”......
Policymakers attempting to stabilize the Toronto housing segment’s outsized growth might find some lessons from the 2017 spring market, according to a new analysis by Zoocasa.
Citing data from the Toronto Regional Real Estate Board, Zoocasa said that the average home sales price in the GTA has surged by 21.6% annually, reaching roughly $1.098 million in March.
Aside from significantly surpassing the previous peaks in February ($1.045 million) and January ($967,885), the March reading also raised the Q1 average to its highest-ever level at around $1.037 million. The quarterly increase was driven by the 13% surge in the single-detached segment, as well as the 11% price gain of condos and the 10% increase in the semi-detached market........
According to the Royal LePage House Price Survey released today, the aggregate1 price of a home in Canada increased 14.1 per cent year-over-year to $749,165 in the first quarter of 2021, as strong demand continues to outpace supply in virtually every market across the country. More than two thirds of the regions surveyed (67%) saw year-over-year double-digit aggregate price gains, driven largely by the single-family property segment. Seventy-seven per cent of regions surveyed reported median price appreciation of standard two-storey homes of ten per cent or more.
The Royal LePage National House Price Composite is compiled from proprietary property data, nationally and in 64 of the nation's largest real estate markets. When broken out by housing type, the median price of a standard two-storey home rose 15.9 per cent year-over-year to $894,140, while the median price of a bungalow increased 14.1 per cent to $628,341, and the median price of a condominium increased 2.0 per cent year-over-year to $509,364. Price data, which includes both resale and new build, is provided by Royal LePage's sister company RPS Real Property Solutions, a leading Canadian real estate valuation company............
A Canadian official in charge of housing policy confirmed the current market is not an accident. Instead, it’s a conscious decision where the government picked the winners and losers. TVO aired an interview with MP Adam Vaughan yesterday, discussing housing policy. In the interview, Vaughan, who helps oversee the CMHC, said price drops are not an option. The minister also said the market doesn’t work for locals, but is great for foreign investors. He also implied the strategy they might use to fix the market is one they were warned against. It was some interview. Here are the key market takeaways...........
The average price of a home in the Toronto region now tops the million-dollar mark. It’s also a whopping 22 per cent higher than a year ago, according to the latest data.
People’s salaries sure didn’t go up by 22 per cent. Housing price increases have long outstripped income increases in Canada and that trend shows no sign of letting up. It’s no wonder so many people are using rock-bottom interest rates to borrow as much as they possibly can, desperately trying to get a foothold in the market before it moves further out of reach.
A now-or-never, fear-of-missing-out mentality has driven prices up even in the midst of a global pandemic. And thanks in part to more people working from home it has expanded that overheated market into more communities.........
Far from the 18% decline predicted by the Canada Mortgage and Housing Corporation (CMHC) in 2020, the Canadian housing market is booming and hitting new all-time-high figures. Many experts and analysts expected the pandemic to clip the wings of the high-flying housing market. Instead of stumbling, Canadian housing is flying even higher.
Many parts of Canada are seeing strong sellers’ markets develop, despite the economic fallout from COVID-19. Buying homes for substantial long-term returns as investments have been a common practice. It might not be the best thing to do right now. The massive home price growth is causing concerns, and economists all over Canada are raising red flags........
One of Canada’s largest banks made an unusual move — they called out the role the Bank of Canada (BoC) played in the property bubble. Well, they subbed them. BMO senior economist Robert Kavcic sent clients a housing analysis this morning. He attributes the transition from a hot market to one that’s going to burn down the economy, to a promise of low for long interest rates. The promise has been made directly by the BoC, in multiple attempts to calm households. Instead, it accidentally caused a surge of FOMO-driven panic buying.........
There’s a simple yardstick in personal finance about purchasing a home: buyers should aim for a property priced at four times their income or less. But average Canadians’ ability to stick to that simple rule is rapidly fading across much of the country as property values continue to soar.
In the pandemic-linked housing boom, average residential property values have become decoupled from average incomes over vast swathes of the country.
Here’s a look at average incomes relative to average home prices across markets over the last 40 years.........
The path to homeownership in Canada is getting even steeper.
Regulators plan to rachet up the country’s dreaded “stress test” qualifying rate for mortgage borrowers. As of June 1, loan applicants — regardless of the mortgage rate they’ve been offered by their lender — will need to prove they can afford an interest rate of 5.25 per cent before getting approved for funding.
The current benchmark is 4.79 per cent.
But leading economists and mortgage brokers say the increase won’t be enough to dash too many homebuying dreams. Canada’s skyrocketing housing prices are doing a good enough job of that on their own...........
While the sale prices of freehold homes have not changed, there has been a drastic decline in condo prices in the Yonge-Eglinton neighbourhood, says a well-known Toronto real estate agent who works in the Midtown area.
Patrick Rocca told me last week the prices of condos in the dense apartment and condo corridor from Yonge-Eglinton northeast have dropped about 15% in value over the past three months compared to the same time a year ago.
Sales statistics provided by Rocca show that while there were fewer condo listings from January to March of 2020, the average condo (one and two-bedroom) sold for $743,000.
Fast forward to the last three months, which shows 324 listings and an average selling price of $629,000 — a drastic drop of 16%........
Canada’s largest city accounts for a disproportionate slice of its economy, primarily because of its housing sector. Toronto real estate has had over 20 years of uninterrupted price gains. The market remained steady throughout last year’s crisis and has now gone parabolic.
However, regulators and the government seem to be stepping in to cool the market. If this lowers prices or triggers a correction, several major banks and real estate investment trusts (REITs) could be caught in the downfall. If you’re wary of this risk, here are the trends you need to watch.........
Since COVID-19 dragged interest rates to historic lows last year, Canadians have been diving into the real estate market with unprecedented verve.
During a time of extraordinary financial disruption, more than 551,000 properties sold last year — a new annual record, according to the Canadian Real Estate Association. Those sales provided a desperately needed dose of oxygen for the country’s gasping economy.
Given the slew of new mortgages taken out in 2020, there were bound to be slip-ups. So, MoneyWise asked four of the country’s sharpest mortgage minds to share what they feel are the mistakes Canadians most frequently make when securing a home loan................
With prices in Toronto on a steady upward march, the city’s households each need to make an estimated $84,000 annually before tax to make ends meet in 2021, according to the latest cost of living report by LowestRates.ca.
This analysis came in the wake of the latest data from the Toronto Regional Real Estate Board, which showed that the average selling price for all residential asset classes in the GTA in 2020 was $929,699.
Homeowners in the city will need to shell out $3,792.33 per month on average for housing expenses alone. LowestRates.ca estimated that on the benchmark home price, and assuming a down payment of 15% with a 25-year amortization period and a five-year fixed rate term at 1.68%, a monthly mortgage payment in Toronto would cost around $3,191.......
Canada’s financial regulator, which has been planning changes in its four-year-old mortgage stress test, on Thursday proposed making it tighter, following concerns that the initial measures could further stimulate the red-hot housing market.
The Office of the Superintendent of Financial Institutions (OSFI) is proposing that the new benchmark to determine the minimum qualifying rate for uninsured borrowers would be either the greater of a range of rates submitted by lenders plus 200 basis points or 5.25%, according to a letter to lenders.
It is broadly an increase from the initial plan announced in February 2020, which was shelved a month later as the coronavirus pandemic took front seat. That proposed the weekly median five-year fixed insured rate, calculated from mortgage insurance applications, as the benchmark, which stakeholders said would be “highly volatile.”......
The average price of homes seems to be going up everywhere, and Mississauga is no exception, with the average home price hitting a new high last month.
For the first time, the average price of a home in Mississauga surpassed $1 million. According to a new report from the Toronto Regional Real Estate Board, the city saw 1,411 home sales last month that went for an average price of $1,061,988.
And it’s not just March sales that have surpassed the $1 million mark. The year-to-date average now sits as $1,001,362 — a $48,871 increase from the year-to-date average of $952,491 reported for February.
According to the report, Mississauga’s average is only slightly below the year-to-date average of the entire GTA, which currently sits at $1,053,585..........
HUNTSVILLE, ONT. -- Real estate is often the financial foundation for many families.
You can't put a price on the dream of home ownership, but you can hope prices head lower.
In fact, more than one in five Canadians are hoping for a home-price crash according to a new report from the Angus Reid Institute. Twenty-two per cent of respondents said they are hoping prices will fall at least 30 per cent, while 14 per cent of respondents said they want to see prices rise by at least the same amount.
We've yet to see how hot the Toronto real estate market can get before it crashes, and though prices and purchasing activity have been on the up for months, experts are now predicting a sudden adjustment that will bring prices down to something a bit less ridiculous than they currrently are.
According to at least two of Canada's top banks, a cooldown is coming, even without action by the federal government like some of their peers have been calling for.
Chief Executives at Scotiabank and TD believe that current prices — including the recent jump to $1.75 million for the average detached home in Toronto — are in part a result of increased demand and dwindling supply, which is an imbalance that will likely soon right itself without any intervention...........
The cost of real estate is rising in the GTA — so much so that it's outpacing the average prices of Toronto's homes for sale, according to a recent report.
The Toronto Regional Real Estate Board said that in March 2021, average real estate prices were more expensive in the 905 than in Toronto.
According to TRREB, the average GTA home cost $1,104,509 last month, up from $856,981 from the same time in March 2020.
But in the City of Toronto, the average home only cost $1,083,322, up from $989,175 in March of last year.
The TRREB's full report says that March's most expensive regions on average were Aurora (with an average home price of $1,297,003) and Markham ($1,287,951), quite a bit more expensive than Toronto's average home price.........
The competition for Toronto homes remained intense in March as prices continued their steady rise and sales almost doubled from last year, the Toronto Regional Real Estate Board reported Tuesday.
The average home price in the market climbed by 16.5 per cent year-over-year to hit almost $1.1 million, while home sales soared by 97 per cent to reach 15,652, the board said.
TRREB president Lisa Patel interpreted the numbers as a sign that consumer confidence has returned to the market and low mortgage rates are encouraging sales, but warned that they also spell trouble.
"While the robust market activity is indicative of widespread consumer optimism, it is also shedding light on the sustained lack of inventory in the GTA housing market, with implications for affordability," she said, in a release.........
Bank of Nova Scotia, Canada’s third largest lender, waded into the burgeoning debate over whether Justin Trudeau’s government should take immediate steps to cool the nation’s hot housing market, issuing a report that cautioned against rushing to implement new constraints.
In a report released Sunday, Scotiabank’s chief economist Jean-Francois Perrault said the recent run-up in home prices nationally over the past year was in large part driven by sluggish supply that failed to keep up with higher demand — a trend that could reverse itself as new sellers enter the market in coming weeks. If the government does decide to take action, it should target housing speculators, he said..........
Toronto home values continued to swell in March, bringing annual average price gains to more than 20% and adding fuel to a raging debate about whether policy makers should try to cool the market.
New listings were up 57% from March 2020, when the onset of the pandemic temporarily caused a freeze in real estate activity. But the new supply was not able to keep up with demand spurred by low borrowing costs and demand for bigger homes, especially in the suburbs, a report from the Toronto Regional Real Estate Board said Tuesday........
Home prices are running up so fast in some parts of Canada that valuations set by appraisers are not keeping pace, putting some buyers and mortgage lenders in a bind.
An appraisal is a key factor when a bank or credit union decides how much it can lend against a particular home. It is a snapshot of what that home is worth at a moment in time – and a check on exuberance, based on data of recent sales that have closed.
But with one record sale price after another in many communities, especially in smaller cities outside the largest urban centres, valuations are increasingly falling short of the prices paid. That can leave a financing gap for buyers who are relying on mortgages to fund a large share of the purchase, forcing them to come up with extra cash quickly to close a deal.
“We are, on a very regular basis, not able to meet the expectations of some of these successful buyers,” said Rick Sieb, owner of Intercity Appraisals Ltd. in Port Coquitlam, B.C. “Before COVID, I would say we would have one in 50 [not match up]. I would say right now we’re not hitting numbers maybe one in 10.”..........
TORONTO — The competition for Toronto homes remained intense in March as prices continued their steady rise and sales almost doubled from last year, the Toronto Regional Real Estate Board reported Tuesday.
The average home price in the market climbed by 16.5 per cent year-over-year to hit almost $1.1 million, while home sales soared by 97 per cent to reach 15,652, the board said.
TRREB president Lisa Patel interpreted the numbers as a sign that consumer confidence has returned to the market and low mortgage rates are encouraging sales, but warned that they also spell trouble..............
TORONTO, April 06, 2021 (GLOBE NEWSWIRE) -- For the third straight month of 2021, record home sales continued in March across the Greater Toronto Area (GTA) with buyers taking advantage of favourable borrowing costs and continued improvement in many sectors of the economy.
GTA REALTORS® reported 15,652 sales in March 2021 – close to double that of March 2020. While sales were strong, it is important to remember that for the second half of March 2021, we are comparing against the initial impact of COVID-19 in the second half of March 2020 when sales activity dropped off dramatically. With this in mind, it is important to consider annual sales growth for the pre-COVID period (March 1 to 14, 2020) and the COVID period (March 15 to 31, 2020):.........
Home prices in the Toronto area continued to climb in March while sales were almost double that of the same month a year earlier, when the rapid spread of COVID-19 led to widespread economic shutdowns, the Toronto Regional Real Estate Board (TRREB) reported Tuesday.
Sales in the area reached a record 15,652 last month, up 97 per cent from 7,945 during the same time last year.
The sales growth was so dramatic because it compares with March 2020, when the first economic effects of the pandemic took hold and both buyers and sellers were wary of the market.
Those fears have long since dissipated. Realtors and housing agencies have reported a flurry of sales — surpassing many of their most optimistic predictions — since the start of the year...........
When people picture red-hot real estate markets, they most likely think of soaring prices for the condos dotting Vancouver's skyline. They might also conjure up the bidding wars for massive mega-mansions in and around Toronto.
But they're likely not thinking about properties like Barb Armstrong's quiet bungalow in picturesque Perth Ont., about an hour southwest of Ottawa.
Even so, Armstrong's four bedroom, three-bath home was swept up into a bidding war worthy of any big city this month. It sold for $150,000 over her asking price of $529,900 —and the offer didn't come with any conditions.
"It was quite a shock to see that that amount of money was coming our way for sure," she said. "It was over our expectation and we were really blown away.".............
As if Canada's housing sector wasn't already irrational enough, a pandemic-induced lumber shortage is pushing the price of building a home even higher. The cost of basic lumber like two-by-fours has doubled since 2018.
"[That adds] tens of thousands of dollars depending on the size of your home," said Kevin Lee, CEO of the Canadian Home Builders Association.
COVID-19 has wreaked havoc on just about every industry — sticking a wrench into the normal forces of supply and demand — and lumber is a prime example............
Amid a frenzy of bidding wars, Canadians hunting for a home may be unlikely to spare a glance at what is, to most, an obscure statistic buried in the business pages this week.
In Canada's hot real estate market, a tiny change in borrowing costs is likely the least of a house-hunter's current worries. But the rise of a key bond interest rate to levels not seen since well before the pandemic is another hint about the potential path of interest rates and the direction of long-term inflation..........
Canada's consistently high house prices have some people worried that finding your dream home could become a pipe dream for ordinary Canadians.
"If we don't do something about it, our mindset is going to change," said Garrett McPhee, who has been trying to buy a home in his native province of Nova Scotia for around a year.
"Things like owning a home or even having a family are going to be regarded as things that only rich people can do, and regular working people can't do those things," he told The Current's Matt Galloway...........
Anyone dreaming of buying property in cottage country for a vacation or a more permanent and scenic work from home setup could instead be in for a nightmare.
A new report from Royal LePage says recreational property buyers can expect another year of steep price increases, lack of inventory, and even bidding wars like what suburban Greater Toronto Area (GTA) buyers have had to deal with.
The realty firm expects the aggregate price of a house in Canada’s recreational regions to increase 15 per cent in 2021 to $502,73.........
Real-estate company Royal LePage says the average price of a house in Canada's "recreational property regions" will rise 15 per cent in 2021 to $502,730, as the pandemic prompts buyers to explore country living.
The company is raising its previous estimate from November in light of a shortage in inventory and a surge of people interested in using the homes for both weekend getaways and remote work.
"From coast to coast, the line between primary residence and recreational property is blurring," said Phil Soper, president and chief executive of Royal LePage. "The trend began last summer when the option of traveling abroad was taken away, and continued to gain popularity as it became clear that with access to high speed internet, many people can do their jobs from just about anywhere."............
Canada’s real estate markets keep breaking records for price gains and sales despite COVID-19 restrictions and there’s a lot of talk about parts of the housing market being in a bubble.
There were a number of important issues to discuss in this episode including rising mortgage rates, inflation, FOMO, the urban exodus, the Bank of Canada’s role in the improbable rally, and so much more
We’ve been getting monthly updates from the ground floor from Realosophy Realty’s John Pasalis and Oakwyn Realty’s Steve Saretsky, who help make sense of it all, with advice for anyone buying or selling a home..........
Statistics released today by the Canadian Real Estate Association (CREA) show national home sales set another all-time record in February 2021.
Home sales recorded over Canadian MLS® Systems climbed 6.6% between January and February 2021 to set another new all-time record.
Seasonally adjusted activity was running at an annualized pace of 783,636 units in February. CREA’s revised forecast for 2021 is in the neighbourhood of 700,000 home sales. Strong demand notwithstanding, sales may be hard pressed to maintain current activity levels in the traditionally busier spring months absent a surge of much-needed new supply; although, that could materialize as current COVID restrictions are increasingly eased and the weather starts to improve.
Canadian home prices accelerated in February, rising 0.5% from January with all 11 major markets rising on the year for the first time since 2018, data showed on Wednesday.
The Teranet-National Bank Composite House Price Index, which tracks data collected from public land registries to measure changes for repeat sales of single-family homes, showed price gains in seven of the 11 major metropolitan markets.
Prices rose 2.3% in Halifax, 1.1% in Hamilton and 0.8% in Vancouver, but the index was down 0.1% in Edmonton and fell 0.5% in Ottawa-Gatineau.........
Canadian home sales and prices continued to surge in February, setting new records amid strong demand across much of the country, prompting the Canadian Real Estate Association (CREA) to revise up its sales forecasts for the year.
Separately, housing starts fell in February from January, as cold weather returned, data from Canada's national housing agency showed, though starts remain well above pre-pandemic levels amid strong demand.
Home resales jumped 6.6% in January from February, and actual sales, not seasonally adjusted, soared 39.2% from a year earlier, CREA said on Monday. The group's Home Price Index was up 17.3% from last February and up 3.3% from January...........
Statistics Canada says the economy grew 0.7 per cent in January.
The increase in real gross domestic product compared with a gain of 0.1 per cent in December.
The growth also topped the agency's preliminary estimate for the month of 0.5 per cent.
It was the ninth consecutive monthly increase since the plunge in the economy last year at the start of the pandemic in March and April..........
As if Canada's housing sector wasn't already irrational enough, a pandemic-induced lumber shortage is pushing the price of building a home even higher. The cost of basic lumber like two-by-fours has doubled since 2018.
"[That adds] tens of thousands of dollars depending on the size of your home," said Kevin Lee, CEO of the Canadian Home Builders Association.
COVID-19 has wreaked havoc on just about every industry — sticking a wrench into the normal forces of supply and demand — and lumber is a prime example...........
Early in the pandemic, a local news station in Cleveland earned notoriety for a new segment called "What day is it?"
It was a lighthearted acknowledgement that for many people, stuck at home for weeks thanks to lockdown measures, it was difficult differentiating one day from another.
The phenomenon has a name all its own: Blur's Day — or if you want to get technical, "temporal disintegration," according to Alison Holman, who has studied how the pandemic has affected people's perception of time...........
Canada's consistently high house prices have some people worried that finding your dream home could become a pipe dream for ordinary Canadians.
"If we don't do something about it, our mindset is going to change," said Garrett McPhee, who has been trying to buy a home in his native province of Nova Scotia for around a year.
"Things like owning a home or even having a family are going to be regarded as things that only rich people can do, and regular working people can't do those things," he told The Current's Matt Galloway..........
Higher mortgage rates to boost profit at Canadian banks, but rapid rise could end housing party in March, 2021