By: Max Seal

Toronto Real Estate Posts 4

Tags: TORONTO REAL ESTATE POSTS, TORONTO HOMES FOR SALE POSTS, CENTRAL TORONTO REAL ESTATE POSTS, CENTRAL TORONTO HOMES FOR SALE POSTS


 

August home sales down in Toronto, prices up as supply fell 43% in September, 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.”…………..

 

Liberals move one step closer to home equity tax in September, 2021

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……..

 

Canadian housing market is cooling slightly but not in Toronto in September, 2021

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……..

 

Price of New Construction Single-Family Homes Up Nearly 30% in September, 2021

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…….

 

The benchmark price for a new Toronto condo just surpassed $1 million in September, 2021

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……..

 

Average home prices are now above $1 million in 90% of Toronto suburbs in August, 2021

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……

 

Staggering growth in single-detached GTA home sales and average price shows little sign of slowing in August, 2021

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………

 

Detached-home listings in Greater Toronto Area hit a decade low amid a 25%+ price surge in August, 2021

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……..

 

Analysis – Canada city condo rebound has further to go, fueled by rental demand in August, 2021

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………

 

Condo prices are blowing up in this unexpected Toronto neighbourhood in August, 2021

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………

 

Are changes to mortgage stress test working in August, 2021?

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.”………

 

The Toronto ‘condo comeback’ is here to stay, real estate analysts say in August, 2021

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………

 

Toronto Housing Market Slumps From Record Highs in July, 2021

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……..

 

You now need to make almost $200K to afford an average Toronto house in August, 2021

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……….

Millennials in Toronto are less likely to own a home than in any other Canadian city in August, 2021

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…….

 

WILD – How to win a bidding war on a home in July, 2021

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…….

 

What You Need To Know About Renting In Canada Post-COVID in July, 2021

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…….

 

How do private mortgage lenders work in Ontario in July, 2021

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……..

 

Toronto Market Report – Average GTA House Price Stays At $1.3M Since February in July, 2021

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……..

 

People are clamoring to rent tiny condos in downtown Toronto again in July, 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.

The pandemic and its impacts on work did afford many young Torontonians the ability to buy their first homes (something that’s pretty much impossible to do in the city anymore.)

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…….

 

Toronto City Land transfer tax hike will hurt supply says Toronto real estate group in July, 2021

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……..

 

Toronto Real Estate Prices See Growth Slow in July, 2021

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…….


 

Condos Spring Back to Life in Toronto Real Estate Market in July, 2021

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……..

 

Scarborough homeowner groups trying to quash Toronto-wide rooming house proposal in July, 2021

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……..

 

Toronto’s Real Estate Market May Be Cooling, But it’s Still Red-Hot in July, 2021

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 home sales hit lowest point in a year as housing boom eases in July, 2021

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…….
 

 

Home prices climb in a less-fevered June market in July, 2021

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…….

 

Canadian house prices and home sales hit records in March — but have fallen every month since March in July, 2021

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……

 

Toronto housing market finally cools down but experts say it won’t stay that way in July, 2021

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……

 

Skyrocketing real estate in Toronto falls back down to earth in July, 2021

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.

The Toronto Regional Real Estate Board’s (TRREB) market report for June shows home sales have declined from highs seen this past spring, but are still above numbers seen last year.

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…….

 

Toronto home sales and prices down in June, but TRREB upgrades 2021 forecast in July, 2021

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…….

 

Toronto home sales and prices down in June, but TRREB will still upgrades forecast in July, 2021

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 Home Sales Hit Lowest Point in a Year in July, 2021

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.”….

 

CMHC changes underwriting practices on mortgage loan insurance in July, 2021

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 the GTA still at a historic low in July, 2021

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.”…….

 

Ontario’s housing market is off the rails. Here’s how to sell your home in unpredictable times in July, 2021

Bidding wars, broken-hearted buyers and million-dollar garages: for the past year or more, the housing market has been off the rails, fuelled in part by the COVID-19 pandemic.

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…….

 

Buying An Apartment In Toronto? Here’s What You Should Know in July, 2021

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 in July, 2021

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…..

 

New stress test rate makes it more difficult for home buyers to qualify for mortgage in July, 2021

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…….

 

37% of Ontario boomers are planning to buy a home in the next five years in July, 2021

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……

 

Pre-Construction Opens The Door to Ownership for First-Time Buyers in July, 2021

“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.”…..

 

GTA condo price rises by 44% since 2017 housing peak in July, 2021

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.”…..