Toronto Real Estate Posts 8
Tags: TORONTO REAL ESTATE POSTS, TORONTO HOMES FOR SALE POSTS, CENTRAL TORONTO REAL ESTATE POSTS, CENTRAL TORONTO HOMES FOR SALE POSTS
Brampton third most expensive city in Canada to own a home, study finds, in January, 2023
A study conducted by online real estate portal Point2Homes has ranked Brampton third among all Canadian cities for home ownership costs.
The study, which compared shelter costs in 50 of Canada's largest cities using 2021 census data, found the average monthly cost to own a home in Brampton was $2,304.
The average monthly mortgage payment across all of Canada was $2,066, while renters paid significantly less at a national average of $1,209, the study found. Brampton ranked significantly higher than average in both cases.
Brampton, which is Canada’s ninth-largest city by population and was ranked the country’s fastest-growing city in the 2021 census, only trailed Oakville and Richmond Hill at $2,384 and $2,350, respectively..........
Majority of affordable homes approved under federal program not yet constructed, in January, 2023
The federal government has set aside billions of dollars to quickly build affordable housing across the country, but delays in construction suggest many of the projects approved for funding are missing their deadlines.
The Rapid Housing Initiative is a federal program launched in 2020 that provides funding to cities and non-profit organizations to build affordable homes for vulnerable Canadians, including those experiencing homelessness.
The federal government offered $2.5 billion during the first two rounds of project funding, with the condition that approved units must be built within 12 months in most places or 18 months in northern or remote communities.
But a document put together by the Canada Mortgage and Housing Corp. in response to a written question from a member of Parliament shows the majority of units approved have not yet been constructed............
How was the Greater Toronto Area new housing market's performance in 2022?, in January, 2023
Over the course of 2022, the Greater Toronto Area saw its lowest level of new home sales since 2018, according to Altus Group and the Building Industry and Land Development Association.
Condo apartment sales — which include those involving low, medium, and high-rise buildings, as well as stacked townhouses and loft units — amounted to 20,917, around 12% below the asset category’s 10-year average.
The single-family housing segment — including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses) — totalled 4,483 sales in 2022, a significant 64% lower than the 10-year average.
Benchmark prices in December were at around $1.131 million for new condo apartments and at around $1.753 million for new single-family residences.
Total new home active inventory stood at 13,320 listings, including 11,590 condo apartment units (6.6 months of inventory) and 1,730 single-family homes (4.6 months of inventory)...........
Selling a home? How to know if you qualify for a capital gains exemption in January, 2023
When selling a home, Canadians may be exempted from paying capital gains tax on a residential property if it is determined to be their principal residence. A capital gains tax is normally applied to 50% of your profits made from selling an asset for a profit.
However, the CRA is a bit vague when defining one’s principal residence, and several factors could either help or prevent you from qualifying for the principal residence tax exemption.
Below, I’ll explain more about how the CRA determines principal residence and answer some questions about what types of properties may be eligible for the tax exemption...........
3 charged after allegedly selling home they didn't own in Toronto in January, 2023
Three people have been charged after they allegedly sold a house in Toronto that they didn't own and tried to collect the proceeds.
In a news release on Friday, Toronto police say they have charged a Markham woman, 41, and two Toronto men, both 22, in a title fraud scam investigation.
The woman has been charged with fraud over $5,000, possession of proceeds obtained by crime over $5,000, laundering proceeds of crime, personation with intent to obtain property and uttering a forged document. The men have both been charged with fraud over $5,000.
All three are due in a Toronto courtroom on Monday.
According to police, the two men and a woman pretended to be the owners of a Toronto property in January 2023 while the real owners were out of the country.................
Impersonators posing as homeowners linked to 32 fraud cases in Ontario and B.C. in January, 2023
Mortgage and title fraudsters who impersonate homeowners and tenants have targeted at least 32 properties in Ontario and British Columbia, investigators and official warnings suggest.
Insurance investigator Brian King, president and CEO of King International Advisory Group, said his firm had received 30 such claims in Ontario.
They include six instances of "total title fraud" in which con artists pose as homeowners to list properties for sale............
When Stephanie logged online to pay her monthly bills last year she noticed something strange.
The mortgage she shared with her husband, Derrick, had disappeared from the home screen of her Canadian bank account. After making some calls, she found out her mortgage was closed.
"We knew something was wrong. We weren't the ones to close our mortgage," said Stephanie.
"But we didn't know the extent of it.".........
Toronto & Vancouver Real Estate Are Correcting in 2023
Toronto and Vancouver real estate didn’t quite make the extremes, but they aren’t immune to the correction. A typical home in Toronto has dropped 18.4% (-$245,200) since peaking in March 2022. Over in Vancouver, prices are down 10.5% (-$133,100) from the April 2022 peak. It’s worth mentioning that Vancouver prices didn’t experience as large of a boom as Toronto over the past two years. However, these are still 6-figure losses in less than a year.
The Canadian real estate price correction is widely blamed on interest rates. Those play a big role when it comes to financing, and profitability for investors, helping to cool demand. However, it’s worth noting that prices peaked in March—before interest rates had a substantial impact on buying power. Most buyers would have a buyer pre-approval that would have limited the impact of the rate hike on absorption.
Some banks have argued this reinforces the belief that sentiment was driving growth. Sentiment-driven price growth tends to produce the largest bubbles and sharpest corrections........
Are you ready for Toronto's new vacant home tax? Deadline to declare is Feb. 2, 2023
Toronto residents who own an empty home will soon be taxed for it, as the city pushes forward with a fee it says will help increase housing supply and raise as much as $66 million a year.
City hall's new vacant home tax will start in the new year and the deadline for all property owners in the city to declare whether their home is vacant or not is Feb. 2. The lone councillor who voted against the tax says he's already receiving complaints about the "heavy-handed" notices issued by the city to alert homeowners to the need to make a declaration.
Stephen Holyday, who represents Ward 2, Etobicoke Centre, said he's received numerous calls about the message, its tone and the complexity of the new system.
He says it's struck a nerve........
Canada Bans Most Foreigners From Buying Homes in January, 2023
A ban on foreigners buying residential property in Canada took effect Sunday, aiming to make more homes available to locals facing a housing crunch.
Several exceptions in the act allow individuals such as refugees and permanent residents who are not citizens to buy homes.
In late December, Ottawa also clarified that the ban would apply only to city dwellings and not to recreational properties such as summer cottages.
The temporary two-year measure was proposed by Prime Minister Justin Trudeau during the 2021 election campaign when soaring prices put home ownership beyond the reach of many Canadians.
"The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors," his Liberal Party said in its election plank at the time.
"This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors."........
Where Ontario's housing market is headed in 2023
The price of buying a home in Ontario dropped from its lofty heights during the past year, and the question for 2023 is whether the downward trend will continue.
The Canadian Real Estate Association (CREA) benchmark price of a home in Ontario — a measure that combines sale prices of condominiums, attached and detached houses across all markets in the province — peaked at $1.08 million in March of 2022.
That was a staggering 64 per cent leap in just two years, from the start of the COVID-19 pandemic.
CREA's benchmark figure for Ontario has since fallen by nearly 20 per cent, but even that sharp decline only takes prices back to the level they were at in September of 2021. .........
During the height of the real estate frenzy during the pandemic Briand Melanson felt like superman.
The variable rate mortgage on his primary and investment properties reached historic lows of 1.5 per cent. The monthly payment for his primary residence sat at around $730 (he bought it in the 2010) and his rental property payments came in at around $1,100 (he bought it in 2021).
But now rates are soaring and his variable mortgage payments have shot up, leaving Melanson in a financially difficult situation.
His properties both face mortgage rates of around six per cent. It’s resulted in his primary residence payment soaring to $1,165, and his rental apartment to $1,775. That means, Melanson is now paying $1,110 more a month in mortgage payments for both properties — he is currently making up the difference for his renter who has fixed rent for the yearlong lease.
“It’s choking me,” Melanson says. “It’s choking more than I thought it was going to.”............
Change is hard but necessary to build 1.5 million needed new homes in January, 2023
The housing challenges in the GTA are often portrayed in the media as a struggle between builders and developers and GTA residents. The builders and developers, so the story usually goes, want to build and make money, while residents want to protect their communities from unwanted change
The hundreds of thousands of hard-working families hoping to buy a home in the GTA in the near future are all too easy to overlook because they are not yet voters or taxpayers. The voices of some existing residents who resist change can seem more urgent and important. Meanwhile, many of those who would be voices for change are forced to leave the region altogether to find homes they can afford.
Change is difficult but it is absolutely necessary. Given the rate at which the GTA and the province are growing, we need to build 1.5 million new homes in Ontario in the next decade. The regulatory and policy decisions we make now will determine whether we succeed.......
Canada housing market outlook 2023 - Here’s what buyers and sellers can expect in January, 2023
After years of frenzy in Canada’s housing market during the COVID-19 pandemic, 2022 saw a reversal across much of the industry as the Bank of Canada’s interest rate hikes cooled down the residential real estate sector in cities from coast to coast.
Most economists and experts who spoke to Global News say they expect that cooling to continue into 2023, citing prohibitively high mortgage rates, low inventory on the market and uncertainty about where the Bank of Canada’s interest rate cycle will finally peak.
But where will price declines in the Canadian housing sector bottom out? And will all markets and property classes be hit evenly?.......
GTA real estate caught between high interest rates, low supply, analyst says in January, 2023
Opposing forces will be at work on the Greater Toronto Area’s real estate in 2023.
Jason Mercer, chief market analyst for the Toronto Regional Real Estate Board (TRREB), said the impact of short supply and growing population will put more pressure on home prices over the medium- to long-term.
“We’re still going to have a hangover from the higher borrowing costs that we’ve seen come online this year… That will continue to have an affordability hit on the housing market that would-be homebuyers are going to have to come to terms with,” Mercer said. “But on the opposite side of the coin, we’re also going to continue to see an accelerating pace of population growth on the back of immigration. And all of these new households are going to require a place to live and that’s whether you’re talking about the ownership market or the rental market.”..........
Toronto home prices closed 2022 down 9.2 per cent year-over-year in January, 2023
The average selling price for all Greater Toronto Area homes saw another drop in December to close 2022 – a year in which the region's housing market started strong before being tempered by interest rate hikes.
On Thursday, the Toronto Regional Real Estate Board (TRREB) released December's housing numbers, showing the average price across all properties was at $1,051,216 – a decrease of about $28,000 from the previous month's figure of $1,079,298.
The number was a 9.2 per cent decline from the $1,157,837 recorded a year ago..........
Toronto’s housing correction set to stabilize, prices to continue dropping in 2023 in January, 2023
Toronto real estate was definitely one of the hottest topics in 2022 with a major housing correction hitting the market in the spring, resulting in plummeting home sales and prices.
But after a year of consistent interest rate hikes by the Bank of Canada and limited housing stock across the nation, 2023 is set to be a different market story that is leaving many homeowners, prospective buyers and renters wondering what’s to come.
“I think the big question that people will be asking around the dinner table over the holidays is, you know, what do I want to do in 2023?” Toronto Regional Real Estate Board (TRREB) President Kevin Crigger told CP24 on Friday........
Toronto home sales plummet year-over-year in November, 2022 in December, 2022
Homebuying activity in Toronto fell by 49% in November compared with the same month in 2021, with listings also slipping on both a yearly and month-over-month basis.
Last month saw 4,544 properties change hands in the Toronto market as interest rate hikes continue to squeeze affordability despite the average selling price across all home types coming in 7.2% lower than the year before.
The figures were revealed in the Toronto Regional Real Estate Board’s (TRREB’s) November housing market update.
Listings fell by around 12% on a yearly basis to 8,880 for the month – but despite the lower figures across the board compared with November 2021, TRREB chief market analyst Jason Mercer indicated that prices were unlikely to continue their precipitous recent decline.......
The average selling price of a Toronto home decreased by roughly $10,000 last month as the increased cost of borrowing continued to weigh on the city’s real estate market.
The latest data from the Toronto Region Real Estate Board (TRREB) shows that the average resale price across all property types was $1,079, 398 in November, compared to $1,089,428 in October.
Home prices in Toronto have now fallen by an average of 5.5 per cent compared to November 2021, however TRREB points out that the declines have been more pronounced in the “more expensive market segments,” such as detached (11.3 per cent) and semi-detached homes (13.9 per cent).
The condo market has proven to be more resilient with resale values down only 0.9 per cent on average, compared to this time last year.....
How to protect yourself against 'renoviction' as rental markets heat up in December, 2022
With Canada's already-hot rental market expected to come under even more pressure in 2023, experts say tenants should guard against "renoviction" by educating themselves about their rights.
The term renoviction is used to describe a situation when a landlord cites the need for major renovations as the reason behind an eviction. While most Canadian jurisdictions have rules in place to protect tenants — such as limiting the types of repairs that justify requiring renters to move out, or specifying how much notice a landlord must give — tenant advocates say the practice still happens regularly.
For example, a recent report from Ontario's Advocacy Centre for Tenants (ACTO) found there has been a 294 per cent increase in landlord applications to evict tenants for renovations or conversions at the province's Landlord and Tenant Board since 2015-16..........
Toronto continues to be the second-most expensive rental market in Canada, while the average rent across the country is up 12 per cent from last year, reaching a record-high of $2,024 for all rental types.
This according to the latest data from Rentals.ca and Urbanation – a real estate research firm – which revealed that the steepest rent increases in the country, both month-over-month and year-over-year, have largely been in and around Canada’s two most expensive cities; Toronto and Vancouver.
“Among major markets in Canada with populations over one million, average rents for purpose-built and condominium apartments increased fastest for the most expensive cities, with Vancouver and Toronto rents up 24.3% and 23.7% [compared to last year], respectively,” the report read.
“One-bedroom rents averaged $2,661 in Vancouver and $2,551 in Toronto, while two-bedroom rents averaged $3,707 in Vancouver and $3,363 in Toronto.”.......................
Toronto Real Estate Prices Are Down $245k, City Fell Nearly 2x Faster Than Burbs in December, 2022
Greater Toronto real estate prices continue to fall, but City prices may have just taken a nosedive. Toronto Regional Real Estate Board (TRREB) data shows composite home prices fell in November 2022. The price of a typical home has dropped nearly a quarter-million dollars since peaking earlier this year. With higher interest rates still to come, along with City prices falling at nearly double the rate of the region—this trend appears far from over.
Greater Toronto real estate prices continue to spiral lower as higher rates knock the exuberance out of them. The price of a typical home across TRREB fell to $1,089,800 in November, down 0.8% (-$8,400) from a month before. Compared to last year, prices are now 5.5% (-$63,300) lower— yes, they’re lower year-over-year now.
Real estate prices in the City of Toronto started to accelerate the decline last month. The price of a typical home fell to $1,074,300 in November, down 1.5% (-$15,900) from a month before. Nearly twice as large as the decline across Greater Toronto, as the floor gives out beneath City prices. Compared to last year, home prices are down 4.3% (-$47,700) — slightly less than the TRREB benchmark, but it would catch up fairly fast at this rate. .........
The Toronto Regional Real Estate board (TRREB) said Tuesday that November, 2022 home sales activity was down by about half from last year, following a similar trend seen in recent months.
November’s 49 per cent decline from last year to 4,544 sales came as rising interest rates continue to put pressure on affordability and the real estate market, the board said.
TRREB said the total of 8,880 new listings for November was about a 12 per cent decline from a year earlier, and was also down from the previous month.
Listings slowed for the month in part as sellers hold off over fears they won’t make as much as they would have 10 or 12 months ago when the market was moving at a torrid pace.
The average price of a detached home was down 11.3 per cent to $1.39 million, while the average price of a condo was down 0.9 per cent to $709,000..........
Interest Rate Hikes Drive Down GTA Home Sales and New Listings in November, 2022
Homeownership market activity in November continued to be influenced by the impact of higher borrowing costs on affordability. Sales were down markedly compared to the same period last year, following the trend that unfolded since the commencement of interest rate hikes in the spring. New listings were also down substantially from last year, and at a very low level historically. The fact that the supply of homes for sale has remained low, has supported average selling prices at the $1.08 to $1.09 million mark since August.
Greater Toronto Area (GTA) REALTORS® reported 4,544 sales through TRREB’s MLS® System in November 2022 – down 49 per cent compared to November 2021, but remaining at a similar level to October especially after considering the recurring seasonal downward trend in the fall. New listings, at 8,880, were down on both a year-over-year basis and month-over-month basis..........
GTA Home Prices Slide 7% in November, 2022 New Listings Hit Historical Low in December, 2022
November marked yet another gloomy month for real estate activity in the Greater Toronto Area, with both home sale and price declines growing more entrenched — a trend the region’s real estate board attributes to the sharp sting of higher interest rates.
A total of 4,544 homes traded hands last month, down -49% on an annual basis and -8.4% from October, reports the Toronto Regional Real Estate Board (TRREB). Home prices dipped by -7.2% YoY to an average of $1,079,395, though remained roughly flat on a monthly basis, down just -0.9%.
However, the $1M-price floor remains supported by very scant supply — new listings fell “substantially” from last year with just 8,880 homes brought to market (down -23.1% YoY and -14.5% MoM), marking a historical low.
While that’s keeping current market conditions from collapsing into buyers’ market territory, it spells trouble over the long term, once interest rates — and market demand — normalize, says TRREB President Kevin Crigger.........
The Canadian Real Estate Bubble Is Popping As Mortgage Rates Throttle Credit in December. 2022
The Canadian real estate bubble got a big boost from low rates, and prices are correcting as rates soar. Home prices climbed aggressively as cheap credit flooded the mortgage market until March. As rates increased, credit was throttled, and the opposite effect began to appear. Home prices are now down significantly and likely to slip further as rates rise even more.
Canadian real estate prices took a sharp drop as the market psychology collapsed. A typical home’s price fell to $735,400 in October, down from the March 2022 peak of $868,300. A 15.3% drop wiped out nearly half the gains made since interest rates were cut in March 2020.
Canadian mortgage rates have also been surging since home prices peaked. A borrower has seen a 32.2% decline in borrowing power today, in contrast to the February 2022 low. Reduced mortgage leverage and lower home prices aren’t a coincidence..........
For nearly a decade, new condos have been regarded as sound investments in Toronto but rising interest rates coupled with the flattening of average sales prices since March, 2022 mean some investors are facing an increased financial burden — even struggling to close on projects nearing completion.
Those who invested in preconstruction condos in particular are in increasingly challenging positions. In some cases, they're unable to finance the closing of a property due to lower than expected appraisals and interest rates that are significantly higher than when they bought the units.
"Preconstruction condos for the most part that were purchased in 2019 through 2020, after commissions, after fees, those individuals are not making any profits on this side. They're probably actually taking the loss," said Jordon Scrinko, CEO of Precondo, a firm that handles mainly preconstruction projects. He says it's been a busy few months for his firm..........
Ontario millennials need to save for over 20 years for down payment on a home in December, 2022
After analyzing CREA’s data and comparing it to Statistics Canada’s data for annual income, the report concludes prices should stall “for many years ahead – or even continue to fall moderately.”
“The number of years of work required to save [for] a 20 [per cent] down payment on average priced homes has grown in alarming ways in many regions,” the report reads.
Across Ontario, average home prices were just shy of $900,000 last year.
Meanwhile, average income of Ontarians between the ages of 25 and 34 years has stayed nearly the same for decades, lingering at an average of roughly $50,000 a year. According to the latest data from StatsCan, the yearly income was $50,800 in 2020.
“It takes 22 years of full-time work for the typical young person to save a 20 [per cent] down payment on an average priced home,” the report reads, which they say is 17 years longer than when “today’s aging population” were their age. The report did not clarify what age groups fall under this definition............
