All you need to know regarding the housing market in Toronto, Canada and abroad.
This week in Toronto: Home prices could plunge 30%, residential land prices reaches new highs and what the Olympics could do for transit and housing in the city.
Elsewhere: Short sellers are targeting Canada, the U.S. housing market still isn't rational and Madrid's mayor shows some heart amidst Spain's housing crisis.
“This is despite them being among some of the most overvalued markets in the world,” he says. “As we have outlined before, house prices have become detached from household incomes and rents. The risk is that housing is viewed as a one-way bet, prompting the classic market emotion of greed among investors.”
“You might get a slowdown in condos compared to a time when you sold everything out in month, but they are still selling,” Vilner said. “The land pricing is at record highs. You can’t just find a bare parking lot (to build on), you have to assemble (land) and that costs more.”
The proposed construction site is currently a wide-open green space and parking garage for residents of the TCHC building. It also has 11 townhouse-style TCHC rental units on it, all of which would have to be demolished. Some tenants—particularly the ones living in those townhouses—won’t be happy about the change. The developers have pledged to build 11 new affordable-rental townhouses to compensate for the loss, though.
Toronto would win transit improvements and enhanced social housing by hosting an international sporting spectacle like the Olympics, insists Mayor John Tory.