Canadian Housing Landing Safely
According to a TD Economics report released this week Canada's housing market landed safely avoiding both a bubble and a crash.
We now forecast the annual average price for 2011 to remain essentially unchanged, slipping by less than 1%. TD Economics
Canadian Housing Landing Safely (TD Economics - pdf)
How Canada avoided housing 'bubble and crash' (Globe and Mail)
New Housing Starts and Prices Increase
According to a CMHC report, the seasonally adjusted annual rate of housing starts for November was 187,200 units, up from 167,800 units in October.
“Housing starts moved higher in November primarily due to a strong increase in urban multiple starts in Ontario,” said Bob Dugan, Chief Economist at CMHC
The New Housing Price Index published by Statistics Canada rose 0.1% in October, driven primarily by increases in Toronto, Oshawa and Vancouver.
November Housing Starts (CMHC)
New Housing Price Index (Statistics Canada)
Home building jumps more than expected (Financial Post)
Toronto Rental Vacancy Rates Drop to 2%
According to CMHC's Rental Market Report, vacancies for purpose built apartment buildings dropped to 2.1% in October 2010, down from 3.1% in October 2009. The key factors driving the decline in vacancies include a rebound in employment, a high level of immigration and the rising cost of renting units in the condominium market.
Just this week I heard from Inside Toronto Real Estate that MPP Cheri DiNovo is introducing a private members bill that will prohibit landlords from increasing rents by more than the Ontario government guidelines under any cirumstance (including if an old tenant vacates a property and a new one arrives or if the landlord has performed significant upgrades).
Another factor contributing to the decline in vacancy rates is that there are very few new purpose-built apartment buildings being built which is limiting the supply of new apartment units coming on the market. I suspect that the tighter rent controls proposed by MPP DiNovo will provide even less incentive for investors to build new apartment buildings.
Rental Market Report (CMHC - pdf)
Far fewer apartments for rent in GTA (Toronto Star)
Other Real Estate News
Condo sales to stay at high levels (Toronto Sun)
GTA housing market to stay hot in 2011 (Toronto Star)
TREB: Misconceptions about the HST (Toronto Star)
Home buying technology: Look before you buy (Globe and Mail)
December 11, 2010This Week In Real Estate |