All you need to know regarding the housing market in Toronto, Canada and abroad.
This week in Toronto: House prices post record rise in May, sales decline continues into June and a troubling downturn is seen
Elsewhere: The lessons from Canada's attempt to curb its house-price boom, where you can live if you earn minimum wage in the United States and the Grenfell Tower tragedy in London
Toronto home sales decline continues into June (Toronto Star)
York Region is still showing some of the largest declines of about 60 per cent in some areas, said company president John Pasalis. "The sales numbers keep getting worse,” he said. “It's like they've fallen off a cliff. It's this downward momentum week after week."
Realosophy’s research suggests sales of freehold homes across the Greater Toronto Area are down some 39 per cent so far in June. And for the week ended June 9, sales volumes plummeted 44 per cent compared to the same period in 2016.
House prices post record rise in May as Toronto chill yet ‘to be seen’ (The Globe and Mail)
House prices rose by a record 2.2 per cent across Canada last month compared to April, led by a 3.6-per-cent price increase in Toronto even as total sales fell during the month, Teranet reported Wednesday.
Research for the Ontario Real Estate Association (OREA) showed 37 per cent of Ontarians strongly believe housing affordability belongs on the upcoming provincial election agenda with 30 per cent saying they would be more likely to vote for a party that takes on the issue.
Critics, like the Fairbnb coalition, accuse investors of snapping up multiple properties and running them like "ghost hotels," further reducing the amount of affordable rental housing in the city. Airbnb — the largest player in the short-term rental sector — says it supports "sensible regulations," but maintains its service is benefiting more than 9,900 hosts while generating hundreds of millions in tourism revenue for Toronto.
Still, as attitudes on density changed, why didn’t demand for land vaporize those little homes to make way for bigger buildings? One simple reason is all those subdivisions—West’s house on Homewood, for example, is an old-fashioned facade for a building that’s now split into seven tiny apartments. Toronto’s early, single-family houses have proved flexible, expanding and contracting to fit the needs of shifting demand. Unlike condos, their layouts are often uncannily easy to divvy up: think attics, basements, and former servants’ quarters.
The lessons from Canada’s attempts to curb its house-price boom (The Economist)
Canada’s housing market thus opens a window on a tragic flaw in the global economy. In only a few decades China has mastered the manufacture of high-quality goods. But it takes far longer to be able to manufacture safe stores of value. Instead, their affluent citizens seek out rich-country assets, including houses. This fundamental mismatch limits the ability of policymakers to stop bubbles from inflating.
The bank, under pressure to act as home prices soared in Toronto and Vancouver, switched to a hawkish stance this week, just a few months after saying that additional rate cuts were on the table.
Canadian Home Sales See Largest Drop In 5 Years (Canadian Press)
The number of residential properties sold nationwide fell by 6.2 per cent in May compared to April, the largest month-to-month decline in nearly five years, the Canadian Real Estate Association said Thursday. The industry group for real estate agents noted sales were down a whopping 25.3 per cent month-over-month in the GTA.
Alicia Hamiel, 23, a mother of two children in Philadelphia, earns $7.75 an hour at McDonald’s and works 26-38 hours a week, based on what the scheduler allots her. She and her family are currently living in a single room that rents for $400 a month.
Housing Budget Needs Increases, Not Cuts (Huffington Post)
Last week, U.S. Housing and Urban Development (HUD) Secretary Ben Carson testified before Congress, defending the Trump Administration’s proposed 15 percent cut to his agency’s budget. His testimony came just days after he called poverty a “state of mind,” emphasizing the importance of working and avoiding dependence on government assistance.
How Asian Americans Remade Suburbia (City Lab)
I spoke to the residents that are actually living in these homes and asked them what these homes meant to them. And in doing so, a lot of the stereotypes fell apart. That’s because a lot of those stereotypes were constructed in a post-war white middle-class framework, and don’t necessarily hold up in the face of new immigrants that are moving to suburbs.