All you need to know regarding the housing market in Toronto, Canada and abroad.
This week in Toronto: One economist believes the housing slowdown is good for the economy, home buyers and sellers play the waiting game and where is the best place to live if you commute to downtown Toronto?
Elsewhere: Home construction in Canada on pace for biggest year since the recession, the foreign buyers you haven't heard about in the United States and why one Berlin borough is buying out private landlords.
“We are going through a natural correction in Toronto real estate. I don’t think it’s going to have a deleterious impact on the national economy. I think it’s actually going to be a positive development,” Rosenberg told BNN in an interview Tuesday.
Toronto home buyers and sellers play the waiting game (The Globe and Mail)
“They’re not sure whether the market slowed down for the summer for normal, seasonal market reasons – or whether we’re on a downward slope,” says Boris Kholodov, an agent with Royal LePage Real Estate Services Ltd, Johnston and Daniel Division.
In this rapidly cooling real estate market, some buyers seem to be regretting how much they agreed to pay back in the hot spring sales season. In other cases, buyers aren’t able to secure financing because the home they are buying is not worth the price agreed when they signed the deal.
Home construction on pace for its best year since recession (Toronto Star)
The ramp-up likely reflects strong demand for new housing from the end of last year into the start of this year, TD Bank economist Diana Petramala said, adding that the new construction market tends to lag real estate demand, which has started to fall.
Vancouver housing on fire with biggest price gains since 1990 (Vancouver Sun)
New home prices in Canada’s most-expensive market jumped 1.5 per cent in June, and have gained five per cent since March, data released Thursday by Statistics Canada show. That is the biggest three-month increase since 1990. Prices for existing homes are also on fire, gaining 11 per cent in the five months through July, according to data released this month by Vancouver’s real estate board.
"Gradually over the past couple of years since I bought my condo, I've noticed the creeping in of more and more short-term renters," he said in an interview on CBC Montreal's Daybreak program Tuesday.
Canada’s banking regulator, the Office of the Superintendent of Financial Institutions, is taking aim at the uninsured mortgage market – where homeowners make a down payment of 20 per cent or more. OSFI is proposing stringent stress tests for those borrowers, in line with what’s already happening in the insured market.
Two of the biggest institutional single-family landlords in the United States said Thursday that they planned to merge, an indication that the housing market has recovered much of the ground it lost in the financial crisis. And as home prices rise in many areas, affordable housing, for deep-pocketed investors and young first-time buyers alike, is becoming harder to find.
"Worst case housing needs are defined as renters with very low incomes (below half the median in their area) who do not receive government housing assistance and who either paid more than half their monthly incomes for rent, lived in severely substandard conditions, or both," according to a HUD statement..