Week In Review: Home Sales Plunge In GTA + The Case For Midrise Housing

Realosophy Team in Media RoundupToronto Real Estate News

 

All you need to know regarding the housing market in Toronto, Canada and abroad.

This week in Toronto: Home sales plunge as prices soar, sellers face a refresher course in economics and why midrise housing has a bright future in Toronto. 

Elsewhere: Hurricane Harvey's lesson for Canadian real estate, what does it take to see gentrification before it happens and Airbnb's boss reveals how his company hopes to crack the Asian market. 

Toronto 

New home sales in GTA plunge, prices soar in July (Toronto Star)

There were 85 per cent fewer single-family homes sold in July compared to the same month last year, according to the Building Industry and Land Development Association (BILD).

GTA sellers face a refresher course in economics (The Globe and Mail)

That's the view from Durham Region, where real estate agent Shawn Lackie sees sellers who are deluded about the current real estate mood in the Greater Toronto Area and surrounding towns. They're pushing for lofty sale prices that are no longer realistic.

Average Greater Toronto House Now Back Below $1 Million (Huffington Post)

The province of Ontario introduced new housing rules in April, designed to cool the market, including a 15-per-cent foreign buyers' tax. Legislation was also brought in to expand rent controls.

Toronto detached homes dip below $1M, but will it lure buyers back? (Financial Post)

“You do bring a lot more people into the equation,” said Doug Porter, chief economist with Bank of Montreal, about prices dropping below the $1 million threshold. It is worth noting the average sale price of a home in the City of Toronto was $1,200,313 over the first two weeks of this month, up 3.8 per cent from a year ago and still well above the threshold for getting mortgage insurance in Canada.

Midrise housing has bright future in Toronto — whether residents like it or not: Hume (The Star)

So why are so many midrise projects greeted with howls of outrage by disapproving locals and/or unimpressed planners? Each one is treated as if it were an affront to civic good taste and municipal well-being. Getting the go-ahead for something as benign as a six-storey condo can be as arduous and expensive as a 60-storey tower.

Canada

Price slump, tight cash wreak havoc in Canada's top housing market (Reuters) 

Much of that turmoil is not just down to those who bid at the peak and now wanted to get out of a deal, but also to lenders tightening credit and property appraisers lowering their valuations.

Housing slowdown 'white elephant' hangs over Canadian banks (BNN)

“On Canadian housing, we’ve seen a healthy moderation in housing activity in Toronto and Vancouver, supported by policy actions by provincial governments and our regulator to create a healthier, and more balanced market,” RBC Chief Executive Officer Dave McKay told investors on the company’s third-quarter conference call. “We continue to prudently grow our mortgage portfolio with strong FICO scores at origination, and are seeing low delinquencies.”

Hurricane Harvey's lesson for Canadian real estate: Don Pittis (CBC)

This week, Hurricane Harvey offered another little lesson in market forces. It's a lesson that helps us think about Canadian real estate. Market theory tells us that people who wanted to protect their property from the hurricanes and floods that plague the Gulf Coast should have had insurance

 
International
 
 
The region has roughly 60% of the world's millennials like himself, young adults between the ages of 19 and 35 who are the fastest growing generation of consumers. However, only about 15% of Airbnb's four million global listings are based in Asia.
 

The region remains one of the poorest in Europe, with devastating rates of infant mortality, youth suicide and widespread mental ill health. Poor housing and homelessness compound stress, physical health problems and mental illness. Yet none of the £1bn secured by the DUP in return for propping up Theresa May’s Conservative government will fund social housing. The NIHE says there are already plans to deliver 425 additional social homes within north Belfast over the next three years.

Photo Credit: Toronto Star

 
Realosophy Realty Inc. Brokerage is an innovative residential real estate brokerage in Toronto. A leader in real estate analytics and pro-consumer advice, Realosophy helps clients make better decisions when buying or selling a home.  Email Realosophy
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