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.
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.
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.
“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.”
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
But what if there were a way to see gentrification long before the coffee shops, condos and Whole Foods appear? What if city planners and neighborhoods had an early warning system that could sniff out the changes just as they begin? In that way, cities might prepare for the coming changes — securing a diverse range of housing options before land and rent prices shoot through the roof.
September 1, 2017Week In Review |