Toronto: Condo market may hit turbulence and can the city afford mid-rise housing?
Elsewhere: New mortgage rules will figure prominently in Bank Of Canada's interest-rate decision, Trumps tariffs price Americans out of housing market and the UK's largest estate agent group sees massive shares drop.
Evidence of a slowdown is emerging as new rules make it tougher to get a mortgage and borrowing costs rise for the first time in almost a decade. That’s reducing the appeal of Toronto condos, whose average price now exceeds C$560,000 ($420,000). Projects are taking longer to sell and, in some areas, developers are using incentives to move units.
Toronto wants mid-rise housing, but can we afford it? (The Globe and Mail)
Builders in Toronto are facing something of a dilemna: Residents want fewer high-rises and planners are making available more sites suitable for more compact buildings, but costs are making mid-rise residential properties exceptionally expensive to construct.
Don't blame real estate investors for rental market woes (Financial Post)
One oft-cited statistic suggests that 47 per cent of the dwellings in the city are rental units, with owner-occupied housing at 53 per cent constituting a small majority. While this figure tells us that owners inhabit 53 per cent of the dwellings in the city, it says nothing of how much housing owned by private households is rented out.
"Right now, we're saying, we have a problem and we need help," Tory told reporters on Tuesday. "We have exhausted our available sites, our resources and our personnel. We need the other levels of government to step up and assist Toronto in a true partnership."
The impacts of both the escalating cross-border trade fight and new mortgage rules will "figure prominently" for the Bank of Canada ahead of its upcoming interest-rate decision, governor Stephen Poloz said Wednesday.
Foreign buyers might make up a small sliver of Canada's biggest real estate markets, but homebuyers in Toronto, Vancouver and Montreal still believe they are heavily influencing housing activity.
British Columbia has signed a deal with the federal government that will see almost $1 billion go to affordable housing across the province over the next decade. The provincial and federal governments say more than $990 million will be spent on building, repairing and expanding social housing and supporting housing affordability.
Ted’s living situation was shocking, but it is mirrored across Vancouver, a city that is in the grips of an unprecedented housing crisis. A dwelling here now costs $1.4m (£800,000) on average, making it the least affordable city in North America.
When state legislation designed to override local zoning laws and permit construction of apartment buildings in a half-mile swath around transit lines across California died earlier this year, opponents said the decision of where to build desperately needed housing should be left to local communities.
June 29, 2018This Week In Real Estate |