In Toronto: What the condo slowdown could mean for the rest of the market and buyers grow shy in heated environment. Elsewhere: Why Canadian real estate could be entered a bull market, US home prices make gains, and what Berlin's rent cap could mean for other major cities.
Toronto
Sage Real Estate Agent April Williams advises her investor clients against listing right now. But she said many are looking to unload their units. “Their tenants are leaving and they don’t want to take on new ones, especially with rental rates dropping. Some of them have had Airbnbs in the past and they can’t really do that anymore so they feel it’s time to move on,” she said.
Buyers growing shy in heated Toronto market (The Globe and Mail)
Ms. Battle calls the segment between $900,000 and $1.4-million “the price range that does not sleep” in single-family dwellings, but she adds that lots of pent-up demand from buyers was satisfied over the summer when the market came out of the spring lockdown.
‘Developers target suburbs as condo demand in downtown Toronto falters amid pandemic (The Globe)
This is not the first time suburban condo development has surpassed the city’s but marks the widest margin on record. As well, sales of preconstruction condos more than doubled in the suburbs compared with the third quarter of last year, while sales dropped 16 per cent in the city of Toronto over the same time period.
This is actually terrifying’: Toronto-area small businesses fight for survival as new lockdown takes effect (The Globe)
“Doug Ford signed the death warrant for thousands of small businesses over the weekend,” said Dan Kelly, head of the Canadian Federation of Independent Business (CFIB) in an interview. He hopes the Ontario government will turn around and offer additional subsidies to small and medium-sized businesses (SMBs), and suggests the province could top up the differentials businesses receive from federal rent and wage subsides, which were recently expanded and extended.
Homeless advocates build 'foam domes' outside mayor's condo to call for more housing now (CBC)
The event, part of National Housing Day, was held to draw attention to the plight of people living in encampments. Snow fell as the activists put together the insulated foam structures that will be distributed to people experiencing homelessness across the city.
Canada
Why real estate could be entering a prolonged bull market (Yahoo)
We’ve been getting monthly updates from the ground floor from Realosophy Realty’s John Pasalis and Oakwyn Realty’s Steve Saretsky, who help make sense of it all, with advice for anyone buying or selling a home. They both think the rally still has legs and expect to see strong markets in Toronto and Vancouver in the months to come.
More provinces sign up for rent benefit as Ottawa sets up promised housing council (CBC)
Money is already flowing to Ontario, Nova Scotia, Saskatchewan and British Columbia, but documents tabled in the House of Commons last week show that three more unnamed provinces have signed up for cash.
N.S. brings in rent control, bans ‘renovictions’ amid affordable housing crunch (Canadian Press)
Nova Scotia’s Liberal government is bringing in temporary rent controls amid a series of evictions of low-income tenants and rising homelessness in Halifax. Housing Minister Chuck Porter said Wednesday that rents across the province can’t increase by more than two per cent a year. The restriction is retroactive to Sept. 1.
USA
US home price gains accelerate as pandemic shakes up housing (Yahoo)
The viral pandemic disrupted the spring home buying season, pushing many sales into the late summer and fall. Home sales jumped to the highest level in 14 years in September, a sign that the increased ability of some Americans to work from home and the desire for more space is spurring greater demand.
When the Coronavirus Pandemic Settles Down, so Will Homeowners (Wall Street Journal)
America’s housing market has been radically changed by the Covid-19 crisis, and some of those changes will persist. But the first thing to come after the crisis passes will be the hangover.
DOJ agreement requires Realtors to offer transparency on real estate commissions (Washington Post)
Sellers must negotiate their commission with their agent and determine how much of a commission to offer their buyer’s agent and therefore know how much will be paid at the closing table from the proceeds of the sale. Buyers, who in effect pay those commissions because they’re the ones making the purchase, typically don’t know how much either their agent or the seller’s agent will be paid. That’s about to change.
International
Berlin's rent cap offers a new way of thinking about Britain's housing crisis (The Guardian)
In a city where the vast majority of residents are renters, it’s estimated that more than 365,000 households are eligible for the rent reduction. A report in Der Spiegel had the number as high as 512,000 apartments. The measures undertaken by authorities in Berlin were also met with widespread approval, as more than 70% of Berliners were supportive of the plans to freeze rents and introduce upper limits.
The pandemic has made it clear that housing is England's greatest divide (The Guardian)
Yet it was actually among renters where the most obvious inequalities were exposed. While the government put a temporary freeze on evictions (which is now back in place until January), there was no system of guarantees to match the government-backed deferral of mortgage repayments for homeowners.
Top Photo Credit: iStock/Bukharova
Realosophy Realty Inc. Brokerage is an innovative residential real estate brokerage in Toronto. A leader in real estate analytics, Realosophy educates consumers at Realosophy.com and MoveSmartly.com and and helps clients make better decisions when buying or selling a home.
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November 27, 2020
This Week In Real Estate |