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New mortgage rules could strip buyers of 25% of their buying power and targets uninsured mortgages

New mortgage rules could strip buyers of 25% of their buying power and targets uninsured mortgages

With Ontario Fair Housing Plan rules already impacting the Toronto market, putting some prospective buyers in “wait and see” mode, new mortgage rules could further test the market’s resilience.The “Nanny” provisions — which will make it more difficult to borrow, with the goal of “protecting” people from themselves — will reduce the amount of the…

Housing starts continue strong in Ontario, up 13% in Sept 2017 over last year: CMHC data

Housing starts continue strong in Ontario, up 13% in Sept 2017 over last year: CMHC data

September was another strong month for building starts (year over year), with Ontario continuing to lead in sheer numbers, and (and among the highest as a percentage) in both Single-detached and multi-dwelling buildings: single-detached starts Ontario 2,594, up from 2,423 (in Sept 2016), or 7% all other starts Ontario 3,854, up from 3,291, or up…

Prices rebound in September: Condos up 23.2% in GTA yr-over-yr; all types of homes increase in price in 416

Prices rebound in September: Condos up 23.2% in GTA yr-over-yr; all types of homes increase in price in 416

With the increased interest in condominiums, September prices jumped 24% in the 416 and 16.6% in the 905 (23.2% overall GTA). Although sales are down year-over-year in all categories — especially given the previous year was a “hot” market — prices were up in all home types, with the sole exception of detached homes in…

Ontario Housing Minister defends new rent control after strong criticism of its impact on the rental market

Ontario Housing Minister defends new rent control after strong criticism of its impact on the rental market

Peter Milczyn, Ontario’s Housing Minister, felt pressured to defend the new rent controls after news that at least 1,000 planned rental units have been converted to condos or cancelled due to the restrictions. [First reported on Condo.ca here “Over 1,000 planned rental housing units converted to condos”>>] The Minister indicated he was “watching” the housing…

Over 1,000 planned rental housing units converted to condos in reaction to new Ontario rental rules; Ontario faces shortfall of 6,000 units per year in rentals

Over 1,000 planned rental housing units converted to condos in reaction to new Ontario rental rules; Ontario faces shortfall of 6,000 units per year in rentals

A new Urbanation study indicated “rental housing supply will continue to diminish and vacancy rates will drop further unless at least 6,250 additional new rental units are built each year for the next decade, in addition to the expected level of new development.” This is despite the fact that 32.6% of all condos are used…

Home building starts up for Ontario 50%; up 58% multi-residences and condos in Toronto, 29% for all types

Home building starts up for Ontario 50%; up 58% multi-residences and condos in Toronto, 29% for all types

Builders are pushing forward with new home building, largely unaffected by the sales-pause in the real estate market. Canada Mortgage and Housing Corp data shows Ontario growth August starts up 29% in August last year — even though last year was a hot market. Other hot markets for building starts included Manitoba at 45%, Nova…

In Ontario, 42.1% of adult children live with parents; we earn more income; 54.3% of us live in detached homes; 19.9% increase in 65-years and over proportion: new Census data

In Ontario, 42.1% of adult children live with parents; we earn more income; 54.3% of us live in detached homes; 19.9% increase in 65-years and over proportion: new Census data

The new peaks inside Canada’s latest Census (2016) reveal a “mixed bag” of indicators, with, for example, income up, yet over 42.1% of adult children living with parents (in Ontario), and 96% of couples/families both working. The sharp ageing demographic is also quickly evident, with average age way up at 41. The population has increased…

Resale prices up 21.4% for condos in August year-over-year, sales down 28% as new Bank of Canada Rate nudges up a quarter point on good economic news

Resale prices up 21.4% for condos in August year-over-year, sales down 28% as new Bank of Canada Rate nudges up a quarter point on good economic news

The strong Canadian economy pressured the Bank of Canada to raise its benchmark interest rate a quarter of a percentage point to 1 percent Wednesday. This is a good news/bad new story. The nudge upwards came on continued indications of a strong economy and good jobs outlook. The rise is unlikely to put much pressure…

Mortgage insurance business down, mortgages up, condo preference increasing — new trends in the GTA market

Mortgage insurance business down, mortgages up, condo preference increasing — new trends in the GTA market

As reported previously in Condo.ca, “mortgage borrowing power” is up significantly due to low-interest rates and higher wages. [Story here>>] At the same time,  the mortgage loan insurance business was down 33 percent, according to CMHC in the second quarter of 2017. This follows on the heels of new regulations introduced in fall 2016. In…

Canadian’s “mortgage borrowing power” increased 126.1 percent between 2000 and 2016 due to higher wages and lower interest rates, contributing to rising home prices

Canadian’s “mortgage borrowing power” increased 126.1 percent between 2000 and 2016 due to higher wages and lower interest rates, contributing to rising home prices

New research from the Fraser Institute (as of August 2017) indicates that the average Canadian family has increased “mortgage borrowing power” by 126.1 percent due to increasing wages and lower interest rates. The average “mortgage borrowing power” in the four main metro areas rose (from 2000-2016): In Toronto area: to $338,161 (up from $221,214 in…

Teranet-National Bank Composite Price Index up 2.11% in July 2017

Teranet-National Bank Composite Price Index up 2.11% in July 2017

Prices are up on the Teranet-National Bank Composite Index by 2.11% month over month — or 27.96% year over year for July 2017. Although these numbers are somewhat different from TREB’s July price statistics —which showed 4.6% for monthly and 18% for year-over-year — they reflect a “smoothing” calculation, where the index is the average…

$8.1 billion in new building permits in June 2017, up 2.5% from May, second highest on record

$8.1 billion in new building permits in June 2017, up 2.5% from May, second highest on record

With an inventory shortage in the market, builders are stepping up the pace of building permits, particularly in multi-unit buildings, such as Condominiums. The latest released data indicates that Canadian municipalities issued another $8.1 billion in building permits in June 2017 — the last month tallied by Statistics Canada — although residential permits were $5…

Downturn or breather in housing market? Demographics, inventory, history, and new-build sales trends suggest the market in fall will sharply bounce back

Downturn or breather in housing market? Demographics, inventory, history, and new-build sales trends suggest the market in fall will sharply bounce back

Price pressure and inventory-shortage argue against characterizing the current summer market as a “downturn” — versus a short lull — in the market. While this may dash the hopes of struggling first-time buyers, demographics and listing supply make it highly unlikely that the market will downturn past the summer months. At most, the lull would…

TREB reports July resales 40.4% down year-over-year, contrasting new condo increase in sales of 89% reported by BILD

TREB reports July resales 40.4% down year-over-year, contrasting new condo increase in sales of 89% reported by BILD

Contrasting a sharp increase of 89 percent in last period for new condo sales — our report here>> — the resales market appeared to continue to react negatively to Ontario’s Fair Housing Plan, sharply down 40.4 percent, year over year for July sales.     TREB CEO John DiMichele cautioned: “Summer market statistics are often not the…

Sales of new Condo high rise apartments record high — jumps 89 percent year over year

Sales of new Condo high rise apartments record high — jumps 89 percent year over year

Only 9 percent of homes sold last month were low-rise single-family homes, leaving high-rise condominiums to dominate the market at 91 percent of all June 2017 sales.  Not only is the share of sales higher, the 89 percent year-over-year increase in sales is a higher-than-expected growth number — especially with worries over Ontario’s Fair Housing…

TREB Quarterly condominium report reveals stability, especially downtown, with prices and listings up, sales slightly down year-over-year

TREB Quarterly condominium report reveals stability, especially downtown, with prices and listings up, sales slightly down year-over-year

In the vital markets of City of Toronto downtown core and Mississauga downtown, condominiums are showing market resilience in the face of sharper drops for other home types. The shift of preference is likely driven by ongoing demand for homes tempered by the relative lack of affordability of other home types.     The last reported June…

CREA: Home sales drop in June, prices up; but fundamentals in economy are good for future growth

CREA: Home sales drop in June, prices up; but fundamentals in economy are good for future growth

Home sales are down Nationally, led by Toronto, as previously reported in Condo.ca from Toronto Real Estate Board numbers, although luxury sales, especially in Toronto are up for higher-end condominiums. [See our story on Condo luxury market here>>]   NOTE: Although CREA numbers are similar to TREB indicators, they reflect only MLS sales, largely resales, and…

Bank of Canada raises rate 0.25 per cent: What does it mean to your mortgage?

Bank of Canada raises rate 0.25 per cent: What does it mean to your mortgage?

As expected, the Bank of Canada raised rates for the first time in seven years to a key interest rate 0.75 percent. Although this is likely to have a slight dampening effect on markets already in “hold” mode due to the Ontario Government’s new rules, in real life its effect is negligible and can most…

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