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Monday , 20 February 2017

Category Archives: Market News

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News with a focus on real estate, finance and the marketplace

Healthy or hot, experts differ on where Toronto’s housing market is headed

Rising housing prices in Toronto and the surrounding area bring out a wide range of opinions and explanations from observers such as bankers, ratings agencies, politicians and urban planners. Everyone agrees that home prices have gone up rapidly, but that is about all they agree on. An economist at BMO says the city is in a real estate bubble. The mayor says no it’s not. So does the city’s chief planner. And the international ratings agency Fitch classifies the entire country’s real estate market as unsustainable. All of them speak of supply and demand, which  drive every market, but how do they play out in this one? First the banker. ... Read More »

Slight dip in national home sales in January, supply critically short in Toronto

Home sales across the country were down slightly in January compared to December, reports the Canadian Real Estate Association, dropping by 1.3 per cent. Actual sales, however, were up compared to a year ago in most markets, including the GTA. There was a significant decline in new listings, with 6.7 per cent fewer homes available for sale in January, particularly severe in Toronto and parts of BC, according to CREA. In Toronto, January listings were less than half of what they were a year ago, according to Toronto Real Estate Board statistics. The ratio of sales to new listings jumped to 67.7 per cent, up from 64 per cent in ... Read More »

Housing construction surges in January, population passes 35 million

It would seem a natural connection: the population is growing, therefore the number of new homes built to house that population should also grow, at a more or less similar rate. If doesn’t happen that way usually, but in January the number of new housing starts in Canada took another of those “unexpected” jumps that economists always talk about, and the announcement from Canada Mortgage and Housing Corporation happened to coincide with one from Statistics Canada on the growth of the population. Canada is now home to more than 35.1 million and has the strongest population growth of the G7 countries, mainly due to immigration. The population grew by about ... Read More »

Toronto realtors warn against foreign tax, forecast another hot year in market

Expect another very strong year in the Toronto housing market. The Toronto Real Estate Board forecasts that home sales will once again come in at around 110,000 in 2017, just shy of the 113,133 sales reported for 2016. The forecast is based in part on an Ipsos poll of buyers’ intentions conducted late last year. The poll revealed that more first-time buyers intended to buy this year than did so last year, TREB reported. A condition that is not likely to change in the coming months is the shortage of available homes for sale. The number of active listings at year end was the lowest since the year 2000, and ... Read More »

Strong evidence of overvaluation, overpricing in Canada’s housing markets: CMHC

In Canada’s current housing market, Ontario is the pivot. East of Ontario, there is little evidence of strongly “problematic” conditions or imbalances, such as overheating and overbuilding, in any major markets. West of Ontario, there is plenty, with “strong” evidence of such problematic conditions found in cities from Regina to Vancouver and Victoria. When assessing price growth in the national housing market, which Canada Mortgage and Housing Corporation calls “elevated,” CMHC says that without Ontario included, price growth for the third quarter of 2016 was actually flat. With Ontario included, that growth was 7 per cent, thanks to intensified price growth in Toronto and other cities, including Hamilton (10 per ... Read More »

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