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GTA, Ontario, Canada
Experienced Realtor (2012, 2013, 2014, 2015 And 2016 Recipient Of The Prestigious RE/MAX PLATINUM CLUB AWARD For Sales Greater Than 10 Million Annually) in Durham Region And The GTA, #1 Team 2014 & 2015 Whitby Office. "THE JACKIE GOODLET TEAM" has extensive knowledge which includes selling resale homes, new build homes & condo's since 1989. With over 25 years experience and exceptional negotiating skills we are confident we can save you time and money on all your real estate endeavours. We look forward to hearing from you soon!

Thursday, October 19, 2017

Stress Test for Conventional/Uninsured Mortgages - Effective Jan. 1 2018

The Office of the Superintendent of Financial Institutions (OSFI) has announced that a “Stress Test” on all federally regulated mortgages will take effect on January 1, 2018.

If buyers are putting down more than 20% down payment on their homes they will still need to qualify through the stress test which is a 5 yr bench mark rate at the time of application. Last year it was only for clients that put down less than 20% however starting the new year it will be for all.

OSFI is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages.

•Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.

OSFI is requiring lenders to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic and responsive to risk.

•Under the final Guideline, federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.

OSFI is placing restrictions on certain lending arrangements that are designed, or appear designed to circumvent LTV limits.

•A federally regulated financial institution is prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institution’s maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!



CREA says Ottawa addressed members' concerns over tax changes

The amendments to the federal government’s tax proposals for personal incorporation have been welcomed by the Canadian Real Estate Association.

CREA says that the government listened to the concerns of its members which focused on ‘income sprinkling’ and the application of ‘reasonableness’ tests.

Realtors are among the many Canadian professionals who use personal incorporation and the benefits of passive investment income to effectively manage their business finances.

Finance minister Bill Morneau said Wednesday that the government intends to move forward with measures to limit the tax deferral opportunities related to passive investments, while providing business owners with more flexibility to build savings for business purposes – for example to deal with a possible downturn or finance a future expansion – as well as to deal with personal circumstances, such as for parental leave, sick days or retirement.

There will also be protection for past investments and the income from those investments, and a $50,000 threshold for passive income in a year.

"This was a true consultation, the government listened to diverse voices, took the time to meet with us to understand our members' pre-occupations and ultimately came up with a solution that met the Minister's goals and addressed some unintended consequences for our industry", said Gary Simonsen, CREA's CEO.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

CMHC is strong enough to withstand a housing correction

Canada Mortgage and Housing Corporation says that its capital levels are strong enough to withstand earthquakes, anti-globalization, a sharp drop in oil prices, or a US-style housing correction.

The agency carries out stress testing of its finances as required by OSFI to ensure it maintains capital levels strong enough to deal with extreme scenarios.

“CMHC has always been and continues to be a stabilizing force in Canada’s housing system,” commented Romy Bowers, Chief Risk Officer, CMHC. “As a responsible risk manager, we seek out extreme, almost unimaginable situations and ask ourselves ‘what if?’ That’s the goal of our stress testing – to measure how we would stand up to these unlikely shocks. In all cases, this year’s stress testing shows we are well capitalized to handle these very severe situations.”

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Vancouver's made it easier to get a housing permit

The city’s mayor says that efforts to speed up processing times for new permits have proved successful even as the City deals with a record level of development.

Single-storey laneway home permits can now be expediated within a week and further improvements are being implemented this fall.

These include: •a single point of contact to all projects;

•service-level agreements and committing to specific customer return times for permits for affordable housing and low-density housing projects, to ensure projects move forward in a timely way;

•setting time limits and separated queues to reduce lineups for permit applicants.

“Delays to get basic permits are frustrating, and not acceptable. A swift and simple permitting process at the City is critical for addressing Vancouver’s housing challenges and to help facilitate housing delivery of all kinds across the City,” said Mayor Gregor Robertson.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Wednesday, October 18, 2017

This innovation could be a shock for Ontario housing market

Many industries are already starting to be impacted by technology and this is set to intensify as more businesses utilise automation in the years ahead.

The change in the way we work will impact jobs and extend to the wider economy and housing markets and it looks like Ontario will face an unequal share of the burden.

A study from the Martin Prosperity Institute at the Rotman School of Management at the University of Toronto, together with Arizona State University, looked at StatsCan data to determine which Canadian metros are most likely to be impacted from automation.

Due to the higher levels of jobs determined most at risk from automation, the researchers believe that Ontario has 7 of the 10 metros set to be impacted.

Leading the top 10 is Quesnel, one of two metros in the top 10 in British Columbia. This metro has 10,390 workers with 63.5% vulnerable to automation.

Leamington (63% of 24,060 jobs) and Tillsonburg (63% of 6,995 jobs) are the next two most at risk, both in Ontario. Ingersoll, Norfolk, Orillia, Chatham-Kent, and Woodstock are the others from the province in the top 10.

Williams Lake, BC; and New Glasgow, NS complete the top 10.

Ottawa-Gatineau and Montreal are among the top 10 metro least at risk from automation according to the research reported by HuffPost Canada.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Industry reacts to OSFI B-20 update

The mortgage and real estate industry has been quick to react to the updated mortgage lending guidelines known as B-20 which have been published by OSFI.

The rules come into effect from January 1, 2018 and will include a stress test on uninsured mortgages at 2% above the agreed contract rate.

Reacting to the update, James Laird, co-founder of Ratehub.ca and president of CanWise Financial said: “Those of us working in the mortgage industry question if now is an appropriate time to introduce more regulation which will cool markets across the country further.”

He added that the impact of previous policy changes designed to cool the housing market and tighten mortgage lending have still to be assessed.

RBC economist Robert Hogue said that, although the changes are not a surprise, they will have a real impact on the market.

“We expect that, following a brief run-up in activity fueled by buyers rushing to lock-in existing qualifying criteria, the change will have a dampening impact on the housing market shortly after it comes into effect in January. It has the potential initially to rock the market because non-insured mortgages represent a large share of the mortgage market,” Hogue wrote.

Ontario Real Estate Association CEO Tim Hudak said that the province has borne the brunt of government interventions and believes that the stress test for mortgages is regulation overkill.

“It’s time for governments to hit the brakes on more demand side policy interventions and take a wait and see approach. Ontario’s housing market is too important to the provincial economy to move ahead with unnecessary regulation that will hurt the dream of home ownership,” he said.

First National Financial issued a statement saying that although it is not a Federally Regulated Financial Institution, the nature of its operations and commitment to the highest quality underwriting standards will require it to follow the Guideline.

It said that the stress test on uninsured mortgages to 2% above the contract rate will have a significant impact.

“The Company believes all mortgage lenders, including First National, will see a decrease in conventional single-family market activity levels as a result of this change,” it warned.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

OSFI says stress test, other lending rule changes will start Jan 1

OSFI has published its update for the tightening of mortgage lending regulations known as Guideline B-20 and set the date that it will apply.

The revised Residential Mortgage Underwriting Practices and Procedures will take effect from January 1, 2018 and include several key changes that the regulator says is part of its expectation that federally-regulated mortgage lenders remain vigilant in their underwriting practices. •Stress test - the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.

•Enhanced LTV measurement - federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.

•Restriction of certain lending arrangements - federally regulated financial institutions prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institution’s maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.

“These revisions to Guideline B-20 reinforce a strong and prudent regulatory regime for residential mortgage underwriting in Canada,” said Superintendent Jeremy Rudin.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Home Capital sells off payment services wing to focus more on core business

Home Capital Group Inc. says it has reached an agreement to sell its payment processing and prepaid card business as it looks to further streamline operations.

The Toronto-based alternative mortgage lender says the sale of the business will save about $20 million in annual salary and other operating costs, while giving up the $18 million in fees and other income it brought in.

Home Capital had already signalled its intention to sell the division as a non-core operation, and says the impact from the sale on its full-year net income is insignificant.

Earlier in October, the company said it had cut 65 jobs as part of a program to eliminate $15 million in annual costs that was largely complete.

The company has been looking to restore soundness after allegations by regulators that it misled investors prompted a run on deposits by customers in April.

Home Capital says it is still facing elevated expenses because of the scrutiny, and the need to borrow funds at higher rates to make it through the liquidity crunch.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

OSFI releases final B20 guidelines

Canada's banking regulator has published the final changes to its guidelines for residential mortgage underwriting, including a financial stress test for buyers who don't need mortgage insurance.

The Office of the Superintendent of Financial Institutions said Tuesday the changes will come into force by Jan. 1, 2018.

Even homebuyers who don't require mortgage insurance because they have a down payment of 20 per cent or more will have to prove they can continue to make payments if interest rates rise.

Other changes include restrictions on co-lending, or bundled mortgages, aimed at ensuring financial institutions do not circumvent rules that limit how much they can lend.

The final guidelines are generally similar to what OSFI had proposed in July, when the regulator put out a draft for public consultation.

The proposed changes, however, have been criticized for including potentially increasing costs and limiting access to mortgages for some home buyers.

"These revisions to Guideline B-20 reinforce a strong and prudent regulatory regime for residential mortgage underwriting in Canada,'' said Superintendent Jeremy Rudin in a statement on Tuesday.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Tuesday, October 17, 2017

Calgary market sees strong price growth—report

The latest edition of the Royal LePage House Price Survey revealed that the aggregate price of a home in Calgary rose 5.0% year-over-year in the third quarter of 2017, up to $479,211.

In terms of asset classes, the median price of a standard two-storey home increased by 4.8% year-over-year in the same time frame, up to $520,624. Meanwhile, the median price of a bungalow grew 7.3% to $505,925, while the median price of a condominium saw a slight 0.8% year-over-year uptick to $297,558.

“We are a region in recovery. Our home price appreciation numbers are promising but we are comparing this quarter with the same period in 2016, when prices were still depressed,” Royal LePage Benchmark broker/owner Corinne Lyall said. “This uplift is a good sign and we remain cautiously optimistic.”

“Both buyers and sellers who were waiting on the sidelines for the housing market to show signs of recovery started to reengage in recent months,” Lyall explained. “In the most recent quarter, listings inventory has slightly outpaced demand, which will act to keep a lid on major price increases in the immediate-term. Buyers are feeling that it is the right time to act and seem happy with the good selection of properties to choose from in Calgary.”

Lyall stated that consumer confidence has noticeably improved amid signs of increased stability in the local economy, but added that “until we see the price of oil stabilize over $50 per barrel and full-time employment numbers increase, the recovery will continue to be slow.”

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!



Drastic changes on the way?

The growing influence of automation and next-generation communications technology across all industries is introducing a fundamental disruption into how society is structured, and a recent study provides a tantalizing look at the changes that could be ahead for the real estate sector.

In a white paper published in mid-July, consulting firm Avison Young predicted that the greatest shift would stem from the remote accessibility that is a natural consequence of distributed networks and open-source platforms.

“E-commerce, fintech, co-working, big data, autonomous vehicles and blockchain technologies are distributed-network systems that logistically change where and how work gets done,” wrote Avison Young managing director Amy Erixon, the author of the white paper. “For real estate professionals, these technologies’ distributive aspects pose the biggest challenge when it comes to forecasting property performance outcomes. Distributive technology holds the promise of equal access to opportunities and significantly enhanced consumer value propositions.”

The paper also posited that the real estate sector’s continued relevance will depend on its ability to rapidly respond to the workplace’s appetite for ever-greater computational power, along with improved resiliency and cybersecurity.

Avison Young allayed fears surrounding artificial intelligence, suggesting that industry professionals learn as much as they can about this nascent technology to ensure they can make the most of it.

“Put in the hands of humans, AI can help find solutions to vexing problems, and time-consuming processes can be streamlined,” Erixon wrote. “An AI system in dynamic interaction with changing surroundings or morally impactful decisions needs context to make judgements. Can we program a machine to follow social, cultural and emotional norms that underlie the essential trust underpinning societies? Some researchers think we can, but these systems sometimes surprise their creators.”

In addition, emerging trends in automobile production and operation will make themselves felt in real estate. The most important of these might be the growth in ride-hailing and ride sharing options, which “corresponds with a significant reduction in the need for parking spaces in major cities and rising tolerance for distance commuting,” Erixon wrote.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Canadian sales remain down from levels recorded a year ago—CREA

Latest numbers from the Canadian Real Estate Association revealed that national home sales in September remained lower compared to levels recorded one year ago, although slight growth was observed on a month-over-month basis.

Actual (not seasonally adjusted) sales activity nationwide was at 11% below the levels back in September 2016. Meanwhile, residential property sales grew by 2.1% from August to September, and the number of newly listed homes rebounded by 4.9% in the same time frame.

“National sales appear to be stabilizing,” CREA president Andrew Peck said.

However, he quickly added that “While encouraging, it’s too early to tell if this is the beginning of a longer-term trend. The national result continues to be influenced heavily by trends in Toronto and Vancouver but housing market conditions vary widely across Canada. All real estate is local, and REALTORS® remain your best source for information about sales and listings where you live or might like to.”

“Further tightening of federal regulations aimed at cooling housing markets in Toronto and Vancouver risks creating collateral damage in markets elsewhere in Canada,” CREA chief economist Gregory Klump. “It also jeopardizes Canadian economic growth, which is already showing signs of fading.”

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Commentary: Interest rates will never reach 5%

At the rate that posted mortgage rates are increasing, several observers have noted that Canadians might soon need to present proof that they can afford payments at rates of 5.00% or higher, but an industry analyst has argued that this lies beyond the realm of possibility.

“The justification is that regulators want Canadians to be prepared when interest rates rise, but that’s a hollow excuse. It’s a punitive macroprudential rule that is disconnected from reality,” ForexLive.com managing editor and chief currency analyst Adam Button wrote in a recent contribution piece for CMT.

“Interest rates can only rise if inflation accelerates, but every force in the world is pushing in the other direction. We’re in an age of no inflation and it will completely change borrowing, lending and how the mortgage market works.”

Button noted that the current state of the global economic system means that previous assumptions about inflation no longer apply.

“As the economy grows and companies expand, the supply of idle workers eventually runs out. That means more bargaining power for workers and wages rise,” Button explained. “This paradigm is now forever broken. [Globalization] means the supply of workers is no longer limited to where you are. Factories and many service industries can move to where workers are cheapest, and until there are jobs for the billions of workers on the planet there will always be slack.

“Even if all those workers could find jobs it still wouldn’t matter because automation is a far bigger driver of disinflation. Workers everywhere are being replaced by technology. It’s not just robots, but also computers, algorithms and improved processes.”

However, Button warned that home and commodity prices will continue to rise, despite the lack of inflation in the classic sense.

“Low rates have changed the economics of borrowing and investing. If you can borrow at 3.00%, virtually anything that returns more than that is a viable investment. So asset prices rise until even meagre returns are no longer economical. Add in scarcity, tighter land-use rules, foreign capital and the growing desire to live in urban centres and it’s a perfect storm for housing.”

“Ultimately, this is a big political problem. People want to live in cities and it’s unpopular for voters to be spending all their money on mortgage payments. It’s also bad for business to have workers commuting unreasonable distances.”

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Monday, October 16, 2017

Montreal residential sales increased for the 14th consecutive quarter—GMREB

The Montreal Census Metropolitan Area (CMA) saw a 9% year-over-year rise in total home sales during the third quarter of 2017 (up to 8,845), according to new data from the Greater Montreal Real Estate Board (GMREB).

This represented the best Q3 sales result in Montreal since 2009 and the 14th straight quarter of increases, according to the Board, which derived the statistics from the Centris® provincial database.

In terms of asset classes, condominiums posted the largest sales increase (+18%) at 3,043 units sold, establishing a new Q3 sales record for this property type. Sales of single-family homes and plexes (2 to 5 dwellings) also showed notable growth at 5% and 8%, respectively.

As for median prices, single-family homes and plexes across the CMA both experienced an increase of 5%, up to $320,500 and $479,000, respectively. Condominium median values showed relative stability, growing by a modest 1% to $253,000.

Active listings in the CMA declined for the 8th consecutive quarter, falling by 14% year-over-year (down to 24,640 properties available for purchase).

“The real estate market is continuing its strong momentum. We are clearly in a seller’s market for single-family homes and plexes in most areas of the Montreal CMA, while the condo market is returning to balanced territory,” GMREB’s board of directors president Mathieu Cousineau said. “In one year, the number of months of inventory has been reduced by more than two and a half months, which is a testament to the speed at which this market segment is tightening.”

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

B.C. sales volume and value accelerated in September—BCREA

In its latest round of data releases, the British Columbia Real Estate Association announced an increase in the province’s home sales numbers and market valuation in September.

The BCREA figures showed that a total of 8,340 residential unit sales were recorded by the Multiple Listing Service last month, representing a 9.9% year-over-year increase. This is despite a 13% year-to-date decline in home sales, down to 81,608 units.

Meanwhile, total sales value amounted to $5.8 billion, up by 30.2% from September 2016. The average MLS residential price stood at $693,774, having increased by 18.5% from the same time last year.

On a seasonally adjusted basis, B.C. residential sales grew by almost 5% from August, according to BCREA chief economist Cameron Muir.

“Total active listings on the market continue to trend at 10-year lows in most B.C. regions, limiting unit sales and pushing home prices higher,” Muir stated, as quoted by the Vancouver Sun.

However, Muir cautioned that “while the economic fundamentals support elevated housing demand, rising home prices are eroding affordability, particularly for first-time buyers.”

The results of a survey by Royal LePage came out on the same day as the BCREA’s data release. The study found the median price of a condominium rose by 17.6% from September 2016 to $622,392, while the cost of a two-storey detached home fell by 1.1% to $1,532,849 over the same period. The price of a bungalow went up 3.5% to $1,422,458.

Royal LePage Sterling Realty general manager Randy Ryalls stated that a combination of this trend and stricter mortgage rules has pushed buyers towards condominiums, which has placed a “severe strain” on inventory and driving competition.

“Despite having already taken 30 to 40% of entry-level buyers out of the marketplace entirely, the new mortgage regulations, and requisite stress tests, have helped to significantly drive condominium prices up,” Ryalls explained. “The cost of a down payment for a detached property in Greater Vancouver has already surpassed the average home price in many markets in Canada.”

The executive added that the current supply consisting of approximately 9,000 listings would not be sufficient to fulfil existing demands, noting that a balanced market needs about 14,000 to 15,000 listings.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Activity in Toronto, Vancouver continues to recover

In the latest edition of the Royal LePage House Price Survey released late last week, Toronto and Vancouver posted notable gains in sales activity amid continuous price growth.

In Q3 2017, real estate in the Greater Toronto Area began to show signs of a recovery, “transitioning to a more balanced market as price movement and consumer confidence stabilized,” Royal LePage stated.

“The market-cooling effects stemming from the introduction of the Ontario Fair Housing Plan have begun to wear off, leading to a burst of demand being witnessed as many prospective homebuyers re-entered the market with the expectation that home values will only increase from here on out,” the firm noted, adding that this development has put slight pressure on inventory levels as sellers take their homes out of the market upon realizing that they can no longer capitalize on overheated conditions.

“Though it is true that appreciation may continue to stagnate at the higher-end of the market due to affordability issues, strengthening consumer confidence has once again rekindled demand across the Greater Toronto Area, leading to the end of a very short-lived and measured softening within the region,” Royal LePage Real Estate Services Limited chief operating officer Kevin Somers said.

Meanwhile, sales activity and consumer confidence across the Greater Vancouver residential real estate market continued to recover in the third quarter of 2017. While home price appreciation softened in the detached segment, condominiums continued to prop up the region's real estate market, thanks in part to their relative affordability.

However, with the continuous deterioration in Vancouver homes’ affordability, prospective homeowners previously on the sidelines are returning to the market in fear of being permanently priced out.

“Despite having already taken 30 to 40 per cent of entry-level buyers out of the marketplace entirely, the new mortgage regulations, and requisite stress tests, have helped to significantly drive condominium prices up,” Royal LePage Sterling Realty general manager Randy Ryalls said. “The cost of a down payment for a detached property in Greater Vancouver has already surpassed the average home price in many markets in Canada. Prospective purchasers have redirected their attention to condominiums, vying to enter the market before prices rise to levels that are simply beyond their reach.”

The aggregate price of a home in the GTA surged 21.7% year-over-year to $860,295, while Vancouver saw a 2.5% growth (up to $1,229,133) in the same time frame.

CREW

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Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

GTA renters continue to feel the squeeze

Rents in the Greater Toronto Area continued higher in the three months to the end of September.

Urbanation reports a 10.3% rise in average rents for condo apartments transacted through the MLS system, to $2.99 per square foot.

That means renters in the GTA were paying around $232 per month more on average than a year ago, taking their rent to $2,219.

Inventory was around the same as the third quarter of 2016 but one-bedroom units were scarce, pushing the share of these homes renting for at least $25 above asking to 42% from 28% a year earlier.

Migration inflows and a decline in homeownership driven by tighter affordability and mortgage lending criteria.

“The intense competition between renters in Toronto shows no signs of letting up in the near future,” said Shaun Hildebrand, Urbanation’s Senior Vice President. “While it’s encouraging to see that rental proposals are still coming in, the level of new development needs to ramp up significantly in order to meet demand.”

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

National home sales edge higher but down from a year ago

There was a slight increase in home sales in September compared to August but most markets were down from a year ago.

Figures from the Canadian Real Estate Association show a 2.1% rise in sales through the MLS system month-over-month but sales were lower than September 2016 in three quarters of local markets.

Activity was varied across markets with gains led by Greater Vancouver and Vancouver Island, the GTA, London and St Thomas, and Barrie. Nationally, actual activity was down 11% year-over-year.

“National sales appear to be stabilizing,” said CREA President Andrew Peck. “While encouraging, it’s too early to tell if this is the beginning of a longer-term trend. The national result continues to be influenced heavily by trends in Toronto and Vancouver but housing market conditions vary widely across Canada.”

New listings were up in September with a national rise of 5% driven by a jump in the GTA. With a national sales-to-new listings ratio of 55.7%, the market is considered balanced.

For the first time in almost 7 years benchmark home prices were up in all 13 markets tracked by CREA’s MLS Home Price Index.

Apartments saw the largest year-over-year price rise - up 19.8% - with townhouse/row units up 13.5% and single-family homes up 7.9% (one storey) and 7.2% (two storey).

The average national sales price (not seasonally adjusted) was up almost 3% from a year ago to $487,000 ($374,500 excluding Greater Vancouver and the GTA).

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Sunday, October 15, 2017

10 Ways To Use A Pumpkin



We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Canadian home sales gain ground in September, but down from year ago mark

The Canadian Real Estate Association says the number of homes sold in September edged up compared with August as sales picked up in about half of all local markets.

The association says sales through its Multiple Listing Service in September were up 2.1 per cent compared with the previous month.

The increase was led by gains in Greater Vancouver and Vancouver Island, the Greater Toronto Area, London and St. Thomas, Ont., and Barrie, Ont.

Compared with a year ago, sales in September were down 11 per cent as the number of homes sold were down in close to three-quarters of all local markets.

The national average price for homes sold in September was just over $487,000, up 2.8 per cent from a year ago.

Excluding Greater Vancouver and Greater Toronto, the average price was just over $374,500.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Commentary: The case for Ontario intervening in the payday-loan segment

Credit unions have been chomping at the bit to offer alternatives to Ontario’s payday loan stores, but the current regulatory regime is hindering their ability to exhibit new products, according to a top official of a public policy think-tank.

In a contribution piece for the Financial Post, Cardus program director Brian Dijkema stated that payday loan providers fulfill a valuable role as they address the needs of the consumer segment called ALICE—Asset-Limited, Income-Constrained, and Employed.

“More than two-thirds of ALICEs earn less than $50,000 per year. And while payday lenders’ reputation for being the somewhat shifty cousins of banks is not entirely undeserved, they nonetheless provide a real and needed service to people who, for a variety of reasons, can’t or don’t have the cash to meet their needs,” Dijkema wrote.

These shops offer extremely-short-term loans (less than 62 days) for amounts less than $1,500 at grossly elevated interest rates (currently at 657% on an annualized basis on the average 10-day term).

“And that has consequences. Payday loans can lead customers to develop a habit — an addiction even — of using high-cost loans to meet their needs,” Dijkema said. “We’ve known about the challenge for a while, and the typical response has been to tighten already strict regulations. The problem with this approach, however, is that it simply raises the cost of providing what customers really need — better small-dollar alternatives — while driving solutions underground.”

Fortunately, the Ontario government is perfectly placed to address these issues.

“[The government’s] recent proposal to exempt these community banks from all payday loan regulations allows credit unions to experiment with cost structures, interest rates, loan terms and other factors that the rules otherwise prevented. For instance, a credit union might make space for a borrower to take more than 62 days to repay a loan,” Dijkema explained.

In fact, some unions are already taking the opportunity to try out novel approaches. “Windsor Family Credit Union’s ‘Smarter Cash’ program offers substantially lower rates than traditional payday loans. Other credit unions, including First Ontario, DUCA, and Libro are exploring ways that they can offer new products to those who need cash, and need it quickly.”

Ultimately, it will be to the Ontario housing segment’s benefit should these experiments bear fruit, Dijkema concluded.

“The Ontario government’s moves to exempt these institutions from regulations might not just be clearing a path to address a lack of payday-loan alternatives; they may also open a road to alternate solutions for other, bigger social problems.”

MBN

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Calgary market exhibits robust price growth—report

The latest edition of the Royal LePage House Price Survey revealed that the aggregate price of a home in Calgary rose 5.0% year-over-year in the third quarter of 2017, up to $479,211.

In terms of asset classes, the median price of a standard two-storey home increased by 4.8% year-over-year in the same time frame, up to $520,624. Meanwhile, the median price of a bungalow grew 7.3% to $505,925, while the median price of a condominium saw a slight 0.8% year-over-year uptick to $297,558.

“We are a region in recovery. Our home price appreciation numbers are promising but we are comparing this quarter with the same period in 2016, when prices were still depressed,” Royal LePage Benchmark broker/owner Corinne Lyall said. “This uplift is a good sign and we remain cautiously optimistic.”

“Both buyers and sellers who were waiting on the sidelines for the housing market to show signs of recovery started to reengage in recent months,” Lyall explained. “In the most recent quarter, listings inventory has slightly outpaced demand, which will act to keep a lid on major price increases in the immediate-term. Buyers are feeling that it is the right time to act and seem happy with the good selection of properties to choose from in Calgary.”

Lyall stated that consumer confidence has noticeably improved amid signs of increased stability in the local economy, but added that “until we see the price of oil stabilize over $50 per barrel and full-time employment numbers increase, the recovery will continue to be slow.”

CREW

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Rental market set for turbulence

Competition in Toronto’s condo rental market has become so fierce that bidding wars are on the rise.

“Competition amongst renters [for condo rentals] is going to remain pretty intense, and there’s not going to be a lot of availability,” said Urbanation’s Vice President, Shaun Hildebrand. “Rentals will have multiple bidders on them and the situation won’t correct itself any time soon. We will need more supply in the marketplace through higher condo completions as we move into 020, 2021, which will help provide relief to the market for a period of time.”

But he also warned that the entire rental market will be in dire straits unless purpose-built rental developments are supplied in considerable numbers.

A lot of factors have conspired to put relentless pressure on the rental market – the astronomical cost of homeownership, stricter mortgage qualifications, high migration and the Fair Housing Plan, among others – but none has been more pronounced than the supply shortage. Moreover, the reintroduction of rent control has provided tenants increased incentive to remain in their dwellings, stunting the turnover rate.

“It was already happening before, because if you were an existing tenant your landlord wouldn’t increase your rent by more than a couple of percent, but on the open market those rents have increased quicker, so that’s why people were staying put” added Hildebrand. “With rent control, it provides more encouragement to stay put, and because fewer units are turning over, it adds to the worsening of the supply situation.”

Bidding wars were prevalent at the height of the detached housing craze, and, alarmingly, they’ve reappeared in the condo rental sector.

“It’s very common to hear about bidding wars for rentals now,” said Hildebrand. Many tenants will say they see a new listing come up and soon as they inquire it’s already gone. It’s been common at periods of time in the last few years, but it’s been building over the last few months pretty strongly.”

Urbanation just released its analysis of this year’s third quarter and found condo rents averaged $2,219 a month for units averaging 743 square feet – a $232 year-over-year increase. It also found that newly signed leases in the third quarter, at 7,761, hadn’t much changed in a year.

However, rental activity for smaller and less expensive units declined as a reflection of supply. There were 11% fewer one-bedroom units (500-599 square feet) than a year ago, and 3% fewer studio units, but their rents surged almost $200, to $1,839 and $1,662, respectively.

Debbie Cosic, CEO and president of In2ition Realty, says the government dropped the ball a long time ago. She’s suspicious the Fair Housing Plan is the panacea Toronto’s market needs.

She also says the government does not appear to have heeded any of the building industry’s advice for legislation, and the consequences are being shouldered by a growing cohort of renters who have neither the means nor the mobility to find adequate housing.

“The government should be coming up with programs helping first-time buyers purchase homes, but we saw none of that with the Fair Housing Plan,” she said. “The government missed the boat entirely, for example, with the foreign buyer tax, when they make up less than 4% of the marketplace.

“Young people come out of school with good education, but can’t afford the 20% down payment – they can’t even afford 5%, so they’re stuck renting. The demand is high, so the supply needs to be increased for ownership and rentals. But is this too little too late? How long will this take if they really are trying to fix the supply problem?”

CREW

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

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