Happy Friday the 13th!
It’s time for another Friday Free-for-all, our regular end of the week news round up and open topic discussion thread for the weekend.
Here are a few recent links to kick off the chat:
–CRA targets more presale buyers
–Santa Claus may not be coming to town
–international students leave after grad
–ban building on farm land?
–REITs under pressure
–Toronto prices in free fall
So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments section and have a magnificent weekend!
House prices never go down in Vancouver, except when they do.
But what about Toronto? The city that seldom thinks about BC?
Prices are up 11.8 per cent from a year earlier.
“In fact, there’s anecdotal information that suggests that foreign investors … are now turning to other cities that are not as expensive as Vancouver, because even that market’s gotten out of reach for wealthy foreign buyers.”
A separate report from real estate agents showed a 2.4 per cent monthly rise in sales in October and a 14.6 per cent surge in annual prices as buyers rushed to get into the market before tighter mortgage rules could take effect.
Taken together, the data showed Canada’s market cooling in most markets outside of Toronto, where a building boom and rising household indebtedness have spurred fears of a U.S.-style collapse if borrowing costs, already rising, spike further.
“Almost all seems to be well in Canada’s housing market, with most regions enjoying moderate sales activity and price gains, Alberta’s hard-hit market stabilizing, and Vancouver’s zany market returning to earth,” Guatieri said in a research note.
“However, accelerating prices in Toronto and its surrounding areas will only increase the chance of a correction if interest rates rise too sharply … and the chance of that happening is now somewhat higher under a new U.S. president.”
Read the full article over at BNN.ca
It’s the end of another work week and that means it’s time for another Friday free-for-all here on VCI.
This is our regular end of the week news round up and open topic discussion thread for the weekend, here are a few recent links to kick off the chat:
–Some recent stats
–Rentals, the other disaster
–For rent, van with no toilet
–Scotiabank: Buyer tax the right move
–Mansion prices drop
–Prices to dip 10%
–Thousands of job losses
–What 3 mill gets you in Scottsdale
–Vancouver & Toronto go in different directions
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
CMHC has surveyed condo owners in Vancouver and Toronto and found that the number of owners with multiple units is growing.
…the total number of investors in the two regions who say they have purchased at least two condo units in addition to their primary residence has risen nearly 13 per cent over the past two years. Nearly a quarter of condo investors told CMHC that they owned least two units, with close to 10 per cent reporting that they owned three or more condos.
Buyers are looking for both rental income and appreciation, with some interesting math:
Among condo investors in Toronto and Vancouver, half told the federal housing agency that they had bought their investment unit for rental income. Of those, 56 per cent expect the value of their condo to go up, while only 8 per cent thought that it would go down. The share of condo investors in Toronto who expected their unit to increase in value fell to 60 from 64 per cent from a year earlier, while the share in Vancouver who expected their condos to increase in value rose to 50 from 41.5 per cent.
A slightly larger share of investors in Vancouver reported paying higher prices for units than in Toronto, although the survey found that the reverse was true of rents, which were higher in Toronto. Nearly 16 per cent of Vancouver landlords reported charging less than $1,000 in rent for their condos compared with fewer than 5 per cent in Toronto. By contrast, nearly 50 per cent of condo landlords in Toronto said they charged more than $1,500 for their units, compared with 33 per cent in Vancouver.
Read the full article over at the Globe and Mail. So how many condos do you own and how many are you thinking of buying this year?
Tighter mortgage rules were intended to cool the Canadian housing market, but according to National Bank economist Marc Pinsonneault they are having the opposite effect in the short term.
The new rules require insured mortgage holders to put down a minimum of 10 per cent for any portion of a house’s price above $500,000. The 5-per-cent minimum down payment still applies for the portion of a house price below that.
Economists predicted last year the rules would temporarily drive the market up, as homebuyers raced to land a mortgage before the deadline.
But Pinsonneault says the effect will continue this year, because the new rules don’t apply to anyone who locked in a mortgage before Feb. 15 of this year, and those people have until July 1 to buy a home.
It seems like everything done in the name of ‘cooling’ the housing market has the opposite effect. Read the full article here.