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Makeover of a spaceship-shaped theatre in Northern Toronto

Blogs / Amy / 5 August 2022 / Cineplex, spaceship-shaped theatre, Vaughan

Makeover of a spaceship-shaped theatre in Northern Toronto Since 1999, when Famous Players constructed their Colossus theatre in Toronto’s suburbs, a massive flying saucer has hovered close to Highway 400 and Highway 7 junction in Vaughan. The alien-themed cinema structure and its environs, now managed by Cineplex, might be on their way out soon, with a proposal in the works to renovate the 25-acre land. Together with the enormous complex as well as its 19 movie theatres, the proposal from developer RioCan REIT will see the whole unenclosed retail complex and car parks removed in phases to make room for a new mixed-use neighbourhood, featuring a Bed Bath & Beyond, Marshalls, HomeSense, and numerous eateries. The redevelopment proposal (now merely concept images) by Hariri Pontarini Architects includes a variety of buildings ranging in height from 8 to 55 storeys, connected by a network of new roadways and 4.8 hectares of parks and open space. Vaughan would sacrifice a suburban entertainment and shopping complex that is just two decades old, but this would gain around 13,000 residential properties, with lots of employment on the land, which is expected to have 1,788 people as well as jobs per hectare. Three “precincts” in the north, southwest, and southeast are envisioned in the site’s big plan. The largest structures would be centred in the northern precinct, which would run along to the increasing spine of density that runs parallel to Highway 7 through Vaughan’s burgeoning downtown. RioCan is set to expand up to its property in phases, with the northern precinct and community’s tallest structures expected to be the first. This initial precinct’s phasing will be coordinated to fit existing lease requirements, ensuring that no existing companies are forced to relocate. The southwest precinct is planned to be a longer-term project, with this component of the property serving as a temporary home for relocated merchant spaces while the northern precinct is being built out. The present Costco lands in the southeastern quadrant of the site have been included in the grand plan, but aren’t really included in the RioCan-led project. The two parties collaborated to create a unified strategy for their adjacent properties. Likewise, the grand plan includes the Petro Canada gas station on the northwestern side of the property. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Did Canadian housing market turn the tide?

Blogs / Amy / 5 August 2022 / Canadian housing market, sellers, Toronto Home Prices

Did Canadian housing market turn the tide? The trend is not made in one month but if February is any indication, more sellers maybe (finally) make their way into Canada’s housing market. The housing market state is a perpetual preoccupation for Canadians. Although home prices have been rising faster than inflation for decades, the prices have really increased during the COVID-19 pandemic. Now, who could’ve predicted that it would take a global pandemic to push the Canadian housing market into overdrive? In January 2022, in the monetary policy review, the Bank of Canada maintained its overnight rate at 0.25 per cent and it is where it has been since the beginning of the pandemic. However, a January report from J.P. Morgan estimated that conditions in the labour market and other factors may lead the Bank to raise rates ahead of schedule. Results from local real estate boards showed a notable month-to-month increase in new listings across major markets. This was especially in the case of Calgary and Edmonton where a wave of properties put up for sale mapped out for the strongest number of transactions ever recorded in February. Sellers will play a central function in shaping up this year’s spring season. Should an important mass of present householders see the approaching months as an opportune window to list their property—now that rates of interest are on the rise and forward of potential coverage actions focusing on speculators—it will ease a few of the provided restraints, each boosting near-term exercise and decreasing a few of the strain of costs. A Raise of another 10% in the Toronto Home Prices in 2022 A report reads that the immigration rates in Toronto outweigh the out-migration trend, putting further pressure on Toronto’s housing supply levels in 2022. Buyers dug nevertheless deeper into their buying finances to come back up on high of bidding wars final month. Toronto’s composite MLS Home Price Index jumped to 6.4% from January. Well, that’s a rise of greater than $80,000 in a single month! It was a material gain over the past several months that drove the index up to $354,000 (or 35.9%) since February 2021. Toronto’s benchmark value is the priciest in Canada with $1.34 million —having surpassed the Vancouver benchmark in January. In spite of crushingly poor affordability, demand stays exceptionally active at this stage. A large offering of homes for sale was pounced in February causing resales to climb 5.9% from January. Toronto area’s pricey points and strong presence of investors make the market especially attractive and sensitive to rising interest rates. We hope that larger rates of interest will settle down demand in the world over time. Montreal Witnesses a Slow Trend The last few months have exercised moderate activity in Montreal Place. Minute increase in new listings between January and February was met by a slight monthly decline in resales moderate activity in Montreal regions. $583,295 was the average Montreal home sold price in February 2022, an all-time high and an increase of 18% year-over-year. This also highlights a 4% price gain month-to-month as Montreal’s housing market breaks price records for the sixth month in a row. There were about 4,399 home sales in Montreal’s housing market during the month of February 2022 which is a 14% drop from the 5,106 sales last year. In spite of the 14% year-over-year decrease in total sales, the sales volume for February 2022 is up 3% year-over-year. That is due to the higher average home prices in Montreal this month compared to the same time last year. If the suburban prices still run at 16% to 30% discounts to Island prices, we expect the dynamics to continue in the near term. Market Parity in Vancouver The real estate market of Vancouver continues to be extremely hot for sellers, with home prices continuing to increase in February. This means it’s a high time for those who are thinking of selling, especially considering downsizing or moving to a different market where prices are lower. An approximately 6% drop in resales and 12% rise in new listings from January could highlight a first welcome step toward more balanced demand-supply conditions in the Vancouver area. The profit over the past year is now an astounding $226,000, or 20.8%. Due to this the buyers clearly face an extremely challenging situation. An Upswing in Calgary Considering a market to watch in 2022, the city of Calgary has largely benefited from an influx of prospective out-of-province buyers over the last two calendar years. Resales continued to prosper, soaring another estimated 19% m/m on the heels of gains of 10%, 9% and 15% in the previous three months, respectively. The 3,300 transactions recorded that the final month had been the strongest tally ever for a February in Calgary. It provided many buyers with the options they had been seeking for some time amid shrinking inventories. Stiff market conditions throughout the month forced average property prices to rise throughout the Calgary market. The wave of homes that were listed for sale helped temper the (severe) supply shortage but did not eradicate it. Calgary’s market is still very tight and upward price pressure remains dense. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Home Prices in Toronto hits an all time new record

Blogs / Amy / 5 August 2022 / Greater Toronto Area, home prices, Homebuyers

Home Prices in Toronto hits an all time new record Cliff Stevenson, Chair of CREA stated that on viewing how many homes were bought and sold in March 2021, one could be forgiven for thinking the market just continues to strengthen, and maybe to some extent it is. Home prices in Toronto climbed to a record as a steep decline in the number of properties that came up for sale added fuel to the competition among buyers, leaving little prospect in the market to cool. Average home price in the Greater Toronto Area has increased rapidly by more than 450 per cent since 1996, raising fears as the population continues to grow and land becomes scarcer. A report states that across the GTA benchmark home prices are up to 17.3 per cent year over year to $1,059,300ss. The driving factor behind the price increase is a lack of homes in the market There was no reassurance for Greater Toronto Area homebuyers last month as the average home price crept up nearly 28 per cent in comparison to last year as a lack of supply continued to hamper the market. The Toronto Regional Real Estate board revealed that the average selling price for a home in the region exceeded $1.3 million last month, up from just above $1 million last February and more than $1.2 million in January of this year. In a press meet, Kevin Crigger stated that the governments at all levels must take coordinated action to increase supply in the immediate term. He also added that until the governments work together to cut red tape, smoothen the approval processes, and encourage mid-density housing, ongoing housing affordability challenges will keep on escalating. In an approximation, the price of a detached home hit more than $1.7 million last month, with semi-detached properties at $1.3 million, townhouses at $1.1 million and condos nearing $800,000. The Ontario board narrated that it sensed signs in February that the region is making adequate moves toward a more balanced market. On average about 9,097 homes changed hands last month compared with 10,929 last February and 5,622 in January of this year. In a press release, Jason Mercer who is the board’s chief market analyst stated that just because the inventory remains exceptionally low, it will take some time for the pace of price growth to slow down. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Toronto’s Real Estate Market is not in bubble wrap, confirms the Bank of Canada

Blogs / Amy / 5 August 2022 / bank of canada, Market News, real estate market, Toronto Real Estate

Toronto’s Real Estate Market is not in bubble wrap, confirms the Bank of Canada To all who were aiming to buy a house in Toronto and were waiting in hope that the real estate market ’bubble’ would soon burst, you may be waiting for quite a while. In spite of a tepid decline in the first couple of months of the COVID-19 public health crisis, Toronto has been winging its way ever since. The word “bubble” has been widely mentioned by the media when reporting on the red-hot Canadian real estate market. For a market to be considered in a bubble, it needs to appear in the index’s “yellow zone.” Prior to the pandemic, Toronto’s housing market was in a red zone which meant it was a “breezy market” but based on the Bank of Canada’s recent index, it didn’t make the cut. Confirmation by Bank of Canada In March 2021, Bank of Canada officials wrote that national resales reached all-time highs and house price growth surpassed its previous peak and also added strong demand that the desire for more space and limited supply have scaled prices upwards. The Bank of Canada has recently released its House Price Exuberance Index (HPEI) Indicator for the third quarter of last year. Now, how does it work? Officials have three classifications for the HPEI measurement. Anything that surpasses 1.0 denotes the city’s housing market is exuberant and appears to be red on the chart. When the HPEI is between 0.95 and 1.00, a bubble will potentially form and appear in yellow colour. If the HPEI is below 0.95, it depicts no signs of exuberance and will appear in green. Prior to the pandemic, the Toronto housing market’s HPEI was above 1.00 i.e in the red zone. In the post-crisis housing sector, Toronto did not make the list of exuberant markets. In its analytical note, the institution wrote that the Canadian housing market has been extremely strong during the COVID-19 pandemic. By March 2021, national resales reached all-time highs and house price growth broke its previous peak. Constant periods of rapid growth in house prices can frame the expectation that prices will continue to increase, even if economic fundamentals cannot support these increases. Concluding expectations like this can become self-fulfilling when the prospect of higher prices in the future raises housing demand today. Now a question arises whether this is an accurate representation of the Canadian real estate market or not? Many homebuyers would suggest that frothy valuations are not met in detached, semi-detached, townhome and condominium units, particularly over the last 18 months. Although it should be noted that the Federal Reserve’s Exuberance Index, which is comparable to its Canadian counterpart, considers Canada’s real estate industry to be breezy and situated in a bubble. Can we expect a slow-down in Toronto House Market? In an answer to this, the market fundamentals suggest ‘no’. As per the Toronto Regional Real Estate Board, residential property sales pushed up 28 per cent in 2021, buoyed by record demand and notably low inventories. The highly compact market led to an average selling price of $1.095 million last year, up from the previous 2020 all-time high of $929,636. In a news release TRREB President Kevin Crigger stated that in spite of the continuing waves of COVID-19, demand for ownership housing had gone through a record pace in 2021. Economic extensions in many sectors supported job creation, especially in positions supporting above-average earnings. The fact that borrowing costs remained extremely low was further heightened to this. These aspects not only supported a continuation in demand for ground-oriented homes but also a renewal in the condo segment as well. A well-known proverb states that “Home is where Heart is”.Home is always a focus for residents and the pandemic period just elevated the depth of this proverb. In a statement,Keith Stewart, a Real Estate Board of Greater Vancouver economist noted that with low-interest rates, more household savings, increased flexible work arrangements, and higher home prices than ever before, Metro Vancouverites, in record numbers, are assessing their housing needs and options. As the interest rates inflation prices will continue to rise thus we can conclude that Canada’s real estate market is in an interesting state, and can predict it could be more difficult to get a mortgage in the near future. Related posts. Toronto’s Real Estate Market is not in bubble wrap, confirms the Bank of Canada by admin123 Toronto and Durham properties continue to be purchased by Minto by admin123 With Canadian Bond yields reaching 2018 levels, the buyers can expect higher mortgage by admin123 More options available for the buyers while prices are breaking records by admin123 Supply fixing Canadian Real estate seems a tiny solution to the heap of problems by admin123 Is the Housing Market Going to Cool Down in 2022? by admin123

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Toronto and Durham properties continue to be purchased by Minto

Blogs / Amy / 5 August 2022 / Durham, Minto Communities, toronto

Toronto and Durham properties continue to be purchased by Minto Minto Communities GTA has added two additional development sites to its portfolio this year, bringing its total to four in the Greater Toronto Area. Toronto and Durham Region are the two most recent locations. Since 2018, Minto Communities GTA has introduced 9 projects totaling over 4,000 units, with 2.5 million sq . ft of planned high-rise construction and over 130 acres of proposed low-rise development. As per Minto Communities GTA vice-president of urban development and acquisitions Jeff O’Reilly, there would be more to follow. “We’re very selective about the places where we choose to build. We’re proud builders and we want to continue to grow our portfolio with a continued eye to quality locations and quality projects,” O’Reilly told RENX. The financial specifics of the four most recent acquisitions have not been revealed. Minto Group is a family-owned and operated fully integrated real estate development, construction, and management firm with offices in Ottawa, Toronto, Calgary, and South Florida. To date, it has designed and built over 95,000 houses. Mimico acquisition Minto’s newest acquisition is located at Grand Avenue and Portland Street, only steps from the Mimico GO Transit station, and builds on years of operations in Etobicoke. The 5.5-acre property is designated for 1.08 million square feet and will be developed into a high-rise, master-planned community with three condominium buildings totaling 1,260 units, ground-floor shops, and a public park. The land is now occupied by a number of vacant industrial and commercial structures that have remained unoccupied for some years. They’ll be demolished to make space for the new development. “The Mimico site is a perfect fit for our urban portfolio,” said O’Reilly. “It’s got the scale and it’s got the locational attributes we’re attracted to. This location and Minto’s acquisition of the multi-tower Danforth Village development site in 2020 have a number of parallels. In the east end of Toronto, at 9-25 Dawes Rd., the Danforth site is also part of a proposed master-planned, high-density node surrounding GO and Toronto Transit Commission stations. Parkdale acquisition Minto has also closed on a conditionally designated 0.4-acre site at 6 Noble St. in Toronto’s downtown west Parkdale area, which is now owned by a derelict commercial and industrial structure. Minto intends to construct an eight-story boutique condo that will blend into the cityscape of the diversified and gentrifying neighbourhood, which is home to a variety of artisan small shops, eateries, and bars. “We saw the opportunity to build an urban gem nestled in a strong community,” said O’Reilly. “It’s a rare product for us. It’s a boutique eight-storey mid-rise building filled into a neighbourhood. We’ve got the two-storey product on the ground floor to provide street presence and we’ve got the three-storey product on the top as well.” Brooklin acquisition Minto, which already has finished and active communities in the fast-rising Durham Region, has bought a 27-acre greenfield property in Brooklin, northeast of Toronto, near the northwestern side of Columbus Road & Baldwin Street North. There seem to be initial plans for 190 new single-family, traditional townhouse, and rear-lane townhome units to be built inside a pedestrian-friendly neighbourhood with a network of walking routes, parks, and greeneries. “There’s something special about Brooklin when you spend time strolling around the historic downtown village or one of the trails or the green spaces and parks,” said O’Reilly. O’Reilly is optimistic that the technology will be commercialised within the next few years. Courtice acquisition The Courtice settlement of Clarington is located on Courtice Road north of Bloor Street, which is Minto’s other recent Durham Region acquisition. The low-rise neighbourhood will have single-family houses, traditional townhomes, and rear-lane townhomes on a 100-acre greenfield site northeast of Toronto. “This gives us an opportunity to be a part of the growth in Durham,” said O’Reilly. “This is a great location. We see the future here and we see the possibilities to build something special in a great place to live.” Walking paths, parks, and lots of natural landscapes will all be part of the project’s wellness-oriented community facilities. Other Minto developments in Toronto. The ninth storey of 123 Portland, a high-end 14-story, 117-unit condo on Adelaide Street West and Portland Street in downtown Toronto, has been completed. According to O’Reilly, there aren’t many units remaining for sale. This April, the last suites will be accessible. At The Saint, six levels of subterranean parking have been finished, and work is currently at grade and moving upward. At the junction of Adelaide Street East and Church Street in downtown Toronto, the 47-story, 418-unit condo complex is located. Other Minto developments from around GTA North Oak Condos at Oakvillage, a 20-story, 374-unit condo at Dundas Street East and Trafalgar Road in Oakville, has sold out of its first allocation of units. Work on an energy-efficient geo-exchange heating and cooling system will start next month, according to O’Reilly, with the second delivery of units coming this spring. At Harmony Road, North and Winchester Road East in North Oshawa, The Heights of Harmony is a master-planned single-family and townhome development. The first batch of houses has been sold out, and also the second batch will be available in the fall. As per O’Reilly, site maintenance should begin this year. Union Village, a master-planned single-family and townhome development in Markham north of 16th Avenue and Kennedy Road, had also sold out its first two phases. The first phase of building, according to O’Reilly, is well underway, and further stages will be made available for purchase in the future. Related posts. Toronto and Durham properties continue to be purchased by Minto by admin123 With Canadian Bond yields reaching 2018 levels, the buyers can expect higher mortgage by admin123 More options available for the buyers while prices are breaking records by admin123 Supply fixing Canadian Real estate seems a tiny solution to the heap of problems by admin123 Is the Housing Market Going to Cool Down in 2022? by admin123 Know why the real

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With Canadian Bond yields reaching 2018 levels, the buyers can expect higher mortgage

Blogs / Amy / 5 August 2022 / Canadian 5 Year Government Bond, Fixed mortgage rates, variable rates

With Canadian Bond yields reaching 2018 levels, the buyers can expect higher mortgage The Government of Canada 5 Year bond yield reached 1.978% the highest level in the span of a year. Thus, Canadians should be prepared to pay higher mortgage rates, as the easy credit comes to an end. The boost in the economy and inflation at its peak are making yield expectations higher. With the rise in the GoC 5year bond yield, there will be an increase in the fixed-rate mortgage as well. The GoC 5 year bond yield influences similar credits. Since credit markets have a highly competitive environment, bond there will be tough competition among the issuers for investor capital. Government is the least likely to default on the bond payments will get the cheapest rates. As the government is considered as the least likely to default so they get it at a cheaper rate. As the product risk increases interest to be paid to the bondholders also increases which includes the bonds utilized to fund the mortgage. The GoC 5 year yield affects the cost of a 5 years fixed-rate mortgage. It is directly proportional to the borrower’s pay rate. With the rise in the bond yield, the borrowers entering the contract will also have to pay more. If there is a decline in the bond yield while the borrowers are borrowing, then they will have to pay less too. The highest increase of Canadian 5 Year Government Bonds Recently the Canadian 5-year government bonds yield experienced a rise of 38.04 points higher. The rate of the hike is 25bps which is massive for 5 days. While analysing the growth from near-record. Government of Canada 5 year yield bond The bond yield has not been this high since 2018 when the yield became 3 times higher at 1.75% overnight. It is significant to note that this segment affects only the 5year fixed rate. With such an increase the borrowers have moved towards much lower variable rates mortgage. These variable rates mortgage is based on the Bank of Canada overnight rate which has lagged, resulting in a huge gap between mortgage funding costs. With an assured increase in both 5Year bond yield and variable rates, the era of cheap home buying might come to an end in the near future. Related posts. With Canadian Bond yields reaching 2018 levels, the buyers can expect higher mortgage by admin123 More options available for the buyers while prices are breaking records by admin123 Supply fixing Canadian Real estate seems a tiny solution to the heap of problems by admin123 Is the Housing Market Going to Cool Down in 2022? by admin123 Know why the real estate market is slowing down in Toronto by admin123 Severe Impact on Mental Health Thanks to the Canadian Real Estate Market by admin123

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More options available for the buyers while prices are breaking records

Blogs / Amy / 5 August 2022 / Canada Real Estate, High prices, homeprice

More options available for the buyers while prices are breaking records Although Canada’s real estate gave several options to the home buyers in February, the increasing demand gulped the supply, ultimately leading to a new record of high prices. According to the CREA, there was a rise in home sales by 4.6% in the month of February. Although it was 8.2 % below the record as compared to February 2021, Calgary and Edmonton had experienced immense sales. With the increase in sales in Calgary, GTA, and the Fraser Valley, the new listings rebounded 23.7% month over month. As per CREA’s senior economist Shaun Cathcart, “In the short term, expect at least one more month of stronger sales as the majority of those new listings came onto the market near the end of the month, so many of the associated sales likely won’t happen until early March.” He also says,” Ideally, listings will continue to come out in big numbers in the months ahead. Combined with higher interest rates and higher prices, we could be at a turning point where price growth begins to slow down and inventories finally begin to recover after seven years of declines. There was also a rise in the national home price record by 3.5% month over month in February and 29.2% year over year. The prices in Nova Scotia, Ontario and New Brunswick were slightly higher, while those in Prince Edward Island and Quebec were a bit less. The increase in the rates by the Bank of Canada has affected the housing market’s enthusiasm drastically. According to the BMO senior economist, Robert Kavcic, “The Canadian housing market is running headlong into higher interest rates, and the next few months could be telling. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Supply fixing Canadian Real estate seems a tiny solution to the heap of problems

Blogs / Amy / 5 August 2022 / BMO, Canada Real Estate, supply side

Supply fixing Canadian Real estate seems a tiny solution to the heap of problems The fact that banks have become vocal critics of Canada’s real estate bubble is one of the biggest caution flags. Clients should remember that this isn’t a supply issue, according to BMO Chief Economist Douglas Porter. Last year, the bank cautioned that without demand measures, price growth would accelerate. Rather than heeding such counsel, policymakers clung to the supply store. After a year of near-record new house deliveries, the price increase is nearly double that of the previous year. Nothing like this has happened in Canada. Demand Measures Were Needed Last Year, and They May Be Needed Again This Year, according to BMO. The country’s oldest bank has been an outspoken critic of the government’s inaction on real estate prices. Home prices were already regarded as out of control and in need of intervention at this time last year. “We believe authorities and that in charge should move quicker, in some way, to address the housing pricing problem before the market faces more severe price hikes beyond anyone’s control,” Porter said. Last Spring, BMO cautioned that it would be too late to temper the market. However, policy actions aimed at limiting demand could have slowed the rate of price rise. Instead, policymakers emphasised the supply story, much to the delight of the sector. The promises to promote demand were much more explicit in the political platforms on which parties ran. It was difficult to find an economist who did not believe this approach would raise prices. He added “some indicated that the market was going to slow down and there was no requirement for urgency,” he continues, “while some others were just focused on supply (in slow motion) to resolve what was clearly an emergency. With rising supply, Canadian real estate prices are accelerating. So begins the tale of Canada’s failure to alter course, instead of adding fuel to the fire. According to the most recent CREA data, home prices increased by 29 per cent year over year in February. It was a problem last year, and it’s now less of a government worry than it was when the rate was half that. Existing homes may be scarce, but they are far from the only supply, according to BMO. New home starts came close to breaking records, while completions came close to breaking records as well. The number of new construction starts and completions is still substantially higher than it was before 2020. “Right now, prices in a lot of markets are going parabolic, and the price strength looks to be feeding on itself… “As a result, even with a robust supply response, the near lack of serious demand-control measures has allowed prices to go wild,” Porter argues. In Canada, supply is only a small part of the problem When it comes to supply, the bank isn’t saying stop building; rather, it’s saying it won’t address pricing at this point in the market. There is definitely a need to encourage supply. But, as he puts it, “it’s like bringing up a squirt gun to a raging flame of demand for fire, which is being increased by expectations of extra price hikes.” If it wasn’t evident already, this is one of Canada’s largest banks, and it has a vested interest in seeing prices rise. The motivation for them to obtain more and larger mortgages is obvious. That’s how messed up things are right now. Even those with a vested interest in the current market are concerned about systemic flaws. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Is the Housing Market Going to Cool Down in 2022?

Blogs / Amy / 5 August 2022 / housing market, housing prices, Mortgage rate

Is the Housing Market Going to Cool Down in 2022? We’re off to a good start in 2022 with rising housing prices. Buyer demand may dwindle as interest rates rise, causing property values to fall.The amount of inventory that enters the market will also impact whether or not prices cool. Are you looking to purchase a home this year? Here’s all you need to know about real estate prices. The housing market in 2021 was scorching, and many people who had hoped to buy a home were forced to put their plans on hold when skyrocketing property prices made it impossible. This year, we’re in a similar situation, but without the benefit of historically low mortgage rates to help offset rising home prices. According to the National Association of Realtors, the median existing-home sale price in January 2022 was $350,300. This represents a 15.4 per cent increase over the previous year. It’s apparent that demand is still high because buyers are willing to pay such a premium for a home. Will this pattern continue in 2022? Is it possible that housing demand may begin to diminish in the near future? Mortgage rate hikes may deter buyers. The average 30-year mortgage rate currently stands at roughly 4.5 per cent. Given that the 30-year loan didn’t even approach 4% in 2021, it’s a frightening number, especially at a time when home values are at an all-time high. But it isn’t just that mortgage rates are rising at the moment. Borrowers should instead expect rates to rise as the year progresses. For that, we can thank the Federal Reserve. The Federal Reserve recently boosted its federal funds’ rate and intends to raise it again this year. While the Federal Reserve does not determine mortgage rates, its activities certainly have an impact on them. As a result, it’s reasonable to expect that borrowers will pay more to finance a home in the months ahead. It’s also reasonable to predict that rising mortgage rates will cause some buyer reluctance. It remains to be seen if the decline is severe enough to cause home prices to fall significantly. However, there’s a risk that prices will gradually cool throughout the course of the year. Of course, housing inventory will influence whether or not home prices fall. Right now, we’re in the midst of a typical low-supply, a high-demand scenario that favours sellers. However, if more properties come on the market this year, buyers will regain some bargaining power, causing home prices to rise in a more positive direction for purchasers. Cash offerings will continue to reign supreme Whether you’re looking to buy a home for yourself or as an investment, one thing to keep in mind is that cash is king in today’s housing market. If you can make a cash offer on a home, even if you end up mortgaging it later, you’ll have an advantage over other buyers who must rely on finance to complete the transaction. Cash offers, on the other hand, may not be as easy to get by these days. When a need for cash arises, many real estate investors turn to their stock portfolios. And, given the current state of the stock market, now is not the best moment to liquidate stocks in order to free up funds for a home purchase. However, if you can pay cash, you’ll have a better chance of beating out other buyers at a time when housing inventory is still at an all-time low. Where should you put $1,000 instantly? REITs have routinely outperformed the stock market over the last 20 years or so. With the recent announcement of our top 5 preferred REIT investments, we believe now is an excellent moment to invest. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Know why the real estate market is slowing down in Toronto

Blogs / Amy / 5 August 2022

Know why the real estate market is slowing down in Toronto Recently, Toronto’s real estate market has become unstoppable and hiking, with property prices skyrocketing, but purchasers have a complete sense of hope. According to the recent research by Move Smartly, a real estate authority in Toronto, the city is displaying early signs of a decrease because very fewer buyers are viewing homes and there has been a drop in the number of bids sellers receive. “Every week, I meet with my agents to discuss the real-time patterns we’re seeing on the ground,” said John Pasalis, president of Realosophy, a Toronto real estate agency. “By mid-February, we had all begun to notice early indicators of these tendencies and we believed the market would likely cool down sooner than we had anticipated.” To begin, I’d like to point out that one of the difficulties in addressing early signals of a slowdown is that home buyer and housing analysts alike are frequently perplexed because they rarely perceive any signs of a slowdown. The buyer still bidding on a property against 20 other bidders sees no signs of a downturn, and the housing specialist will not find a single measure in this report that implies things are slowing down. The first signs of a slowdown are a decrease in the number of buyers viewing homes and a decrease in the number of offers a seller receives on offer night, both of which are trends observed by market participants rather than data. Another positive trend for purchasers is the rise in the number of homes that don’t really sell on offer night. According to the survey, sellers typically advertise their homes well below market value in order to attract more purchasers. This is a tactic that allows a seller to sell their home for 5 to 20% more than the asking price, which is closer to the home’s actual market value. When a home does not sell on the seller’s offer night, the seller will often raise the asking price to a level that they are willing to accept (i.e., closer to true market value),” Pasalis explained. According to research, approximately 5% of properties with offer nights failed to sell in February, causing the sellers to raise their asking price. Buyer weariness, high prices, and rising rates, as well as inflation and future macroeconomic uncertainties, could contribute to a gradual decline in the market, according to Pasalis. Although a few weeks do not constitute a trend, I believe this shift will continue in the months ahead. Buyer fatigue, high prices, rising rates, inflation, and the macroeconomic dangers that lie ahead should all contribute to a gradual market slowdown. Buyers should keep an eye on these trends because they may find themselves buying a property in a highly competitive market only to have to sell their existing home in a much softer market. More than ever, timing will be crucial. While it’s still too early to observe any significant changes in the Toronto real estate market, if current patterns continue, the city could be on its way to a more manageable housing market by 2022. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Severe Impact on Mental Health Thanks to the Canadian Real Estate Market

Blogs / Amy / 5 August 2022 / Canadian Real Estate Market, housing market, Market News, Mental Health

Severe Impact on Mental Health Thanks to the Canadian Real Estate Market Both bank balances and mental health are being impacted by the housing market. Most recent, and also would-be new homeowners don’t really need reminding that the Canadian real estate market has shattered price records, spectacular bidding battles have become commonplace, as well as supply has tightened to unprecedented levels in the last two years. This February, the average home price in Canada broke the $800,000 barrier for the first time in human history. As per the latest stats from the Canadian Real Estate Association(CREA), homebuyers in Canada can now expect to spend $816,720 for a property, up 20.6 percent from last year. Home values in the Greater Toronto Area (GTA) rose so high that almost all young people — including those with high-paying careers — only could afford them if they had been among the fortunate few who got down payment gifts from their parents’ bank. The GTA experienced another month of double-digit price rises in February. The average cost of a property in the area has risen to a difficult-to-believe $1,334,544, up 27.7% year over year and 7.3 percent month over month. This implies that purchasing a standard detached home in the GTA would now need a down payment of $359,441. If you want to live in Toronto proper, the cost climbs to $414,798. Yikes. Former GTA residents have recently been enticed to relocate to more inexpensive pastures within the Maritimes. Nonetheless, this province-hopping tendency is really not helping locals in the property market, since newcomers drive up house rates, pricing countless individuals out. The consequences of a failing housing market, one that has been labeled a catastrophe, are having an unavoidable impact on mental health for many people. Despite the fact that the ongoing epidemic has made Canadians’ mental health more vulnerable than ever before. Homeownership, previously considered a life accomplishment in Canada, would no longer be a regular phenomenon. Indeed, one-third of Canadians under the age of 40 have given up on the idea of owning, as per RBC’s Spring Housing Poll from last year. In the year after, prices have so far only risen to record-breaking levels throughout the majority of the nation. Housing expenses are worrying consumers throughout the country, as per new RBC Annual Home Ownership Poll data. Almost half of the respondents (47%) say that thinking about purchasing or saving for a home as prices increase is stressing their relationship, while the majority (54%) are worried about having to buy a property further away from family and friends. Furthermore, 30% said they would have to and may have to live with their parents longer due to the rising cost in order to save enough money to buy a property. Despite the immense differences in time, younger people invariably compare themselves to their parents, who’ve been able to purchase homes while they were their age, when housing prices and mortgages were far more affordable. “Many young people are feeling like home-ownership is an impossible reality,” says Dr. Saunia Ahmad, Director and Clinical Psychologist at the Toronto Psychology Clinic. “The critical thing to remember is that a house is supposed to be a place where you can set your roots and have a long-term place to live. It’s not just that a real estate investment can make you money; stocks can do that too. With real estate, you have a home and there’s a psychological sense of safety in that.” House-hunting is really not exactly a peaceful procedure for individuals who really do attempt to enter the market, particularly if they are on a restricted budget. “The bidding wars have been demoralizing for people,” says Ahmad. “Think about the amount of time looking for houses, getting excited, and then not getting it.” According to Ahmad, this might have a significant impact on one’s health. Most individuals who have even considered purchasing in this rising market would surely agree. “It has been tough on some of my clients,” says Toronto-based realtor Ian Matthews. “In the past few months, the inventory has been so low that it has been very discouraging for some, with many properties selling with 10 or more offers. I think this, combined with two years of Covid lockdowns, and recent news from Ukraine has caused some people to feel like they have no control of their future in a crazy time.” Numerous Toronto houses, particularly those below $2 million, are selling with multiple offers or pre-emptive bids just one or two days after being listed, as per Matthews. He additionally mentions the recent tendency of real estate brokers offering houses at ridiculously low prices in order to garner more attention from potential purchasers. “This is causing buyers to rush to see places with hope, many of which are priced to go $500K or more over asking,” says Matthews. “When this happens week in and week out, it becomes really discouraging. I have been trying to manage expectations for clients and have been encouraging them to take time off to reset when it is needed.” Matthews claims that some of his clients are now house hunting in spurts as a result of his advice. “They’re seeing a number of properties in a few weeks and then vanishing for a period of time,” he says. “I think for a lot of buyers, it has become a bit of a rollercoaster and it can get pretty emotional, so taking breaks is often needed.” Move-up purchasers are also under pressure. However, first-time purchasers aren’t the only ones who are concerned. “I have a few clients looking to buy and then sell,” says Matthews. “They are concerned that they will buy at these prices and the market will shift, leaving them in an awkward position. Buying in this market and not being able to sell in this environment could make their purchases unaffordable. I am hoping the spring market will bring with it more inventory which will offer more stability. Though I don’t forecast prices coming

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How to Purchase a Home in Canada in just 7 Easy Steps?

Blogs / Amy / 5 August 2022 / Canada home prices, home purchase, housing costs

How to Purchase a Home in Canada in just 7 Easy Steps? Despite growing housing costs, real estate remains a valuable investment for several Canadians, especially millennials who want to purchase a home. Ever since beginning of the epidemic, record-low rates of interest have created an opportunity for hundreds of individuals to purchase their first house, whereas the prospect of increasing rates in the second quarter of 2022 has prompted many more to lock in rates, get pre-approved, as well as close on homes as soon as humanly possible. However, how do you go about buying a home in Canada? You might not know where to begin if this is your first time. The journey of purchasing a home, whether it’s a single-family home, a townhouse, or a condo, does not really begin when you phone a broker to schedule a viewing. Rather, it begins years before you decide to purchase a home, whenever you decide you’re ready. Here’s how to buy a home in Canada, step by step. We go through everything from choosing if you’re ready to buy a property to receiving your keys. In seven simple steps, you can purchase a home. Whether you’re purchasing a house, a townhouse, or a condo, the processes are the same. For the sake of clarity, we’ll focus on how to purchase a single-family home. Step 1: Put money aside for a deposit. Saving for a down payment is the first step in purchasing a home. A down payment of at least 5% of the buying price is required in Canada. For residences priced between $500,000 and $1 million, you’ll need 5% of the first $500,000 and 10% of the remaining amount. A minimum down payment of 20% is required for residences worth $1 million or higher. Remember to save 3 percent to 5% of the home’s purchase price for closing fees while saving for a deposit. Step 2: Organize yourself. Spend the effort to manage your money and documents while you’re collecting your deposit for a house. It’s possible that you’ll have to save for your down payment for months, giving you time to: Pay off your debts. Now is an excellent moment to pay off any credit card debt, student loan debt, vehicle loans, or a balance on a credit card. You may borrow more for your home if you have less debt. Compile your paperwork. A lot of documentation is required when applying for a mortgage, so now is the best time to get to work. If you locate your ideal home and need to move swiftly through the mortgage approval process, preparing your papers in advance is really helpful. Step 3: Examine your options for rebates and grants Buying a property is pricey, so don’t add to the expense. Check to see if any refunds or incentives are available to you. Step 4: Look for a good deal Why must your mortgage be any dissimilar? You wouldn’t get auto insurance without first searching around for the best deal, then why should your mortgage? Finding the best mortgage rate might save you hundreds – if not tens of thousands – of percent interest over the course of your loan. When you work with a mortgage broker, looking for the best mortgage rate is simple. Step 5: Obtain a pre-approval for a home loan A mortgage pre-approval is indeed a low-risk approach to get these crucial details that will help you figure out your maximum purchase cost. You may lock in a quote for up to 160 days if you really like the mortgage rate as well as the lender. If you secure a mortgage rate, even if rates go up, you’ll still be able to get the cheaper rate. Don’t worry if rates fall; your lender will accept the reduced rate. If you’ve never gotten a pre-approval before, review our list of pre-approval dos and don’ts before proceeding. Step 6: Find a place to live Finally, there’s the exciting part: looking for a home! You’re ready to call a real estate agent and start your property quest now that you have your mortgage pre-approval, a maximum purchase price in mind, and a sizable down payment. Here are some of our best advice: Find a real estate agent that specializes in the property or neighborhood you want to live in. If you’re a first-time homebuyer, you should avoid advertising yourself. It’s preferable to rely on a seasoned agent’s knowledge. Make a list of “must-haves” and “nice-to-haves” for your future home. Knowing where you can be flexible is critical. Examine the market in your preferred neighbourhood to ensure that property prices and your maximum buying price are in line. In a competitive market, you must be ready to act rapidly. Step 7: Make a proposal and close the transaction Things will move quickly after you locate the house you like, so don’t be alarmed! You’ll start by submitting a buying bid. If the home market in your area is hot (as it is in much of Canada), you shouldn’t be the only one who makes an offer. When your offer has been accepted, you’ll submit a deposit to the buyer, work with your mortgage broker to confirm your mortgage financing and schedule a home inspection. Depending on the outcomes of the house inspection, the offer may be modified. Even so, you’ll finally acquire financing and, with the aid of a real estate lawyer, pay your deposit and shift the title to the property into your name. Relying on the parameters of the acquisition offer, the whole procedure might take 30-60 days. You’ll get the keys from your real estate agent after everything is in place, and you’ll be the proud owner of your new house. The Final Word While this piece may appear to be comprehensive, it merely touches the surface of what it takes to buy a property in Canada. If you’re not sure what to do, you can always get free assistance from one of our mortgage

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