Blogs Archives

Would the GTA see a slowdown in rising prices this spring?

Blogs / Amy / 5 August 2022 / balanced market, GTA, rising prices

Would the GTA see a slowdown in rising prices this spring? A “slightly more balanced market” is likely to reach the GTA this summertime, as per new research, after months of constantly increasing property prices.Over the winter, two main themes have dominated the Canadian real estate market: the lowest recorded inventory as well as steadily rising prices. For a point this winter, active listings were at their lowest levels in more than two decades, resulting in a very highly competitive environment. In February, the average price of a property in Toronto jumped 27.7% year on year and, despite a 77% month-over-month increase in availability. The market has indeed benefited from historically low-interest rates. The low cost of borrowing has contributed to price increases that have lasted all winter. Nonetheless, as evidenced by the supply pattern in February, Canada appears to be on its way to a little more balanced market. According to the statistics from the previous month, the sales to new listings ratio (SNLR) was 64 percent, down 9 % month over month, indicating that the market will be a little more buyer-friendly in the approaching spring. Price escalations will certainly be slowed, but just not necessarily reversed, as the market becomes more balanced. By the summertime, prices are expected to have risen by more than 4%. Research predicts that the average price of a property in the GTA will approach $1,390,124 in June 2022, up 4.16 % and $26,194.20, based on TRREB’s 10-year historical information. The total number of transactions is expected to reach 13,638 this month, up 22.8 % from June of the previous year. Several sites have examined sales and pricing for the months of February through June from 2011 until 2021 to arrive at these forecasts. For every year, the percent difference between as well as sales volumes had been computed. These averages have been then used to forecast June 2022 average prices as well as sales numbers using pricing and sales data. By aggregating the percent difference between the top five as well as the bottom five years and applying it to the June 2022 data, a lower and higher range was also produced. At the extreme end of the spectrum, prices are expected to rise 0.21% to $1,337,294 while sales fall 15.3% to 11,538. On the top end, prices are expected to rise 8.12% to $1,442,955, while sales are expected to rise 13.3% to 15,739. It’s worth noting that these patterns and projections are substantially influenced by the April 2017 market correction, when prices decreased by about 20% over a few months as a result of the Ontario Fair Housing Plans’ activation. What does this entail for both purchasers and sellers of real estate? While housing prices will continue to rise, they will decrease from their present fast rate as we enter the Spring market time, according to the estimates. The average price of a home in the Greater Toronto Area increased by 7% in February, from $1,242,793 to $1,334,544. The move toward a more balanced market, coupled with improved inventory, could bring some relief to purchasers who have been worn down by a difficult winter. One of the most famous realtor, Claudio Castro, showcases: “A lot of what happened in the market over the winter can be attributed to buyers knowing that our era of historically-low interest rates was coming to a close. And, as the Bank of Canada recently announced, overnight lending rates have been increased by 25 basis points. So what we’ll see in the next few months is people acting according to that rate hike. A lot of that demand in the last few months has been driven by locking in interest rates. While we won’t see a huge jump in new listings overnight, and we’re still in a seller’s market, we are starting to see some inventory drip through, which should provide relief for buyers who have found themselves a little tired due to the record low stock and high prices throughout the winter. We’re still a long way away from a buyer’s market, but they’re beginning to see some more leverage as we head into more balanced conditions.” TRREB’s original projection of a 12% price rise in the GTA for the year has been already overtaken by the actual outcome of 15% during the first two months of the year. Considering rising rates, pricing uncertainty might be a major factor heading into the Spring market, however, the figures indicate that rates will continue to expand in the months to come, albeit at a slower rate. In our projections for the housing market in 2022, we identified growing property prices as a crucial driver, as well as the potential impact of increased interest rates. “As mentioned in our earlier predictions for this year, supply is definitely a key to the real estate market story for 2022,” said Lauren Haw. “As supply has started to open up in February, we are starting to see a little relief for buyers in terms of opportunity and availability leading to more balanced conditions versus the intense seller’s advantage we’ve been facing. Price relief however is unlikely, and we are expecting to see continued increases in the single digits into the Spring market across property types.” If you’re thinking about purchasing a house this spring, the first thing you should do is schedule a complimentary buyer’s consultation. There are experts who will guide you through the home-buying process and offer suggestions for finding the ideal house for you based on your preferences and budget. Related posts. Would the GTA see a slowdown in rising prices this spring? by admin123 Whitby to witness the largest development in 30 years by admin123 February Leap in Canadian building intentions by admin123 Advantages and disadvantages of Mortgage Broker by admin123 Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123

Would the GTA see a slowdown in rising prices this spring? Read More »

Whitby to witness the largest development in 30 years

Blogs / Amy / 4 August 2022 / Brookfield Residential, Downtown Whitby, Station No. 3

Whitby to witness the largest development in 30 years Whitby to witness one of the biggest development in 30 years, there has been an official start to construction of the Station No. 3 condominiums. The Brookfield Residential venture has been involved in the work for a long time and has finally taken a decision to go ahead. The great development has received fund commitments from Whitby and Durham regions. These funds will “incentivize” the new project and also act as investments in the downtown core. The sum offered by the Durham region through the Regional Revitalization Program (RRP) will be upto $630,000 while Whitby will be funding $1,167,500 through the Town’s Community Improvement Plan (CIP) program for this huge venture. Station No.3 will be a 6-storey multi-purpose complex situated at Brock St and Colborne St. The development will be home to around 160 families. There is a limited variety of one to three bedrooms measuring upto 1,517 square feet for every condo. One of the major purposes behind this development is to provide housing to a large number of people including young professionals, retirees, and young families. Being a multi-purpose development, it is expected to accommodate business, thus resulting in the filing of 9,500 square feet mainly on the ground floor just for commercial purposes. The appropriate location of the development can be a great advantage too. It has proximity to Brock and Dundas Area, Whitby Four Corners, and several historical developments. One can also get convenient access to educational institutions. The different school found in the area includes Henry Street High, West Lynde Public, St Theresa Catholic School, and Julie Payette Public. Another significant feature of this Brookfield Residential project is that it will be created in alignment to the Council’s goal for the downtowns, wherein, the people can reside and work in proximity to the shops. According to Whitby Mayor Don Mitchell, “This will make historic downtown Whitby more vibrant and attractive. ” Expecting the Durham population to double in the next 20 years, such developments can be seen as a necessary step. Considering Whitby, there can be a 40 percent increase by 2033. Moreover, the ongoing population growth is affecting housing prices leading to higher costs. There has been an extensive rise in the housing prices at Whitby in the last few years. The average pricing of the house is around $1.3M. According to John Henry, Regional Chair and CEO, The Regional Municipality of Durham “While the housing demands in Durham Region continue to increase, the Region is working to ensure that supply and pricing are competitive. Developments such as this are exactly what our residents need. That is why Regional Council invested nearly $630,000 into this development, with funding from the Regional Revitalization Reserve Fund. With its mix of new residential units and commercial space being created, Station Number 3 is a prime example of the imaginative solutions being implemented to help keep up with Durham’s growing population.” Related posts. Whitby to witness the largest development in 30 years by admin123 February Leap in Canadian building intentions by admin123 Advantages and disadvantages of Mortgage Broker by admin123 Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123

Whitby to witness the largest development in 30 years Read More »

February Leap in Canadian building intentions

Blogs / Amy / 4 August 2022 / Canadian building intentions, Non-residential buildings, residential building

February Leap in Canadian building intentions Even though all the development, innovation, and scientific and technological advances were made by man, he could not reduce the growing dependency of the economy on the construction of buildings. This case became evident in the case of Canada where the building permits showed a massive increase in number. This was a positive influence on the construction industry which resulted due to demand for new housing and increased government spending. The February hike in permit prices According to the statistical reports, the building intentions showed a drastic increase all over Canada. The value of permits showed a shocking amount of $12.4 billion in the month of February which is a 21% increase from what it was in January. Experts found high inflation rates in the country to be a major contributor to this current situation. Since the Canadian building intentions are a combination of a desire for residential and non-residential buildings it is necessary to understand the difference between the two What are residential building intentions? Throughout the years the demand for residential building construction has always been high due to the continuous increase in the human population and awareness among people to acquire a place of residence to retire to. But in February this already popular type of construction showed an increase of $7.8 billion which is 9.8% higher than January. Some explain this surge as the result of single-family home building desires. Most people aspire to move out of big cities to build their place of residence to enjoy some peace and quiet. What are non-residential building intentions? Non-residential buildings include commercial and institutional structures which were not left out in the latest trend of demand hike. The permits for this category of buildings reached a whopping $4.9 billion in February which when compared to the month of January is a 43.2%increase. This is more surprising that a hike in the price of residential permits as such a boost was not witnessed in this section for many years. An example of a non-residential boom was seen in BC and Quebec where hospital permits saw a boost to $1.9 billion. Though it was not a sustainable boom, it had its benefits, nonetheless. Importance of permit The building permit values are the early indication of construction activities going on in a country. For Canada, it is based on 2,400 municipalities that represent about 95% of the nation’s population. An important thing to note is that the issuance of a permit does not ensure that construction will take place. Conclusion Although an increase in building intentions has major positive effects on the economy, like boosting the construction industry, we need to ensure the level of inflation or any other negative output that caused this hike does not overpower the benefit of this result. Related posts. February Leap in Canadian building intentions by admin123 Advantages and disadvantages of Mortgage Broker by admin123 Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123

February Leap in Canadian building intentions Read More »

Advantages and disadvantages of Mortgage Broker

Blogs / Amy / 4 August 2022 / interest rates, lenders, mortgage broker

Advantages and disadvantages of Mortgage Broker When you picture yourself getting a mortgage, you perhaps imagine heading to your local bank branch to deliberate down with a mortgage specialist to discuss your choices. This was once the standard process, but today it might be a mistake. Mortgage brokers are becoming very popular than ever, and are often a fine choice. Of course, whether you’re buying your first home or you’re a long-serving property owner, the emphasis on securing the lowest possible mortgage price can’t be overstated. But are mortgage brokers better? Keep reading to find out everything you need to know about using a mortgage broker. Who is a mortgage broker? A mortgage broker is a one-stop for mortgages. Unlike your local bank, which can only offer you a mortgage and mortgage rate from their suite of products, Mortgage brokers have access to many lenders When you make an appointment with a mortgage broker, it’s just like you’re making an appointment with the major banks, except you only need to meet with one person. A mortgage broker has access to products from multiple lenders. Pros and cons of using a mortgage broker So, should you use a mortgage broker? While we think that working with a broker is generally a good option for most people, its better to weight the pros and cons yourself. Advantages A Broker May save You Legal work Mortgage brokers have contact with a variety of lenders, some of whom you may not even know about. They can also steer you away from certain lenders by finding out the inconvenient payment terms hidden in the contracts. For a better knowledge of the mortgage rates, it is better to do a good research online and use the mortgage calculator further. Such tools will enable you to make a comparison in the rates and will act as additional knowledge while assessing the credibility of a mortgage broker. Mortgage Brokers Have Better Access Brokers act as gatekeepers to bring in clients, thus when it comes to getting some good clients, several lenders team up with the brokers. Moreover, it is difficult to contact the lenders directly to get information about retail mortgages. Moreover, the mortgage brokers can also manage to get you the best and most suitable price from the lenders due to their reach and their credibility. Thus, you can sometimes expect to get good rates as compared to what you would have got without their assistance. Expert assistance Brokers are experts at what they do and are accustomed to working with borrowers who may have unique needs; they have the best deals suitable to you such as freelancers or those with poor credit ratings. As they offer impartial advice on a broad range of lenders, they will also advise you on the best. Working with the mortgage broker will save your time and energy. Disadvantages A Broker’s Interests May Not Align With Your Own Your goal in looking for a mortgage is to find one with an affordable interest rate and with affordable fees. A broker’s goal, therefore, is to get you into a mortgage that maximizes their compensation also. The 2008 market crash revealed that many brokers were getting their clients into mortgages that they could not afford over time. Broker May Owe a Fee Mortgage brokers are paid either by the lender or by you. If the mortgage lender covers the fee, then it might include the broker’s commission as well, which might be a good deal for the broker but a bad one for you. Moreover, if the mortgage broker has chosen a specific lender for you, then the mortgage rates might not be quite suitable as well. Often they put their needs above the needs of the clients. Lack of familiarity and experience If you’ve never used a broker before, you’ll need to establish a relationship with a new one. It may take a few tries before you find a good fit. A lot of mortgage offices hire inexperienced mortgage brokers who might lack the inside knowledge much needed for this profession. Thus, an inexperienced mortgage broker will not be able to get the best deal for you. More documents may be needed If you do not have a good relationship with the mortgage broker, it might cost you some extra efforts. Moreover, you will be required to provide an extra set of documentation, as there are a lot of lenders who avoid working with mortgage brokers. According to some lenders, the mortgage rates initiated by the broker can encourage problems when compared to those obtained from direct lending. Conclusion Working with the mortgage broker will save your time and efforts during the application phase. Potentially a lot of money over the life will be used. Every mortgage broker has a relationship with a different mortgage broker. Related posts. Advantages and disadvantages of Mortgage Broker by admin123 Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123 High mortgage rates to overwhelm Canadian housing by admin123

Advantages and disadvantages of Mortgage Broker Read More »

Federal Ontario gives an investment of $259M for each GM for Oshawa

Blogs / Amy / 4 August 2022 / CAMI, General Motors, Oshawa

Federal Ontario gives an investment of $259M for each GM for Oshawa The federal and provincial governments are each contributing $259 million to assist manufacturing at General Motors facilities in the province, including an electric car production line that will be the country’s first of its type. Federal Industry Minister François-Philippe Champagne hailed the company’s CAMI manufacturing factory in Ingersoll, Ont., as the country’s first full-scale electric car production facility. A $2 billion investment from GM includes up to $259 million from each of the provincial and federal governments. At Monday’s announcement in Oshawa, Ontario Premier Doug Ford stated that the money “would bring pickup truck manufacture to Oshawa and electric car production to Ingersoll.” This investment, according to Bell, will safeguard 2,600 employment in Oshawa. Bell also stated that fifty percent of new production recruits at the Oshawa factory are women, showing GM’s commitment to workplace diversity. “Working with our government partners, we have reopened GM’s Oshawa facility, generating thousands of new jobs and attracting a record number of women in production roles,” said Marissa West, president and managing director of GM Canada. “Later this year, our CAMI factory in Ingersoll will commence full-scale electric car manufacture in Canada with BrightDrop.” This collaboration with the governments of Ontario and Canada is assisting GM in developing a more diversified, creative, and sustainable business and EV supply chain for the future – and we are happy to be doing it right here in Canada.” Champagne and Ontario’s Economic Development Minister Vic Fedeli also drove one of the vehicles at the Oshawa factory. They came alongside Premier Doug Ford to promote money from both governments for the $2 billion GM investment, which the politicians said will improve output at the Oshawa plant. General Motors said that the Oshawa assembly facility would add a third shift to accommodate increased light-duty Chevy Silverado pickup output. The business stated that the shift will result in a total of 2,600 additional employment since the mill reopened in late 2019. General Motors previously stated that when production resumed after nearly two years, around 1,800 jobs were created over two shifts in November 2021. Ford, who has made many auto sector announcements in recent weeks concerning electric and hybrid vehicles and parts, hailed GM’s statement on Monday as “additional fantastic news for Ontario’s auto sector.” “We’re making Ontario the finest jurisdiction in North America for building the cars and batteries of the future,” Ford stated. The premier’s support for electric vehicles, which began months before the provincial election campaign due this spring, indicates a shift from earlier in his government’s tenure. After taking office in 2018, Ford’s Progressive Conservative administration halted the construction of electric vehicle chargers (though it has subsequently committed money to create more) and cancelled discounts to encourage people to buy electric vehicles. So yet, Ford has made no commitment to reinstate rebates or other customer incentives. Related posts. Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123 High mortgage rates to overwhelm Canadian housing by admin123 The Canadian Blind Bidding Ban Dilemma by admin123

Federal Ontario gives an investment of $259M for each GM for Oshawa Read More »

A rise in the Canada home prices again, 20th month in a row

Blogs / Amy / 4 August 2022 / Canadian home prices, housing prices, resale market

A rise in the Canada home prices again, 20th month in a row The surge in Canadian home prices continues unabated, reaching new highs for the 20th consecutive month in February. The latest Teranet-National Bank House Price Index, issued on Thursday, indicated a 1.7 percent increase in home prices between January and February across 11 major Canadian areas. On a three-month annualized basis, Canadian house prices rose 20.5 percent in February, a pace not seen since the summer. According to the survey, the most recent price increase is likely due to high demand in the resale market, which has favoured sellers. The latest Bank of Canada rate rise, as well as numerous others, planned this year, may also be responsible for driving buyers into the market. Home prices in Toronto set a new monthly high in November, up 28.3 percent from November 2020. Although the number of new listings fell slightly—by double digits in the condominium market—the average sale price reached an all-time high of $1.163 million, up 21.7 percent from the previous year (the national average gained 19.6 percent to $720,854). Meanwhile, in Vancouver, sales increased by 11.9 percent, while between September and October, sales increased by 8.6 percent, the largest single month-over-month gain since July 2020. For most of the previous three decades, projecting a crash in the Canadian real estate market has been a fruitless exercise, but there is precedence for at least a brief drop. Prices in both Toronto and Vancouver fell around five years ago when government initiatives to calm the market coincided with the central bank raising interest rates. This is similar to what is happening today and might indicate another possible downturn. Another reason influencing Oxford Economics’ estimate of a house price decline is the persistent assumption that the Bank of Canada (BOC) would hike interest rates. This began in early March 2022, when the BOC lifted its benchmark interest rate from 0.25 percent to 0.5 percent, the first time the bank has done so since 2018. Oxford expects the key interest rate will be raised three more times in 2022, followed by additional gradual hikes through 2024, bringing the rate to 2% by summer 2024. Fixed-rate, five-year mortgage rates are expected to rise by around one percentage point to 4.25 percent by the end of 2020, eventually reaching a ceiling of up to 5 percent by 2023. The research also takes into account the federal government’s upcoming new interventionist measures on housing demand, such as a tax on house flipping, a prohibition on foreign homeownership, and a tax on unoccupied properties held by non-residents. Even with a 24% decline, Canadian house prices would still be around 15% higher than before the epidemic, resulting in stronger market conditions that bring home prices closer to the reality of what Canadians can afford. Currently, a decline of this magnitude is not projected to cause a recession. The current prediction predicts that housing prices will be more in line with household borrowing capacity by 2028, although the impact would be varied throughout the country. It should also be emphasized that Canada’s ambitious immigration plans — inviting nearly 1.2 million immigrants over three years — are beginning to add to the country’s tight housing market, particularly in the main metropolitan centres of Vancouver and Toronto. Related posts. A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123 High mortgage rates to overwhelm Canadian housing by admin123 The Canadian Blind Bidding Ban Dilemma by admin123 Hamilton to witness the tallest building: 45 Storey Tower by admin123

A rise in the Canada home prices again, 20th month in a row Read More »

A collaboration on transit-oriented communities

Blogs / Amy / 4 August 2022 / sustainable development, transit options, transit-oriented communities

A collaboration on transit-oriented communities Canada is a country where all kinds of migrators seek solace in their jobs and for studies. Canada is famous for a number of things and services that the country provides. Along with its impeccable maple syrup and unbeatable environmental diversity, Canada offers a comparatively better standard of living and quality of life to anybody moving there. The Canadian government is always in news for indulging in developing strategies and planning to make life easier and stress-free in the country. Forming Transit-oriented communities – a drive for a better life Recently governments of Toronto, Canada, and Ontario have collaborated to incentivize Transit-oriented communities majorly at five Ontario Line stations and in the Greater Toronto area. When two governments collaborate for a cause it often concludes in transit-oriented development. Aims of the strategizers Imagine if you were to live in a place where transportation is not just made easy but smart, with better housing facilities, and you are offered a rather familiar community background, who wouldn’t want to live in such a place, right? This is the aim of both the governments, to help bring your workplace closer enough for you to walk and to focus on working for a sustainable development-oriented strategy. This will not only provide an easier way of life but will also help combat global warming and climate change as such a transformation will help in sustainable development not only revitalizing the city but also will promote less use of vehicles and more use of pedestrian walking. They are trying to bridge the gap between the number of subways in the cities to make transportation easier and faster with timely inputs and setups of the local municipality and indigenous partners. It is a pavement for building a new community that is both vibrant and sustainable. Planning and implementation Both the governments announced that they are ready to begin forming TOCs or transit-oriented communities and development to commence near five Ontario Line stations including East Harbour, Corktown- first parliament, Queen Spadina, King- Bathurst, and exhibition in the Greater Toronto Area on the 12th April 2022. A memorandum for understanding was signed in February 2020 and in the last council meeting, held on 6th April, eight stations of implementation were decided for the pilot year of the project. Ontario’s Minister of infrastructure, Kinga Surma, put his faith in the project and said the following words “The Ontario government is seizing a once-in-a-generation opportunity to build complete communities around transit. We have worked tirelessly with the City of Toronto and our private sector partner to reach this exciting milestone, and we look forward to transforming these communities to include transit facilities, while also ensuring compatibility with surrounding neighborhoods and creating benefits for families and businesses for generations to come.” The strategy is to expand the subway stations, especially the five priority subways, along with GO Train line subway service connection and deliver Light rail transit stations or LRTs. It will enhance subway expansion connecting streetcar, local bus, and subway services altogether with new housing opportunities and commercial retailing in Corktown while reminiscing the history of the first parliament site. East Harbour is expected to be the commercial hub by creating a major employment center that will deploy over 50,000 new job opportunities in the vicinity. It will also focus on residential development and transit hubs which will connect GO train services with streetcar services. The Exhibition station is expected to transform into a transit hub with GO services, Light rail transit stations, and TTC services, to help make transportation easier for going to events and concerts, etc. The Queen Spadina and King Bathurst stations will reinforce vibrant communities and will be expected to provide housing and retail business services with acceptance of the heritage significance of the sites. The transit-oriented development around Ontario is partnered with Infrastructure Ontario, Metrolinx, and the government who all have distinct areas to work on for the development to conceive. Conclusion If the development and transit-oriented communities come into conviction can result and benefit in the following way – Reduction in traffic congestion and initiation of the trend of transit -riders Increment of housing supply and facilities thus bringing in more local amenities together Bringing retail businesses and commercial jobs to the community and a community for them to brew. Advancing sustainable development Help in the acceleration of the economy and its projects after the pandemic period with an offset on the cost of construction of stations. Related posts. A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123 High mortgage rates to overwhelm Canadian housing by admin123 The Canadian Blind Bidding Ban Dilemma by admin123 Hamilton to witness the tallest building: 45 Storey Tower by admin123 A hit in the record price of $1.25 Million for the GTA Condos by admin123

A collaboration on transit-oriented communities Read More »

Canada housing plans considered vague by BMO

Blogs / Amy / 4 August 2022 / Canada’s building industry, Housing Proposal, housing supply

Canada housing plans considered vague by BMO April 7th witnessed the release of the Canadian budget for the fiscal year 2022-23. Through the budget release, the Canadian government promises to enhance the housing conditions by making it more affordable and cost-efficient. The liberal party committed a few key measures, in case of re-election, that they will include a tax-free savings accounts for the first home for residents of Canada falling under the age of 40 years. A second promise is to double the home buyer text credit from $5000 to $10,000 to save on closing costs. The government has made commitments in order to speed up supply with the inclusion of $4 billion of investment in the housing accelerator fund in order to achieve growth in the annual housing supply. The federal government aims at the creation of 100,000 new, middle-class housing by the year 2024-25 and the conversion of void offices into residential components along side affordable build and repair With such eminent promises by the country’s government, came a warning from the economists’ bench. They called the dream of better and affordable housing in today’s market a dream far-fetched. Despite the Canadian Government’s full-fledged on-paper strategy, the economists are skeptical of such a plan and are calling it an impossible strategy or a political agenda that is not efficient enough to conceive itself. The Economists are reluctant to accept this plan and warn the people, who have hope in their eyes, to beware of the ‘extreme’ housing goals and the risks that could drown them with such a housing plan. Economists stand firm on the view that the federal government lacks an understanding of inflation costs that undergoes double home construction and states that the plan is too dismal to turn into reality. Most economists agree that the new housing plan determines the existing supply level to be negligible while dismissing the fact that one in ten dollars of the economic output of the country is spent on building houses. Here are a few economists who shared their opinions along with the reason why they think the new housing policies are the waves of hot air. Stephen Brown, a senior Canada economist at capital economics, feels that this plan is a demand-weighted strategy and that backfire is imminent. He analyses the situation and believes that for a less number of buyers a demand-oriented strategy could work but in the long-run housing will become expensive, dismissing the whale objective of the new plan. A certain Economist at BMO states the following reasons for their disagreement with the flow of the new housing plans – The skilled laborers and materials for the construction are in a shortage supply due to the fixed capacity of the Canadian building industry. If the production was to be doubled it’d result in a significant rate of inflation dismissing the entire goal of the campaign. It’s easier to talk about the zoning changes than to actually implement them in a real off-paper world. The economist warns about a strong political resistance. The federal government’s interference with the municipal committees will result in abuse of power. In the coming few years, Canada is likely to witness a change in its demographic structure. The millennials are currently peaking their demand needs which will result in low demand in the future. Moreover, the second half of the plan if would ever be conceived and implemented will result in housing for none. The said economist was also in high disagreement with the Ontario transit-oriented community project and housing plans. BMO economist titled the strategy as a way of pandering to a higher number of votes. In regards to the new housing plans, Brett House- deputy chief economist at Scotiabank believes ‘Policy efforts to stoke demand will only increase prices. All levels of government need to do the hard work together to enable an increased supply of appropriate housing with related services in Canada’s major cities.’ Angelo Melino, a professor at the University of Toronto, feels ‘You can’t improve affordability by subsidizing purchasers. This will just raise the price of the existing housing stock. Affordability requires an increase in the stock of low-cost housing.’ A chunk of economists praises the housing plans devised by the government as an admirable and an ambitious move but question the supply of workers needed to achieve the targets. Doubling production by cutting the extra costs seems like an intangible plan because of the rooted inflation that can devour the economy. Conclusion With such intricate views on one hand and the ambitious promises of the government, one needs to think if they should get their hopes high, think of this as a political agenda, and use their precious votes next time, or is there a grey area that everybody is missing on? The future is the only answer to all these questions and risks and decisions. Related posts. Canada housing plans considered vague by BMO by admin123 High mortgage rates to overwhelm Canadian housing by admin123 The Canadian Blind Bidding Ban Dilemma by admin123 Hamilton to witness the tallest building: 45 Storey Tower by admin123 A hit in the record price of $1.25 Million for the GTA Condos by admin123 Toronto’s Next Big Development Project: The Humber Bay- Lake Shore Site by admin123

Canada housing plans considered vague by BMO Read More »

The Canadian Blind Bidding Ban Dilemma

Blogs / Amy / 4 August 2022 / blind bidding, property prices, Real Estate

The Canadian Blind Bidding Ban Dilemma Before getting into the ban of blind bidding in Canada let us first understand what we mean by blind bidding. What does a blind bid mean? Blind bidding is a method of bidding for a property without knowing the size of opposing bids. When a property is listed and an offer date is set, a blind offer is made. On the offer date, all interested parties gather at the property or at the brokerage of the listing agent to make their best offer. You’ll add the price you’re willing to pay as well as any conditions you have or are willing to eliminate in your offer (such as the home inspection or financing). Because no one knows how much the other potential buyers are offering, it’s dubbed a ‘blind offer.’ As a result, you only have one chance to determine what it will take to ‘win’ the property. Thus some say it’s one of the factors contributing to skyrocketing property prices. How is it different from normal bidding? In most other bidding wars, you’ll have the chance to go back and forth a few times to try to outbid the other possible purchasers. However, there is no transparency with a blind offer. It’s like high-stakes poker, but with real estate as the stakes. You have no idea what your competitors will offer, thus you have no notion where you stand with your own proposal The main disadvantage of blind bidding Because there is no disclosure of what others may be proposing, the ‘winning’ offer maybe thousands of dollars higher than it has to be due to a lack of transparency. For instance, Buyer A might offer $15,000 more than the asking price, Buyer B might offer $18,000 more, and Buyer C might offer $40,000 more. Instead, Buyer C could have won by offering just $18,001 more than the asking price, putting them out $21,999. As a result of the lack of transparency, Buyer C felt compelled to make a hyper-offer in order to win the bidding war. Thus in Canada where blind bidding is more common, the Government is looking to ban this system to protect its buyers. The issue of blind bidding in Canada Bidding wars, particularly blind bidding, have recently come under scrutiny as Canadians become increasingly disillusioned with the home-buying process. The blind bidding method, according to critics in the real estate market, allows for manipulation by bad faith realtors as well as out-of-control bidding situations that push up prices. Finally, they claim that blind bidding is not in the consumer’s best interests. These opponents frequently advocate for the implementation of a more transparent open bidding mechanism. The Canadian government is considering prohibiting blind bidding. The proposed restriction would put an end to the practice of blind bidding across Canada’s provinces and territory. The purpose, according to the government, is to promote openness in the real estate acquisition process, prohibit buyers from overpaying excessively, and keep home prices from soaring. So why are some industries skeptical about this actually becoming the rule? According to a recent analysis, proponents of blind bidding think that this type of bidding does not lead to price increases in residential real estate, however moving to open bidding in a hot real estate market could worsen price escalation. Housing prices have risen quicker in some nations where open bidding or open discussions are permitted, such as Australia, New Zealand, and Sweden, than in Canada, according to the analysis. According to the paper, “it is difficult to establish that blind bidding is connected with higher residential real-estate values” based on recent price fluctuations. While Canada has seen some of the fastest real-estate price increases in the world, open bidding for homes in New Zealand has seen an even faster rise. If numerous purchasers pay more than necessary for homes for a while based on the sale prices of similar properties, demand will eventually be satisfied, and the remaining buyers in the market will either refuse to pay or will be unable to pay prices at the current level. By definition, market value exists when there are enough buyers willing to pay the newly raised prices, and the market is operating freely and properly. When prices grow to the point that no one can or will buy a home, prices begin to plummet. This form of market overheating is just momentary. Only a small percentage of properties receive offers that far outnumber all other competing offers. It is a large percentage in some places during hot sellers’ markets, but it is statistically a small minority and thus not a major driver of rising housing values over time. We don’t always have a strong seller’s market. Even if prohibiting blind bidding had some effect on home values, it would do so only during the few times when the bulk of homes receives competitive offers. For long periods of time in various Canadian cities, severe sellers’ markets have persisted. But now in most Canadian local markets, intense sellers’ markets, in which supply falls well short of demand, are uncommon. But the strongest argument given by the proponents is the seller’s right to choose how their property should get sold. Why are open offers not the solutions? When purchasers don’t know what other bidders are offering (as is the case in the blind bidding system), they just make their best offer. Today, there are no bidding wars as in reality, now there is no bidding. Based on the level of competition, buyers make their best offer. When there’s nothing to bid against, you can’t bid. Buyers compete against one another in open offers. Open offers, by definition, generate an auction and lead to bidding wars. Conclusion The final sale price under a closed offer system is sometimes significantly greater than the second highest offer received. That does not necessarily imply that the successful buyer paid more than they “should have.” It simply indicates that the next highest buyer either did not

The Canadian Blind Bidding Ban Dilemma Read More »

Hamilton to witness the tallest building: 45 Storey Tower

Blogs / Amy / 4 August 2022 / 45-storey high tower, Bruce Kuwabara, Hamilton

Hamilton to witness the tallest building: 45 Storey Tower The City of Hamilton is deciding to build a tower along its waterfront that would be the tallest in the city. The government has decided to take this step so that it can be considered a move towards higher density for the growing Southern Ontario City. However, after the announcement of this news, not all the residents are happy with this decision as some are claiming that building this tower will block sightlines. This 45-storey high tower will be designed by architect Bruce Kuwabara. The proposed tower will have two storeys more than the current tallest tower in Hamilton city. According to the government, this proposal is a major part of the redevelopment plan of over five hectares of land along the waterfront. This is to be built at Pier 8 into a new community. According to the proposal presented, the tower will occupy the northwest corner of the pier. This tower will contribute to more than 1,600 residential units, over 1,400 parking spaces that the pier is set to have after the redevelopment is completed and more than 13,000 square metres of commercial and institutional space. This tower will provide a beautiful view and it will be a landmark for the city of Hamilton city. The building announced on May 20th will be a part of the new Pier 8 redevelopment plan. The height of this building would challenge The Urban Hamilton Official Plan. The architect, Bruce Kuwabara, thinks the building would be considered a work of architecture for Hamilton city as a flagship and a landmark; especially for Pier 8. But the tower will work at the tip of Lake Ontario. Initially, it was designed that the tower should be cylindrical but later on, during a Design Review Panel, two more options were added and presented in front of Bruce Kuwabara. It is decided that the exterior of the building would consist of curves, giving a floral-like shape from a birds-eye view. This was the second design presented. The third design, named Lily, consisted of a more organic form due to its asymmetric and abstract shape. Bruce Kuwabara mentioned that the variations will give more meaning to the character of the building. The occupants will have different perspectives and experiences regarding what it is like to live in a building that has wavy patterns versus what it would be like to live in a building that would have softer, flatter and floral curves. But towards the end, the design of the building will be kept simple, minimal, and elegant as said by Bruce Kuwabara. As the tower would be the tallest building in Hamilton city, it will be visible not just from Hamilton but also from Burlington as well. One can view this tower from points around the bay, from LaSalle Park, and from down as well. This tower will be a landmark for Hamilton city, it doesn’t matter whether it’s the Waves, Cylinder or Lily. This tower will become a part of the image of the entire city of Hamilton in an intentional manner. However, though this tower will certainly be a new focal point for the city of Hamilton, not all residents are in support of the construction of this tower. After the Planning committee discussed this project in a meeting, a number of petitions were submitted against the construction of this tower. Some people commented that the city has not considered the potential issues that this tower will put on the neighbourhood. People said that the interference with the enjoyment of their property has been completely neglected by the government as a part of the current redevelopment process going on. People will not be able to enjoy the beautiful view of the waterfront and the traffic will be directed to Guise Street which would create a lot of issues for them. Even the issue of shadows of the tower being cast over nearby streets was also raised by some commoners. The North End Neighbourhood Association and Harbour West Neighbours Inc, however, supported this project and have raised their voices in support as well. In a letter to the Planning Committee, The North End Neighbourhood Association mentioned that if the government approves this construction of the tower then it will significantly lower the development density and allow housing purposes that will attract families from everywhere. By attracting families with children, it will benefit the neighbourhood and provide support to restaurants, education, retail, transportation services, etc. Listening to the comments and reviews of the people, Bruce Kuwabara has emphasized the point that, although people think that building itself is high-density, the entire level of land density for the parcel of land will not be changed. Bruce Kuwabara has named this thing “zoning”. According to this, it is not adding, not a land grab and increase in density. But rather zoning means the stabilization of density. In simpler terms, it means the distribution of those units over Pier 8. The design team has promised to ensure that the tower itself, although will be the tallest building in Hamilton city, will have the least amount of impact on its surrounding environment. Bruce Kuwabara has clearly stated that they are trying to make an elegant building. The very fork of it will be aerodynamic. The designers are very concerned regarding mitigating wind through design and they have decided that it will have comfortable outdoor amenity spaces. This 45-storey tall building will be iconic from the Pier 8 shoreline and it will symbolize progress in Hamilton’s growth. Yet to date, no legal approvals have been given to the project. Hamilton’s Design Review Panel will once again present the idea and discuss the proposal in a meeting that is scheduled to be held on April 27, 2022. The recommendation will be provided by the review panel but the ultimate decision will lie in the hands of the City Council. Related posts. Hamilton to witness the tallest building: 45 Storey Tower by admin123 A

Hamilton to witness the tallest building: 45 Storey Tower Read More »

A hit in the record price of $1.25 Million for the GTA Condos

Blogs / Amy / 4 August 2022 / Building Industry and Land Development Association, Greater Toronto Area, New construction

A hit in the record price of $1.25 Million for the GTA Condos In the year 2022, the month of March has seen the price of new constructions in the Greater Toronto Area (GTA) reach a new record of $1.25 million. Due to this, sales in the region have witnessed a change in their numbers, from a fast pace to a slightly slower one. The prices of the recently built condos and houses have definitely set a historical record, especially in the month of March. The rise in prices of the new constructions has led to a housing supply crisis in the region of Toronto. The year 2021 also witnessed the price of recently built single-family houses in the Greater Toronto Area hit a new benchmark. According to the details and figures that were given by the Building Industry and Land Development Association (BILD), during the month of March 2022, the sum total of homes that were sold was approximately 4,115 homes. However, there was a 21% decrease as compared to the same month last year- 2021. But in spite of that, the total amount of sales in the month of March was still 12% greater than the area’s 10-year average. The standard price for new constructions of detached or semi-detached townhouses was up to $1.86 million in the month of February 2022. The prices of newly constructed condos have also been rising 13% percent every year up to $1.18 million, as stated by the Building Industry and Land Development Association (BILD). Out of all the housing products, the condo apartments were the products that sold the most between the months of February and March. Approximately 3,277 settlements were made for units in high, medium, and low-rise buildings, including loft suites and stacked townhouses. The sales in condos during the month of March 2022 had significantly decreased to 7% as compared to last year March 2021, however, it was 34% higher than the 10-year average. According to a few of the Building Industry and Land Development Association (BILD) personnel, there is too much demand for housing products, but too little supply. Due to this imbalance in the market, people will continue to witness an upward rise in the prices of housing products. There is a need to fundamentally rebalance the market. Without the rebalancing, the high prices of housing units could have an impact on the economic prospects of the Greater Toronto Area. The high costs could affect the future of the region. It could result in the slow migration of people leaving or moving outside the Greater Toronto Area. The rise in prices could have an effect on attracting people or workers to this area. It could also affect an important industry in the region, which could affect the economy. Could these problems be fixed by creating more supply? The newly built single-family houses excluding the stacked townhouses but including the townhomes, linked, detached, and semi-detached homes- recorded up to 838 units purchased in the month of March. As compared to the same month last year, the single-family units that were purchased dropped down to 50% and were 32% lesser than the 10-year average. The region of York in Toronto recorded the bulk of single-family units that were purchased in March- approximately 254 housing units. A monthly Building Industry and Land Development Association (BILD) report recently mentioned that the sum total of the new housing units sales was not impacted as much and the sales maintained a strong pace. However, there are a few signs indicating a slower pace of sales due to higher rates of interest and high costs, which will begin to affect demand. As stated previously, the price of newly built condos in the Geater Toronto Area reached a historic record of $1,252,515 in the month of March, there was a 17.7% climb over the last year. The single-family housing units witnessed an even greater rate of price growth, which went from 27.3% over the last year to a benchmark of $1,838,396. The demand for housing units kept rising more than the supply in the month of March, leading to the skyrocket in prices as demand kept increasing. As the sales of newly constructed homes and units slowed down or shifted to a slower pace as compared to March of the previous year, the demand for these newly built houses kept outpacing the supply, which left the region with a problem called as ‘inventory shortfall’. As mentioned by the CEO and President of The Building Industry and Land Development Association (BILD), the main focus now would be to keep an eye on the future and the long-term solution for constructing new houses and units. A rebalance of the market is essential. Related posts. A hit in the record price of $1.25 Million for the GTA Condos by admin123 Toronto’s Next Big Development Project: The Humber Bay- Lake Shore Site by admin123 Home Costs in Canada Reach a New Record: Current Scenario and Predictions. by admin123 10 million homes required in Ontario in next 10 years by admin123 A new record in Q1 as the Pre Construction condo sales increase by admin123 Construction worker’s strike affects high rise in GTA by admin123

A hit in the record price of $1.25 Million for the GTA Condos Read More »

Toronto’s Next Big Development Project: The Humber Bay- Lake Shore Site

Blogs / Amy / 4 August 2022 / 2150 Lake Shore Site, Humber Bay Shores, Pemberton Group

Toronto’s Next Big Development Project: The Humber Bay- Lake Shore Site The Humber Bay Shores site just might be the next talk of the town as it is soon to become Toronto’s next major center beyond the main city. A plan is currently in the making for the newly developed hub at 2150 Lake Shore Blvd. W. First Capital, the company that first purchased the site, had announced on 3rd August 2021, that it has decided to extend its relationship with Pemberton Group, a group popular for its commercial developments in Toronto. The Pemberton Group has numerous years of experience and knowledge in building commercial and residential neighborhoods across Toronto. A strategic partnership was established between First Capital and Pemberton Group to develop the 28-acre Lake Shore Site. The plan was to develop the site located at 2150 Lake Shore Boulevard West at Park Lawn Road in Toronto city into a well master-planned, mixed-use, transit-oriented community, and sustainable zone. The recently vacant site of around 28 acres was formerly the site of a Christies cookie bakery. Today, the owners include First Capital and Pemberton Group and the site is called the 2150 Lake Shore Site. The new owners of the site have planned to provide the area with a new GO station and a TTC transit hub to develop a thriving and well-connected mixed-use neighborhood. Their aim is to create a locality that keeps in mind the present and future requirements of the neighborhood by creating a high-quality urban design. First Capital had initially purchased the site from Mr. Christie in 2016. First Capital had earlier decided to acquire its existing partner’s 50% share of interest in the Lake Shore site for roughly around $56 million. Later in the year 2021, it decided to sell the 50% share of interest in the Lake Shore site for $156 million to Pemberton Group. First Capital still holds on to its 50% share of interest. First Capital began with planning preparations by beginning a formal engagement with the City on various planning permissions, early in January 2017. The major plan for the Lake Shore site was presented for Offical Planning and Zoning By-law amendments in the year 2019. The City of Toronto consented to the whole plan in the year 2021. However, there still are a few technical and practical details to be worked out before a new Zoning By-laws comes into place. Recently, the owners and developers have put forward a Site Plan Approval amendment (SPA) to the City of Toronto for the first stage of the huge development project. The whole project is in the early phases of a long-term planning procedure for the Lake Shore site. There a numerous steps that are to be taken over the next 3 to 5 years as a part of the entire planning process. The entire plan for the Lake Shore site calls for approximately 36 buildings that will be constructed over six stages. These buildings will offer and provide a number of opportunities for residential spaces, retail, new offices, etc. The constructions will also provide for around 7,500 newly built homes in a variety of unit sizes, ownerships, and price ranges. The height of the buildings varies. Two parks are planned to be constructed as a part of the later stages of development. The parks will be connected with public squares, shopping malls, pedestrian connections, and a brand new internet network for the street. According to the proposal and the plan, numerous community services and facilities will be provided on the site. The facilities will include a recreation centre for the community, childcare centres, an agency space, a public library, an area for two elementary schools and many more. First Capital, in 2018, selected Allies and Marrison, a world-famous practice of urbanists and architects, to help develop the project and bring it to life. First Capital and Pemberton Group aspire to create a complete community, where people can work, shop, learn, play and live, a transit-oriented neighborhood that is not only connected locally but regionally as well, a sustainable and healthy area to live, a retail diversity to meets the needs and requirements of the community, a lively public land that celebrates the culture around and lastly to create a local landmark. The first stage of this huge project is the two blocks that are located along the Park Lawn Road, the blocks will facilitate the GO station’s use and incorporation into the neighboring community. The first stage/phase comprises around 21,577m² of land, soon to become home to seven buildings designed by Allies and Morrison. In the first phase of the residential development, affordable housing will only include 10% of the 1,358 residential housing units. Facilities for residents include indoor spaces, outdoor spaces, indoor swimming pools, lounges, gyms, co-working spaces, and many more flexible spaces. The first phase also includes a large and widened landscape sidewalk space, which will be a remarkable site to see. The Park Lawn Gardens is planned to act as the welcome gateway of the project from the street. Lots of outdoor space with greeny will also be part of the plan. Related posts. Toronto’s Next Big Development Project: The Humber Bay- Lake Shore Site by admin123 Home Costs in Canada Reach a New Record: Current Scenario and Predictions. by admin123 10 million homes required in Ontario in next 10 years by admin123 A new record in Q1 as the Pre Construction condo sales increase by admin123 Construction worker’s strike affects high rise in GTA by admin123 A 69-Storey Stacked Tower is being proposed by Capital Developments by admin123

Toronto’s Next Big Development Project: The Humber Bay- Lake Shore Site Read More »

Blogs