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Inflation will slow Canada’s economy this summer.

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Inflation will slow Canada’s economy this summer. Canada’s hot economy necessitates pumping the brakes. According to RBC Economics’ recent study on inflation, that was the takeaway. Inflation is so high that the world’s central banks have no choice but to raise interest rates aggressively. The new strategy is to bring inflation (and the economy) down quickly by returning interest rates to more normal levels. Summer is expected to be the first sign of the slowdown, which will begin long before inflation has stabilized. Although the Canadian economy appears strong, a decline in demand is expected soon. Artificially low-interest rates have propelled the Canadian economy into overdrive. RBC expects Canada’s GDP will rise at a rate of 0.3 percent in April, which is higher than the initial 0.2 percent estimate from Statistics Canada. This year’s increase in Alberta’s oil production has resulted in an economic boon for the region (and budgets). With data going back to the 1970s, unemployment is at the lowest level ever recorded. All of these macroeconomic indicators are life-or-death for Canada. Even though it doesn’t feel like it, the economy is in fact flourishing While the present economic background appears to be extremely robust, rising interest rates are increasing the cost of debt servicing for Canadians. According to Nathan Janzen, associate chief economist at RBC, “this increase will eventually cause erosion of demand.” Let’s go back to the “artificially low rates” part. The recovery of the economy was aided by the utilization of massive sums of inexpensive capital. Canada, for example, recovered considerably more quickly than projected after the financial crisis. However, even after a full recovery, it didn’t slow down. In fact, low-interest rates are still providing demand stimulus. Low-interest rates raise a difficult question: What do they really represent? Many people think in terms of absolute numbers or comparisons to last year’s results. Some say it’s low by historical standards (it is very low compared this way). According to some, it’s high because it’s above the levels that were witnessed a few years ago. For the most part, analysts focus on the current interest rate with respect to the long-term interest rate target range. When the current interest rate is lower than the final interest rate, we say that we have a low-interest rate. It is predicted that the terminal rate is between 2 and 3 percent, where monetary policy is no longer stimulating. Inflation rises more quickly when the overnight rate is lower than the terminal rate. Helping demand and inflation, Canada’s overnight interest rate currently stands at 1.5 percent. It’s still true. As a result, inflation is on the rise, is it ever on the rise. For the first time since 1983, the Consumer Price Index (CPI) grew at a 7.7% annual rate in May. Historically, the general consensus was that we would never again see interest rates this high under the leadership of modern, technologically advanced central banks. Higher-than-expected inflation now threatens to stifle growth. We’d utilize artificially low-interest rates all the time if there were no consequences. The problem is, that’s not the case at all. When demand exceeds supply, inflation occurs, resulting in higher but unproductive prices. Households often cut back on discretionary expenditure in order to pay for the additional costs. A family’s ability to afford groceries may be improved if they eat out less. The restaurant will have to reduce expenses as a result of the income reduction. In order for the economy to slow down, it has to start with one person. Because of this, Janzen believes that Canada’s central bank will have to raise interest rates even more aggressively in the near future since the CPI rose to 7.7 percent in May. In the same way, boosting interest rates can be used to reduce demand and thereby reduce inflation. As a result, interest payments consume more of a borrower’s discretionary income. There are of course a lot fewer debtors than currency holders. The path of least resistance is to raise the interest rate. As a result, Janzen expects the Fed to use higher interest rates to curb inflation. Bank of Canada (BoC) and US Federal Reserve (Fed) interest rate hikes are expected to pick up pace, according to RBC’s projection. According to these forecasts, the Bank of Canada will raise interest rates by 0.75 percentage points in July. This summer’s demise will be brought on by inflation or increased interest rates. An inflationary recession is less likely if the economy slows as a result of increasing interest rates. That’s a win in a sense. 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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A projected 50-story mixed-use tower with a conserved mid-century office building at Yonge and Bloor streets

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A projected 50-story mixed-use tower with a conserved mid-century office building at Yonge and Bloor streets New improvements to the Toronto Bay Street Corridor could include a new, proposed 50-story tower. The district between Yonge Street and University Avenue, which extends from Bloor to Front Streets, is a hub for high-rise constructions for a condo. There are currently 13 new towers in the center of BuzzBuzzHome throughout all phases of development, including The United Bldg. Davpart’s Condos and Mizrahi’s One development. At the end of July, the site’s approval plan application was submitted to the city planner to build a 50-story mixture-use building with 465 units at 10 St Mary Street. This site is also Encompasses 79-85 St. Nicholas Street and 710-718 Yonge Street. The architect on the project, ArchitectsAlliance, had previously worked on a condo tower in Corridor Bay Street, including Lumiere condos and 1000 bays. The development site is located just to the west of Bloor Street on St. Nicholas Street, to the east of Yonge Street, to the north in Charles Street, and the south in St. Mary Street. Eight structures are currently in the property, including an 8-story mid-10 Mary Street bureau building, five commercial buildings at Yonge Street 710-718, and a two-story brick building at St. Nicolas Street 81-85. The Heritage Impact Statement of the application states that all such properties are designated under the Ontario Heritage Act. According to a cover letter from Bousfields Inc. for the application to urban planners, Lifetime St. Mary Inc. owned 10 St. Maria Street – 10 Saint Mary Street Maria Street site in the past. To’ failure to decide by stipulated schedules,’ under the planning act, the application for re-consumption by the city for the destruction of an existing office building was lodged at the Ontario Land Tribunal (previously the Ontario Municipal Board) in 2015. The current owner acquired 10 St. Mary Street and 79-85 St in 2016. Nicholas Street and 718 Yonge Street. The new owner also assumes the previous application and appeal. In 2017, OLT approved a change in zoning calculations for part of the site, after that the owner expanded the area by acquiring the personal Laneway and the property of the nearest inheritance along Yonge Street. New settlement offers were supported in 2019 by the city, after which improved effort zoning proposed for additional properties was approved. Now, the site owner proposes a small revision with a settlement plan, explaining the Bousfield Introduction Letter. Brief About Architects Alliance The tower was decreased from 51 to 50 levels by one level. Nine units also increased to 465, which marginally enlarged the skyscraper to about 350 688 square feet in gross floor area. Out of the 465 apartments, there are 25 bachelor suites, 211 single, 45 single, two-bedroom plus one, 118 two-bedroom suites,16 two-bedroom plus one suite, and 50 architecturally designed three-bedroom units. The units would be held as condos in the project data sheet of the application. Along St. Mary Street, the tower will save and retain office buildings at 10 St. Mary Street, while also providing retail space along Yonge and St. Nicholas Streets behind the legacy facade. The portion of the tower will be built in the northwest corner of the site, with the main housing lobby in front of St. Nicholas Street. Amenity spaces between the second and fourth floors would be located with two outdoor spa areas and an interior pet spa. 105 parking areas in vehicles, along with bike and locker storage, would be provided with a multi-level underground parking structure. The Gloucester on Yonge has recently removed building cranes in the neighborhood but sales at Panda Condos continue. Rendering: architectsAlliance Photo Credit: livabl.com   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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Makeover of a spaceship-shaped theatre in Northern Toronto

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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?

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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

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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

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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

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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

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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

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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

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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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