resale market Archives

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

Blogs / Amy / 12 October 2022 / average sale price, bank of canada, Canadian home prices, Canadian house, house 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 High mortgage rates to overwhelm Canadian housing by admin123 Toronto’s Next Big Development Project: The Humber Bay- Lake Shore Site by admin123 A hit in the record price of $1.25 Million for the GTA Condos by admin123 Home Costs in Canada Reach a New Record: Current Scenario and Predictions. by admin123

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A new record in Q1 as the Pre Construction condo sales increase

Blogs / Amy / 8 October 2022 / average rate, average sales, condo market, condo sales, Greater Toronto Area, interest rate, pre-sales units, Q1, resale market

A new record in Q1 as the Pre Construction condo sales increase Condo sales have increased in the Greater Toronto Area and set a new record for Q1. It has increased by 55 percent and surpassed the 10-year average sales by 60 percent. The 10-year average sales were 5,164, which has raised to a new record. In the second quarter, new condo sales in the greater Toronto area rose to 9001 units which were 5.5times higher than the previous Q2 sales. Demand for new condo units has been rising over the last two quarters and the total number of transactions has become greater than the number of pre-sales units. Inventory that hasn’t been sold has faced a downfall of 34 percent over the last six months. Additionally, the unsold unit’s average price has increased by 16 percent approx to $31,382sq.ft and that too rose year over year. Still, the cost of construction and materials was increasing faster than the sales price and therefore it led to a decrease in the new activity. The demand for pre-construction condos was interesting to the next level but materials became more costly which is the reason for the reduction in the activity of construction. It has been reduced to 86,777 units in Q1 from 88,774 in Q4. The condo resale market is facing a change from the earlier quarter. The average price of a condo per sq. Ft in Q1 has increased by 12 percent. It was less than a quarter earlier. This is the rapid increase quarterly, which also results in the behaviour of buyers. The buyer is entering the market before the expected increase in interest rate. This results in an elevation of resale condo prices. It rose by 19 percent year over year in Q1 to $986 sq. Ft. It would make up to $811,000 for 824 sq. Ft. Which is 25 percent higher than its actual rate. The new condo market has started setting up a new record during Q1. The total sales for great Toronto area condo resale have increased by 74 percent year after year. So in the new condo resale market, prices grew faster and there they only increased by 13 percent: In 905 prices rose faster and reached 28 percent while in the outer area the prices increased by 22 percent. The buyer only focused on the outer region of 416 and 905 in search of value in condo sales where the price has an average rate of $7,66,000 in the 416 regions and $7,61,000 in the 905 area. With the demand for condo sales, there is an increase in resale activity. Including the new projects registered or completed in the past two years, there were 1058 sales in Q1 which was representing 17% of total resale. 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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Research before you invest in pre-construction homes

Blogs / Amy / 8 October 2022 / builder, buyers, Condos, construction project, developer, home sales, homeowners, homeprice, housing projects, pre-construction, pre-construction home, pre-construction sales, resale market

Research before you invest in pre-construction homes In the event that a construction project is scrapped, it is certain to garner coverage in the media. Even though constructors and developers do everything in their power to avoid dissatisfying their clients, it is a fact that projects do occasionally have to be cancelled, and the reasons behind these cancellations are typically very compelling. When looking for a new place to call home, one does not necessarily have to settle for buying an existing home or condominium on the secondary market. Investing in a home while it is still in the pre-construction phase is another choice. Homebuyers can take advantage of this option to move into a brand-new home that is “move-in ready” and features personalized interior design accents. Having a home warranty is also a beneficial addition, so keep that in mind. Buying a home that is still under construction, on the other hand, involves a different process than buying an existing home on the market. The purchase of a pre-construction unit is distinct from the purchase of a unit that has already been built, and prospective buyers of pre-construction units are obligated to educate themselves on the various disclosures and safeguards available to them before making a purchase. When you have found a pre-construction home project, it is absolutely necessary for you to investigate the builder who will be responsible for the project. Before committing to buying a home from them, it is essential to do background research on their track record and determine how quickly they finish projects. Visiting one of their finished projects and talking to the people who live there is a simple way to gather this information. It’s possible that the payment schedule will make it impossible for some people in Canada to pay. Deposits of twenty percent are customarily required when purchasing a pre-construction property (there is no regulation around this, and the deposit is set at the discretion of the builder). Our industry constructs hundreds of housing projects in the Greater Toronto Area (GTA) each year, resulting in the delivery of approximately 40,000 new housing units. The only exception to this rule is cancellations. According to Altus Group, which tracks the data on new home sales, approximately 13.5 projects have been scrapped each year on average since 2010. This amounts to a total of 148 projects that have been scrapped since 2010. By the end of November in 2021, 12 projects had been scrapped, which is about the same number as during a typical month but significantly fewer than the 21 projects that were scrapped during the worst year, 2014. Consumers need to be aware that there is a possibility of their purchase being cancelled when they buy pre-construction units, despite the fact that these units come at favourable prices. Prospective homeowners who do not feel comfortable with the risk should purchase a unit that has already been built or one on the resale market; however, the price will not be as advantageous as it would be otherwise. Many different things can lead to the termination of a project. Sometimes, not enough of a project’s units are sold for the developer to be able to move forward with the project. In other instances, the builder or developer is unable to obtain financing for the project, or the costs of the project that were projected to be incurred escalate to a level that makes it impossible for the project to be economically viable. In addition, the approval process for some projects can be drawn out, and other projects are never sanctioned. The enhanced disclosure section of the Tarion Addendum, which is the standard form attached to the purchase and sales agreement for pre-construction sales, outlines all of these unfavourable and improbable contingencies in detail. The document that constitutes the agreement also specifies payment schedules, dates of occupancy, and grounds for termination. Buyers of pre-construction units should carefully read their purchase agreement and have it reviewed by a legal professional to ensure that they have a complete understanding of all of the terms and conditions, as well as any possible dangers. 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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Canada’s housing affordability declines the most in 27 years.

Blogs / Amy / 8 October 2022 / bank of canada, condo, Fixed mortgage rates, Homebuyers, household income, mortgage, National Bank of Canada, resale market, savings rate, toronto

Canada’s housing affordability declines the most in 27 years. A mortgage for the average home in Canada will cost Canadians more than half of their household income for the first time since the mid-1990s. The National Bank of Canada (NBC) noted in its latest Housing Affordability Monitor report that housing affordability in Canada has worsened for the fifth consecutive quarter. In comparison to the previous quarter, the MPPI (mortgage payment as a proportion of income) for a typical home increased by 4.9 percentage points. This is the worst quarter in more than 27 years of declines in the stock market. All ten major markets studied by NBC were found to have decreased in affordability, with the exception of Victoria, Toronto, and Vancouver. “Over the last 12 months, the worsening in affordability was the nastiest in 40 years,” said the report. “For the first time since 1994, it would take more than 50 percent of income for a representative household to service the mortgage on a representative home in Canada’s main urban centres.” “Headwinds will continue to blow against Canada’s real estate market in the months ahead with the Bank of Canada pursuing its monetary policy normalization process through higher policy rates and quantitative tightening,” further said the report. In Q1-2022, rising property prices and rising interest rates were cited as the two key factors that contributed to Canada’s deteriorating housing affordability. Since Q3-2013, NBC’s 5-year benchmark mortgage rate has jumped 46 bps in Q4-2021, the highest one-quarter change since that period. By choosing variable-rate mortgages in recent months, most homebuyers have been able to escape large price rises, but the terms of these mortgages are becoming less attractive. Because of this, the resale market has been affected. The worst losses in affordability have struck Canada’s major cities the hardest. The most severe drops in affordability were seen in the largest and most costly cities in Canada during the first quarter of 2002. For the third quarter in a row, Victoria recorded the highest annual decline in its MPPI, which rose by 19.6 percentage points. As a direct consequence of this, Victoria’s MPPI reached 80%, which represents the highest level for the city since the second quarter of 2008. The MPPI in Victoria experienced an increase of 8.5 percentage points on a quarterly basis. The MPPI increased to 85.7 percent for non-condos and to 44.2 percent for condos, representing respective increases of 9.3 percent and 4.1 percent from the previous quarter. At the moment, the yearly household income required to afford a non-condo in Victoria is $204,078 whereas the annual household income required to afford a condo in Victoria is $123,747. At an annual savings rate of 10%, it would take 382 months (31.8 years) to save up enough money for a downpayment on a house that is not a condo, while it would only take 58 months (4.8 years) to save up enough money for a condo. In the same province, the city of Vancouver had a significant decline in its affordability as a result of the MPPI’s seven-point increase during the first quarter of 2018, an acceleration that hasn’t been seen in the records since the year 1994. The typical monthly mortgage payment in Vancouver now takes up 81.4 percent of the city’s median salary, making it the most expensive city in Canada in which to purchase a property. The Vancouver Multiple Property Index (MPPI) surged by nine percent quarterly to reach 101.5 percent for properties that were not condos. Meanwhile, the MPPI for condos rose by 3.2 percent to reach 43.4 percent. If you want to buy a house that isn’t a condo in the largest city in British Columbia, you’ll need an annual income of at least $285,078; if you want to buy a condo, you’ll need an annual income of at least $142,357. In the event that you intend to save up for a down payment, it will take you approximately 452 months (37.6 years) and 63 months (5.25 years) of savings at a rate of 10% to be able to afford a non-condo or condo residence, respectively. In Toronto, the situation is not significantly better than it was before. The city saw the largest quarterly decline in affordability since 1994 during the first quarter of 2012, as the MPPI increased by 8.1 percentage points to reach its highest level since 1990. The median price per square foot index (MPPI) for non-condo properties rose by 8.9 percent quarterly to 81.5 percent, while the same gauge increased by 4.2 percent for condo properties to an MPPI of 44.2 percent. Homebuyers in Toronto need an annual income of $228,100 to be able to afford the typical house that is not a condo. This figure is significantly more than the required amount of finances, which is only $144,644 for a condo. It would take around 363 months (30.2 years) to save up enough money for a down payment on a house that is not a condo, while it would only take 64 months (5.3 years) to save up enough money for a down payment on a condo in the city. 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 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

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