Toronto’s heated condo market looses steam in 1st quarter, 2018

  Toronto’s heated condo market looses some steam due to the growing development costs and some of the condo project cancellations. They have produced some caution into Toronto’s hot condo market, and with more project terminations likely yet to come, comments Urbanation, the development research company. Urbanation found that new Toronto condo launch prices went up 23 per cent year over year at the end of the 1st quarter, 2018. Even with a really large number of condo development projects that were launched in 2017, about 53 condo developments projects with nearly 14,000 units that still had not begun construction.   It’

Toronto home sales decline, could sign to a return to normal market

  Toronto real estate market has seen the effects of a confluence of policies: Ontario’s Fair Housing Policy, including a foreign buyers’ tax aimed at cooling the market; a new mortgage stress test targeted at protecting Canadians from dangerously high household debt levels; and the Bank of Canada’s moves to increase interest rates.   The Ontario government needed to act to cool the over-heated market when it peaked at more than 30 per cent year-over-year price growth last April, 2017..   If the government’s policy target was to increase affordability of buyers, that has not happened yet. The short supply

Analysis of condo investors in Toronto, a new study reveals

  What are the characteristics of the new pre-construction condo buyers in Toronto’s property market? These buyers buy out the most and best condo units in the condo building towers during the pre-sales period from the hundred of new condo builders across Toronto area.   Close to 50 per cent (50%) of the mortgages then rent their condo units to the existing large pool of available renters by leasing their units. An acute shortage of available apartment rental units is existing in the Toronto area for more than ten (10) years.  The vacancy rate of rental apartments in the Toronto

GTA home sales declined 40 per cent in March, 2018 compared to March, 2017

  GTA home sales declined 40% in March, 2018 in 12 months from March, 2017 and the average price also declined by 14 per cent, according to the latest Toronto Real Estate Board report.   TREB reported 7,228 residential transactions in March, 2018 in the GTA, a large decrease from the record 11,954 sales reported in March 2017. The monthly figure of march, 2018 is down 17.6 per cent compared to average March sales for the previous 10 years.   The real estate market in the GTA is in retreat mode following detached  house prices increase by almost by one

Toronto Condo owners made large capital gains and almost half in negative cash flow

  Toronto Condo owners made large capital gains. Close to 50 per cent of all investors who bought condominiums completed in the Toronto area in 2017 are not making enough rent to cover their carrying costs, despite finding exceptional gains on the value of their properties, a new study reports.   Close to 44 per cent of investors who took possession of new units in 2017 were in negative cash flow — that is their rental income was lower than the amount needed to cover their mortgage payments and condominium fees, according to the study by CIBC and Urbanation, a

Real estate prices are falling in Toronto, is there a crash in the way

  Post Title: Real estate prices are falling around Toronto, is there a crash in the way   Max Seal, Broker’s Comments: The title of this post says it all. In March, 2018, the media reporters are competing for catchy “going-down-the-hole” negative headlines to describe crashing of Toronto housing prices. Just 1 year ago back in March, 2017, the same media reporters were suggesting that thousands of buyers may not be able to buy a house in their lifetime unless they entered the housing market in the Toronto area right away when house prices were galloping. Some people outside the

Toronto home sales decline in January, 2018, may point to return to a normal market

  Toronto home sales decline in January, 2018. The prices appear relatively flat and the house sales were down about 40 per cent over the last two weeks in February, 2018, in the Toronto area compared to the same period in 2017, while condo sales dropped about 30 per cent, said Pasalis, real estate broker.   The real estate market has been affected by a series of policies like, (1) Ontario’s Fair Housing Policy, (2) a foreign buyers’ tax aimed at cooling the market, (3) a new mortgage stress test targeted at protecting Canadian banks from dangerously high household debt

OSFI’s new mortgage rules will decrease home affordability

  OSFI’s new mortgage rules will decrease home affordability. OFSI’s (Canada’s banking regulator) has published final guidelines for its mortgage qualification rule. It will impose tighter standards on the uninsured market. Lenders will be required to “stress test” all uninsured mortgage loans at the greater of the Bank of Canada’s five-year (5) posted rate or 200 basis points (2 percentage points) higher than the negotiated contract rate. The rule is applicable where the buyer makes a down payment of at least 20 per cent of the home’s purchase price or higher. Home affordability will undoubtedly affect as a result of

Toronto home prices drop more in August, 2017

The Toronto Real Estate Board (TREB) reported that the average cost of a home in August — $732,292 (including all house sorts and condos) — was still up 3 per cent or about $20,000 to August, 2016. But that is still down about 20 per cent, or $187,000 lower than April, 2017 when the average cost peaked at $919,086. The number of housing sales in August also fell, 34.8 per cent on year over year.     Mr. Doug Porter, manager economist at BMO Financial Group, who was among the first to use the word “bubble” to describe Toronto’s soaring

How much you need to earn to sustain a home in Toronto

  Looking at the Toronto housing market through an analytical lens of percentages, changing sales numbers and interest rates may be the go-to method for industry insiders, but for many average customers, there’s really one thing that are important: “What can I afford?” To help answer that question, let’s calculate what degree of salary you or your household are going to need to attain in order to purchase a home, based on average prices in 2017 so far. First, we looked at costs for the entire Greater Toronto Area (both the 416 and suburban 905) by property type. There’s no