How speculators inflated the Toronto housing bubble At the height of the mania, investors accounted for one in five home sales in parts of the GTA, says a new report by Joe Castaldo  Apr 12, 2018 Full Article can be seen here: https://www.macleans.ca/economy/realestateeconomy/how-speculators-inflated-the-toronto-housing-bubble/ There are many culprits behind last year’s unsustainable rise in Toronto house prices, with experts blaming everything from foreign buyers to lack of supply. But a new report singles out another major factor: speculative investment. Toronto brokerage Realosophy Realty Inc. found 16.5 per cent of low-rise houses in the Greater Toronto Area were purchased by investors during the first quarter of 2017, the peak of the bubble.…

Bank of Canada keeps interest rate at 1.25%, but economists predict hike in July By Erica Alini  National Online Journalist, Money/Consumer  Global News Full Article can be seen here: https://globalnews.ca/news/4241700/bank-of-canada-interest-rate-announcement-may-30-2018/ After lifting rates from 1 per cent to 1.25 per cent in January, the bank has held back through three consecutive rate announcements in March, April and May. But BoC watchers believe central bank governor Stephen Poloz is likely gearing up for another hike at the bank’s next monetary policy rendezvous on July 11. “The tone of the statement was more hawkish than expected, with the concluding paragraph dropping two strong hints that a July hike is…

Bank of Canada Sets Stage for July Rate Increase STEVE HUEBL MAY 30, 2018 Full Article can be seen here: https://www.canadianmortgagetrends.com/2018/05/bank-of-canada-sets-stage-for-july-rate-increase/ The Bank of Canada once again left interest rates unchanged today but dropped clues suggesting a strong chance of a hike at its next meeting in July. In today’s announcement, the Bank of Canada noted that inflation has been close to its two per cent target and will likely be higher than forecast in the near term. It also referenced recent data points that show upside to the U.S. economic outlook, weighed by ongoing uncertainty about NAFTA negotiations and stresses in some emerging markets. “Overall, developments…

Why a variable-rate mortgage might save you more money in the long run than a fixed-rate right now Even in this rising interest rate environment, experts suggest current variable-rate options are attractive when compared to fixed-rate mortgages The Canadian Press  David Paddon May 24, 2018 10:48 AM EDT Full Article can be seen here: http://business.financialpost.com/real-estate/mortgages/variable-rate-mortgages-may-offer-savings-for-borrowers-in-current-environment TORONTO — Canada’s big banks are locked in a competitive pricing war over variable-rate mortgages, but economic trends point to more interest rate hikes ahead — leaving Canadian mortgage borrowers struggling to interpret the mixed messages. The Bank of Canada has raised its trend-setting interest rate once this year and is expected…

Toronto-area millennials want their own backyards, report says By TAMAR HARRISStaff Reporter Tues., May 22, 2018 Full article can be seen here: https://www.thestar.com/news/gta/2018/05/22/millennials-still-want-houses-with-backyards-report-says.html Millennials may be delaying marriage and taking longer to move out of their parents’ homes, but when they do, their entry in the housing market is expected to drive up home prices and increase congestion in the suburbs, according to a new report from Ryerson University. There are one million millennials still living with their parents in the Greater Toronto and Hamilton Area, and over the next decade, 700,000 of them will be looking to move into their own houses, according to a report…

TREB letter blasts Ontario Real Estate Association over negative portrait of market Nicole Thompson and Armina Ligaya, The Canadian Press  Published Sunday, May 13, 2018 10:08AM EDT  Full Article can be seen here: https://www.ctvnews.ca/business/treb-letter-blasts-ontario-real-estate-association-over-negative-portrait-of-market-1.3927547 TORONTO -- The president of Toronto's real estate board warned leaders of the Ontario Real Estate Association, headed by a former Progressive Conservative leader, to "stay in their lane" in an emphatic letter that relays his concerns that the provincial group is stoking fears about the housing market and becoming too political. In a letter obtained by The Canadian Press, Tim Syrianos tells the president of the Ontario Real Estate Association --…

Another blow for borrowers by Canadian Press10 May 2018 by Armina Ligaya Full Article can be seen here: https://www.mortgagebrokernews.ca/business-news/another-blow-for-borrowers-242322.aspx TORONTO -- The bar is now higher for homebuyers to qualify for mortgages in Canada after the central bank raised a key metric used in stress tests that determine borrowers' eligibility. The Bank of Canada raised the conventional five-year mortgage rate from 5.14 per cent to 5.34 per cent after all Big Six banks raised their posted five-year fixed mortgage rates in recent weeks. The central bank qualifying rate is separate from the actual mortgage rates offered by banks to borrowers, but is used to assess homebuyers who…

As middle class gets priced out of housing market, Canada takes drastic steps to make it affordable Canada is offering free land and tax incentives to create more affordably priced options in Vancouver and Toronto Bloomberg News Natalie Wong May 9, 2018 1:08 PM EDT Full Article can be seen here: http://business.financialpost.com/real-estate/as-middle-class-gets-priced-out-of-housing-market-canada-takes-drastic-steps-to-make-it-affordable Jaxson Khan, 24, encountered the nightmare that is Toronto’s rental market when he moved to the city to join a small tech startup. He ended up sharing a basement apartment almost an hour away from work. Fuelled by a booming tech industry, Toronto’s economy has produced an all-too-familiar problem: soaring housing prices beyond the reach of the…

New homebuyers getting squeezed out of Toronto market as government fees on new builds skyrocket Industry report shows government fees on a new, single-detached home in the GTA was about $186,300, or 22% of the full price, and it's even more for a condo Special to Financial Post Matthew Yuyitung May 1, 2018 10:47 AM EDT Full Article can be seen here: http://business.financialpost.com/real-estate/new-homebuyers-getting-squeezed-out-of-toronto-market-as-government-fees-on-new-builds-skyrocket Government costs and charges on homes have gone up significantly since 2013, and account for nearly a quarter of the price of a new home in the Greater Toronto Area, according to a report published this week. The report, commissioned by the Building Industry and Land…

Short supply keeps GTA new-construction home prices high in March The building industry says the market is out of balance with too much demand for too few new homes. By TESS KALINOWSKIReal Estate Reporter Tues., April 24, 2018 Full article can be seen here: https://www.thestar.com/business/real_estate/2018/04/24/short-supply-keeps-gta-new-construction-home-prices-high-in-march.html Tight supply and demand from a growing population continues to buoy the cost of new construction homes in the Toronto area but belies a housing market that is badly out of balance, says the head of the building industry association. “Until we get alignment on how to fix the supply problem, we’re going to continue to have challenges within the housing market,” said…

Toronto’s expected population boom will need to see houses built fast The housing industry supports regulation that ensures safe, well-built projects. The problem arises when avoidable delays in the approvals process hold up housing projects, writes Dave wilkes. By DAVE WILKESBILD President & CEO Sat., April 21, 2018 Full Article can be seen here: https://www.thestar.com/life/homes/advice/2018/04/21/torontos-expected-population-boom-will-need-to-see-houses-built-fast.html The Greater Toronto Area (GTA) is expected to grow fast in the coming decades and we have many reasons to celebrate this population boom. New residents bring their skills and talents, and they spur economic growth from which we all benefit. We should be building a healthy supply of new homes equally fast…

Getting caught in Toronto’s 'eye of the hurricane' by Bloomberg12 Apr 2018 Full article can be seen here: https://www.mortgagebrokernews.ca/business-news/getting-caught-in-torontos-eye-of-the-hurricane-240857.aspx by Natalie Wong Toronto’s housing market has seen a stunning slowdown in the past year. Now one brokerage has cataloged the damage for 988 homeowners who got caught in the eye of the hurricane. In the space of four months last year, the homeowners lost a collective C$135 million ($107 million) as the median house price slid 18 percent, a faster decline than any major market during the U.S. market crash, according to Realosophy Reality Inc. The story goes like this: The median house price surged 30 percent…

Canada Housing Market Faces A Decade Of Stagnation: BMO The country’s millennials won’t be able to prop up prices forever. By Daniel Tencer Full Article can be seen here: https://www.huffingtonpost.ca/2018/03/23/canada-housing-market-forecast-bmo_a_23393765/ Canada's housing market is getting a big helping hand from house-hungry millennials, but that will come to an end in the next several years, bringing with it an era of stagnation, the Bank of Montreal predicts. In a new affordability analysis, BMO says the country's burgeoning millennial population will rescue the housing market from its current doldrums — but only for the next few years. "Millennial buyers and international migrants are cushioning the decline in detached home prices…

Full Article can be seen here: https://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/mortgage-renewals-in-2018-prepare-for-nasty-rate-surprises/article38296271/ ROB CARRICK PUBLISHED 3 DAYS AGO UPDATED MARCH 16, 2018 The era of pleasant surprises for people renewing their mortgage is done. Years of falling interest rates in the aftermath of the 2008-09 financial crisis taught a generation of home buyers that renewing a mortgage is a chance to reduce your payments. Now, we're heading into the first wave of postcrisis renewals at higher mortgage rates. If you bought your house five years ago and chose a mortgage with the ever-popular five-year term, rate hikes since last summer mean your payments are headed higher on renewal. Competitively discounted fixed five-year…

In Toronto’s Housing Market, The Party Really Is Over, Latest Data Shows Sales of low-rise homes were down 45 per cent in the second half of February. By Daniel Tencer  03/02/2018 08:25 EST | Updated 03/13/2018 15:20 EDT Full Article can be seen here: http://www.huffingtonpost.ca/2018/03/01/toronto-housing-market-february-2018_a_23374797/ The once-unstoppable juggernaut that was Greater Toronto's housing market has slowed to a crawl, with preliminary data for February showing sales taking a deep dive and prices well off last year's highs. And any possible recovery is likely to be some time off, says John Pasalis, president of Realosophy Realty. According to Pasalis' preliminary analysis of February numbers, sales of low-rise homes were down some 38…

With the slowest sales pace in years, where is the GTA housing market headed next? Industry experts weigh in Sarah Niedoba Mar 17, 2018 Full Article can be seen here: http://news.buzzbuzzhome.com/2018/03/slowest-sales-pace-years-gta-housing-market-headed-next-industry-experts-weigh.html The GTA, much like the rest of the Canadian housing market, has seen a slowdown in activity in the first two months of 2018. For the first time in years, demand has started to fall behind supply. But how long can we expect this cooler market to last? And what will the spring bring for the famously hot housing market? BuzzBuzzNews has rounded up the latest industry commentary to give you a sense of what…

TORONTO — Canada’s real estate market will hit a slow patch in 2018 as tighter mortgage stress tests apply pressure and the impact could be exacerbated if an expected interest rate hike drives buyers to put off their home purchases, economists said Monday. Housing market to hit slow patch on back of interest rate hike, new mortgage rules 'This is the most significant test the market has seen in recent years,' said Benjamin Tal, CIBC's chief deputy chief economist Full Article can be seen here: http://business.financialpost.com/real-estate/housing-market-to-hit-slow-patch-on-back-of-interest-rate-hike-new-mortgage-rules The Canadian Press Tara Deschamps January 16, 2018 10:33 AM EST Last Updated January 16, 2018 10:44 AM EST The Bank of Canada will make its…

Toronto home sales shook off summer slump in December, but brace for January chill National sales up 4.5%, prices up 9.1% ahead of stricter mortgage rules Full Article can be seen here: http://business.financialpost.com/real-estate/update-1-canadian-home-sales-rise-for-5th-straight-month-in-december-crea Reuters   January 15, 2018 11:17 AM EST OTTAWA — Resales of Canadian homes rose 4.5 per cent in December from November, the fifth straight monthly rise, likely because activity was pulled forward to avoid mortgage rule changes that hit in January, the Canadian Real Estate Association said on Monday. The industry group said actual sales, not seasonally adjusted, rose 4.1 per cent from December 2016, while home prices were up 9.1 per cent…

Toronto area housing prices expected to remain flat in 2018: Report Re/Max expects prices to be down 17.5 per cent year-over-year through April, with a rebound coming in May. Full Article can be seen here: https://www.thestar.com/business/real_estate/2017/12/14/toronto-area-housing-prices-expected-to-remain-flat-in-2018-report.html By Tess KalinowskiReal Estate Reporter Thu., Dec. 14, 2017 Buyers and sellers are going to be spooked by his company's forecast of a flat 2018 housing market in the Toronto area, says Cam Forbes, general manager and broker with Re/Max Realtron Realty. Re/Max is predicting a 0 per cent price increase next year over 2017, and a 17.5 per cent year-over-year average price decline in the first four months of 2018. "January…

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