Housing Market Fires Up Under Subzero Temperature

Toronto home prices surge, again ‘outpacing family incomes’

Toronto home sales edged down in the bitter chill of January, but prices surged, again throwing up red flags. Sales fell 2.2 per cent from a year earlier to 4,135 as new listings plunged 16.6 per cent, the Toronto Real Estate Board said Wednesday

January price gains strain affordability in big city housing markets

The monthly tally of sales numbers and prices is rolling in from local real estate boards in Vancouver, Calgary, Toronto and other cities and the picture forming is that house hunters weren’t all that much deterred by Mars-like cold temperatures, and paid up for most housing types.

Another month, another healthy hike in how much a house will cost you in Canada’s biggest and priciest cities.

A new report from TD Bank says home prices have become stretched but not to the heights some outside observers suggest they have. Low interest rates mean many can afford to carry bigger mortgages, TD reiterated. Home prices stretched by 10%, bank report says
Home sales rose 17.2 per cent in Calgary and were up 30 per cent in Vancouver compared to the number of homes that were reported to change hands in January 2013.

“The Polar Vortex didn’t dissuade hardy Calgarians from house hunting in January,” BMO economist Sal Guatieri quipped in a note.

Prices in Calgary jumped 9.5 per cent and were up 3.2 per cent in Vancouver, by far the country’s most expensive real estate market where the average selling price of a single-detached home is approaching one million dollars ($929,700).

Of course, not-so-hardy Torontonians were less enthused about the extreme winter weather: existing home sales fell 2.2 per cent last month. But a tight supply of single-family houses continued to juice demand among buyers scared they’ll be priced out the longer they wait.

House prices still rising in Toronto, Vancouver
Detached homes up 12% in GTA, 3% in Greater Vancouver from January 2013 to 2014

‘Competition between buyers for singles, semis and town homes in the city of Toronto and surrounding regions will continue to exert upward pressure on selling prices,’

– Dianne Usher, Toronto Real Estate Board

There seems to be no end in sight to the housing bubble in two of Canada’s largest cities, with the real estate boards of Toronto and Vancouver reporting year-on-year price increases of two to 12 per cent for January.

In Toronto, the average selling price for a home in January was $526,528 – up by more than nine per cent from a year earlier.

January property prices
Property typeTorontoVancouverChange 2013-2014Toronto | Vancouver
All residential$526,528$606,8009.2%3.2%
Detached$686,688$929,70012%3.2%
Apartment/Condo$346,369$371,5008.7%3.7%
Semi-detached*$481,970$457,700*6.6%1.7%*
Townhouse$346,3699.0%
Source: Toronto Real Estate Board, Real Estate Board of Greater Vancouver*Vancouver does not separate townhouses and semi-detached homes and uses the designation ‘attached properties.’

On the west coast, the benchmark price for all residential properties rose 3.2 per cent since January 2013 to $606,800. Detached homes in Vancouver were fetching $929,700 on average last month, a 3.2 per cent increase over the previous year. Apartment properties averaged $371,500, a 3.7 per cent increase over 2013.

Sales of residential properties in Greater Vancouver were up by more than 30 per cent over January 2013 although not as strong as in December, which saw sales rise 7.2 per cent above the 10-year average for the month.

There were 5,345 new listings for Vancouver on the MLS listing service last month, a 4.2 per cent increase over the same time last year.

Toronto’s market saw fewer new listings in January than last year, with 8,822 properties in the Greater Toronto Area listed on MLS, a decrease of 16.6 per cent. Sales were down 2.2 per cent over January 2013. But that did not stop prices from continuing to rise in all property categories.

Detached homes were selling for 12 per cent more than in January 2013 while the prices of condominium apartments were up 9.7 per cent and semi-detached homes saw a 6.6 per cent increase.

Comments

Post a Comment

Popular posts from this blog

Camping Out For Shelter & Condo

Image
Previously, Renters driven to tents, rental bidding wars, and more affordability issues . More affordability stories … Forced to camp for shelter Castanet.net – Jul 9, 2016 Kelowna has a notoriously low rental  vacancy rate, as low as 0.5 per cent according to some, which makes it difficult for those looking to rent something affordable. Homeless camps in Abbotsford Image Source Potential condo buyers camp out — in Abbotsford? CBC.ca – Jul 9, 2016 Given Metro Vancouver’s red-hot housing market, the sight of anxious buyers camped out in front of a condo development isn’t considered all that unusual … About 20 prospective buyers are lined up for Fraser Valley condos; some have waited close to 2 weeks.
Read more

Vancouver - The Darling of Canada Real Estate

Image
Vancouver, Vancouver, Vancouver. I always wonder why do foreign investors, particularly those from China are so obsessed with this city … Fengshui? Image Source Foreign investment has impact on Vancouver housing market, say researchers
Read more

Detached Homes Stay Single & Condo Continues To Breed Like Rabbits

Image
Winter’s chill can’t freeze condo boom A new reading Monday on the strength of the condo market, particularly in Central and Eastern Canada, raised eyebrows among economists. GTA home prices tell tale of 2 cities: condos vs. family homes Different market segments moving in different directions Real estate in the Greater Toronto Area is becoming increasingly divided between existing single family homes and a crush of new condo towers, one of Canada’s biggest banks says in a report issued Monday. TD Bank economists Derek Burleton and Diana Petramala said people’s obsession with house prices in the Toronto area has obscured the differences between various subsections of the market: the 905 area versus the 416; detached houses versus condos; and new builds versus existing homes. Real estate in the Greater Toronto Area is becoming increasingly divided between existing single family homes and a crush of new condo towers, one of Canada’s biggest banks says in a report issued Monday. TD Bank
Read more

Average Detached Home Price In Toronto Is Now $ Multimillion

Image
To be exact, In Toronto’s housing market, ‘$2-million is the new $1-million’ The strength of the $2-million-plus market comes as Toronto home prices continue to soar. TREB said Wednesday the average sale price of a home across the Greater Toronto Area reached $585,204 in May, an 8.5% increase from a year ago. Image Source The strength of the $2-million-plus market comes as Toronto home prices continue to soar. TREB said Wednesday the average sale price of a home across the Greater Toronto Area reached $585,204 in May, an 8.5% increase from a year ago. Torontonians who can barely wrap their minds around a housing market where $1-million is the average price for a detached home might want to take notice of a new fast-approaching benchmark. Sotheby’s offers private jet, helicopter service to woo luxury homebuyers to Calgary Bank of CanadaProspective clients will be flown to Calgary by private jet from practically anywhere in the world and then taken on helicopter tour of multi-million-dol
Read more

Why London Inferno will happen in Toronto - Part 2

Image
Credit When it comes to fire prevention, media in Canada basically take comments by local experts at face value ie. because we have Building Code in place, catastophe similar to Grenfell Tower a.k.a the London Inferno has no chance to take place. TRUE or FALSE? First, let’s take a look at what the media say, London’s fire symptomatic of larger safety issues globally, experts warn “One of the reasons is the technology that is now being used in building materials and building fabrics has outstripped the codes and standards in practice…  CTV News London fire: Cladding blamed for inferno’s rapid spread restricted in Canada All exterior cladding materials for buildings higher than four storeys must be tested for fire resistance and comply with strict standards… Globalnews.ca Lessons of the Grenfell blaze: How can Canada’s thousands of aging towers be kept safe? “This requires a careful review of building codes , of approved materials,” said Graeme Stewart of ERA Architects, a specialist
Read more

Canada Real Estate Is Still Very Rosy

Image
Canadians richer than ever, and cutting back on mortgage debt Debt growth eases Canadians are getting the message on their ugly debt levels, at the same time as their wealth increases. Mortgage debt growth slowed: Statistics Canada Mortgage debt in Canada rose just 0.6 per cent in the first quarter of the year, to $1.1-trillion, marking the slowest pace since the depths of the financial crisis in early 2009, Statistics Canada said. Canadians’ household debt ratio drops asmortgage borrowing slows to 5-year low … More   http://www.theglobeandmail.com Still, we are confused … Reading Toronto’s real estate market is no easy task Last week the Canadian Real Estate Association reported that sales across the country rose 5.9 per cent in May compared with April. More   http://www.theglobeandmail.com Mirror, mirror on the wall … What’s happening ? The Magic Mirror says why don’t you buy this baby … ? 271 Chaplin Crescent – FOREST HILL This is a 3 bedroom, 2 bathroom house on a 35 x 106 foot lot
Read more

The Real Estate Dilemma: Foreign Speculations, Backlash, and Alternatives

Image
The Canadian Mortgage and Housing Corporation’s (CMHC) latest report warns of “problematic conditions” in the country’s largest housing markets. “In Toronto and Vancouver, this is due to the combination of price acceleration and overvaluation.” In an attempt to cool the most controversial housing markets – Vancouver, whereby average home prices has shot up more than 36% in just the last 12 months alone, the province of British Columbia is attempting to pump the brakes on foreign ownership, long suspected of driving up prices in Canada’s hottest housing market, by imposing a 15 per cent tax on foreign nationals buying property in Metro Vancouver. Twitter The situation is not only alarming, it is actually becoming a social political hot button. Some folks regard the foreign money as “imported housing virus” … the cause of the house prices insanity. This is further confirmed by today’s Bloomberg report: –
Read more

Is replacing OMB with Local Planning Appeal Tribunal a Boon or Bane?

Image
By Corruption Victim of City of Toronto It’s official: Ontario Municipal Board (OMB), the independent tribunal that adjudicates planning and development disputes will be scrapped and to be replaced by Local Planning Appeal Tribunal, starting with the City of Toronto. Under the new process, the tribunal will decide if a municipality has followed its official plans in the disputed decision. If it has failed to do so, the issue will be sent back to the municipality for reconsideration. Only if the municipality fails to come to a decision or fails to follow the planning process a second time would a full hearing be held, with the tribunal making a final decision. In another word, the City of Toronto will have the final say over most of the cases as it will be almost impossible for the public to appeal against any planning decision of the municipality. Reason? Urban planning is a very subjective area. Unless challenged by another planner of equal standing, view of a planner will be construe
Read more

Toronto, Vancouver, Calgary Are The Best Cities To Invest In Real Estate

Image
Today everyone in the realty business is citing this particular story by HuffPost: – Best Cities To Invest In Real Estate? Those Would Be Toronto, Vancouver, Calgary Image Source The Huffington Post Canada Canadian cities top the world for the real estate markets that make the best bet for long-term investment, according to a study from U.K. property developer Grosvenor — but they may not be such a great investment in the short term. Toronto, Vancouver and Calgary took the top three spots, respectively, on the survey that aims to measure which real estate markets are the most resilient, and therefore make the best long-term investment. “Canada, as a whole, is doing exceptionally well in developing resiliency,” Richard Barkham, group research director at Grosvenor, said in a statement. “The top three most-resilient cities in Grosvenor’s Resiliency index are Toronto, Vancouver and Calgary. For investors in property and real estate, it makes Canada a very sound long-term investment.” Bark
Read more

How to improve your home's value

Image
By Handy Joe Did you know, patios can increase your home’s value by 10 percent or so? Now that it’s summer, you’re busy making plans for vacations and backyard barbecues. While you’re at it, you might want to also consider remodeling projects that will increase your home’s value. Investing a little time and money in your residence now can seriously pay off if you decide to put it on the market down the road. Improving your home is an investment, and not knowing where to spend your money for the best value is a common issue for many homeowners. It’s important to consider your needs in the present and plan for the future, as in, how will this improvement pay off in the end? Knowing how to invest your money into your home is a valuable lesson—literally. Outdoor Living After the brutal winter, you’ll surely want to spend as much time outdoors as you can. If you enjoy being outside but you don’t feel like you have a place to do so, consider upgrading your outdoor space with a deck or sunroo
Read more