Brexit, Blame Games & Bubble Prevention

Pundits believe Brexit is a boon to our real estate market …

Brexit and foreign money drive Canadian commercial property to all-time high

Financial Post – Jul 5, 2016
Canadian commercial property has never been worth this much, according to a new report that says Brexit and foreign investment are driving the market. CBRE Canada, a commercial real estate company, says Canada’s reputation as a “safe haven” has …

Or maybe not?

‘Panic’ Brexit Withdrawals Freeze $23 Billion Property Funds


Image Source

Bloomberg– Jul 7, 2016
During the financial crisis of 2007 and 2008, real estate funds were … funds and Canada Life froze four funds totaling 450 million pounds.
3 UK property funds halt redemptions after Brexit vote prompts wave …
CBC.ca– Jul 5, 2016
Regardless, Vancourites and Torontonians (foreigners inluded, of course) are gobbling up real home for sales without even seeing the properties!
The Home Inspectors Association isn’t amused … They wanted the authority to make home inspection mandatory. Madness, eh?

Hot Vancouver real estate market needs post-bid ‘cooling off’ period, says association

CBC.ca – ‎Jul 5, 2016‎
The Home Inspectors Association of B.C. is calling for the province to implement a mandatory post-bid “cooling off period” so prospective home buyers can get a property inspected before they purchase it.
Subject-free offers the next evolution in wild Vancouver housing market 
Meanwhile, blame games have started on the rapidly accelerating home prices that is total madness, to sum it up in one word … Liberals and municipalities are the main culprits, so said the urban planning experts.

New report says cities, municipal restrictions share blame for today’s housing prices

Financial Post – Jul 7, 2016
Also out Thursday is a new report from Sotheby’s International Realty Canada that suggests the luxury end of the housing market is being dominated by sales of houses of $4-million or more in Vancouver and Toronto, something else that is driving up …
Opinion: Barriers to housing-supply growth affect affordability 

Blame Ontario Liberals for runaway home prices: urban planning expert

Image Source
bnn.ca – ‎Jul 6, 2016‎
Rapidly accelerating home prices in the Greater Toronto Area have in large part been caused by Ontario government policy, one urban planning expert argues.
It appears those in the mortgage business are extremely worried about the hidden timebomb called “Housing Bubble”.
Understandably these deep pockets stand to loose the most should the market collapses … They wanted real serious actions, not just playing with sub-zero interest rate, or asking banks to implement minimum downpayment. All these measures are outdated, too little, and totally ineffective to house flippers (but bona fide Canadian wage-earning-house-buyers really hard hit).
The financiers wanted authorities to punish house flippers,  wage Jihad wars against foreign crooks?
Interesting development, but a slippery slope for the Liberals.

Authorities should consider stronger steps re: housing bubble

Mortgage Broker News – ‎6 hours ago
‎The seemingly unstoppable overheating ofCanada’s residential property market is making the most in-demand cities more difficult places to live in for the long term, and authorities should consider taking stronger steps to address the problem …
Liberals have started to look at the situation very seriously, so said our lawmakers: –

Canada moves to prevent housing bubble in major cities

ETRealty.com – ‎Jun 24, 2016
His comments followed warnings by Canada’s central bank and the Organization for Economic Cooperation and Development (OECD) about a possible housing bubble. According to their respective real estate boards, Vancouver prices climbed 30 percent in …
Indeed, actions have started to emerge …

OSFI warns banks to have more scrutiny in their mortgage business

CBC.ca – Jul 7, 2015
Canada’s top banking regulator is telling the big banks to pay more attention to who they are giving mortgages to, and warning them that it is stepping up its scrutiny of their loan books.
Canada’s top banking regulator tightens scrutiny of mortgage lending practices amid soaring home prices
Regulator Tightens Canada Mortgage Oversight Amid Added Risk 
Also, it appears talks alone is already having some effects on Vancouver market …

Single-family home price declines in Vancouver: Trend or timing?

CTV News – Jul 7, 2016
Dan Morrison, president of the Real Estate Board of Metro Vancouver, says inventory has crept up slowly over the past four months.
The Liberals further promised not only they are serious, they will be very transparent … No hanky-panky business

Transparency to come with digital age?

Bancroft This Week – Jul 7, 2015
The province said the CDO will lead the Government of Ontario to become the most open, transparent and digitally connected government in Canada. … to investigate affordable education and the success of skilled workers, a Ministry of Economic
In the past, real estate agents will threaten potential home buyers to make purchase decision immediately, because the sky is falling down ! Sorry, I mean financing will be more difficult, if not impossible. Interest will go up while house price will just continue to fly.
And history suggests upon hearing the government is about to intervene, folks will be persuaded by rush to buy up just about anything … From super villas, upper fixers, cookie-cutter condos, to even sheds.
Looks like Liberals need a new approach  …
Prediction: Another prosperous year for those in the real estate business.
Wondering what our real estate agents make … ?

Real estate commissions: What does it cost and who really pays?

Toronto Sun – Jul 6, 2016
Stephen Moranis, B.Comm., MBA, FRI, CMR has been active in the North American Real Estate Industry for more than 40 years. He is a former President of the Toronto Real Estate Board and a former Director of the Canadian Real Estate Association.

As for foreigners keen to explore Canadian real estate …

Attention: Foreign Investors, or potential home buyers from abroad,

Keen to move to Canada? Here are some things to consider

BBC News – Jul 7, 2016
Soaring housing prices in the cities of Vancouver and Toronto are making ownership unattainable for more and more people. And concern is growing that the housing bubble could crash.

Welcome to Canada.

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