Canada Mortgage and Housing Corp. sees very limited speculation in the condominium industry in Toronto among builders, a situation unlike the 1980s when the marketcrashed. In a report out Tuesday, CMHC, the Crown corporation that guides Ottawa on …
Risk of speculation in Toronto condos mitigated by presales: CMHC
“1980s style housing bubble for Condo”?
CMHC does have a good sense of humor, eh?
Why did I say that?
To beign with, I didn’t know we had a significant “Condo” market during the 80s.
As far as I know, dwellings back then means houses with front yard and back yard (never mind the size).
There was hardly any “condo” during the 80s. To me, there was no such thing as “condo” back then. What was available in the highrise category meant for dwelling purpose are what we call “apartments”, typically for rental purpose.
Save for those with financial constraint (or perhaps other circumstantial reasons), I have never come across any family telling me they chose to buy/live in an apartment back in the old days.
Back to CMHC’s claim that there will be no 1980s style Housing Bubble for Condo … My question is how could there be a problem on something that didn’t exist in the first place?
Anyway, foreigners continue to buy Canadian real estate like there is no tomorrow … What slowdown?
Recent data has emerged citing that British Columbia is the latest province to experience a huge wave of foreign real estate investment. Earlier reports have shown how foreign investment in Canada’s real estate has peaked in recent times, with …
Foreign capital drives Vancouver commercial real estate buying boom
The Province – Jul 18, 2016
Canada’s reputation as a haven for capital continues to stoke foreign and domesticinvestments in commercial real estate, according to recent reports and commentary by Vancouver experts. The average national cap rate, a measure of real estate value to …
But Wall Street Journal continues to blow up the “Bubble” … WSJ must be the Chicken Little?
OTTAWA—Low interest rates around the world are fueling a familiar threat of housing bubbles, and central bankers in a number of key economies feel powerless to stop them.
It seems like Metro Vancouver home prices are constantly on the rise, with no affordable end in sight. But according to market analyst Ross Kay, Founder of Ross Kay Realty Consultants and creator of The Wealthy Homeowner programs, Junehousing data …
Huffington Post Canada – Jul 19, 2016Matthew and Vanessa Pitcairn are fast outgrowing their apartment in the Vancouver suburb of Richmond. Matt was born in the city. A fixture in the community, he works for the local chamber of commerce and ran for school board in 2014; Vanessa, who works …
Looks like the only place having a slowdown is our oil sand Mecca …
The value of Canadian building permitsissued in May dropped 1.9 per cent from April, in part due to sharply weaker construction intentions in energy-producing Alberta, Statistics Canada said on Thursday.
Calgary’s apartment sales slumped last month, falling by over a fifth of what they were at this time last year. But the city is still one of Canada’s priciest when it comes to renting apartments. Cowtown was third on the list of most expensive places …
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S0, is 2016 going to be a tumultuous one for the real estate sector or not? Of course not … Who says? Guess everyone in the real estate business except maybe journos … eg. Wall Street Journal – Today’s Chicken Little.
By Corruption Victim of City of Toronto It was comforting to hear the assuring statement by Toronto Fire Chief Matthew Pegg: – Officials say London inferno won’t happen in Toronto : Strict building codes and inspections should prevent similar infernos “Here in Ontario we are fortunate to have the comprehensive fire protection and fire safety measures that are contained in the building code ,” He further explains residential building in the province must be constructed with non-combustible construction (in accordance with the Ontario Building Code ) ie. be built out of materials that don’t burn. Of particular interest here is the fact that the Fire Chief himself confirmed Fire Code refers to Building Code to determine building safety . In another word, building that contravened the building Code in fire safety also violated the Fire Code (under the Fire Protection and Prevention Act, 1997). Unfortunately, an inquiry with Toronto Fire Prevention revealed the responsible...
Jonathan Manthorpe believes there is a direct line linking the explosive real estate bubbles in Toronto and Vancouver and how secure Chinese President Xi Jinping looks on his throne. How China’s Politics Messing Up Canadian Real Estate Markets The evidence — the vast amount of money being spirited out of China by relatives, friends and cronies of the Red Aristocracy around Xi — suggests he’s set to tumble . Last year about $US1 trillion was spirited out of China by Communist Party leaders and their hangers-on, in defiance of currency regulations. Image Source They clearly do not feel the regime is secure and want their assets hidden away in stable overseas havens like Canada, the United States, Australia or Europe. Sounds like it’s not “London Bridge is falling down”, its “The Great Wall is tumbling down”?
Story from http://www.theglobeandmail.com/ … Aggressive development: Inside the building and selling of a Toronto condo tower A man who makes a living helping the country’s largest bank avoid risks is preparing to double down on a market that many people believe is on the verge of a nasty fall. Babak Habibzadeh, a 29-year-old risk manager with Royal Bank of Canada, lives with his parents and bought his first condo two years ago. He rents it out and has been delighted with the returns to date. So today he’s buying another – a one-bedroom-plus-den, 601-square-foot unit on the 18th floor of a yet-to-be constructed building in Toronto called Core Condos that is scheduled to open in 2017. He’s not yet sure if he will rent it out or live in it, but says it will be a sound investment either way. “Are you excited?” the saleswoman asks him as he plows through a stack of paper in the sales office, outlining the $360,000-plus deal. “In three years I will be,” he says. Toronto’s condo boom ...
A rundown old house with a hodge podge of apartments in Roncesvalles Village drew crowds last week when it was listed with an asking price of $769,000. The property at 52 Harvard Ave. drew five competing bids and sold for $913,000. The owner purchased the house in 1988 for $135,000, he says. “It’s gone from pandemonium to just a heavy frenzy,” he says. Read more http://www.theglobeandmail.com/ Don’t not wish to join the Bull Run ? Sorry, you ain’t got no choice, because it takes … $430,000 to live in a former glue factory in the Junction Triangle Address: 371 Wallace Avenue , Suite 22 Neighbourhood: Dovercourt-Wallace-Emerson-Junction Price: $434,900 The Place: A one-bedroom unit in Wallace Station Hard Lofts, a former glue factory that takes its name from a now-defunct railway station.
TD Bank, IMF say Canadian real estate 10% overvalued CBC.ca The International Monetary Fund agrees, estimating Canada’s real estate is 10 per cent too expensive, according to an assessment of the Canadian economy released today. Affordability is falling as prices rise, but TD expects price hikes to slow Many experts and economists, from the OECD to the IMF, agree the Canadian housing market is overvalued – the question is by how much. According to TD economist Diana Petramala, the figure is 10 per cent. The International Monetary Fund agrees, estimating Canada’s real estate is 10 per cent too expensive, according to an assessment of the Canadian economy released today. The truth is it’s either 90% overvalue or it’s still undervalue … It looks as if people think Canadian real estate is still a steal. That’s key … Demand, baby, it’s demand that matters, not what Joe can afford. So, what 10% ? Utter nonsense. Another nonsense … Toronto ...
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...
Mortgage insurer CMHC primes market for announcement Canada Mortgage and Housing Corp., the Crown corporation that Finance Minister Jim Flaherty has been seeking to rein in, says it will be making an announcement later this week. Image Source The mortgage insurer, which appointed former investment banker Evan Siddall as its new chief executive officer at the start of the year, would not comment on the substance of the announcement. The Globe and Mail reported in December that there has been pressure on CMHC to raise its premiums, a move that could add to the cost of a home for some buyers. CMHC has not raised its premiums since the late 1990s, and actually lowered them between 2003 and 2005. Mortgage insurance is mandatory in Canada for buyers whose down payment is less than 20 per cent. The insurance covers the lender, or bank, in case the homeowner defaults. While premiums are technically paid by the lenders, the cost is passed along to borrowers. Premiums vary depending on the size ...
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
Government’s foreign buyer numbers way off according to Asian real estate conference Asia Real Estate Association of America, Vancouver chapter representatives say the government’s data sample is too low to be accurate. Agents, experts say Chinese buyers account for much more than 3% of B.C. homebuyers China Cash Power A provincial government statement that only 3 per cent of B.C. residential sales are made to foreign buyers and that Chinese nationals represent just 2.5 per cent of Metro Vancouver home buyers drew rolling eyeballs and laughter at the packed July 7 Asia Real Estate Association of America (AREAA) conference in downtown Vancouver.
We all know the insanity … Image Source Canadian house prices : From ‘overvaluation’ to ‘outlandish’ and ‘zany’ The Globe and Mail (subscription) – Jun 21, 2016 One of the world’s big credit-rating agencies says it’s troubled by Canada’s inflated house prices and extremely stretched borrowers. Canada’s ‘hands-off’ housing policy is right move in free market economy Financial Post Moody’s: biggest Canadian lenders could deal with housing crash Business Review Canada Here is a real life testimony … Two couples pool money to live under one roof
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