Real eState
Investors own a big chunk of Canada’s housing market. Should we be worried about that?
The data, published by the Canadian Housing Statistics Program (CHSP) for the first time on Feb. 3, showed that at least 20 per cent of residential real estate was owned by investors at the beginning of 2020 in each of the five provinces tracked.
The share of investor ownership ranged from 20.2 per cent in Ontario to 31.5 per cent in Nova Scotia. In Ontario, 41.9 per cent of condominium apartments were owned as investments, the highest rate nationwide.
While some critics argue investors are crowding out families and driving up prices, others market watchers say investment is crucial to accelerate much-needed construction, given the country’s acute shortage of housing stock.
“There’s the two possibilities but we are not commenting on whether it is good or bad,” Statistics Canada’s Joanie Fontaine said in an interview. “It helps on one way and can hurt them the other way.”
Jordon Scrinko, chief executive and co-founder of Precondo.ca, an online catalogue of pre-construction units across the Greater Toronto Area, said having investors is especially important in pre-construction.
Purpose-built rentals in Toronto have started to trend up again after a long time of scarcity, he said, adding that the pick-up over the last years has been “good to see.”
“If (investors) weren’t buying the pre-construction condos, then developers would not hit the sales thresholds required by the bank in order for them to actually secure construction financing and so that new housing supply wouldn’t get built at all,” Scrinko said.
“We have to think very carefully about this because we need the investment to increase supply,” Dugan said.
Robert Hogue, assistant chief economist at RBC Economics, said while the new data could help policymakers assess Canada’s housing market, it would not be enough to tell whether the proportion of investors among real estate owners is “too much” or “not enough” without further information.
“What we got is a first batch of very significant data that we’ll use in the years ahead,” Hogue added, also noting that it is already lagging the market.
“The Bank of Canada, not long ago, showed some numbers (indicating) that new investors held an increasing share of sales, so my guess is that probably will have boosted since,” Hogue said, although he noted that this is tougher to tell for the more recent periods because rate hikes over the past months have been driving away not only investors, but also first-time homebuyers.
“It’s unclear going forward what the share will be,” he said.
The five provinces studied by StatsCan were British Columbia, Manitoba, Ontario, New Brunswick and Nova Scotia. The agency is hoping to add the remaining provinces soon.
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
The Canadian Press. All rights reserved.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
The Canadian Press. All rights reserved.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
Canada’s Denis Shapovalov wins Belgrade Open for his second ATP Tour title
Talks to resume in B.C. port dispute in bid to end multi-day lockout
The Royal Canadian Legion turns to Amazon for annual poppy campaign boost
dynaCERT Inc. Invites You to Join Us at the Vancouver Resource Investment Conference | INN – Investing News Network
AP source: Bears acquiring quarterback Nick Foles from Jaguars – Sportsnet.ca
12 Bizarre Things People Did Just To Make Social Media Content
-
News24 hours agoFreeland says she’s ready to deal with Trump |
-
News24 hours ago
NASA astronauts won’t say which one of them got sick after almost eight months in space
-
News24 hours ago
43 monkeys remain on the run from South Carolina lab. CEO thinks they’re having an adventure
-
News24 hours ago
Mitch Marner powers Matthews-less Maple Leafs over Red Wings
-
News8 hours ago
Affordability or bust: Nova Scotia election campaign all about cost of living
-
News8 hours ago
Canada’s Denis Shapovalov wins Belgrade Open for his second ATP Tour title
-
News24 hours ago
Trudeau pitches partnership with U.S. ahead of Trump government
-
News24 hours ago
Montreal says Quebec-Canada dispute stalling badly needed funding to help homeless |
