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Average GTA home price to top $1 million for first time in 2021, real estate board says – CTV Toronto

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TC Energy announces plan to sell 65% stake in Coastal GasLink pipeline – CTV News

TORONTO —
Homebuyers in the Greater Toronto Area better prepare to spend more than they ever have before.

The Toronto Regional Real Estate Board said Monday that the average selling price for homes in the area will top $1 million for the first time later this year.

The board predicts by the time 2021 ends the average selling price in the region will be $1.025 million, up from an average $929,692 in 2020.

“We’ve reverted back to the scenario that really we’ve been talking about a lot over the past number of years, where the supply of listings coming onto the market is not keeping up with growth in transactions,” said Jason Mercer, TRREB’s chief market analyst, at a press conference.

“Taking those demand factors into account, plus what we’re looking at for new listings coming into the market, that spells continued tightness.”

Mercer’s remarks come as the area rang in the new year with an unprecedented flurry of home purchases that pushed the number of sales up by 52 per cent and the average selling price to nearly $1 million.

The spikes were fuelled by an atypical winter, where people were discouraged from gathering for the holidays in an effort to quell COVID-19, the region wasn’t often being blanketed with snow and interest rates were low.

That left people with fewer social engagements, more lending power and more time to hunt for new properties, especially ones outside the hot downtown core that offered an escape from the city while people continue to work from home.

Vy Ngo, a broker with Big City Realty Inc., said she heard of a realtor putting in an offer Monday morning for a home in Whitby, an area well outside Toronto, and by noon it already had 29 bids.

“The market’s been crazy since January,” she said.

“If a pandemic and COVID can’t stop the housing market, then what else can stop the housing market?”

TRREB said January home sales reached 6,928, up from the 4,546 homes sold in the same month last year.

The average selling price was up by 15.5 per cent to $967,885, an increase from $838,087 in 2020.

The number of new listings also climbed to 9,430, a 20 per cent spike from last year’s 7,848.

Homehunters in the region won’t find much reprieve as the year progresses, TRREB chief executive John DiMichele warned.

“I’m not convinced at all that we’re going to have a blip no matter how cold it is. People just seem to be out there,” he said. “It’s going to be a steady climb.”

The board predicts sales will total 105,000 in 2021 and new listings will hit 160,00, up from 95,115 and 156,755 respectively last year.

TRREB president Lisa Patel said those spikes will be fuelled in part by the rollout of COVID-19 vaccines, declining cases of the virus in hot spots and very low mortgage rates.

“Once we shift out of this lockdown, those that are comfortable will have the opportunity to put their homes on the market,” she said.

“That might open up supply a little bit more.”

The board believes new condominium apartment listings will slow towards the second half of the year and low-rise listings will remain constrained.

Market conditions for low-rise homes, including detached houses, will remain very tight, with sales rising at a faster pace than listings, TRREB warned.

This report by The Canadian Press was first published Feb. 8, 2021.

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Real eState

What Is the Canada Mortgage and Housing Corporation (CMHC)

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Protecting your mortgage in Canada

The Canada Mortgage and Housing Corporation (CMHC) is a Canadian Crown Corporation that serves as the national housing agency of Canada and provides mortgage loans to prospective buyers, particularly those in need.

Understanding the Canada Mortgage and Housing Corporation (CMHC)

The Canada Mortgage and Housing Corporation (CMHC) serves as the national housing agency of Canada. CMHC is a state-owned enterprise, or a Crown corporation, that provides a range of services for home buyers, the government, and the housing industry.

CMHC’s stated mission is to “promote housing affordability and choice; to facilitate access to, and competition and efficiency in the provision of, housing finance; to protect the availability of adequate funding for housing, and generally to contribute to the well-being of the housing sector.”1

A primary focus of CMHC is to provide federal funding for Canadian housing programs, particularly to buyers with demonstrated needs. CMHC, headquartered in Ottawa, provides many additional services to renters and home buyers, including mortgage insurance and financial assistance programs. CMHC acts as an information hub for consumers, providing information on renting, financial planning, home buying, and mortgage management.

CMHC also provides mortgage loan insurance for public and private housing organizations and facilitates affordable, accessible, and adaptable housing in Canada.2 Additionally, CMHC provides financial assistance and housing programs to First Nations and Indigenous communities in Canada.3

Professionals and Consumers

CMHC provides services to both professionals and consumers. For professionals, CMHC aims to work in collaboration with different groups to provide affordable housing. Services include project funding and mortgage financing, providing information to understand Canada’s housing market, innovation and leadership networks to access funding and talent to spur housing innovation and increase supply, and providing speakers and hosting events for the industry.4

For consumers, CMHC seeks to provide all the tools an individual would need to either buy a home or rent a home and a variety of information and assistance for current homeowners, such as managing a mortgage, services for seniors to age in place, and financial hardship assistance.56

For financial hardship and mortgage assistance, CMHC provides tools that include payment deferrals, extending the repayment period, adding missed payments to the mortgage balance, moving from a variable-rate to a fixed-rate mortgage, and other special payment arrangements.7

Canada Mortgage and Housing Corporation (CMHC) and the National Housing Strategy

In November 2017, the Canadian government announced the National Housing Strategy.8 Rooted in the idea that housing is a human right, this 10-year, $70 billion project will largely be administered by CMHC, although some services and deliverables will be provided by third-party contractors and other Canadian federal agencies.9

Strategic initiatives of the National Housing Strategy include:

  • Building new affordable housing and renewing existing affordable housing stock
  • Providing technical assistance, tools, and resources to build capacity in the community housing sector and funds to support local organizations
  • Supporting research, capacity-building, excellence, and innovation in housing research10

History of the Canada Mortgage and Housing Corporation (CMHC)

CMHC was established in 1946 as the Central Mortgage and Housing Corporation by the federal government in Canada with the primary mission of administering the National Housing Act and the Home Improvement Loans Guarantee Act and facilitating discounts to mortgage companies. Initially, CMHC began by providing housing to returning Canadian war veterans, and toward the end of the 1940s, CMHC began to administer a program providing low-income housing across Canada.11

In 1947, CMHC was responsible for opening Regent Park, a large low-income housing project, and Toronto’s first urban renewal project. By the 1960s, CMHC introduced co-op housing and multi-unit apartment buildings throughout Canada.11

In 1979, the Central Mortgage and Housing Corporation changed its name to the Canada Mortgage and Housing Corporation

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Real eState

Canadian home price gains accelerate again in May

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LACKIE: Real estate market going through 'recalibration' of supply, demand – Toronto Sun

Canadian home prices accelerated again in May from the previous month, posting the largest monthly rise in the history of the Teranet-National Bank Composite House Price Index, data showed on Thursday.

The index, which tracks repeat sales of single-family homes in 11 major Canadian markets, rose 2.8% on the month in May, led by strong month-over-month gains in the Ottawa-Gatineau capital region, in Halifax, Nova Scotia, and in Hamilton, Ontario.

“It was a third consecutive month in which all 11 markets of the composite index were up from the month before,” said Daren King, an economist at National Bank of Canada, in a note.

On an annual basis, the Teranet index was up 13.7% from a year earlier, the 10th consecutive acceleration and the strongest 12-month gain since July 2017.

Halifax led the year-over-year gains, up 29.9%, followed by Hamilton at 25.5% and Ottawa-Gatineau at 22.8%.

Housing price gains in smaller cities outside Toronto and its immediate suburbs again outpaced the major urban centers, with Barrie, Ontario leading the pack, up 31.4%.

On a month-over-month basis, prices rose 4.9% in Ottawa-Gatineau, 4.3% in Halifax and 3.7% in Hamilton.

The Teranet index measures price gains based on the change between the two most recent sales of properties that have been sold at least twice.

Canada‘s average home selling price, meanwhile, fell 1.1% in May from April, Canadian Real Estate Association data showed on Tuesday, but jumped 38.4% from May 2020.

 

(Reporting by Julie Gordon in Ottawa; Editing by Christopher Cushing)

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Economy

Bank of Canada seeing signs of cooling in hot housing market

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Canada’s mortgage insurer tightens rules

The Bank of Canada is starting to see signs that the country’s red hot housing market is cooling down, although a return to a normality will take time, Governor Tiff Macklem said on Wednesday.

The sector surged in late 2020 and early 2021, with home prices escalating sharply amid investor activity and fear of missing out. The national average selling price fell 1.1% in May from April but was still up 38.4% from May 2020.

“You are starting to see some early signs of some slowing in the housing market. We are expecting supply to improve and demand to slow down, so we are expecting the housing market to come into better balance,” Macklem said.

“But we do think it is going to take some time and it is something that we are watching closely,” he told the Canadian Senate’s banking committee.

Macklem reiterated that the central bank saw evidence people were buying houses with a view to selling them for a profit and said recent price jumps were not sustainable.

“Interest rates are unusually low, which means eventually there’s more scope for them to go up,” he said.

Last year, the central bank slashed its key interest rate to a record-low 0.25% and Macklem reiterated it would stay there at least until economic slack had been fully absorbed, which should be some time in the second half of 2022.

“The economic recovery is making good progress … (but) a complete recovery will still take some time. The third wave of the virus has been a setback,” he said.

The bank has seen some choppiness in growth in the second quarter of 2021 following a sharp economic recovery from the COVID-19 pandemic at the start of the year, he added.

(Reporting by David Ljunggren and Julie Gordon; Editing by Peter Cooney and Richard Pullin)

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