Article content
Justin Trudeau has abruptly switched into the role of housing-affordability radical.
Opinion: In light of the prime minister showing no previous intent to protect the young from soaring prices, it is stunning to see him now act like a white knight taking on an unjust real-estate system
Justin Trudeau has abruptly switched into the role of housing-affordability radical.
But it remains to be seen how many Canadians will buy the Liberals’ brazen new wave of promises — including a ban on foreign purchases, a tax on property flipping and restrictions on exploitive real-estate agents — since there is much cause for skepticism.
Weighing the party’s credibility is crucial since polls are suddenly showing housing affordability (not COVID) is one of the electorates’ top concerns. That’s like the B.C. election in 2017, which saw provincial Liberal leader Christy Clark, who relied heavily on developer donations, turfed in favour of the NDP.
All federal parties’ housing platforms require scrutiny, but here are five reasons voters are justified in feeling suspicious about the prime minister’s sudden conversion to housing activist, a persona he adopted last week to profess: “You shouldn’t lose a bidding war on your home to speculators. It’s time for things to change.”
Housing prices across the country have jumped more than 50 per cent cent on average under Trudeau’s watch.
This glaring reality was captured in a recent devastating sound bite, when a heckler at a Trudeau rally in Ontario bellowed: “You had six years to do something. You’ve done nothing. These houses are worth $1.5 million. Are you going to help us pay $1.5 million? Are you, buddy?”
While in power, Liberal promises to address soaring prices have added up to zero. Take, for instance, the commitment Trudeau made in B.C. during the 2019 campaign, to bring in a one-per-cent tax on purchases by “non-resident, non-Canadians.” Nothing happened.
Similar vacuous pledges came to mind last week when the Trudeau stole the Conservatives’ idea to place a two-year ban on all foreign property purchases. Only two months earlier, the Liberals had voted against a Conservative opposition-day motion to do just that.
Many Liberals, federal and provincial, have long claimed it’s xenophobic to restrict foreign buyers in Canada. They’re only now toning down their race-baiting.
The Liberals have long failed to address foreign capital flooding into real estate — as revealed, yet again, this week. A South China Morning Post article by Ian Young showed Ottawa spent five years covering up an old Canada Revenue report detailing how “rich migrants made more than 90 per cent of luxury purchases” in Burnaby and Coquitlam “while declaring refugee-level incomes.”
It also became even harder in the past few days to accept Trudeau’s authenticity on taxing house flipping when it was uncovered the Liberals’ star candidate in Vancouver-Granville had flipped 21 properties. Liberals’ coziness with real-estate insiders runs deep (as it does for many politicians).
It was more than odd when Trudeau came to Vancouver in August and said “you’ll forgive me if I don’t think about monetary policy … You’ll understand that I think about families.”
It’s impossible to believe the prime minister doesn’t comprehend that monetary policy — in the form of extremely low interest rates and his government’s rapid printing of money in response to the pandemic — have helped jack up prices.
While the Liberals are joining the Conservatives and NDP in making big pledges to increase the construction of housing, many analysts are shocked that some promises Trudeau is making will further inflate prices.
Trudeau’s talk about tax-free housing accounts for first-time buyers, along with other credits, will super-charge demand even more, particularly among young people who can’t afford to stretch further. The size of new mortgages in Canada are soaring far into the danger zone.
It looks, however, like many millennials aren’t buying the new Liberal rhetoric; Leger polling has found the party has been losing support among young adults.
Prominent housing analyst Stephen Punwasi says former Vancouver Sun reporter Sam Cooper’s book, Wilful Blindness: How A Network of Narcos, Tycoons and CCP Agents Infiltrated The West, is “the most important book on Canadian real estate you’ll read this year.”
Wilful Blindness describes how transnational multi-millionaires and criminals, rooted in China, Mexico and elsewhere, have exploited the country’s real estate, which is “Canada’s soft spot for economic infiltration.” Cooper’s book describes many egregious examples of how “dirty” offshore money has been transformed into “clean” money through Canadian housing, especially via property flipping.
What have the Liberals done to crack down on money laundering in urban real estate? Though the Liberals said they would gradually direct $69 million into strengthening RCMP investigation of money laundering, B.C. Attorney General David Eby and others have urged Ottawa to go much further — and institute U.S.-style racketeering laws, which are credited with dismantling Mafia families.
Economists — from banks, universities and developers’ organizations — have in recent years acknowledged one of the biggest factors affecting Canadian housing and prices is population growth through immigration.
Despite, or because of, this, Trudeau has steadily increased Canada’s immigration target since being elected in 2015, hiking it from 250,000 to 400,000 a year, with B.C. an especially popular destination.
UBC geographer Dan Hiebert has found the typical value of a detached Metro Vancouver home owned by a new immigrant in 2017 was $2.3 million, $800,000 higher than a dwelling owned by a Canadian-born person.
An SFU study found “hidden foreign ownership,” particularly through satellite families in which breadwinners make their money offshore, is a significant reason prices have no connection to local wages. It all adds up to help cut into the hopes of both domestic Canadians and newcomers with modest resources.
In light of the prime minister showing almost no interest in protecting the young from soaring prices, it was more than perplexing to last week see him act like a white knight taking on an out-of-control real-estate system.
Who knows if the identity switch will get votes? But Trudeau’s latest self-image echoes that of the Liberals’ talkative housing secretary, Adam Vaughan, who in April let slip that Canada is “a very safe market for foreign investment, but not a great market for Canadians looking for choices around housing.”
While Vaughan revealed the Liberals’ strategy has been to support “a very good system of foreign investment creating a lot of new housing in Canada as we add immigrants and grow the population,” he cautioned it would be terrible to bring in any policy that could cause homeowners to see “10 per cent of the equity in their home suddenly disappear overnight.”
There it is. Two months ago the Liberals were firmly on the side of homeowners wanting to profit. Last week Trudeau suddenly became a champion of those frozen out of ownership.
You’re forgiven for thinking you are witnessing pure electoral posturing.
Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday by subscribing to our Sunrise newsletter here.
CLICK HERE to report a typo.
Is there more to this story? We’d like to hear from you about this or any other stories you think we should know about. Email vantips@postmedia.com.
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.
Freeland says she’s ready to deal with Trump |
NASA astronauts won’t say which one of them got sick after almost eight months in space
43 monkeys remain on the run from South Carolina lab. CEO thinks they’re having an adventure
Freeland rallies a united front ahead of Trump’s return to White House
Deputy minister appointed interim CEO of AIMCo after Alberta government fires board
Montreal says Quebec-Canada dispute stalling much-needed funding to help homeless
S&P/TSX composite index down Friday, Wall St. extends post-election gains
Mitch Marner powers Matthews-less Maple Leafs over Red Wings