Canadians hoping to buy a house in 2020 better brace themselves for limited choice and plenty of competition, the latest housing market data suggests.
While conditions remain ho-hum in the Prairies and Newfoundland and Labrador, in the rest of the country, there are plenty of buyers and not much for sale.
A lack of housing supply would be “the story” for 2020, the Canadian Real Estate Association (CREA) warned in its housing market forecast in mid-December.
The latest national statistics, released by CREA Jan. 15, seemed to confirm the trend. The number of existing homes available for purchases was at a 12-year low in December, the association said.
The issue has been long in the making, according to CREA senior economist Shaun Cathcart.
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Millennials, for example, now in their late 20s to late 30s, are eager to buy homes, but baby boomers are in no rush to downsize. Young condo owners are also struggling to find larger apartments or townhomes to upsize to. Those who own houses, meanwhile, are increasingly resorting to renovations — finishing basements and adding third floors, for example — in order to add living space instead of looking for a bigger home.
These long-term trends have been weighing on housing supply for years, Cathcart said. And now that buyers’ demand is bouncing back from the lows of 2018, market conditions are once again tightening, he added.
“All of these factors are coming together to make things the way they are to start this year.”
Nationally, home price growth hit the breaks in 2017 and stagnated throughout 2018 and the first half of 2019, after a series of policy measures blew cold air on the market. In B.C. and Ontario, provincial governments have slapped surtaxes on foreign homebuyers. In Ottawa, the federal government imposed a stress test for both insured and, later, uninsured mortgages. Meanwhile, the Bank of Canada gradually hiked its key interest rate, pushing up borrowing costs.
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But in the latter part of 2019, buyers’ demand — and prices — started to heat up again.
“Now it looks like most buyers in most markets have adjusted to those measures,” said Robert Hogue, senior economist at RBC.
In part, that’s likely because people have had enough time to save for the larger down payment required by Ottawa’s tougher borrowing rules. In part, it may be that some buyers have just resigned themselves to purchasing cheaper homes. In addition, mortgage rates declined through part of 2019, tracking lower long-term borrowing costs in the bond market. That, in turn, lowered the benchmark interest rate used for calculations in the mortgage stress test, bringing some aspiring homebuyers back in the game.
High rates of immigration have also been adding to the ranks of buyers in search of a home, including in places like Halifax and Prince Edward Island, Hogue said.
The tight market, in turn, may be discouraging some sellers, he added. People worry about selling their home without having bought a home to move to, he said. Many want to line up a new property before they put up the “for sale” sign.
“But if everybody does that, it means that there’s not that many homes up for sale,” Hogue said.
It’s common for this to happen when housing market activity rebounds after a slow period, he added.
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It doesn’t help that, in much of the country, there have been relatively few inaugurations of new condo towers for the past several months.
Even though residential construction remains elevated, it’s easy for large, multi-unit building projects to run into delays, Hogue said.
And while condo units are usually sold pre-construction, once the apartments become available, many of them may be resold or made available for rental, said Thomas Davidoff, professor of real estate finance at the University of British Columbia’s Sauder School of Business.
Luckily, the condo shortage may not last long. In Greater Vancouver, many apartment buildings currently under construction are expected to be completed in the next two years, Davidoff noted.
“A lack of inventory in the condo market in Vancouver — I am not convinced that by the end of this year that will be the story.”
Hogue offered a similar assessment for both Vancouver and Toronto.
In the Prairies and Newfoundland and Labrador, on the other hand, there are still lots of homes in search of buyers. While employment levels have been recovering from the oil price shock of 2015, incomes aren’t what they used to be for many households, the CREA’s Cathcart said.
Sellers, on the other hand, are loath to take a big price cut, so the market has been adjusting slowly, he added.
While conditions seem to be stabilizing even there and the warmer season may bring some new momentum to the market, selling a home in those regions remains “tough,” he said.
© 2020 Global News, a division of Corus Entertainment Inc.
Coronavirus: Canada adds 870 new cases, 6 deaths in last 24 hours – Global News
Canada added 870 new cases of the coronavirus Thursday, but the national case count rose by an extra 248 cases that were delayed in reporting, bringing the national total to 140,752.
Six new deaths were also reported nation-wide in the last 24 hours, plus one from earlier in the week in Quebec, to bring the total to 9,200.
Ontario reported 293 new cases on Thursday, a slight decrease from the 315 reported the day before.
Three more deaths in the province have brought its total toll to 2,825, and resolved cases increased by 179 from the day before.
Fifty-three people are currently hospitalized, up from nine on Wednesday, while 21 patients are in intensive care, up from one on Wednesday, with 12 of them on a ventilator.
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Quebec reported 251 new cases in the last 24 hours, but added 499 cases Thursday due to a delay in reporting from earlier in the week, bringing its case total to 66,356.
The province now has been reporting an average of 300 new infections per day the last week.
“It’s everywhere that we have to be careful,” Health Minister Christian Dubé said.
Two deaths occurred in the province in the last 24 hours and one other was recorded that occurred earlier in the week.
The number of hospitalizations in the province shot up since Wednesday, going from six to 136, with 29 patients in intensive care, up from three a day earlier.
Over in British Columbia, 165 new cases of coronavirus were reported, setting a new single-day record over 139 recorded last week. Two of those cases are considered epi-linked.
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There are now 1,705 active cases in the province, a record high for them.
One new death was reported to bring the total to 210.
However, hospitalizations did decrease from 60 patients to 57, with 22 of them in intensive care.
In Alberta, 146 new cases were reported, bringing the province’s active cases to 1,403 with 41 in hospital and eight of them in ICU. No new deaths were reported.
Saskatchewan added seven new cases, while one case from Wednesday had been removed after deeming it to be from a non-Saskatchewan resident.
There are currently 109 active cases and five patients in hospital in the province, all in Saskatoon. No new deaths were reported.
Manitoba reported 11 new cases Thursday, and currently has 293 active cases with 10 in hospital and two in intensive care. No new deaths were reported.
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New Brunswick reported no new cases Thursday and said there are currently two active cases there.
Nova Scotia has continued its streak of no new cases, up to 10 days now.
No new cases were reported in the territories.
There have been 30,019,763 confirmed cases globally so far, according to Johns Hopkins University, and 943,515 deaths.
— With files from Global News staff
© 2020 Global News, a division of Corus Entertainment Inc.
What StatCan learned by asking 35000 Canadians about pandemic discrimination – CTV News
New data from Statistics Canada is adding to growing calls for the federal government to address racial inequities experienced by various population groups in Canada during the course of the pandemic in its economic recovery plan.
The survey results released Thursday found that 28 per cent of Canadians surveyed reported they had experienced some form of discrimination since the beginning of the COVID-19 pandemic.
Statistics Canada surveyed 35,000 Canadians between Aug. 4 to 24 to better understand which groups have been negatively impacted as a result of systemic failures amid the health crisis.
The agency notes that the survey data is not based on random selection and that the findings should not be interpreted to represent the overall Canadian population.
Young participants aged 15 to 24 were twice as likely as seniors aged 65 and older to report that they had experienced discrimination over the course of the pandemic. Among youth, Statistics Canada found women were 45 per cent more likely than their male counterparts to reporting having experienced prejudice.
Both Indigenous men and women were more likely than their non-Indigenous participants to report experiences of discrimination, but the difference was again particularly large among women.
DISCRIMINATION IN POPULATION GROUPS
According to the report, the experiences of discrimination also varied “across ethnocultural characteristics.”
Statistics Canada found that Chinese, Korean, Southeast Asian and Black participants were more than twice as likely as white participants to report that they had experienced discrimination.
The agency said the results are consistent with the data from a previous crowdsourcing initiative, which found that Chinese, Korean and Southeast Asian participants perceived an increase in the frequency of race-based harassment or attacks since the beginning of the pandemic.
The new report also found that immigrants who arrived in Canada within the last 10 years were more likely than established immigrants and Canadian-born participants to report that they had experienced discrimination.
Gender-diverse participants who did not report their gender as exclusively female or male were almost three times more likely than males to report that they had experienced discrimination during the pandemic. LGBTQ and other sexual minority participants were also more likely to report experiencing discrimination.
Additionally, participants who identified themselves as having a disability were twice as likely as participants without a disability to report being discriminated against.
FORMS OF DISCRIMINATION
Among those who said that they experienced discrimination, the most commonly reported form was based on race or skin colour (34 per cent), followed by age (30 per cent), physical appearance (26 per cent) ethnicity and culture (25 per cent) and sex (22 per cent).
Avvy Go, director of the Chinese and Southeast Asian Legal Clinic, says the new data amplifies equity concerns those who have experienced racism have had for years.
Go told CTV’s Your Morning on Thursday that the coronavirus pandemic has exposed racial inequities in multiple sectors across Canada including employment, health care, housing and education.
“Even before the pandemic, People of Colour, Indigenous people were earning less income, they were more likely to be employed in low wage jobs, and they have higher unemployment rates… There has also been significant increases for unemployment rate among Chinese and South Asian, more so than any other group,” Go said.
“We know that this is a result of systemic racism and structural racism within the labour market.”
Colour of Poverty – Colour of Change (COP-COC) is a campaign that is currently pushing for political parties to acknowledge racial inequalities amid the COVID-19 pandemic in Canada’s economic restart plan.
The campaign is calling for the federal government to address discrimination within its borders so the health crisis does not continue to impact racialized groups more so than other populations.
“By doing so, we will increase the opportunities for employment for the underrepresented groups, and that includes not just people of colour, but also women and people with disability as well,” Go said.
WHERE AND HOW DISCRIMINATION OCCURS
As each group faces its own set of unique challenges and circumstances, Statistics Canada found that the most common forms of discrimination differed between groups.
Among Indigenous participants who faced bias over the course of the pandemic, the most common form was discrimination based on Indigenous identity while those belonging to a visible minority group reported forms related to race and ethnicity. Among Black participants 84 per cent reported that they had experienced discrimination related to race or skin colour.
Similar to how the forms of discrimination were mixed, where participants experienced prejudice also varied.
Statistics Canada reported that about 4 in 10 participants (36 per cent) said that they had experienced discrimination in a store, bank or restaurant. One-third experienced it while using public areas such as parks and sidewalks, almost one-third experienced it online, and approximately 3 in 10 experienced it in the workplace or when applying for a job.
However, not all groups experienced the same types of discrimination situations.
According to the data, Black and South Asian participants reported more often incidents of discrimination that occurred in a store, bank or restaurant.
Chinese and Filipino participants were more likely to report experiencing discrimination while using public areas, and Arab respondents were more likely to report bias in the workplace.
Gender-diverse and sexual minority participants said they mostly faced discrimination online.
In all population groups, participants who reported experiencing discrimination also had lower levels of trust in institutions, including the police and the court system.
Statistics Canada acknowledged that each population group faces its own unique set of challenges and additional analyses will be required to get a deeper understanding of issues faced by all groups of people that live in Canada.
Visualizations by CTVNews.ca’s Mahima Singh
U.S. supply firm executives 'should not have been permitted' to enter Canada: Blair – CTV News
Public Safety Minister Bill Blair says executives of an American supply company did not receive quarantine exemptions from the Canadian government and “should not have been permitted” to enter the country.
According to a CBC News investigation, three executives from shipping and business supply firm Uline Inc. flew to Toronto on a private jet and visited the company’s facility in Milton, Ont. without quarantining. A spokesperson for the company told CBC News that the three employees were issued formal exemptions from the mandatory two-week self-isolation period for their two day-trip.
A federal order-in-council dictates that there are only five individuals who can issue such an exemption: Chief Public Health Officer Dr. Theresa Tam, Health Minister Patty Hajdu, Immigration Minister Marco Mendicino, Foreign Affairs Minister Francois-Philippe Champagne and Public Safety Minister Bill Blair.
Blair took to Twitter on Thursday to say that the government had not issued any exemptions in this case.
“To clarify: No special entry exemptions were provided to Uline executives, nor were any National Interest Exemptions. This was not a political decision,” Blair said.
“A decision was made by officers based on the information provided. Entry should not have been permitted.”
Blair said the government is working to prevent such a repeat of the incident.
“It is important that Canadians continue to have confidence in the integrity of our border. We are working with the CBSA to ensure that similar cases do not occur again,” he said in a tweet.
Ontario Premier Doug Ford also weighed in on the story during a Thursday press conference.
“There should be one rule for all the people, it doesn’t matter who you are, I don’t care if you have 50 cents or you have $10 billion. It doesn’t make a difference,” Ford said.
He applauded the border service agents, saying that “if someone slipped up” or “made a little mistake” he’s “sure it’s not going to happen again.”
“Just treat our rules with respect, and everyone’s going to have a good time after the quarantine and after we open up the borders, but not until then. Just stay at home, wherever you’re coming from, and we’ll open our arms up after we get through this,” Ford added.
CTV News has reached out to Uline Inc. for comment.
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