Home of the Week, 130 Carlton St., Toronto.Anton Mardirossian/Anton Mardirossian/TRE Media
Here are The Globe and Mail’s top housing and real estate stories this week, with the lowest mortgage rates available in Canada today, commentary from our mortgage expert and one home worth a look.
Banks seeing decline in borrowers adding unpaid interest to their mortgage balances
Lenders are seeing outstanding loans grow as borrowers’ monthly payments don’t cover the total amount of interest. These mortgages – that increase in size instead of reducing in size – are known as “negative amortization.” Three of Canada’s major banks offer mortgages that allow their borrowers to go into negative amortization – a product that the federal bank regulator is now calling “dangerous,” writes Rachelle Younglai. The billions of dollars that quickly accumulated in negative amortizations has been a clear sign of the stress borrowers are facing when they are required to increase their monthly payments to get back on track with paying down their mortgages.
Potential Canadian homebuyers stand pat, expecting prices to slide further
TD economist Rishi Sondhi is now forecasting that the average national home price will drop 10 per cent through the early part of next year from the third quarter of 2023, leading potential buyers throughout the market to hold off in case prices have farther to fall, writes Carolyn Ireland. New listings have recently flooded the market in Ontario, which Mr. Sondhi says appears to be due to some condo investors in Toronto and Hamilton exiting the market. The climb in condo units for sale in those and other cities suggests that over-leveraged investors are choosing not to hold on to their properties.
This week’s lowest available mortgage rates
Tens of thousands of Canadians are camping out for real estate discounts, waiting for the housing market to slap big red “On Sale” signs on front lawns this winter, or pull the trigger on buying their first home, writes Robert McLister in his weekly column. But consider this: If average mortgage rates fell merely one percentage point, all it would take to cancel out that nationwide affordability improvement would be a $63,000 bounce in the $656,625 price of an average home. That kind of gain can happen in two months, as it did last spring.
Ontario real estate law gets an update with open bidding option
The new rules, which took effect Friday, include improvements to broker and brokerage disclosures, and ways to avoid conflicts on multiple representation. But the biggest change is the option for sellers to use an open bidding process, which gives the seller the choice to disclose submitted bid prices to potential buyers, something they were previously banned from doing. Provincial and federal politicians have advocated for open bidding, saying it could help bring down skyrocketing home prices. However, some experts say there’s little research on how blind bidding affects prices, and a move to open bidding could lead to negative effects for sellers.
Home of the week: Gordon Pinsent’s Toronto condo still bears his mark
This three-bedroom penthouse was formerly owned by the late Canadian actor Gordon Pinsent, and his impact on the space can still be felt – one of his original paintings is included in the sale, for starters. The open-concept space includes a dining and living area with a vaulted ceiling that soars to nearly 16 feet, and a modernized kitchen with stainless-steel appliances. A spiral staircase leads to the second-floor loft, which is open to the living room below. Doors open to a terrace with 1,086 square feet of outdoor space. The loft was used as Mr. Pinsent’s office and studio, which his daughter says inspired much of his creativity.
What do you think is the asking price for the property?
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.
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.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
