A Swiss bank has concluded that Toronto’s housing market is in bubble territory, as homes in the city are more overpriced based on local rents and incomes than in places like New York, San Francisco, London and Hong Kong.
In an annual ranking, UBS looks at 25 major cities in Europe, North America, the Middle East and Asia to track and compare the risk of housing bubbles at the local level in each of them, and it then assigns them a number based on that ranking.
A score above 1.5 indicates the bank thinks there’s a risk of a bubble, which UBS defines as “a substantial and sustained mispricing of an asset, the existence of which cannot be proved unless it bursts.”
A score of between 0.5 and 1.5 suggests the market is merely overvalued, while a score of below 0.5 to -0.5 suggests houses are probably fairly valued. Anything below that implies the city is undervalued based on local incomes, demand for housing and other factors.
Toronto scored 1.96, which placed it behind only the German cities of Munich at 2.35 and Frankfurt at 2.26.
No other North American city was deemed to be in bubble territory, including Vancouver, New York, Los Angeles, Boston, Chicago or San Francisco.
It’s the third year in a row that Toronto has been deemed to be in a bubble, after scoring 1.95 in 2018 and 1.86 in 2019.
Vancouver scored 1.37, which means UBS thinks the city’s real estate is only slightly overvalued. Two years ago, Vancouver was also in bubble territory, with a score of 1.92. But prices have come down in the two years between that report and the advent of COVID-19.
But the pandemic has had an unexpected impact on Canada’s real estate market. House prices in both cities have blown past expectations and risen sharply as demand for single-family homes has grown considerably, the bank noted, especially in the suburbs.
Because of that, “affordability is already stretched [and] new supply should be considerable in the coming quarters,” the bank said.
Prices are already high, and an expected “appreciation of the Canadian dollar will curb the appeal of Toronto’s property to foreign buyers when travel restrictions are lifted,” UBS said.
For Vancouver, the bank said that a foreign buyer’s tax had the desired effect of cooling red-hot price gains a few years ago, but they are once again going up and looking overvalued, if not in bubble territory.
“The rental market has been under pressure, as immigration dropped due to the pandemic,” UBS said. “Overall, still sky-high valuations limit the upside for price growth given uncertainty about economic growth.
The cost of buying in major cities
Based on local salaries, UBS calculates that it would take a skilled service worker seven years worth of earnings in order to afford a 650-square-foot home near downtown Toronto, and eight years in Vancouver.
That compares with just three years in Chicago, four in Boston and five in Los Angeles. On the opposite end of the spectrum, it would take that same worker in Hong Kong 20 years to buy a place, and 14 years in London.
Real estate investors, meanwhile, at current prices would need to rent out their new properties for 28 years in Toronto, and for 29 years in Vancouver, just to break even based on current prices.
“Big urban centres will remain economic hubs and should continue to attract people but sky-high housing market valuations, coupled with noticeably weaker demand prospects, suggest investors should be cautious,” UBS said. “Though real estate is often regarded as a legacy investment, now is certainly not the worst time for owners of multiple properties to consider profit taking.”
Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
