RSS

Tag Archives: economy

New Toronto condo sales decline in Q3 2012 due to lack of new launches

There were 3,317 new condominium apartment sales in Toronto in Q3 2012 according to the new Urbanationmarket overview released today.

This represents a 30 per cent decrease from the second quarter figure.

“With slowing sales and a record level of unsold inventory in the market in the second quarter, condominium developers reacted quickly by delaying their project launches, especially in the ‘416’ area,” explained Ben Myers, Urbanation’s Executive Vice President, in a press release.

“Just five projects launched in Toronto in Q3-2012, as developers choose to review their pricing assumptions and unit mix.”

The report also noted the average price of an unsold unit in the Toronto CMA  is sitting at $573 per square foot, an increase of 2 per cent year-over-year. In Toronto proper, the price was $670 per square foot, up from $668 a year ago.

The low number of new launches led to a decrease in unsold inventory in the Toronto CMA from a record high 18,123 in Q2 2012 to 17,182 in Q3.

How will the Toronto market fare in Q4? We’ll have to wait until the new year to find out the official numbers.

Source: Urbanation
 

Tags: , , , , , , , ,

Housing starts will slow; resales of existing homes will remain steady in 2013

Construction of new homes in Canada was higher than expected in 2012, but is expected to slow in 2013 according to a forecast released today by the Canadian Mortgage and Housing Corporation.

The CMHC’s fourth quarter 2012 outlook also noted that resales of existing homes should remain steady. This is expected to lead to house price growth that is roughly in step with or slightly below inflation.

Housing starts appeared to slow in September, but through a significant chunk of 2012 economists have been surprised by the number of starts. The high number has been attributed to the large number of condos being built.

“A weaker outlook for global economic conditions and the waning of the effect of pre-sales from late 2010 and early 2011, which contributed to support multi-family starts this year, will bring moderation in housing starts next year,” Mathieu Laberge, deputy chief economist at CMHC, explained in a press release.

“Nevertheless, employment growth and net migration will help support housing starts activity going forward.”

Here are a few more essential points from the CMHC’s quarterly report:

  • The CMHC forecasts that there will be 193,600 housing starts in 2013 and estimates that the 2012 number will total 213,700
  • The CMHC forecasts there will be 461,500 resales in 2013 and 457,400 by the year end of 2012
  • Total starts in 2013 are expected to decline as a result of lower multi-family starts
  • Resales are expected to rise due to employment growth and low interest rates
 

Tags: , , , , , , , , , , , ,

Condo prices expected to jump in major Canadian markets

A new study by Genworth Canada and the Conference Board of Canada says first-time buyers, retirees and population growth will continue to fuel demand and price growth in condo markets in Canadian cities over the next few years.

The report looked at eight major metropolitan areas and noted that rising prices for single detached homes are encouraging first-time buyers to look at condos as an option, while retirees “remain heavy condominium consumers.” Further demographic support in the coming years will be provided by an aging population.

The report also cited continued low interest rates and employment growth as factors supporting the condo and housing market.

Genworth is a Canadian mortgage insurer based in Oakville, Ontario.

Here are a few more interesting factoids included in their report:

  • Absorption of new condos is forecast to fall only in Edmonton in 2012 while small increases are expected in Quebec City and Ottawa
  • Calgary absorptions are expected to more than double, but will remain below their boom-era level pre-recession
  • Unsold inventories in Toronto will stay below early 1990s levels and are expected to ease by 2013
  • Vancouver is the least affordable city in Canada while Calgary is the most affordable when analyzed relative to local incomes
  • In Toronto by 2013, the average resale condo price is expected to be $312,352, up by 2.5 per cent
  • Vancouver condo resale prices are expected to drop 2 per cent to $348,152

Many of the report’s predictions run contrary to warning issued by some experts and government officials about the Canadian housing market and some specific “overheated” markets.

“This data corroborates our view that the demand for condos in Canada, particularly at the price-point we insure, is well supported by our economy and our population,” said Brian Hurley, chairman and CEO of Genworth Canada in a press release. “For those seeking to own a home affordably in urban centres, condos remain a good option.”  Source: Buzzbuzzhomes

 
Comments Off on Condo prices expected to jump in major Canadian markets

Posted by on September 5, 2012 in Condominiums

 

Tags: , , , , , , , , , ,

No sharp dive in housing market says CIBC economist

According to a top CIBC economist, suggesting the anticipated housing decline will not be as sharp or as long as earlier projected because of immigration.

“It turns out fears of a long and sharp downturn in the housing market, are highly exaggerated and very premature,” said Benjamin Tal, deputy chief economist at CIBC. “In fact demographic forces will be supportive to real estate markets in the coming decade.”

Tal predicts immigration, which is responsible for most of the population growth, will be a major force impacting housing demand.

“What’s more, there is significant jump in the home ownership rate among immigrants as they pass the three-year mark,” said Tal. “In fact, after 10 years in Canada, the propensity among immigrants to own a house is higher than among native Canadians.”

While there will be a decline in the number of Canadians under the age of 25 and those between 45 and 54, those age groups account for a relatively small portion of home buyers, Tal writes in his latest Consumer Watch report.

By contrast, the number of Canadians between the ages of 25 and 35 – the age group that makes up the vast majority of first-time home buyers – will continue to rise, the report said.

“From a housing market perspective, what counts is not only the change in population of a given age group, but more importantly, the level of housing market activity among these groups,” said Tal. “In other words, the group that is most likely to buy a house will grow faster in the coming decade.” Source: Brokernews.ca

 
Comments Off on No sharp dive in housing market says CIBC economist

Posted by on August 23, 2012 in Brampton, Builder's Home, canada wonderland, Cinema, City of Toronto, Cloud, Cloud 9 Condos, CN Tower, Commercial, Commercial Real Estate, Condo Prices Grow at Moderate Pace in Q2, Condominiums, Detach, Detached, Detached Homes, Diamond @ Don Mills, Don Mills, Dream Home, Dream Tower, Dream Tower Condominiums, Dream Tower Condos, E Condo, Florida, Florida Real Estate, Home, Home for in Pickering, Home For Sale in Richmond Hill, House, House for sale, hwy#7 outlet stores, Index, Kingshill, Kitchener, Kleinburg, Land Transfer tax, Lawrence Park, Leslie, Local at Fort York, Lofts, lot for sale, Love Condo, Love Condominiums, Low Rise Homes, Luxury Homes, Luxury Townhomes, New Announcement, New Canadian Mortgage Rule, New Canadian Mortgage Rules, New Condominiums, New Condos, New Construction, New Development, New Homes, Nexus South, No sharp dive in housing market, Oakville, office, One Bloor, Palace, Pan Am, Pan Am Games, Pan Am Games 2015, Perspective, Pickering Condos, pickering Homes, pickering Real Estate, Pickering Town Center, Pickering Town Centre, Pikcering Homes, Port Union, Port Union waterfront Festival, Pre Construction, Residential, Restuarant, Retail, Richmond Hill, Richmond Hill Real Estate, RIMS, Semi, Shopping Mall and Plazas, Shopping Plazas, Single Family Home, Strip Plazas, Sunset, Sunset Condos, Ten, Ten York, The Beverly Hills Condos, Toronto Housing, Toronto Land Transfer Tax, Toronto New Condos, Tower, Town Homes, Townhome, USA Cheap Real Estate, Vaughan, vaughan condos, vaughan mills mall, Woodbridge, woodbridge condos, Yonge St

 

Tags: , , , , , , , , , , , ,

Condo Prices Grow at Moderate Pace in Q2

Condo Prices Grow at Moderate Pace in Q2

July 18, 2012Greater Toronto REALTORS® reported 6,435 condominium apartment transactions during the second quarter of 2012 – down by 2.6 per cent compared to 6,609 transactions reported in the second quarter of 2011. New listings for condominium apartments were up substantially on a year-over-year basis, climbing by 19 per cent in comparison to 2011.

“The condominium apartment market has been the best-supplied market segment in the GTA this year. Many condominium projects have completed over the past year and this has resulted in a substantial increase in listings and ultimately more choice for buyers,” said Toronto Real Estate Board President Ann Hannah. “The greater degree of choice in the condo market translated into a moderate rate of price growth compared to what was experienced in the low-rise market segment.”

The average price for second quarter condominium apartment sales was $342,212, representing a 3.2 per cent increase over the same period in 2011.

“Sellers seemed to be well-aware of condo market conditions in the second quarter. On average, units were priced in line with buyer expectations, with apartments selling for 98 per cent of the asking price in less than a month’s time,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. 6,435 6,609 Second Quarter 2012 Second Quarter 2011

 

Tags: , , , , , , , , , , , , ,

Strong Sales and Price Growth in May

 TORONTO, June 5, 2012 – Greater Toronto REALTORS® reported 10,850 transactions through the TorontoMLS system in May 2012 – an 11 per cent increase over the 9,766 sales in May 2011. Sales growth was strongest in the ‘905’ regions surrounding the City of Toronto.

“Sales growth in the ‘905’ area code was stronger than growth in the City of Toronto across all major home types. While lower average prices are certainly one factor that has contributed to this trend, recent polling also suggests that the City of Toronto’s land transfer tax has also prompted many households to look outside of the City for their ownership housing needs,” said Toronto Real Estate Board (TREB) President Richard Silver.

 

New listings were up substantially on a year-over-year basis in May – rising by more than 20 per cent to 19,177.

 

The average price for May 2012 sales was $516,787, representing an annual increase of 6.5 per cent compared to $485,362 in May 2011. Price growth continued to be driven by the low-rise market segment.

 

“Strong competition between buyers seeking to purchase low-rise home types drove strong price growth in May. However, if new listings continue to grow at the pace they did in May for the remainder of 2012, the annual rate of price growth should begin to moderate on a sustained basis,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. Source: TREB

 

Tags: , , , , , , ,

Land Transfer Tax Poll Results Released

 Land Transfer Tax Poll Results Released Ahead of Important Announcement by Toronto Real Estate Board

TORONTO, June 1, 2012

– Ahead of an important announcement to be made on Monday June 4th, by the Toronto Real Estate Board (TREB), regarding efforts on the City’s Land Transfer Tax, Toronto’s REALTORS® are releasing results of public opinion polling that shows, among other results, a strong majority of Torontonians, 66 percent, support plans to repeal the Toronto Land Transfer Tax.

The detailed polling results were formally presented by Mike Colledge, President, Canadian Public Affairs for Ipsos Reid at a TREB luncheon attended by various elected officials from all levels of government, shelter charity representatives, real estate industry representatives, and TREB Members.

“REALTORS® know that the Toronto Land Transfer Tax is having an impact on our City, and these poll results show that the public understands this too,” said Richard Silver, President of TREB. “The Toronto Land Transfer Tax is impacting real people and real jobs and it’s holding our City back. It’s time for action. TREB is looking forward to making an important announcement on this, next Monday.”

Among other key highlights of the poll were:

77 percent of Torontonians who recently purchased a home in Toronto feel that they received little or no added value in City services for the amount of Land Transfer Tax paid to the City;

A third of first-time buyers indicated that they had to pay some Land Transfer Tax to the City, notwithstanding City rebates;

 

In a list of issues facing municipalities, housing affordability was most often ranked as the most important by Torontonians, ahead of traffic congestion;

 

78 percent of Torontonians believe that property taxes are more transparent than the Land Transfer Tax and make it easier for the public to hold City Council accountable for their spending decisions;

 

Public opposition to the land transfer tax remains strong even if the tax were to be dedicated for spending on transit and infrastructure, with more than two-thirds, 68 per cent, opposed to this idea;

 

61 percent of Torontonians believe that City spending on programs and services is efficient and cost-effective. This is up from 45 percent a year ago, indicating a significant improvement.

This poll is the third conducted for TREB by Ipsos Reid in the last year.

 

“Public opinion on the Toronto Land Transfer Tax has remained consistent through all the ups and downs of the economy and City Hall debates. Clearly, the public’s opposition to this tax is strong,” said Von Palmer, TREB’s Chief Government and Public Affairs Officer. “We understand the importance of quality services to building a great city, but we believe that those services should be funded fairly and reliably.”

 

TREB will be following-up on the release of this polling data with the release of additional results and an important announcement on efforts regarding the Toronto Land Transfer Tax, on Monday June 4th.The poll was conducted by Ipsos Reid, from April 30 to May 7, 2012, with a sample of 1,257 adults, of which 653 live in the City of Toronto, and 604 live in the surrounding 905 region, with a margin of error of

+/-2.8 percentage points, 19 times out of 20. Questions were posed to only Toronto residents, or only 905 region residents, or both, as appropriate, depending on the question.  Source: TREB

 

Tags: , , , , , , , , , , , ,

 
%d bloggers like this: