RSS

Tag Archives: Real Estate Development

Real Estate Forecast for 2018: What to Expect!

Real Estate Forecast for 2018: What to Expect!

<!– –> <!– –>

Real Estate Forecast for 2018: What to Expect

As we head into a new year, the most common question we receive is, “What’s the outlook for GTA’s real estate in 2018?”

 

It’s not just potential buyers and sellers who care; current homeowners also want reassurance about the value of their investment. No one knows exactly what 2018 will bring, but we’ve outlined expert predictions on where the market is headed and how government interventions are expected to impact the Canadian housing market in the year ahead.

HOUSING PRICES WILL REMAIN HIGH IN URBAN CENTRES

Although the Toronto real estate market did experience a slowdown in 2017, housing affordability will remain a major issue in both Toronto and Vancouver in 2018. According to the Royal Bank of Canada’s most recent Housing Trends and Affordability Report, as of Q2 2017 it cost more than 75 percent (Toronto) and 80 percent (Vancouver) of median household income to cover the average cost of owning a home.1

In an effort to stabilize prices, both the Ontario and British Columbia governments enacted a 15 percent tax on foreign investments in housing. However, according to the PricewaterhouseCoopers report on Emerging Trends in Real Estate: Canada and the United States 2018, “Industry players are skeptical that recent tax moves … to curtail foreign investment will have a long term cooling impact on housing affordability in Toronto and Vancouver.”2

In its Canadian Regional Housing Outlook, TD Economics predicts ”The decline in sales activity in both Vancouver and Toronto has helped to redistribute the balance of power from a pure seller’s market, back towards buyers, as evidenced by the sales-to-listing ratios. But, first-time homebuyers sitting on the sidelines waiting for higher interest rates to trigger a market crash may be holding their breath for a while. Prices are likely to only reset back to levels that existed prior to a year of exorbitant gains.”3

The high cost of living has forced a growing number of millennials to seek alternatives to traditional housing. The 2016 census found 47.4 percent of young adults in Toronto and 38.6 percent in Vancouver live with a parent. PricewaterhouseCoopers predicts a rise in multi-generational and multi-family homes, a move towards larger condominiums to suit growing families, and a flight from urban cores as new public transit projects make commuting more feasible.2

What does it mean for you? If you’re a current homeowner, you can expect your investment to hold its value and continue to appreciate over the long term. And if you’re considering selling this year, contact us to request a free Comparative Market Analysis to find out how much you can expect your home to sell for under current market conditions.

If you’re a potential buyer who has been waiting for real estate prices to drop, don’t expect a fallout any time soon. Governmental bodies have taken steps to slow down skyrocketing prices, which has helped to balance the market. Now is a great time to buy. And if traditional housing options don’t fit your budget, we can help you find alternatives to meet your needs.

GOVERNMENT INTERVENTIONS WILL HELP TO STABILIZE THE MARKET

Skyrocketing real estate prices have caused Canadians to take on a growing amount of debt. The federal Parliamentary Budget Office (PBO) reports that the average household indebtedness is up to 174 percent of disposable income, and they predict it will reach 180 percent by the end of 2018. Coupled with rising interest rates, the share of income that will go towards debt payments is expected to reach historic proportions.4

Regulators at the Office of the Superintendent of Financial Institutions (OSFI) have attempted to curb the potential fallout with interventions, the latest of which went into effect on January 1. These new regulations raise the requirements for mortgage borrowers with down payments of 20 percent or more. They are now required to qualify for a mortgage at an interest rate two percentage points higher than their current rate to ensure they can manage payments when interest rates do inevitably rise.

A similar “stress test” was enacted in 2016 for borrowers who put down less than 20 percent, but that regulation impacted a much smaller percentage of buyers.

According to Jeremy Rudin, the head of OSFI, “We clearly see the potential risks caused by high household indebtedness across Canada, and by high real estate prices in some markets. We are not waiting to see those risks crystallize in rising arrears and defaults before we act.”5

All federally regulated financial institutions will be obligated to utilize these requirements for both new mortgages and mortgage renewal applications of borrowers applying to switch lenders. It is not mandatory to apply the test at mortgage renewal for existing borrowers. Since credit unions are regulated provincially, they are not required to follow the new OSFI rules, although some may choose to out of prudency.

What does it mean for you? With new rules in effect, if you’re a buyer, your purchasing power may be impacted. If you’re concerned you may not be able to meet these requirements, securing your mortgage through a credit union may be an option. We are following this issue closely. Give us a call so we can discuss how these new rules will affect your home search.

If you’re considering selling your home this year, these regulations could alter the type of buyer who will be willing and able to purchase your home. We have expertise in this area and know how to market your home to a changing demographic.

5 YEAR MORTGAGES WILL MAKE A COMEBACK

Expect interest rates to rise in 2018. Bank of Canada has indicated that borrowers should expect to see rate increases this year … and notably, nearly half of Canadian mortgage holders are set to renew their mortgages in the next 12 months. Combined with the new, more stringent “stress test” requirements, a greater number of homeowners will be opting for five-year-fixed rate mortgages over the historically popular variable rate mortgages.6

According to LowerRates.ca, “Since January 2014, 56% of Canadian borrowers who applied for a mortgage through LowestRates.ca have gone variable, compared with 43% of those who got a five-year fixed. But this past August, there was a shift, where the five-year-fixed rate mortgage saw a sharp increase in applicants, with 59% of users on the LowestRates.ca site opting for this option versus only 39% opting for the variable mortgage.”7

What does it mean for you? If you’re in the market to buy, act now. Rising interest rates will decrease your purchasing power, so act quickly before interest rates go up. Give us a call today to get your home search started.

And if you’re a current homeowner who is set to renew your mortgage, you may want to consider locking in a five-year-fixed rate. Contact us if you would like assistance navigating your options.

 

 

2018 ACTION PLAN

If you plan to BUY this year:

 

1.    Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly.

2.    Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What’s most important to you in a home? We can set up a customized search that meets your criteria to help you find the perfect home for you.

3.    Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget, all at no cost to you. Give us a call to schedule an appointment today!

 

If you plan to SELL this year:

 

1.    Call us for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home, it’ll also show how your home compares to others in the area. This will help us determine which repairs and upgrades may be required to get top dollar for your property … and it will help us price your home correctly once you’re ready to list.

2.    Prep your home for the market. Most buyers want a home they can move into right away, without having to make extensive repairs and upgrades. We can help you determine which ones are worth the time and expense to deliver maximum results.

3.    Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don’t use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage … and get you one step closer to moving when the time comes!

 

WE’RE HERE TO HELP

 

While national real estate numbers and predictions can provide a “big-picture” outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market, and the local issues that are likely to drive home values in your particular neighbourhood. If you have specific questions, or would like more information about where we see real estate headed in our area, please give us a call! We’d love to discuss how issues here at home are likely to impact your desire to buy or a sell a home this year. Please visit our website SnapHomes.ca for latest MLS listing and pre-construction Homes & Condos.

Can’t find what you are looking for? Contact us for Exclusive list of Pre construction Homes and Condos and our pocket listings for Land!
Sources:

1.     Royal Bank of Canada’s Housing Trends and Affordability Report –
http://www.rbc.com/newsroom/_assets-custom/pdf/20170929-ha.pdf

2.     PricewaterhouseCoopers Emerging Trends in Real Estate 2018  –
https://www.pwc.com/ca/en/real-estate/assets/Real_Estate_ETRE_2018_PDF.pdf

3.     TD Economics Canadian Regional Housing Outlook –
https://economics.td.com/canadian-regional-housing-outlook-aug-2017

4.     Office of the Parliamentary Budget Officer –
http://www.pbo-dpb.gc.ca/en/blog/news/HH_Vulnerability

5.     Financial Post
http://business.financialpost.com/personal-finance/stricter-osfi-rules-on-mortgage-lending-will-do-more-harm-than-good-fraser-institute

6.     Bank of Canada Financial System Review November 2018  –
https://www.bankofcanada.ca/wp-content/uploads/2017/11/fsr-november2017.pdf

7.     Maclean’s  –
http://www.macleans.ca/economy/money-economy/canadians-rushing-to-lock-down-five-year-fixed-rate-mortgages/

Advertisements
 

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

Mount Joy

QR form

PACE DEVELOPMENTS brings a rare depth of knowledge and expertise to every project they undertake. A Canadian-owned and operated professional building company, PACE Developments offers decades of experience in residential and commercial project management and construction. Whether the project is a customized family home, a shopping center or an international luxury resort, every client benefits from PACE’S commitment to helping them realize their vision.

This slideshow requires JavaScript.

A recognized leader in the Canadian construction industry, PACE is regularly referred as a builder-of-choice by industry associations and business bureaus based on a solid reputation for vested involvement and accountability from the very inception of an idea, through to planning, construction and completion.

A proven track record of success speaks to the strength of the PACE team. Project partners rely on PACE for solid leadership… and clients rely on PACE for an unwavering commitment to deliver the highest quality product and personalized customer service.

FORTRESS REAL CAPITAL finds real estate projects with significant profit potential and provides financing to help make the project happen. This unique RSP and non-accredited eligible syndicate mortgage product is offered by Centro Mortgage Inc. and allows consumers to invest directly into large scale Real Estate Development projects with real security and real returns.

The Fortress record of accomplishment includes numerous high rise and mid rise condominium projects in downtown Toronto, low-rise residential in Markham and Oakville, and resort condominiums on Lake Simcoe.

Everyone’s jumping for Mount Joy in Markham. And no wonder! Start with the forest, the established neighbourhood, the GO Station, the great shopping… it’s all here just waiting for you to move in and move up! So get ready to experience a little more joy in your life. The community you’ve always wanted is in the heart of Markham. And it’s called Mount Joy!

There’s nothing like the joy of waking up to the sound of wind in the trees, or the first song of a robin in Spring! When you live in Mount Joy, Nature is as close as the forest in your backyard! And just around the corner you’ll find Mount Joy Lake Park and the 48-acre Wismer Commons Park where Robinson Creek leads to the Rouge River Valley! In fact there are ponds and forests and valley land all through the heart of Markham where century-old trees line either side of historic Main St.

EXTERIOR FINISHES

1. Quality Clay Brick &/or stone &/or Stucco, as per applicable elevation.

2. All exterior elevations and colour schemes, including brick selection, are Architecturally Controlled as part of pre-selected exterior colour package to ensure a pleasing streetscape.

3. Decorative architectural columns, railings, pickets and cladding as per applicable elevation.

4. Thermal glazed Vinyl Casement Windows throughout main and second floor, Basement windows are sliders.a

5. Raised Panel, Carriage Style Sectional Garage Doors, as per elevation.

6. Lot to be fully Sodded, including boulevard.

7. Driveway fully paved.

8. Garage Floor to be poured concrete with steel reinforcing.

9. Maintenance-free Soffits, Fascia, Eaves Troughs and down pipes as

per elevation.

10. Self-sealing, 25 Year Quality Asphalt Roof Shingles.

11. Upgraded, insulated and embossed front entry door.

12. All exterior doors are insulated non-warp metal doors with energy-efficient weather stripping.

13. Elegant grip set on front door.

•Exterior Colours are Architecturally Controlled as part of pre-selected exterior colour packages.

INTERIOR FINISHES

1. 9’ CEILINGS on main floor and 8’ ceiling on 2nd on all models.

2. Upgraded Colonial Baseboard and trim for all doors and window openings.

3. Series 800 or Classique Interior colonial doors.

4. Brushed Nickel door hardware, hinges and knobs or levers

5. Oak railing, pickets, and nosing to main staircase and upper hall, as per applicable plan.

6. 35 oz Broadloom with 11 mm foam under-pad in all non-tiled areas.

7. Imported ceramic tile flooring in kitchen, bathrooms and foyer from vendor’s standard samples.

CONSTRUCTION

1. Exterior drainage membrane provided at basement area and weeping tiles for additional protection against basement leaks.

2. All framing in accordance with Ontario Building Code and local

municipal requirements.

3. All exterior walls of habitable areas constructed with 2″ x 6″ framing.

4. Professionally engineered roof trusses, as per applicable plan.

5. Engineered flooring system, which greatly minimizes floor squeaks and deflection (bounce).

6. 5/8″ Tongue and Groove plywood subfloors.

7. All insulation as per Ontario Building Code: Exterior walls of habitable areas insulated to a rating of R20;

Roof of habitable areas insulated to a rating of R40; Basement walls R12.

KITCHENS

1. Double Compartment Ledge-back stainless steel sink.

2. Single Lever faucet with vegetable spray.

3. Vented exhaust hood fan over stove area, to match appliances.

4. Rough-in wiring and plumbing for dishwasher hook-up.

BATHROOMS

1. Standard white bathroom fixtures from Builder’s samples.

2. Single lever faucets in all vanities, shower controls with built-in balance regulators.

3. Mirrors in all bathrooms and powder room.

4. Ceramic towel bar and paper holder in all bathrooms, white.

1. Single laundry tub located as per plan.

2. Plumbing and electrical provided for laundry equipment hook-up, location

per plan.

3. Heavy-duty electrical outlet for dryer and electrical outlet for washer.

4. Exterior wall vent provided for dryer.

ELECTRICAL

1. 100 AMP circuit-breaker panel with copper wiring throughout.

2. All wiring in accordance with Ontario Building Code standards.

3. Interior Electrical light fixtures throughout, except the Living room, which is equipped with a switched wall outlet.

4. Electrical door chime.

5. Rough-In central vacuum outlets.

6. Smoke detector on each level.

7. Carbon monoxide detector, as per Ontario Building Code.

8. Telephone outlet in kitchen and master bedroom.

9. Cable T.V. Outlet In Living Room or Family Room and Master Bedroom.

10. Exhaust fans to be provided in all washrooms, as per specifications.

11. White Light Switches and Wall Plugs.

12. Decorative Black Coach Lamp at front and rear of home, as well as side entries, where applicable.

13. Alarm – Security system rough-in.

HOME COMFORT

1. Energy Efficient Electric Fireplace in living room, despite floor plans that

show gas.

2. High efficiency gas fired forced air Furnace with electronic ignition.

3. Energy efficient gas fired Hot Water Tank (rental agreement).

COLOUR SELECTION AND FINISHINGS

1. All colour and finishing selections will be made at the designated Décor Centre and from Builder’s standard samples.

2. The Purchasers’ acknowledge that items displayed in the Model Home or sales office may include upgraded items available at an extra cost, as well as other items shown for display purposes only, which may not be available.

3. The Purchasers’ acknowledge and agree that variations in colour and shade uniformity may occur and the colours, patterns and availability of samples displayed in the Décor Centre or Sales Presentation Centre and/or Model Homes may vary from those displayed and available at the time of

colour selection.

TARION WARRANTY CORPORATION COVERAGE

The Ontario New Home Warranty Program offers:

1.SEVEN Years, Major Structural Defects.

2.TWO Years, Plumbing, Heating, Electrical Systems and Building Envelope.

3.ONE Year, All Other Items

Download the brochure.

E-mail or call me for Price List!

 

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

 
%d bloggers like this: