Monthly Archives: October 2016

Month: October 2016 House price market correction is coming – National Bank

  Vancouver’s detached home costs will fall 20 per cent over the next year as the number of homes changing hands in the city continues to plunge, National Bank said in a report on Friday. “In the case of vehicles of Vancouver, we guess the prices correction will begin soon,” National Bank economist Marc Pinsonneault said in the report. While a correction of that magnitude sounds dramatic, the bank characterizes it as “moderate” given how high prices have clambered up in the city. In his report, Pinsonneault said Ottawa’s new mortgage regulations will have a chilling influence, but potential impacts

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Month: October 2016 New regulations ‘not the end of the world’ in Toronto – Builder

  In toronto real estate, while the Toronto condominium market will certainly feel the dampening effects of the recent changes to federal rules governing mortgages, a renowned builder and real estate broker was contended that such adjustments will not inevitably lead to price corrections and sales decline in the city.“It’s really not the end of the world,” Brad Lamb told CBC News .“The market here is so well is consistent with employment. There are shortages of rentals, shortages of purpose-built rentals, and shortages of anything to buy,” he elaborated.” I think it’s a whole lot of nothing.”   Lamb added

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Month: October 2016 Toronto home buyers look to buy condos which are now getting larger

  In toronto real estate, Toronto-area builders say a shortage of low-rise homes continues to push people into condominium apartments, which are increasing in sizing for the first time in years to gratify the demand. “The recent increase in high-rise costs can be attributed to the rise in average suite sizing, combined with a growing price per square foot ,” said Brian Tuckey, chairperson and chief executive of the Building Industry and Land Development Association(BILD), in a release,”This time we have assured the introduction of larger suites aimed at purchasers who have been priced out of the low-rise marketplace .”

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Month: October 2016 GTA Realtors Release September, 2016 Resale Housing Market Figures

  In toronto real estate, on October 5, 2016, Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS reported 9,902 sales through TREB’s MLS System in September 2016. This result was up by 21.5 per cent compared to September 2015. For the region as a whole, strong annual rates of sales growth were experienced for all major home types. The tempo of detached sales growth was slower in the City of Toronto and the number of semi-detached sales was down compared to last year. In both cases, the year-over-year dip in new listings was likely the

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Month: October 2016 Housing in Canada overheating but don’t expect a breakdown, a new report

  In toronto real estate, forget all the housing crash talk says a new report that recommends prices acceleration in Canada’s housing market will slow down without any hard landing. Moody’s Analytics, which employed the Brookfield RPS house price index for its modelings, maintains that prices in Canada will slow down as some markets, especially Vancouver and Toronto, consider homes become overvalued and less affordable while international capital inflows slow down.   “We are predicting that the housing market will slow down, in terms of home cost growth, significantly,” said Andrew Carbacho-Burgos, an economist with Moody’s Analytics who forecasts national

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Month: October 2016 CMHC elevates red flag about housing, warns of Toronto, Vancouver price spillover

  In toronto real estate, the head of the federal housing agency is raising a red flag about the government of Canada’s real estate sector, saying affordability fears have spilled over from the country’s two most expensive cities to nearby markets. In an opinion piece written Monday in the Globe and Mail, CMHC CEO Evan Siddall says the agency will create its overall danger rating for the national housing marketplace to “strong” from “moderate” for the first time when it issues its housing marketplace rating on Oct. 26, 2016. ” Affordability pressures suffered lower-income households the most and induce real

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Month: October 2016 New mortgage stress test rules kick in

  In toronto real estate, new rules aimed at stimulating it harder to get a mortgage take effect today, October 17, 2016, a move that is bound to have an impact on demand for homes in Canada. Earlier this month, Ottawa announced the moves, which boil down to a stress test for all insured mortgage applications. It consists of testing to determine if a borrower could afford to pay back a loan if the rate becomes higher, so they judge the borrower against the five-year bank rate of 4. 64 per cent for a five-year loan — even though many

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Month: October 2016 Canada tightens mortgage market rules, and some buyers will not be qualified

  One of Canada’s largest mortgage default insurers says about one third of its consumers would have problems meeting the new required debt service ratios unveiled by Ottawa Monday and could ultimately be forced into lower priced houses.   Finance Minister Bill Morneau unveiled plans that would force all insured borrowers to qualify for loans based on the posted rate for a five-year rate mortgage, now 4.64 per cent. Consumers with locked-in rates for five years or more have previously been able to use the rate on their contract — as low as 2.17 per cent, according to ratehub.ca —

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Month: October 2016 Toronto home prices gain by 20%, and buyers encounter new mortgage rules

  Toronto’s record-setting existing homes market released more eye-popping results for sales and prices, but realtors say they’ll have their eye on new federal mortgage rules and their impact on the market. The Toronto Real Estate Board said Wednesday it recorded 9,925 sales through the multiple listing service in September, a 21.5 per cent increase from a year ago. Based on the board’s MLS home price index, the average selling price for all properties in the region reached $755,755, a 20.4 per cent increase from a year ago. “We continued to see strong demand for ownership housing up against a

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Month: October 2016 Bank costs will increase with end of Canada’s ‘unique’ mortgage system

  In toronto real estate, the days when Canada’s banks could offload much of the risk of underwriting mortgages onto taxpayers may be drawing to a close. Canadian Finance Minister Bill Morneau disclosed plans Monday to begin consultations on sharing the risk of mortgage default with the country’s lenders. The move was part of a package of measures designed to stabilize the housing market after years of soaring prices in Vancouver and Toronto. While it’s not clear what form that risk-sharing will take — a deductible on mortgage insurance may be one option — any move will likely require Canadian

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