November 2012 Ontario Economic Fundamentals

[Ally]

Hamilton housing market to remain steady in 2013




The downtown and east end will be the hottest spots of a steady Hamilton housing market next year, according to an economist from the Canada Mortgage and Housing Corporation (CMHC).




`Overall, the Hamilton market will be healthy,` said Abdul Kargbo, a senior market analyst for the CMHC, speaking on Tuesday in front of a group of about 300 real-estate industury stakeholders at Burlington's Royal Botanical Gardens.




He said first-time home buyers between the ages of 24 and 44, as well as migrants from Toronto, will help sustain demand for housing in the Hamilton Census Metropolitan Area (HCMA), which contains Hamilton, Burlington and Grimsby.




`These are the people who'll be driving the recovery into next year,` he said.





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[Ally]

Canada's auto industry headed for most profitable year since 2001




OTTAWA - Canada's vehicle manufacturers are poised to have their most profitable year in a decade in 2012, according to the Conference Board of Canada.




The Ottawa-based economic forecaster estimates the industry will have $1.35 billion in pre-tax profits this year, its best year since 2002.




"The industry will continue to benefit from brisk growth in vehicle sales, both this year and next," said Michael Burt, director, industrial economic trends.





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[Ally]

Toronto's Trump Tower sales tactics face probe as buyers revolt




Developers of Toronto`s Trump International Hotel & Tower were given explicit instructions by the Ontario Securities Commission back in 2004 not to sell units in the luxe project as lucrative investment opportunities.




But buyers tell Torstar News Service they were wooed into putting down payments on pricey hotel-condos through slick marketing by rookie developer Talon International Inc. that focused largely on the project`s revenue-generating potential.





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[Ally]

Drop in home prices spreads to Toronto






The decline in house prices that has hit Vancouver is spreading to Toronto, a shift that economists say marks the beginning of a national price correction.




While many say the market has long been due for a correction, and that a healthy and gradual decline in prices is ahead, the new numbers are fuel for those who argue that federal Finance Minister Jim Flaherty`s moves to cool the market went too far this summer.






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[Ally]

Trump, Talon International focus of multi-million dollar lawsuit by investors




Lawyers for four investors have launched a multi-million lawsuit against Donald Trump and Talon International Inc. alleging that buyers in one of Toronto`s glitziest hotels were `victims of an investment scheme and conspiracy.`




With just days to go until deals are set to close on dozens of pricey hotel-condo units in Toronto`s Trump International Hotel & Tower, the lawsuit is seeking to have four plaintiffs` deals rescinded and deposits of more than $173,000 returned.





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[Ally]

Condo watchers concerned over lack of investor information




Developers are only adding to fears about the state of Toronto`s softening condo market, and begging for more government intervention, by refusing to disclose how many investors are `assigning` units before taking possession, housing watchers say.




Market research firm Urbanation had to abandon a survey this week aimed at getting a better handle on that assignment market after some 120 developers refused to answer questions. Assignments are units bought in the preconstruction phase by investors who intend to flip them to new buyers at a significant markup before having to come up with final closing costs, including land transfer taxes.





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[Ally]

College Park is getting $3 million makeover




College Park has seen better days.




Litter pervades the muddy leftover water in the Barbara Anne Scott rink, named after Canada`s only Olympic Gold medalist in women`s singles.




The stucco on the once elegant skating pavilion is peeling away and small plants have sprung up in the building`s eaves troughs.




Throughout, the grass is trampled or the ground bare.





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[Ally]

Simcoe County mulling proposed 10-year affordable housing strategy




Simcoe County is taking steps to make affordable housing more accessible after a consultation group was hired to collect data about the growing concern.




Barrie residents arrived Tuesday afternoon at Barrie`s City Hall Rotunda, where OrgCode Consulting representatives presented information regarding a 10-year affordable-housing strategy for the county.




OrgCode president and CEO Iain De Jong presented data based on individual income versus increasing rent costs and resulting homeless issues.





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[Ally]

High failure rate for rental inspections in Waterloo






About 80 per cent of the more than 2,000 applications under the city`s controversial rental bylaw have failed the required electrical safety inspection.




Bylaw director Jim Barry said he was surprised by the number, but argued it is proof the bylaw, which was passed last April, is helping to achieve a higher level of safety for the city`s rental community.





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[Ally]

Mississauga home sales down by 12%




Mortgage expert and CTO of Syndicate Mortgages, Marcus Arkan believes that the recent changes in the mortgage policy have had an overall effect in most areas of Canada. Mississauga is also equally hit by these changes and its real estate market is critically suffering from their impact.






According to reports by The Canadian real Estate Association, home sales in Mississauga dipped by a grave 12 % in the October of 2012 as compared to the last year. This meant that home sales had sunk down to only 806 units as a result of the latest mortgage policy changes that have declined the residential sales activity in Mississauga for the first time in the third quarter of this year. This decline has been seen after five successful quarters of the Mississauga real estate sector.




Mortgage brokers and real estate agents are quite worried about this decline as it has directly affected their business. Even potential homebuyers are not very happy as now plenty of them no longer qualify for a mortgage and have to remain tenants in a rental property.





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[Ally]

Rapid transit propelling Vaughan




The senior vice-president of Liberty Development uses a sports analogy to explain why a condominium developer would be interested in building a 33-storey highrise residential and retail project on a flat, typically suburban, car-dominated expanse at Weston Road and Highway 7.




The way Marco Filice sees it, the downtown hub, which will include his Centro Square project (centrosquarecondos.ca), taking shape for Vaughan is poised to be tomorrow`s centre ice.





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[Ally]

Agreement reached between Joseph Brant Memorial Hospital and McMaster University for education campus



An agreement has been reached between Joseph Brant Memorial Hospital and McMaster University to make the lakeside hospital a clinical education campus.





The formal partnership means the hospital will see a significant increase in student physicians, medical residents and other healthcare learners.





Eric Vandewall, president and CEO of JBMH, said the official designation is a reflection of the new era of care happening there, marking another stage in the hospital`s quest to become a major community teaching hospital affiliated with McMaster.





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[Ally]

New home sales decline for third consecutive month in the GTA






New home sales in the GTA declined for a third consecutive month and new lending restrictions are to blame, says a new report released today by BILD and RealNet.




There were 2,792 new homes sold in October, making it the second-lowest October on record. With August and September also logging low numbers, the 29,322 new homes sold thus far in 2012 is 14 per cent below the long-term average.




`In an attempt to cool down the market, the federal government has severely affected the building and development industry in the GTA,` BILD President and CEO Bryan Tuckey said in a press release. `The introduction of stricter mortgage regulations has triggered a decline in new home sales, and if this trend continues, it will affect job creation in the coming years, restricting economic growth.`





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