November 2012 Ontario Economic Fundamentals

[Ally]

Toronto existing home sales down 7.1% in October




Sales of existing homes in the Greater Toronto Area in October were down 7.1 per cent from a year ago, but rose from this September.




Prices continue to climb, though the strength of price increases is petering out.




The trend is similar to what the Greater Vancouver Area has experienced, with home sales rebounding somewhat from September but still far below the levels of a year ago. But Vancouver is now seeing home prices slip.





Read the full article here.

 

[Ally]

Housing slowdown cools Toronto condo sales, prices - but single family homes keep defying gravity




Toronto has become the tale of two housing markets ` high-rise condos where sales, and now prices, have been slumping and houses where prices continue to defy gravity.




After almost a decade of almost unbridled demand and price growth, the GTA housing market is in slowdown mode and unlikely to show any marked recovery until the second half of 2013, according to a market outlook report from the Canada Housing and Mortgage Corp.





Read the full article here.

 

[Ally]

Toronto condo analysis uncovers spectre of irresponsible lending



A report from an equity research firm into the Toronto condo market raises serious questions about the possibility of irresponsible mortgage lending, and suggests that, with the market turning down, some investors could be risking their retirement nest-eggs by buying condos.





In an effort to determine what`s behind the big run-up in condo prices in Toronto in recent years, market analysis firm Veritas sent `mystery shoppers` to two unnamed Toronto condo projects still under construction.





Read the full article here.

 

[Ally]

Toronto's south core: Wrong side of the tracks no longer






There was a time when no one wanted to set up their offices `south of the tracks` in Toronto.




The Gardiner Expressway and the railway lines essentially cut off the land below Front Street, making it undesirable for major corporations looking for a home base. But with downtown office vacancy tight, more tenants are looking to plant their flag in the `south core.`








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[Ally]

Major highway improvements for Brant, Ontario






BRANT, ONTARIO--(Marketwire - Nov. 5, 2012) - Families and businesses in the County of Brant will benefit from Highway 403 improvements, thanks to a joint funding initiative announced today by the Honourable Denis Lebel, Canada's Minister of Transport, Infrastructure and Communities, and the Honourable Bob Chiarelli, Ontario Minister of Infrastructure and Minister of Transportation.




"Highway 403 is the lifeline of Brantford and our government is investing in this project to improve everyday travel and highway safety for local families and workers," said Phil McColeman, Member of Parliament for Brant. "We will continue to promote job creation and economic growth through infrastructure investments that will strengthen Canadian communities for years to come."




"Well-maintained infrastructure is the cornerstone of strong and vibrant communities such as Brant County," said Dave Levac, Member of Provincial Parliament for Brant. "I'm so glad that the Ontario government remains committed to investing in improvements to our local bridges to keep drivers safe and goods moving efficiently across our region."





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[Ally]

Michigan voters reject roadblock to new U.S.-Canada bridge




Michigan voters have turned down a proposal that could have created a major roadblock in the construction of a new bridge between Detroit and Windsor, Ont., according to early returns Tuesday night.




Proposal 6 would have amended Michigan`s constitution to force a statewide vote on any international border crossings.




That could have thwarted the Canadian government`s deal with Michigan to build a new bridge across the Detroit River. Ottawa has agreed to foot the bill for the new crossing, which would compete with the existing, privately-owned Ambassador Bridge.





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[Ally]

Calloway SmartCentre's 53-acre mixed-used montster a go in Vaughan





Patience, planning and foresight have paid off for Calloway REIT and SmartCentres after the 50-50 partners unveiled a plan to develop nearly 6 million square feet of new commercial, residential and retail development within the Vaughan Metropolitan Centre (VMC).







The real estate companies owned chunks of land and development rights to the 53-acre site for a number of years but it was the go-ahead for the Spadina-York subway station (linking Vaughan to Toronto in the south) that transformed the project from a modest project to its current ambitious status.







Read the full article here.

 

[Ally]

Rental condos new bidding war battleground






Carol Endicott ventured into Toronto`s condo market for the first time a few months ago and found herself caught up in a bidding war with four couples.




Only thing is, she was looking to rent, not buy, the two-bedroom unit.




One couple was offering $2,700 a month ` $700 over the $2,000 asking price ` for the spacious unit at Mount Pleasant Rd. and Davisville Ave., with its showcase kitchen and main-floor gym, all within an easy commute of downtown.





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[Ally]

October 2012 Hamilton housing starts






TORONTO, ONTARIO`(Marketwire ` Nov. 8, 2012) - Housing starts in Hamilton, Census Metropolitan Area (CMA) were trending at 2,384 units in October, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR) [sup]1[/sup] of housing starts. The standalone monthly SAAR was 1,781 units in October, down from 2,758 units in September.




`Total housing starts in October 2012 were pulled down by the multiple-housing segment. Single-detached housing starts, which are less volatile and therefore a better indicator of the trend in construction activity, were higher than they were in October 2011.The strong performance in single-detached construction activity this October indicated that housing market conditions in the Hamilton CMA remained relatively healthy,` said Abdul Kargbo, CMHC`s Senior Market Analyst for Hamilton and Brantford CMAs.





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[Ally]

October 2012 Toronto housing starts






TORONTO, ONTARIO`(Marketwire ` Nov. 8, 2012) - Housing starts in Toronto Census Metropolitan Area (CMA) were trending at 47,600 units in October, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR)[sup]1[/sup] of housing starts. The standalone monthly SAAR was 45,900 units in October, up from 39,900 in September.




`Construction activity is still being supported by the delayed impact of strong new home sales in 2011 and earlier this year. A shift towards less expensive housing development was visible in the latest numbers, which showed that apartments in Toronto and singles in Brampton accounted for over half of all starts,` said Shaun Hildebrand, CMHC`s Senior Market Analyst for Toronto.





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[Ally]

October 2012 Ontario housing starts






TORONTO, ONTARIO`(Marketwire ` Nov. 8, 2012) - Housing starts in Ontario were trending at 73,805 units in October, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR)(1) of housing starts. The standalone monthly SAAR was 65,723 units in October, down from 70,240 units in September.




`Ontario home construction, led by the row and apartment sector, moved lower closer to levels consistent with demographic demand. While home construction will remain elevated over the next several months, starts should moderate further. Modest job growth versus the recent past, better supplied resale markets combined with a high level of units under construction are headwinds for the residential construction industry,` said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist.





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[Ally]

Toronto's king west to get 'mini Eaton Centre'




A "mini-Eaton Centre" is planned for the fashionable King West district in Toronto, according to a source familiar with the development.




The source confirmed to BNN that Riocan, Canada's biggest Real Estate Investment Trust in partnership with Allied Properties REIT, are close to finalizing a deal for the purchase of "the Globe lands," prime real estate at the corner of Front Street and Spadina Avenue.




The plan is to build "about 500,000 square feet of fairly unique and high end" retail. The source said the stores wouldn't be quite as exclusive as Bloor Street West, but more tony than Toronto's Queen Street West.




The King West area has rapidly become one of Toronto's most sought after addresses, with restaurants and condos targeted to a young and prosperous demographic.





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[Ally]

CMHC sees shift to cheaper housing in Toronto area




Canada's mortgage insurer sees shift in the Toronto area to cheaper housing developments as the building industry across the country feels the impact of a cooling real estate market.




According to fresh numbers from Canada Mortgage and Housing Corp. today, housing starts fell in October by almost 9 per cent to just over 204,000 on an annualized basis. And they're expect to slip further.




"It was simply a matter of time before homebuilders took their cue from the cooling nature of the resale housing market and underlying economic and demographic trends," said senior economist Sonya Gulati of Toronto-Dominion Bank.




"The last few months of data suggest that momentum in new home construction is beginning to wane. The 2011 Census revealed that household formation from 2006-2011 was 189,000. This represents a reasonable proxy for the appropriate pace of new home construction in Canada. In turn, construction levels should steadily, but gradually, gravitate toward this target."



Read the full article here.

 

[Ally]

Dalton McGuinty needs to recall Toronto's legislature




The continued slow drip of damning information being gleaned from the thousands of pages of correspondence and legal documents related to the Ontario government`s cancellation of a power plant in Mississauga is starting to add up.





Read the full article here.

 

[Ally]

Why corporations are flocking back to downtown Toronto




Jason Johnstone feels like a new man since he switched workplaces this spring.




It wasn`t the job that was killing him so much as the lifestyle.




Until May, he`d been living downtown and commuting to work in Mississauga. It used to be commonplace for businesses to take advantage of low rents in the suburbs; employees would pay the price in long travel times. But when SNC Lavalin offered Mr. Johnstone a new job, he was pleasantly surprised to find his new workplace would be located downtown.



Read the full article here.

 

[Ally]

Starts...not what they used to be




And I don`t mean the specific number of Starts, but the indicator in general.




In the GTA we have gone from a new homes market comprised primarily of Low Rise product types (detached, semi-detached, row townhouse) to one that now sees a majority of new home sales comprised of the High Rise variety (apartment, loft, stacked townhouse). It`s the `Big Shift`.





Read the full article here.

 

[Ally]

The condominium conundrum




There's a breath of fresh air blowing through the lower city, as a series of large investments lift up tired apartment buildings and give rise to the first set of multi-residential buildings in decades in Hamilton.




Jeff Paikin, president of New Horizon Homes, is spearheading two key developments in Hamilton's downtown area ` the ambitious three-tower project on the site of the former Thistle Club called City Square, and a smaller 33-unit building at the corner of Dundurn and Aberdeen.





Read the full article here.

 

[Ally]

Windsor resale home prices expected to rise in 2013




Demand for resale homes across the Windsor area is expected to rise next year, according to a report released Friday by the Canada Mortgage and Housing Corporation.




The increasing demand locally will be fuelled by economic growth in the United States, which will translate into jobs in the Windsor-Essex area, said Margot Stevenson, housing market analyst for the CMHC.





Read the full article here.

 

[Ally]

Rents in London due to rise over next decade





LONDON, ENGLAND, November 10, 2012 /Real Estate PR News/ -- London residents who are working in the capital can expect to pay rent rise increases over the next ten years because of the lack of affordable homes available. The prediction was outlined in a research paper report published by Cluttons and researched by Professor Michael Ball from the University of Reading.







The research paper predicts that rental increases will be higher than house prices growth by 1% over the next decade, and that average rents will increase by 5% per year and house prices increase by 4% per year. The reason for this extensive growth is because London is the largest housing market in the UK combined with the the supply of housing not expanding at the rate that is needed by people looking for housing in the city. Because of this shortage, pressure will be put upon rental values and property values to increase.







Read the full article here.

 

[Ally]

Toyota's Ontario plant to build 5 millionth vehicle today






CAMBRIDGE, Ontario (November 5, 2012) ` Toyota Motor Manufacturing Canada Inc. (TMMC) will build its 5 millionth car in Canada today, a red Lexus RX350.




Quotes from Executives:




`From humble beginnings, today TMMC is a globally respected manufacturing operation that can produce more than 500,000 vehicles per year. Our success has allowed us to create more good jobs for Canadians and become a better corporate citizen for our community.`

TMMC Chairman Ray Tanguay





Read the full article here.