October 2012 Ontario Economic Fundamentals

[Ally]

Condo boom: Why cranes dominate Toronto's skyline




There were a record 196 condo projects under construction in the Toronto census metropolitan area at last count (the end of June). Sales of newly built high-rise units downtown this August were about half what they were a year ago, according to RealNet, a real-estate research firm. Prices are slipping ` in August they were about 4 per cent lower than the year before ` and many economists believe that a glut is forming that will cause prices to drop further.




According to Urbanation, a market research firm, the number of unsold condo units in the Toronto area in June hit a high of 18,123 (a figure that includes projects that are not yet completed). `With plenty of potential resale condo supply coming over the next year, Toronto is quickly heading for buyers` market territory for the first time (depending on your definition) since the recession,` economists at Bank of Montreal wrote this week.




`It`s an extremely crowded market,` said Urbanation`s Ben Myers. `They have to somehow differentiate themselves from the competition if they want to make sales.`





Read the full article here.

 

[Ally]

As condo sales slide, 3 projects test market




Three major new condo developments will launch over the next two weeks ` including the tallest buildings to hit Toronto`s waterfront ` as developers brace for the ultimate test of the state of the condo market.




The projects will be far more than just glass-and-steel towers. They will be giant thermometers providing a quick reading of how much heat is left in a condo market that`s cooled considerably since last year`s feverish pace of sales.



Read the full article here.

 

[Ally]

Waterloo jobs centre opens to deal with thousands of laid-off RIM workers




WATERLOO, Ont. ` Former employees of Research In Motion who were laid off during the BlackBerry-maker`s sweeping cutbacks this year are getting a hand from the City of Waterloo.




This week a jobs centre opened at City Hall designed to help the newly unemployed workers find positions at other local technology firms.




It`s part of a partnership between the Ontario and municipal governments as well as other local groups, including tech industry lobbyist Communitech.





Read the full article here.

 

[Ally]

Several Ontario neighbourhoods rank in Canada's Top 100






VANCOUVER, British Columbia, Oct. 19, 2012 (GLOBE NEWSWIRE) ` A special report by Canada Real Estate Wealth Magazine has uncovered the top 100 investment neighbourhoods in this country ` communities most likely to swerve a coming correction.




Forty-one neighbourhoods in Ontario have outshone recent housing trend predications and ranked in the Top 100 list including Mimico in Toronto, Hintonburg in Ottawa, Cornell in Markham, Churchill Meadows in Mississauga and Victoria Park in Kitchener.




`Mimico, known as cottage country in the city, has seen a huge upswing in popularity with young families clamouring for the cottage-style bungalows and two-storey homes that sit on generously sized lots,` says Calum Ross, President of VERICO The Mortgage Management Group. `Higher priced homes and key economic drivers found in communities surrounding Mimico are resulting in a `ripple effect` that is benefiting the neighbourhood,` adds Ross.





Read the full article here.

 

[Ally]

Windsor will miss housing bust, say experts




While the rest of Canada frets and panics over warnings the country's housing market is headed for a cliff, Windsorites can rest easy, experts say.




Sluggish sales, heavy personal debt loads and hyperactive condo development in Toronto and Vancouver have led to dire predictions the country's housing market is on the brink of a U.S.-style collapse.




Experts are divided on whether it's time to panic, but they agree that even if there is a bubble and it bursts, the price of homes in the Windsor region should stay fairly stable.





Read the full article here.

 

[Ally]

London forecast to be front runner in economic growth, report says




The London area will be a bright spot in the Ontario economy in the next few years, says a new

economic forecast.




The forecast by Central 1 Credit Union says the provincial economy is slowing with a predicted GDP of 2.1% this year and 1.9% in 2013.




`Coming out of the recession, the worst is behind us, but future growth will be moderate,` said Helmut Pastrick, chief economist for Central 1, the trade association for credit unions in Ontario and British Columbia.




But Pastrick said London, Hamilton-Niagara and northwest Ontario will grow faster compared to other areas of the province. Growth in London and Hamilton-Niagara will be helped by expansion in health care, tourism and exports, he said.





Read the full article here.

 

[Ally]

Barrie needs to watch debt





BARRIE - Barrie`s credit rating remains at AA with a stable outlook, but Barrie has to watch its rising debt load.





Bond rating firm Standard and Poor`s noted Barrie has been charging up its credit to build new and fix old infrastructure.





`At over 100 per cent of operating revenues, Barrie`s debt is one of the largest, compared to its peers,` said analyst Nineta Zetea.





In a report issued this week, Standard and Poor`s warned Barrie not to let its debt reach 120 per cent and suggest the city set aside money in reserves to maintain roads, pipes and buildings.





`Based on the forecasts the city provided us, debt issuance is expected to decline over the next two years, due to slower growth in capital spending. Our forecasts show it could get close to 120 per cent, but not over,` she said.





Read the full article here.

 

[Ally]

Toronto property values up 22.8% since 2008




The report released Friday by Ontario's Municipal Property Assessment
Corp. said property owners will see an average assessment increase of
5.5 per cent in each year for the next four years as it phases in the
increases.



"Residential property values have increased by an average of
approximately 22.8 per cent in the City of Toronto since 2008 when the
last assessment update was delivered," said Joe Regina, municipal
relations account manager in MPAC's Toronto office.





Read the full article here.

 

[Ally]

Toronto residents will see average assessment increase of 5.5% in 2013






TORONTO, Oct. 26, 2012 /CNW/ - City of Toronto homeowners will see the assessed value of their property increase by an average of 5.5 per cent in 2013.



"Residential property values have increased by an average of approximately 22.8 per cent in the City of Toronto since 2008 when the last Assessment Update was delivered," said Joe Regina, Municipal Relations Account Manager in the Municipal Property Assessment Corporation's (MPAC) Toronto office.





Read the full article here.

 

[Ally]

RealNet says GTA is North American housing market champion




If building new homes in North America were like playing hockey,
Toronto`s home-building industry could be considered the continent`s
repeat Stanley Cup champions. (Sadly, anyone in this city who knows what
it`s like to have a perennial championship team would have had to have
been alive in the 1960s.)



Building new homes and communities is certainly not a game. But as U.S.
housing markets have declined in recent years, and steady Canadian
markets ` Toronto in particular ` have risen in the standings, being
ranked No. 1 has become a regular occurrence for the GTA home-building
industry.





Read the full article here.

 

[Ally]

The sky's the limit for Toronto residential growth






With the exception of the car, nothing has changed the city more than
the condo. Thanks to the condo, thousands and thousands of new
residents have flooded into Toronto and helped make it one of the most
vibrant cities in North America.



At the same time, however, many Torontonians, indeed, whole
neighbourhoods, are consumed with rage against the condo. Mere mention
of the C-word is enough to send shivers down the spine of otherwise
mild-mannered homeowners and turn them into howling NIMBY hordes.



Typically, the object of their fury is height. And in a city where
residential developers now routinely propose 75- to 85-storey towers,
the fear of highrise buildings has never been more palpable.






Read the full article here.

 

[Ally]

Toronto casino report touts economic benefits




A downtown casino-resort would be a jackpot for Toronto in terms of jobs and revenue for the city, says a hotly awaited report that warns in quieter tones of an attendant spike in problem gambling.




The city staff report released Monday recommends Mayor Rob Ford`s executive committee next week authorize broad public consultation based on the report`s findings. Council is expected to vote early in 2013 on whether Toronto will agree to host a casino.





Read the full article here.

 

[Ally]

A good time to look for an investment property




If the real estate market is headed for a correction, then it presents a historic opportunity for buyers of investment properties. The main reason is that interest rates should continue to remain at historic low levels, even as prices fall. The key thing to remember is that the property must have positive cash flow.




What I mean by positive cash flow is that after you make your down payment, the income you receive from tenants is more than what it costs for your mortgage payment, property taxes, maintenance and utilities (if not paid by your tenants). Budget an additional 10 per cent for unanticipated repairs, as these always come up.





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[Ally]

Apartment building clears council hurdle





PENETANGUISHENE ` Penetanguishene council has approved a recommendation to allow the construction of a 41-unit, multi-storey apartment building in the area known as Bellisle Heights.

Council voted Oct. 24 in favour of a bylaw amendment to rezone the land to residential multiple density. Approximately 10 people were in the audience for the decision. Several shook their heads in disagreement when the amendment was approved.





Paul Hodgins, the town`s planning director, stated the project conforms to the Ontario government`s provincial policy statement and growth plan, as well as the County of Simcoe`s official plan.





Read the full article here.

 

[Ally]

Casino at Exhibition Place could bring in $195 million per year for Toronto




Toronto`s municipal government could reap as much as $195-million per year ` on top of a one-time land sale or lease ` from an integrated resort casino near the waterfront, according to a highly anticipated report that suggests the city would get the biggest bang for its gambling buck at Exhibition Place.





Read the full article here.