September 2012 Ontario Economic Fundamentals
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Immigration, low rates save Toronto condo market
Low interest rates, high immigration and downsizing baby boomers will keep the bottom from falling out of Toronto`s softening condo market, says a new report by the Conference Board of Canada.
New mortgage rules and modest economic growth are likely to result in a 1.2 per cent drop in condo sales this year and a 2.2 per cent drop in starts, which hit record levels earlier this year thanks to a record 28,000 sales last year.
But condo prices are forecast to rise just 1.3 per cent this year, their lowest increase since 1996 and a far cry from the 7.4 per cent jump recorded last year, which pushed the median price of a condo above $300,000 for the first time, notes the semi-annual Metropolitan Condo Outlook report.
Read the full article here.
Low interest rates, high immigration and downsizing baby boomers will keep the bottom from falling out of Toronto`s softening condo market, says a new report by the Conference Board of Canada.
New mortgage rules and modest economic growth are likely to result in a 1.2 per cent drop in condo sales this year and a 2.2 per cent drop in starts, which hit record levels earlier this year thanks to a record 28,000 sales last year.
But condo prices are forecast to rise just 1.3 per cent this year, their lowest increase since 1996 and a far cry from the 7.4 per cent jump recorded last year, which pushed the median price of a condo above $300,000 for the first time, notes the semi-annual Metropolitan Condo Outlook report.
Read the full article here.
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Ontario's Condo Act under review
Condominium living continues to grow and has become an affordable and popular choice of lifestyle. Half of the new homes sold in GTA are condominiums and there is an increase of investor owners and landlords as well. It only makes sense there may be a need to update the Condominium Act to increase the knowledge and education of prospective buyers, owners, property managers and boards of directors.
Rosario Marchese, the MPP for Trinity-Spadina, brought forward a private member`s bill that calls for changes to the Condominium Act, including the creation of a review board that would allow owners to settle disputes outside of court. Marchese insists that a review board would act like a tribunal so that owners could take their disputes to a review officer and avoid costly legal battles. His bill also calls for property managers to be licensed.
Read the full article here.
Condominium living continues to grow and has become an affordable and popular choice of lifestyle. Half of the new homes sold in GTA are condominiums and there is an increase of investor owners and landlords as well. It only makes sense there may be a need to update the Condominium Act to increase the knowledge and education of prospective buyers, owners, property managers and boards of directors.
Rosario Marchese, the MPP for Trinity-Spadina, brought forward a private member`s bill that calls for changes to the Condominium Act, including the creation of a review board that would allow owners to settle disputes outside of court. Marchese insists that a review board would act like a tribunal so that owners could take their disputes to a review officer and avoid costly legal battles. His bill also calls for property managers to be licensed.
Read the full article here.
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Everything you need to know about status certificates
A status certificate (formerly known as an Estoppel) is a report on the current state of a condominium corporation, prepared by the Board of Directors, which offers a financial snapshot of the well-being of the building and information on those who run it.
`Since you`re buying a unit in a building and not a whole property, it`s a good idea to see how the building is managed, if there are pending lawsuits and what the financial situation is like,` said Toronto-based Realtor Mark Savel.
Read the full article here.
A status certificate (formerly known as an Estoppel) is a report on the current state of a condominium corporation, prepared by the Board of Directors, which offers a financial snapshot of the well-being of the building and information on those who run it.
`Since you`re buying a unit in a building and not a whole property, it`s a good idea to see how the building is managed, if there are pending lawsuits and what the financial situation is like,` said Toronto-based Realtor Mark Savel.
Read the full article here.
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Who is buying all these Toronto condos anyways?
According to Barbara Lawlor of Baker Real Estate, the condo buying demographics is evolving, and now basically includes `everyone`:
Here is a breakdown:
Empty-nestors and retirees
So the kids are gone, and the parents have retired. They own a cottage up north in which they live in, but they want to enjoy the downtown vibe on the weekends. Traditionally, these people would just book a hotel room but now many are opting for smaller condo units. These units are more comfortable than a hotel room, do not require much work (like lawn mowing), and present an investment opportunity to be passed on to future generations
First time home buyers
First time home buyers love their new condos. The units are close to work, and come with amenities like fitness facilities and party rooms. What`s not to like? to make things sweeter many of these buyers have great jobs, and/or have inherited a decent amount of money. As a result, they are going for large units in favourable areas
Read the full article here.
According to Barbara Lawlor of Baker Real Estate, the condo buying demographics is evolving, and now basically includes `everyone`:
Here is a breakdown:
Empty-nestors and retirees
So the kids are gone, and the parents have retired. They own a cottage up north in which they live in, but they want to enjoy the downtown vibe on the weekends. Traditionally, these people would just book a hotel room but now many are opting for smaller condo units. These units are more comfortable than a hotel room, do not require much work (like lawn mowing), and present an investment opportunity to be passed on to future generations
First time home buyers
First time home buyers love their new condos. The units are close to work, and come with amenities like fitness facilities and party rooms. What`s not to like? to make things sweeter many of these buyers have great jobs, and/or have inherited a decent amount of money. As a result, they are going for large units in favourable areas
Read the full article here.
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Competition Tribunal to go ahead with September 10 hearing against Toronto Real Estate Board
The federal Competition Tribunal plans to go ahead with a September 10 hearing into allegations of anti-competitive practices by the Toronto Real Estate Board despite an 11th hour constitutional challenge.
`This last-minute legal filing by TREB, just two weeks prior to the hearing, seeks to distract from TREB`s anti-competitive conduct,` said Competition Bureau spokesperson Bryan Parker in an email Tuesday.
In an 81-page document filed with Ottawa`s watchdog Friday, TREB claims the federal competition commission has no jurisdiction over provincially-regulated industries such as real estate.
Read the full article here.
The federal Competition Tribunal plans to go ahead with a September 10 hearing into allegations of anti-competitive practices by the Toronto Real Estate Board despite an 11th hour constitutional challenge.
`This last-minute legal filing by TREB, just two weeks prior to the hearing, seeks to distract from TREB`s anti-competitive conduct,` said Competition Bureau spokesperson Bryan Parker in an email Tuesday.
In an 81-page document filed with Ottawa`s watchdog Friday, TREB claims the federal competition commission has no jurisdiction over provincially-regulated industries such as real estate.
Read the full article here.
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Case highlights flaws in landlord, tenant rules
A decision of Justice Ted Matlow in the Ontario Superior Court last month contains valuable lessons for residential landlords and tenants, along with a strong message for the Ontario government, the Landlord and Tenant Board and the officials charged with making rules for Ontario courts.
Melissa D`Amico owns a small building in the Kensington Market area of Toronto. Last October, she rented an apartment in the building to Rony Hitti and his spouse Anastassia Adani for a monthly rent of $3,600. The couple moved in immediately but refused to pay any rent at all.
Read the full article here.
A decision of Justice Ted Matlow in the Ontario Superior Court last month contains valuable lessons for residential landlords and tenants, along with a strong message for the Ontario government, the Landlord and Tenant Board and the officials charged with making rules for Ontario courts.
Melissa D`Amico owns a small building in the Kensington Market area of Toronto. Last October, she rented an apartment in the building to Rony Hitti and his spouse Anastassia Adani for a monthly rent of $3,600. The couple moved in immediately but refused to pay any rent at all.
Read the full article here.
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The Port Lands have waited decontamination for years: Here is the plan on how to bring them back
There is no shortage of pretty drawings on the Waterfront Toronto website that imagine the future mixed-use neighbourhoods of Toronto`s Port Lands. They depict residential areas, shopping districts, smiling pedestrians and cyclists, and seemingly endless parkland, all accented by mature trees and stunning views of the downtown skyline.
But not so easy to depict is how the land itself will be prepared for such development.
The Port Lands today stand largely abandoned or underused, the ground bogged down by more than a century of built-up pollution and contamination.
Read the full article here.
There is no shortage of pretty drawings on the Waterfront Toronto website that imagine the future mixed-use neighbourhoods of Toronto`s Port Lands. They depict residential areas, shopping districts, smiling pedestrians and cyclists, and seemingly endless parkland, all accented by mature trees and stunning views of the downtown skyline.
But not so easy to depict is how the land itself will be prepared for such development.
The Port Lands today stand largely abandoned or underused, the ground bogged down by more than a century of built-up pollution and contamination.
Read the full article here.
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Ottawa commercial real estate sales up 155%
Ottawa had 128 deals in 2012 worth $995 million compared with 80 deals in 2011 worth $389 million.
The capital's sales volume positions it in the upper tier of Canadian cities tracked by the commercial real estate services firm. Only Waterloo surpassed Ottawa's relative jump, at 254 per cent. Close behind was Calgary, at 123 per cent.
Read the full article here.
Ottawa had 128 deals in 2012 worth $995 million compared with 80 deals in 2011 worth $389 million.
The capital's sales volume positions it in the upper tier of Canadian cities tracked by the commercial real estate services firm. Only Waterloo surpassed Ottawa's relative jump, at 254 per cent. Close behind was Calgary, at 123 per cent.
Read the full article here.
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41 new buses rolling into Hamilton
Hamilton residents will enjoy better public transit with the arrival of 41 new buses. Not only does this mean more and newer buses on the road, it also means reduced greenhouse gas emissions and improved air quality.
"This important investment in public transit will provide Hamilton residents with reliable, fully accessible and environmentally friendly buses," said David Sweet, Member of Parliament for Ancaster`Dundas`Flamborough`Westdale. "Our Government is proud to help communities with their local infrastructure and transit priorities that help protect the environment and promote economic growth."
Read the full article here.
Hamilton residents will enjoy better public transit with the arrival of 41 new buses. Not only does this mean more and newer buses on the road, it also means reduced greenhouse gas emissions and improved air quality.
"This important investment in public transit will provide Hamilton residents with reliable, fully accessible and environmentally friendly buses," said David Sweet, Member of Parliament for Ancaster`Dundas`Flamborough`Westdale. "Our Government is proud to help communities with their local infrastructure and transit priorities that help protect the environment and promote economic growth."
Read the full article here.
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Hamilton leads country in new projects
Hamilton attracted more industrial and commercial development than any other city in Canada over the past year, according to a prestigious executive magazine.
Site Selection magazine out of Atlanta, Ga., analyzed construction and jobs data to determine that Hamilton had 20 new or expansion projects with at least $1 million invested, at least 50 new jobs created or at least 20,000 new square feet between June 2011 and May 2012.
That total beat Quebec City, which had 16 projects and Toronto with 15.
Read the full article here.
Hamilton attracted more industrial and commercial development than any other city in Canada over the past year, according to a prestigious executive magazine.
Site Selection magazine out of Atlanta, Ga., analyzed construction and jobs data to determine that Hamilton had 20 new or expansion projects with at least $1 million invested, at least 50 new jobs created or at least 20,000 new square feet between June 2011 and May 2012.
That total beat Quebec City, which had 16 projects and Toronto with 15.
Read the full article here.
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Cooling GTA condo market sees sales drop by 34%
Toronto`s condo market is `flashing warnings` with a 34 per cent downturn in sales in August over a year earlier, despite record-high demand just a few months ago, market watchers say.
The quick and decisive downturn in demand for resale condos is the best evidence yet that the condo boom has been largely driven by cheap and relatively easy credit rather than demographics, says analyst Ben Rabidoux of M Hanson Advisors.
Read the full article here.
Toronto`s condo market is `flashing warnings` with a 34 per cent downturn in sales in August over a year earlier, despite record-high demand just a few months ago, market watchers say.
The quick and decisive downturn in demand for resale condos is the best evidence yet that the condo boom has been largely driven by cheap and relatively easy credit rather than demographics, says analyst Ben Rabidoux of M Hanson Advisors.
Read the full article here.
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Toronto existing home sales fall 12.5% in August
Sales of existing homes in the Greater Toronto Area fell almost 12.5 per cent in August, compared to a year ago, while the number of new listings fell 5.5 per cent.
But the average price rose by almost 6.5 per cent, to $479,095, with the increase driven largely by detached homes. And the local real estate board is predicting that the decline in new listings will continue to fuel tough competition between potential buyers of downtown low-rise homes, a trend that it says should support further price increases.
Read the full article here.
Sales of existing homes in the Greater Toronto Area fell almost 12.5 per cent in August, compared to a year ago, while the number of new listings fell 5.5 per cent.
But the average price rose by almost 6.5 per cent, to $479,095, with the increase driven largely by detached homes. And the local real estate board is predicting that the decline in new listings will continue to fuel tough competition between potential buyers of downtown low-rise homes, a trend that it says should support further price increases.
Read the full article here.
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Millions at stake as case kicks off against the Toronto Real Estate Board
The Competition Bureau`s case against the Toronto Real Estate Board, which began Monday after years in the making, takes on added significance in this period of rapidly rising home prices, a lawyer for the bureau suggested.
The case before the Competition Tribunal is expected to last up to five weeks. The bureau argues that Canada`s largest real estate board, which represents about 35,000 agents, is unfairly keeping data about home sales away from online services that threaten to compete with real estate agents and potentially eat into their commissions. The board counters that it is upholding privacy laws that protect home buyers and sellers whose personal information might otherwise become more accessible to nosy neighbours and others.
Read the full article here.
The Competition Bureau`s case against the Toronto Real Estate Board, which began Monday after years in the making, takes on added significance in this period of rapidly rising home prices, a lawyer for the bureau suggested.
The case before the Competition Tribunal is expected to last up to five weeks. The bureau argues that Canada`s largest real estate board, which represents about 35,000 agents, is unfairly keeping data about home sales away from online services that threaten to compete with real estate agents and potentially eat into their commissions. The board counters that it is upholding privacy laws that protect home buyers and sellers whose personal information might otherwise become more accessible to nosy neighbours and others.
Read the full article here.
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Contract awarded for Pan/Parapan American games in Toronto in 2015
TORONTO, Sept. 10, 2012 /CNW/ ` Today, Infrastructure Ontario, on behalf of TO2015, the Government of Canada, the City of Toronto, the City of Markham and the University of Toronto, announced that Bondfield Construction Company Limited has signed a contract to build and finance three venues for the Toronto 2015 Pan/Parapan American Games. The project includes:
Read the full article here.
TORONTO, Sept. 10, 2012 /CNW/ ` Today, Infrastructure Ontario, on behalf of TO2015, the Government of Canada, the City of Toronto, the City of Markham and the University of Toronto, announced that Bondfield Construction Company Limited has signed a contract to build and finance three venues for the Toronto 2015 Pan/Parapan American Games. The project includes:
- Construction of the Markham Pan Am Centre, including a new, 50-metre Olympic-sized pool. The centre will host water polo, table tennis and badminton competitions.
- Construction of the two-field Pan American Field Hockey Centre located on the downtown St. George campus of the University of Toronto.
Renovations and improvements to the Etobicoke Olympium facility, which will be the training site for swimming, water polo, diving and synchronized swimming.
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Hearing shines light on $40-billion GTA real estate industry
Realtors with giants ReMax and Royal LePage raked in almost half of all the commissions paid on $40 billion in property transactions across the GTA last year.
In fact, the vast majority of home sales ` more than 70 per cent ` involved just five major real estate brokerages, which have seen commissions soar since 2007 as home prices here skyrocketed 25.7 per cent in that time, a Competition Tribunal was told Monday.
On the surface, the complex case is meant to determine if the Toronto Real Estate Board ` Canada`s biggest board by far with close to 35,000 licenced agents and brokers ` has engaged in anti-competitive behaviour.
Read the full article here.
Realtors with giants ReMax and Royal LePage raked in almost half of all the commissions paid on $40 billion in property transactions across the GTA last year.
In fact, the vast majority of home sales ` more than 70 per cent ` involved just five major real estate brokerages, which have seen commissions soar since 2007 as home prices here skyrocketed 25.7 per cent in that time, a Competition Tribunal was told Monday.
On the surface, the complex case is meant to determine if the Toronto Real Estate Board ` Canada`s biggest board by far with close to 35,000 licenced agents and brokers ` has engaged in anti-competitive behaviour.
Read the full article here.
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Toronto pushes up August housing starts
OTTAWA ` CMHC says the pace of housing starts was higher in August, mainly due to a few, big multiple-unit projects in Toronto.
The agency says there were 19,860 actual starts in August.
Extrapolating that this pace would continue for 12 months and adjusting for variables produced a seasonally adjusted annual rate of 224,900 units for August, up from 208,000 in July.
The seasonally adjusted annual rate of urban starts increased by 10.2% to 205,900 units in August.
Read the full article here.
OTTAWA ` CMHC says the pace of housing starts was higher in August, mainly due to a few, big multiple-unit projects in Toronto.
The agency says there were 19,860 actual starts in August.
Extrapolating that this pace would continue for 12 months and adjusting for variables produced a seasonally adjusted annual rate of 224,900 units for August, up from 208,000 in July.
The seasonally adjusted annual rate of urban starts increased by 10.2% to 205,900 units in August.
Read the full article here.
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Condo construction in Montreal could reach near-record levels in 2012
Greater Montreal Area condo construction is expected to hit near record-high levels in 2012, with starts rising 118 per cent last month above an exceptionally weak August 2011, Canada Mortgage and Housing Corp. said Tuesday.
Year to date, condo starts rose 19 per cent in Greater Montreal over record-breaking 2011, even as analysts once again called for a slowdown in new construction in Canada`s second largest metropolitan region. Condos now account for nearly 60 per cent of all housing starts in Greater Montreal.
`We`re expecting the numbers to soften a bit, but it (2012) is still among the strongest years we`ve ever had,` said David L`Heureux, CMHC senior market analyst for Montreal.
Read the full article here.
Greater Montreal Area condo construction is expected to hit near record-high levels in 2012, with starts rising 118 per cent last month above an exceptionally weak August 2011, Canada Mortgage and Housing Corp. said Tuesday.
Year to date, condo starts rose 19 per cent in Greater Montreal over record-breaking 2011, even as analysts once again called for a slowdown in new construction in Canada`s second largest metropolitan region. Condos now account for nearly 60 per cent of all housing starts in Greater Montreal.
`We`re expecting the numbers to soften a bit, but it (2012) is still among the strongest years we`ve ever had,` said David L`Heureux, CMHC senior market analyst for Montreal.
Read the full article here.
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Waterloo Region housing starts plunge in August
WATERLOO REGION ` Housing starts in Waterloo Region fell to their lowest level in more than three years in August as economic uncertainty put the brakes on new home purchases.
Builders started 71 housing units last month, the Canada Mortgage and Housing Corp. said Tuesday. That`s the lowest level for any month in more than three years, the federal agency said.
It`s also a big drop from the 451 units that were started in August 2011. However, last year`s total was inflated by four apartment and condo projects that accounted for 346 units.
Read the full article here.
WATERLOO REGION ` Housing starts in Waterloo Region fell to their lowest level in more than three years in August as economic uncertainty put the brakes on new home purchases.
Builders started 71 housing units last month, the Canada Mortgage and Housing Corp. said Tuesday. That`s the lowest level for any month in more than three years, the federal agency said.
It`s also a big drop from the 451 units that were started in August 2011. However, last year`s total was inflated by four apartment and condo projects that accounted for 346 units.
Read the full article here.
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Toronto is on target to set a new annual home starts record
August was another outstanding month for housing starts nationally, according to Canada Mortgage and Housing Corporation (CMHC).
The latest seasonally adjusted and annualized figure was 225,000 units, up 8.2% from July and an increase of 17.6% from August of last year.
Year-to-date housing starts in Canada have averaged 218,000 units through the first eight months of this year, which is an increase of 15.2% versus the same period last year.
The consensus expectation has been for a drop-off in home starts beginning this fall. Traffic in showrooms is apparently down. And the measures adopted by the federal government to tighten mortgage approvals are cutting into first-time homebuyer demand.
But for the moment at least, the numbers remain elevated and there is some measure of strength in almost all regions across the land.
Read the full article here.
August was another outstanding month for housing starts nationally, according to Canada Mortgage and Housing Corporation (CMHC).
The latest seasonally adjusted and annualized figure was 225,000 units, up 8.2% from July and an increase of 17.6% from August of last year.
Year-to-date housing starts in Canada have averaged 218,000 units through the first eight months of this year, which is an increase of 15.2% versus the same period last year.
The consensus expectation has been for a drop-off in home starts beginning this fall. Traffic in showrooms is apparently down. And the measures adopted by the federal government to tighten mortgage approvals are cutting into first-time homebuyer demand.
But for the moment at least, the numbers remain elevated and there is some measure of strength in almost all regions across the land.
Read the full article here.