Photo Credit: Nadine Shaabana
In The News
October 7-11, 2019
Toronto & GTA
The overall price of a home in Hamilton decreased by one per cent and the median price of a two-storey home saw a decrease of 3.1 per cent against compared to the same time last year; whereas, the aggregate and median two-storey home prices experienced an increase of 5.7 per cent and 4.6 per cent in Niagara-St Catharines when comparing the same time periods. Brad Johnstone, broker of record for Royal LePage NRC Realty in Niagara, argues that, "Home owners from Hamilton and Burlington are selling their homes at a profit and coming here."
Canada Mortgage and Housing Corporation presented that the seasonally adjusted annual rate of housing starts slowed to 2.5 per cent month-over-month in September in part due to a decrease in multi-dwelling starts and largely due to a fall in single-detached urban homes. Moreover, the value of building permits in Canadian municipalities rose 6.1 per cent along with the value of industrial permits.
The real estate market endured a 5.2 per cent fall in prices in Metro Vancouver with the largest losses attributed to condos in West Vancouver where values decreased 16.8 per cent.
Federal election promises as they pertain to the real estate market have been focused on demand-side policy which will add more buyers to already markets that are under provisioned with supply.
According to proprietary data from real estate brokerage Redfin, San Francisco remains the most competitive market with a 28 per cent bidding war rate. Conversely, the least competitive market in September was Miami with a rate of two per cent.
11.6 per cent of all mortgage applications filed in Miami are declined accord to the federal Home Mortgage Disclosure Act after analyzing data for 2018. This is the highest rate of any city in the U.S. Despite this news, denials across the nation are at their lowest rate in fourteen years.
Nationwide home sales decrease 2.5 per cent year-over-year in September and the median listing price rose 4.3 per cent, according to Realtor.com. In a separate manner, mortgage and refinancing applications increased fifty per cent from a year prior. As inventory continues to climb at the top end of the market, the inventory of homes below $200,000 decreased 9.8 per cent.
Commencing a few days, uninsured mortgages on properties under $400,000 will no longer require an appraisal. This rule will apply to about forty per cent of home sales. This will not apply; however, to loans partially or wholly guaranteed by federal agencies.
The entry level price of a U.S. luxury home rose two per cent from a year prior, according to Realtor.com; whereas, aggregate transactions of homes price over the one million dollar mark slipped one per cent in the third quarter.
After the decrease in the median value of real estate towards the end of 2017 in Sydney and Melbourne of more than ten per cent, CoreLogic has shown that investor sentiment is creeping back into the market, forcing home values upward for a third month.
Malaysia will lower the minimum price for foreigners to buy high-rise properties in urban areas next year in order to help clear a glut of 51,000 unsold units.
The UK experienced the slowest pace of annual house price growth as of late. The average price of a house decreased 0.4 per cent in September from August. Despite the decrease, prices have increased a mere 1.1 per cent.
A spike in inquiries from Hong Kong has lead to 79 per cent of the over 700 properties listed for auction completing sales. During the same period a year prior, only 44 per cent of properties were sold.
The government in England has aided first-time homebuyers purchase new construction homes through an equity loan program. Recent data has shown that they are pay on average ten per cent more than first-time buyers that have made their purchase without the program. The government scheme has enabled developers to charge more for homes available through the program.
The pre-construction real estate market in Dubai has picked up steam. Year-to-date figures ending in the month of September have exceeded the aggregate number for all of 2018.
The pre-construction market in Dubai is expected to deliver an additional 50,000 units this year – a 150 per cent increase from 2018. The largest drop in rental prices was experienced by studio layouts in the third quarter. This has stemmed from tenants moving into larger more affordable units where landlords have reduced asking prices in order to remain competitive.