In The News
September 23-27, 2019
Toronto & GTA
CreateTO is overseeing large developments at four city-owned sites located at 140 Merton St., 777 Victoria Park Ave., 705 Warden Ave., and 50 Wilson Heights Blvd are expected to include 989 affordable rental units when completed.
Across the Toronto region, sales of homes over million dollars rose by 29 per cent year-over-year in both July and August of this year. Luxury home sales over $4 million continue to decline – 17 per cent in the GTA and 23 per cent in downtown Toronto – whereas, homes between $1 million and $2 million increased 33 per cent in the GTA and 31 per cent in downtown Toronto in the same period.
As the federal election campaign continues to forge on, the Conservative Party of Canada has announced that they will work to launch an inquiry into money laundering in the real estate sector, make surplus federal land available to increase the supply of housing, increase amortization periods on insured mortgages to 30 years for first-time homebuyers, and remove the stress test for homeowners seeking to refinance their mortgage.
Over the summer, “Activity across [Vancouver’s] $1 million-plus condominium, attached and single-family home markets rebounded 5%, 44% and 32% year-over-year over the summer months, culminating in an overall 25% increase in residential sales over $1 million in July and August,” cited Don Kottick, President and CEO of Sotheby’s International Realty Canada. More recently, sales for properties over the one-million-dollar mark and those luxury homes over $4 million dollars slid in the first two weeks of September.
A national housing report released by Zoocasa highlights “the disparity between the median incomes and the benchmark prices” and that there are more options available in housing markets like Calgary when compared to other urban centres in Canada.
Associate professor, Ken Birch, from the department of geography at York University predicts a housing market crash by 2021 the latest. Ken argues that Canada has become an asset-based economy and in doing so, “Canada spent $34.5-billion on research and development in 2018 versus $78-billion on home renovations in 2017.” Ken expects public policy designed to further bolster the housing market’s inflationary trajectory after the federal election.
Progressive taxation of luxury properties over $2 million that was introduced on July 1, 2019, and has since been linked to a decrease in sales for homes in this segment. It I now the twelfth consecutive week that the number of deals entering into contract in Manhattan was below twenty.
U.S. National Home Price Index increased 3.2 per cent year-over-year in July. “Home price gains remained positive in low single digits in most cities, and other fundamentals indicate renewed housing demand,” said Philip Murphy, managing director and global head of index governance at S&P Dow Jones Indices.
The median price of a home is about $350,000 in Miami and is out of reach to 85 per cent of households in the city. Over half of Miami’s population are renters and there is a lack of affordable housing in the metropolitan city.
Foreign investment Texas residential real estate decreased 28 per cent year-over-year as of March 2019. Mexicans, for instance, spent about half of the $4.2 billion spent in March 2018.
More buyers are demanding ready-to-move-in properties in India; hence, developers are making concessions that include virtual cash, free kitchen, deferred payment schedules, assured rent, and no floor premiums.
The Nigerian real estate sector has experienced seven consecutive quarterly declines of loans. Mortgage rates across 23 banks ranged between 14 and 36.5 per cent, according to the Central Bank of Nigeria.
Buyer demand is increasing for affordable homes in part due to the subsidy given to buyers for qualifying homes. In order to meet this demand, developers are shifting construction towards smaller unit sizes across India. The average apartment size has decreased by 27 per cent in the last fie years – from 1,4000 square feet in 2014 to almost 1,020 square feet in 2019.