The latest edition of the Bloomberg Nanos Canada Confidence Index saw optimism about home prices reaching an unprecedented high in Canada.
The survey, which is considered statistically accurate within 3.1 percentage points (19 times out of 20), found that 48.5 per cent of the polled consumers see home prices rising in the next 6 months, the highest ratio since mid-2008. The overall confidence index reached 59.1, the highest since March and surpassing the 12-month average of 57.4.
“Bullish sentiment on real estate in Canada continues to drive consumer confidence,” Nanos Research Group Chairman Nik Nanos said.
Ontario tied with British Columbia for the highest confidence on a per region basis, both at 62.9.
The heightened hopefulness came amid new measures enacted by the Ontario government to moderate red-hot price growth in the Toronto housing market. Last week, Ontario Premier Kathleen Wynne and Finance Minister Charles Sousa introduced a 15 per cent foreign buyers’ tax covering the Greater Toronto Area, and permitted Mayor John Tory to charge a levy on vacant properties.
However, the increased confidence stood in stark contrast to the survey’s results on opinions surrounding personal finances. 28.3 per cent of the respondents stated that they were worse off compared to a year ago, while only 18 per cent saw improvements in their pocketbooks.
Source: http://www.canadianrealestatemagazine.ca/news/canadians-now-more-optimistic-about-home-prices--poll-224621.aspx
Thursday, April 27, 2017
Monday, April 24, 2017
Ontario wants to tax foreign buyers, vacant homes
The Ontario government has launched its response to the red-hot Toronto housing market which has spread to other parts of the province.
The Fair Housing Plan aims to tackle supply and affordability issues with 16 key proposals including expanded rent controls and greater collection of data.
The province is proposing a 15 per cent tax on residential properties in the Greater Golden-Horseshoe by by individuals who are not citizens or permanent residents of Canada or by foreign corporations.
The legislation, if passed, would apply from today (April 21, 2017) to transfers of land that contain at least one and not more than six single family residences.
Refugees and nominees under the Ontario Immigrant Nominee Program would be exempt and rebates would be available for those who subsequently attain citizenship or permanent resident status as a well as foreign nationals working in Ontario and international students.
There could also be a tax on vacant homes in Toronto. The proposal is for legislation which would give the City the power to implement the taxation of homes left empty. Other municipalities may also be given the power.
Supply will also be tackled by allowing affordable housing to be built on some of the province’s surplus land; and
other incentives to get developers building affordable and rental units.
Some organizations have been quick to react to the Fair Housing Plan.
"As an insurer of first-time homebuyers, we have seen a growing divergence between what first-time buyers can afford and average market prices,” said Stuart Levings, President and CEO of Genworth Canada. “These measures will help responsible families and individuals achieve their dreams of homeownership while protecting the equity that existing GGH homeowners have invested in their properties.”
Meanwhile, the Conference Board of Canada said that it was time for Ontario to act.
Source: http://www.canadianrealestatemagazine.ca/market-update/ontario-wants-to-tax-foreign-buyers-vacant-homes-224429.aspx
The Fair Housing Plan aims to tackle supply and affordability issues with 16 key proposals including expanded rent controls and greater collection of data.
The province is proposing a 15 per cent tax on residential properties in the Greater Golden-Horseshoe by by individuals who are not citizens or permanent residents of Canada or by foreign corporations.
The legislation, if passed, would apply from today (April 21, 2017) to transfers of land that contain at least one and not more than six single family residences.
Refugees and nominees under the Ontario Immigrant Nominee Program would be exempt and rebates would be available for those who subsequently attain citizenship or permanent resident status as a well as foreign nationals working in Ontario and international students.
There could also be a tax on vacant homes in Toronto. The proposal is for legislation which would give the City the power to implement the taxation of homes left empty. Other municipalities may also be given the power.
Supply will also be tackled by allowing affordable housing to be built on some of the province’s surplus land; and
other incentives to get developers building affordable and rental units.
Some organizations have been quick to react to the Fair Housing Plan.
"As an insurer of first-time homebuyers, we have seen a growing divergence between what first-time buyers can afford and average market prices,” said Stuart Levings, President and CEO of Genworth Canada. “These measures will help responsible families and individuals achieve their dreams of homeownership while protecting the equity that existing GGH homeowners have invested in their properties.”
Meanwhile, the Conference Board of Canada said that it was time for Ontario to act.
Source: http://www.canadianrealestatemagazine.ca/market-update/ontario-wants-to-tax-foreign-buyers-vacant-homes-224429.aspx
Wednesday, April 19, 2017
Higher prices unlikely, even in the very near future - local agents
Canadians who are looking to cash in on the country’s overheated housing market should act now before the market shifts or the government implements more drastic policies, according to real estate agents working in the most in-demand cities.
Sarah Blakely of Toronto recounted the recent sale of her renovated three-bedroom home for more than $1 million, after she and her husband managed to purchase a four-bedroom home in Ottawa. Seven years earlier, the couple spent a little over $300,000 on the sold property.
“My husband and I saw an opportunity to take advantage of the recent gains in real estate and to move to a less expensive city to live mortgage-free, support our savings for retirement and also to be closer to family,” Blakely told CBC News.
Josie Stern, the couple’s agent, stated that the transaction came at just the right time, as it would be unlikely that the home will be able to sell for that much, even in the near future.
“A little bit of air has been let out of the bubble,” Stern said, noting that price growth seems to be cooling a bit—a situation that Vancouver real estate agent Melissa Wu is intimately familiar with.
Wu said that while her recent deals included a $2-million sale for a hundred-year-old home in east Vancouver, the transaction took three weeks to materialize—far longer than it would have last year.
Wu encouraged Toronto homeowners to sell as soon as they can, explaining that their market is in an enviable position at the moment.
“There’s always a shift coming in,” she said. “Sell before it corrects.”
In Royal LePage’s just-released Q1 housing report, recent data suggested that Toronto and Vancouver’s real estate trends have finally diverged after years of mirroring each other.
“For the first time in several years, real estate markets in Vancouver and Toronto are headed in opposite directions,” Royal LePage president and CEO Phil Soper said.
“The Vancouver market stalled, as confused consumers took to the sidelines after a series of uncoordinated moves by all three levels of government. With the housing shortage becoming more acute, Toronto easily stepped forward to assume the title of Canada’s most overheated real estate market.”
Source: http://www.canadianrealestatemagazine.ca/news/higher-prices-unlikely-even-in-the-very-near-future--local-agents-224305.aspx
Sarah Blakely of Toronto recounted the recent sale of her renovated three-bedroom home for more than $1 million, after she and her husband managed to purchase a four-bedroom home in Ottawa. Seven years earlier, the couple spent a little over $300,000 on the sold property.
“My husband and I saw an opportunity to take advantage of the recent gains in real estate and to move to a less expensive city to live mortgage-free, support our savings for retirement and also to be closer to family,” Blakely told CBC News.
Josie Stern, the couple’s agent, stated that the transaction came at just the right time, as it would be unlikely that the home will be able to sell for that much, even in the near future.
“A little bit of air has been let out of the bubble,” Stern said, noting that price growth seems to be cooling a bit—a situation that Vancouver real estate agent Melissa Wu is intimately familiar with.
Wu said that while her recent deals included a $2-million sale for a hundred-year-old home in east Vancouver, the transaction took three weeks to materialize—far longer than it would have last year.
Wu encouraged Toronto homeowners to sell as soon as they can, explaining that their market is in an enviable position at the moment.
“There’s always a shift coming in,” she said. “Sell before it corrects.”
In Royal LePage’s just-released Q1 housing report, recent data suggested that Toronto and Vancouver’s real estate trends have finally diverged after years of mirroring each other.
“For the first time in several years, real estate markets in Vancouver and Toronto are headed in opposite directions,” Royal LePage president and CEO Phil Soper said.
“The Vancouver market stalled, as confused consumers took to the sidelines after a series of uncoordinated moves by all three levels of government. With the housing shortage becoming more acute, Toronto easily stepped forward to assume the title of Canada’s most overheated real estate market.”
Source: http://www.canadianrealestatemagazine.ca/news/higher-prices-unlikely-even-in-the-very-near-future--local-agents-224305.aspx
Monday, April 10, 2017
Surging home prices, lower earnings burden young Ontarians, study says
Next to British Columbia, Ontario is the second worst economy in Canada for younger generations, according to research from youth advocacy group Generation Squeeze.
"No province reports a decline in full-time earnings [for the typical 25-34 year old] since 2003 except Ontario. That wouldn't be so bad if Ontarians' primary cost of living — housing — was also not going up in price," said the lobby group's founder and University of British Columbia professor Paul Kershaw.
According to the report, the standard of living has deteriorated more dramatically for younger people in Ontario in recent years than anywhere else in the country other than British Columbia.
Apart from the decline in full-time earnings, the report cited other indicators:
More difficult home-ownership – It currently takes 15 years on average to save a 20 per cent down-payment on an average-priced Ontario home
Hard work “pays off less” – Typical younger Ontarians have lost seven years of hard work when measured by the amount of labour required to save for a down payment on an average-priced home
Higher debt – Ontario has the third highest per capita provincial debt level ($22,500) in the country
Early childhood vulnerability – Data show that 35,000 children enter the formal school system in Ontario each year vulnerable in ways that mean they are more likely to fail, go to jail and wind up sick as adults.
Kerhsaw also made 10 recommendations to address these concerns, including the revision of tax policy to slow down the rise of home prices. “Surtaxes on foreign buyers are one option now being trialed by the B.C. government in the Metro Vancouver region. A version of this tax could be extended to Ontario and other parts of Canada.”
“Federal and provincial governments should also consider taxing the capital gains that result from the sale of homes purchased within 24 months. This sort of “speculation tax” could be administered with tax rates that decline over time,” he added.
http://www.canadianrealestatemagazine.ca/news/surging-home-prices-lower-earnings-burden-young-ontarians-study-says-223944.aspx
"No province reports a decline in full-time earnings [for the typical 25-34 year old] since 2003 except Ontario. That wouldn't be so bad if Ontarians' primary cost of living — housing — was also not going up in price," said the lobby group's founder and University of British Columbia professor Paul Kershaw.
According to the report, the standard of living has deteriorated more dramatically for younger people in Ontario in recent years than anywhere else in the country other than British Columbia.
Apart from the decline in full-time earnings, the report cited other indicators:
More difficult home-ownership – It currently takes 15 years on average to save a 20 per cent down-payment on an average-priced Ontario home
Hard work “pays off less” – Typical younger Ontarians have lost seven years of hard work when measured by the amount of labour required to save for a down payment on an average-priced home
Higher debt – Ontario has the third highest per capita provincial debt level ($22,500) in the country
Early childhood vulnerability – Data show that 35,000 children enter the formal school system in Ontario each year vulnerable in ways that mean they are more likely to fail, go to jail and wind up sick as adults.
Kerhsaw also made 10 recommendations to address these concerns, including the revision of tax policy to slow down the rise of home prices. “Surtaxes on foreign buyers are one option now being trialed by the B.C. government in the Metro Vancouver region. A version of this tax could be extended to Ontario and other parts of Canada.”
“Federal and provincial governments should also consider taxing the capital gains that result from the sale of homes purchased within 24 months. This sort of “speculation tax” could be administered with tax rates that decline over time,” he added.
http://www.canadianrealestatemagazine.ca/news/surging-home-prices-lower-earnings-burden-young-ontarians-study-says-223944.aspx
Monday, April 3, 2017
Canada becomes a top destination for global corporate employees
Every year, corporates around the world expand or establish their presence in international markets and Canada has entered the rankings for the top destinations for employee relocation.
A report from relocation specialists Cartus reveals that the US has held the top spot from its last survey 4 years’ ago with the UK and Switzerland completing the top 3.
China has slipped in the rankings from third in 2013 to 8th in 2016 while Canada has entered the top 10 at 9; Ireland has entered at 10. France and Hong Kong have dropped out of the top 10.
“It’s interesting that Canada has now joined the list of top ten global relocation destinations. As the year-in-year-out largest trading partner with the United States, and with many companies’ supply chains crossing the border, Canada will continue to be an important destination for US expats,” said Matt Spinolo, Executive Vice President, Global Services, Cartus.
Singapore, Netherlands, Germany and India remain popular destinations for corporate employees.
Source: http://www.canadianrealestatemagazine.ca/market-update/canada-becomes-a-top-destination-for-global-corporate-employees-223644.aspx
A report from relocation specialists Cartus reveals that the US has held the top spot from its last survey 4 years’ ago with the UK and Switzerland completing the top 3.
China has slipped in the rankings from third in 2013 to 8th in 2016 while Canada has entered the top 10 at 9; Ireland has entered at 10. France and Hong Kong have dropped out of the top 10.
“It’s interesting that Canada has now joined the list of top ten global relocation destinations. As the year-in-year-out largest trading partner with the United States, and with many companies’ supply chains crossing the border, Canada will continue to be an important destination for US expats,” said Matt Spinolo, Executive Vice President, Global Services, Cartus.
Singapore, Netherlands, Germany and India remain popular destinations for corporate employees.
Source: http://www.canadianrealestatemagazine.ca/market-update/canada-becomes-a-top-destination-for-global-corporate-employees-223644.aspx
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