The affordability crisis in Canadian real estate has already passed the point of being just a matter of what city one would prefer to live in, as it has become a life-and-death issue for those who are forced to stay in substandard emergency housing.
In a breakdown piece for CBC News, Canadian Alliance to End Homelessness president/CEO Tim Richter and Upstream founder Ryan Meili outlined the grim tableau that characterizes the country’s emergency shelters at present.
“[The shelters] are packed to the rafters. People are languishing in homelessness longer, and their ranks include seniors, veterans and families with children,” Richter and Meili wrote. “Shamefully, Indigenous Canadians are more than 10 times more likely than non-Indigenous people to end up in emergency shelter.”
“One of the biggest factors that determines whether people will stay healthy or wind up needing emergency or chronic medical care is where they live. People without access to stable housing are at higher risk of illness, and their likelihood of recovering well from that illness is greatly diminished,” the analysis added.
Per figures from the latest National Shelter Study, approximately 35,000 Canadians are homeless at any given night. Estimates of the annual number of homeless people exceed 235,000.
The situation is such that “physicians have gone so far as to label homelessness a palliative diagnosis.”
“Not having a home can be lethal. Homelessness causes premature death and poor health,” according to the duo. “The crisis stands to get worse before it gets better, as federal operating agreements for older social housing expire and more than 300,000 more households risk losing the subsidies that keep their housing affordable.”
And while Richter and Meili are one in the belief that an effective housing strategy is necessary to ensure that every Canadian has access to safe and affordable housing, the absolutely massive scope of the issue “when set against political and fiscal realities will force the government to make some difficult choices.”
“To make the difficult choices ahead, the government should take a page from medicine and triage,” the duo stated.
Thursday, September 29, 2016
Monday, September 26, 2016
Tax foreign buyers in Toronto says Oliver to avoid “Third World” density
Joe Oliver says Toronto will have to implement a tax on foreign buyers of residential real estate.
Writing in the Financial Post the former federal finance minister he says that he and his wife are intending to buy a condo in Toronto and his is concerned about affordability for all in the city if action is not taken to cool the market.
He admits that a new tax is not a “silver bullet” to affordability but that the tax would aim to moderate escalating prices.
Mr Oliver proposes some adjustments to the way the 15 per cent tax was introduced in Vancouver.
Firstly, he says that it should not apply retrospectively, which has caused some serious consequences for some buyers; he says that was “fundamentally unfair.”
Secondly, he says there should be no advance warning; it should be announced and be effective immediately.
Mr Oliver criticized the Ontario government’s plan to increase density with smaller condo units, saying that it would crowd families into small units in “a Third World approach.”
Source: http://www.canadianrealestatemagazine.ca/market-update/tax-foreign-buyers-in-toronto-says-oliver-to-avoid-third-world-density-214232.aspx
Writing in the Financial Post the former federal finance minister he says that he and his wife are intending to buy a condo in Toronto and his is concerned about affordability for all in the city if action is not taken to cool the market.
He admits that a new tax is not a “silver bullet” to affordability but that the tax would aim to moderate escalating prices.
Mr Oliver proposes some adjustments to the way the 15 per cent tax was introduced in Vancouver.
Firstly, he says that it should not apply retrospectively, which has caused some serious consequences for some buyers; he says that was “fundamentally unfair.”
Secondly, he says there should be no advance warning; it should be announced and be effective immediately.
Mr Oliver criticized the Ontario government’s plan to increase density with smaller condo units, saying that it would crowd families into small units in “a Third World approach.”
Source: http://www.canadianrealestatemagazine.ca/market-update/tax-foreign-buyers-in-toronto-says-oliver-to-avoid-third-world-density-214232.aspx
Thursday, September 22, 2016
Millennial homebuyers will pay extra for this convenience
Millennial homebuyers are willing to make compromises on their home purchase if it cuts their daily commute.
Living closer to work has ranked as paramount with 80 per cent of young Canadians responding to a survey by TD Bank. Among those who commute, 48 per cent say they would pay a higher price for a home if it cut their work journey, compared to 34 per cent of the wider population.
There are certain things that millennials, many of them first-time buyers, will not compromise on. Despite their quest to cut the commute, 89 per cent would be unlikely to get rid of their primary or secondary car; 81 per cent won’t sacrifice amenities; and 80 per cent won’t give up their top choice of neighbourhood.
More than two thirds also said they would be unlikely to move to a smaller home than they desired.
"While living close to work has many benefits, purchasing a home in expensive urban cities can come at a price," said Pat Giles, Associate Vice President, Real Estate Secured Lending at TD. "Finding your dream location means striking a balance among affordability, your non-negotiables and your financial future."
Source: http://www.canadianrealestatemagazine.ca/market-update/millennial-homebuyers-will-pay-extra-for-this-convenience-214157.aspx
Living closer to work has ranked as paramount with 80 per cent of young Canadians responding to a survey by TD Bank. Among those who commute, 48 per cent say they would pay a higher price for a home if it cut their work journey, compared to 34 per cent of the wider population.
There are certain things that millennials, many of them first-time buyers, will not compromise on. Despite their quest to cut the commute, 89 per cent would be unlikely to get rid of their primary or secondary car; 81 per cent won’t sacrifice amenities; and 80 per cent won’t give up their top choice of neighbourhood.
More than two thirds also said they would be unlikely to move to a smaller home than they desired.
"While living close to work has many benefits, purchasing a home in expensive urban cities can come at a price," said Pat Giles, Associate Vice President, Real Estate Secured Lending at TD. "Finding your dream location means striking a balance among affordability, your non-negotiables and your financial future."
Source: http://www.canadianrealestatemagazine.ca/market-update/millennial-homebuyers-will-pay-extra-for-this-convenience-214157.aspx
Thursday, September 15, 2016
RBC says economy will rebound, housing remains strong
The Canadian economy will improve in the second half of 2016 with a further boost in 2017 according to RBC Economics.
It says that growth will snap back following a weak second quarter, with low interest rates and federal stimulus easing the journey.
The report calls for a 3.7 per cent annualized GDP growth in the third quarter of 2016 and 1.9 per cent in the fourth. It sees a 1.8 per cent rise in GDP for 2017 following 1.3 per cent this year.
For the housing market, the outlook report highlights recent slowing of activity in BC largely due to policy changes impacting Vancouver, however it still expects a record year for the province.
Nationally, RBC expects the prices to end the year up 6.1 per cent as supply issues dominate but sales are expected to slip in 2017 with an overall decline of 3.5 per cent year-over-year.
Source: www.canadianrealestatemagazine.ca/market-update/rbc-says-economy-will-rebound-housing-remains-strong-213818.aspx
It says that growth will snap back following a weak second quarter, with low interest rates and federal stimulus easing the journey.
The report calls for a 3.7 per cent annualized GDP growth in the third quarter of 2016 and 1.9 per cent in the fourth. It sees a 1.8 per cent rise in GDP for 2017 following 1.3 per cent this year.
For the housing market, the outlook report highlights recent slowing of activity in BC largely due to policy changes impacting Vancouver, however it still expects a record year for the province.
Nationally, RBC expects the prices to end the year up 6.1 per cent as supply issues dominate but sales are expected to slip in 2017 with an overall decline of 3.5 per cent year-over-year.
Source: www.canadianrealestatemagazine.ca/market-update/rbc-says-economy-will-rebound-housing-remains-strong-213818.aspx
Monday, September 12, 2016
Study reveals how far Ontario buyers are willing to go for their dream home
Homebuyers in Ontario are willing to stretch their budgets to bag their dream home according to a poll by the Real Estate Council of Ontario.
It found that 47 per cent of respondents would consider going 10 per cent over-budget and almost a third would think about pushing their limits by up to 20 per cent. These figures rise to 57 and 38 per cent in Greater Toronto Area where bidding wars are more common.
“Our research findings make it clear that too many Ontarians may be struggling to keep a cool head in the hot and highly-competitive real estate markets that are becoming the norm,” said Joe Richer, Registrar of RECO. “Buying or selling a home can be a rollercoaster of emotions. People tend to let their heart rule their heads, especially first-time buyers.”
RECO is launching a tour of 13 locations across the province from the fall to help buyers and sellers understand how to overcome the challenges of the hot market.
Source: http://www.canadianrealestatemagazine.ca/market-update/study-reveals-how-far-ontario-buyers-are-willing-to-go-for-their-dream-home-213596.aspx
It found that 47 per cent of respondents would consider going 10 per cent over-budget and almost a third would think about pushing their limits by up to 20 per cent. These figures rise to 57 and 38 per cent in Greater Toronto Area where bidding wars are more common.
“Our research findings make it clear that too many Ontarians may be struggling to keep a cool head in the hot and highly-competitive real estate markets that are becoming the norm,” said Joe Richer, Registrar of RECO. “Buying or selling a home can be a rollercoaster of emotions. People tend to let their heart rule their heads, especially first-time buyers.”
RECO is launching a tour of 13 locations across the province from the fall to help buyers and sellers understand how to overcome the challenges of the hot market.
Source: http://www.canadianrealestatemagazine.ca/market-update/study-reveals-how-far-ontario-buyers-are-willing-to-go-for-their-dream-home-213596.aspx
Thursday, September 8, 2016
Kitchener-Waterloo feels the heat in August
Real estate agents in the Kitchener-Waterloo market say that August was the most active on record with a rise in sales of 26.4 per cent year-over-year with 598 homes sold.
Year-to-date sales were 23.4 per cent above the 5-year average and is another record at 4,703 sales. Tight inventory continues to weigh on activity with active listings down 46.6 per cent to the end of August compared to the same period last year.
The average sale price for single-detached homes was up 20.9 per cent year-over-year to $487,500 while condo prices were up 7.9 per cent to $233,302.
Source: http://www.canadianrealestatemagazine.ca/market-update/kitchenerwaterloo-feels-the-heat-in-august-213438.aspx
Year-to-date sales were 23.4 per cent above the 5-year average and is another record at 4,703 sales. Tight inventory continues to weigh on activity with active listings down 46.6 per cent to the end of August compared to the same period last year.
The average sale price for single-detached homes was up 20.9 per cent year-over-year to $487,500 while condo prices were up 7.9 per cent to $233,302.
Source: http://www.canadianrealestatemagazine.ca/market-update/kitchenerwaterloo-feels-the-heat-in-august-213438.aspx
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