In exciting news, built suites in a prime Waterloo location are on sale, starting from the $580’s and starting from $371 per square foot. This high quality, fully-leased mid-rise condominium building located at 261 Lester Street offers five-bedroom rental academic accommodation suites with high-end finishes.
This rare opportunity is just a 5-minute walk to both the University of Waterloo and Wilfrid Laurier University, near Conestoga College and local amenities. Flexible closings are available from 30-days to March of 2018.
Savvy investors know that buying quality is always a great move and that means strong growth projections of the associated university, location/walkability and rental guarantee. On site management is also important, particularly for out-of-town and busy investors.
On these important scores, the new offering gets straight A+’s. The outlook for Waterloo Region is for continued growth, fueled by its universities and the nearby Idea Quarter. The location of the building literally cannot be closer to both campuses and the Idea Quarter. Finally, a Rental Guarantee is offered with Free Property Management from KW4Rent for 2 years from the purchase of the unit.
Quality rentals will remain in demand in Waterloo due to the coming of age of the city’s innovative tech sector where hundreds of start-ups employ an estimated just under one-fourth of graduating students. Recognizing the highly trained talent pool coming out of University of Waterloo and Wilfrid Laurier University, powerhouse companies like Google and Microsoft have offices in Waterloo.
Waterloo is widely considered to be one of the top tech startup regions in the world. Last year, the Waterloo region recorded an increase of 74.4 per cent in new tech jobs, followed by Winnipeg at 58.5 per cent and Halifax at 50 per cent. Because of the availability of talent, lower real estate costs and proximity to both Toronto and the border, Waterloo is expected to see continued growth in this area going forward.
Students who come to Waterloo to study are just as likely to find jobs and a vibrant city to build their future, and that means a solid long-term opportunity for those who provide them with quality academic accommodations. The condominium building now on offer from Prica Group is top of the class. Those who are interested should visit www.kw2own.com or call 437.928.2588. Showings are available.
Prica Group is a leader in the Waterloo real estate market with a net worth of $514 million in assets including residential and commercial properties, land and a leading property management company. Now investors can have a piece of their action.
Source: http://www.canadianrealestatemagazine.ca/expert-advice/rental-real-estate-opportunity-in-canadas-technology-triangle-235546.aspx
Thursday, December 21, 2017
Monday, December 18, 2017
Homeowners should do more research on renovators
Canadian homeowners may be spending money unwisely on home renovations by shady contractors.
The warning comes from contractors’ review platform TrustedPros which anonymously asked professionals whether homeowners ask to check their credentials.
Only 5% said they were always asked, while 60% said only between 0 and 5% of customers carried out due diligence on them.
With many homeowners using HELOCs and refinancing to fund renovations costing thousands of dollars, the report highlights a significant risk for homeowners, and their lenders.
The key areas that homeowners are failing to check are trade and business licenses, liability insurance, and workers’ compensation insurance.
Too many homeowners do not understand industry regulations or may be misinformed by unscrupulous operators.
Source: http://www.canadianrealestatemagazine.ca/market-update/homeowners-should-do-more-research-on-renovators-235560.aspx
The warning comes from contractors’ review platform TrustedPros which anonymously asked professionals whether homeowners ask to check their credentials.
Only 5% said they were always asked, while 60% said only between 0 and 5% of customers carried out due diligence on them.
With many homeowners using HELOCs and refinancing to fund renovations costing thousands of dollars, the report highlights a significant risk for homeowners, and their lenders.
The key areas that homeowners are failing to check are trade and business licenses, liability insurance, and workers’ compensation insurance.
Too many homeowners do not understand industry regulations or may be misinformed by unscrupulous operators.
Source: http://www.canadianrealestatemagazine.ca/market-update/homeowners-should-do-more-research-on-renovators-235560.aspx
Friday, December 15, 2017
Demand spreading outside major cities, prices to gain 2.5%
Canadian home prices are set to gain 2.5% in 2018 as demand spreads to markets outside the major cities.
A new outlook report from RE/MAX highlights the increased interest in the more affordable markets around the Greater Vancouver and Greater Toronto areas.
Canada’s two hottest markets have seen divergence of the single-family and condo markets as supply and policy issues makes condos a more affordable option.
But the incoming tightening of mortgage underwriting rules will moderate the market, at least in the first half of 2018.
“Following increased fall market activity in some regions, we anticipate the new mortgage stress test to slow activity across Canada during first few months of 2018,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Based on conversations with RE/MAX brokers, we anticipate the greatest impact of decreased buyer purchasing power to be in Victoria, Greater Vancouver, Kelowna, North Bay, London-St. Thomas, Barrie, Hamilton-Burlington, the GTA, Durham Region, Kingston, Ottawa, Halifax and St. John’s.”
The report forecasts that Calgary’s housing market should continue to recover especially with the new Amazon distribution facilities being sited there.
Source: http://www.canadianrealestatemagazine.ca/market-update/demand-spreading-outside-major-cities-prices-to-gain-2-5-235520.aspx
A new outlook report from RE/MAX highlights the increased interest in the more affordable markets around the Greater Vancouver and Greater Toronto areas.
Canada’s two hottest markets have seen divergence of the single-family and condo markets as supply and policy issues makes condos a more affordable option.
But the incoming tightening of mortgage underwriting rules will moderate the market, at least in the first half of 2018.
“Following increased fall market activity in some regions, we anticipate the new mortgage stress test to slow activity across Canada during first few months of 2018,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Based on conversations with RE/MAX brokers, we anticipate the greatest impact of decreased buyer purchasing power to be in Victoria, Greater Vancouver, Kelowna, North Bay, London-St. Thomas, Barrie, Hamilton-Burlington, the GTA, Durham Region, Kingston, Ottawa, Halifax and St. John’s.”
The report forecasts that Calgary’s housing market should continue to recover especially with the new Amazon distribution facilities being sited there.
Source: http://www.canadianrealestatemagazine.ca/market-update/demand-spreading-outside-major-cities-prices-to-gain-2-5-235520.aspx
Monday, December 11, 2017
Home values boost Canadian family net worth
Canadian families increased their net worth by 14.7% in the four years from 2012-2016 according to new data from Statistics Canada.
Wealth increased mostly due to the rising value of homes, while debt was also driven by home prices as families took out larger mortgages.
The median net worth of Canadian families was $295,100 in 2016, up from $257,200 four years’ earlier. Last year, 61.7% of families owned their principal residence with 57.3% of them having a mortgage on their home. That means 38.4% of all families had a mortgage in 2016.
Total debt was $1.76 trillion, up 24.2% in the four-year period, while mortgage debt was up 30.4% to $330 billion. Almost 30% of families were debt free in 2016.
The median family debt increased 27.1% from $63,400 in 2012 to $80,600 in 2016. Mortgage debt increased to a median $190,000, 20% higher than in 2012.
Albertans were most likely to have a mortgage in 2016 (44%) while Nova Scotians were least likely (32.7%).
Home equity was up 12.8% from 2012 and up 115.2% from 1999 to a median reported value of $238,000 in 2016.
Families in British Columbia had the highest median net worth as of 2016 at $429,400. They were followed by those in Ontario ($365,700), Manitoba ($320,800) and Saskatchewan ($293,500). New Brunswick reported the lowest median net worth among the provinces at $158,400.
Source: http://www.canadianrealestatemagazine.ca/market-update/home-values-boost-canadian-family-net-worth-235194.aspx
Wealth increased mostly due to the rising value of homes, while debt was also driven by home prices as families took out larger mortgages.
The median net worth of Canadian families was $295,100 in 2016, up from $257,200 four years’ earlier. Last year, 61.7% of families owned their principal residence with 57.3% of them having a mortgage on their home. That means 38.4% of all families had a mortgage in 2016.
Total debt was $1.76 trillion, up 24.2% in the four-year period, while mortgage debt was up 30.4% to $330 billion. Almost 30% of families were debt free in 2016.
The median family debt increased 27.1% from $63,400 in 2012 to $80,600 in 2016. Mortgage debt increased to a median $190,000, 20% higher than in 2012.
Albertans were most likely to have a mortgage in 2016 (44%) while Nova Scotians were least likely (32.7%).
Home equity was up 12.8% from 2012 and up 115.2% from 1999 to a median reported value of $238,000 in 2016.
Families in British Columbia had the highest median net worth as of 2016 at $429,400. They were followed by those in Ontario ($365,700), Manitoba ($320,800) and Saskatchewan ($293,500). New Brunswick reported the lowest median net worth among the provinces at $158,400.
Source: http://www.canadianrealestatemagazine.ca/market-update/home-values-boost-canadian-family-net-worth-235194.aspx
Thursday, December 7, 2017
Liberals hesitating on campaign promise over fears of worsening crisis
The federal Liberals are having second thoughts about a 2015 campaign promise out of concern that expanding the popular Home Buyers’ Plan would throw fuel on overheated housing markets.
An internal document suggested that high housing prices are a key reason the Liberals don’t appear to be in a hurry to fulfill an election pledge that would enable Canadians to dip back into their registered retirement savings to help pay for a home.
The detail surfaced as policy-makers considered new measures aimed at cooling real estate markets and to slow the rise of record-level household debt loads, The Canadian Press reported.
During the election campaign, the Liberals promised to expand the Home Buyers’ Plan to permit those affected by major life events — death of a spouse, divorce, or taking in an elderly relative — to borrow a down payment from their RRSPs without incurring a penalty.
The current plan allows first-time buyers to borrow up to $25,000 tax-free from their RRSPs to put toward the purchase of a home. The amount must be repaid within 15 years.
The Liberal government unveiled its housing plan late last month, but home ownership only got a passing mention in the strategy. The plan committed to spending billions to build up Canada’s stock of affordable rental housing — a strategy Social Development Minister Jean-Yves Duclos is expecting to put downward pressure on housing prices.
Organizations like the CREA, however, argued the government should be doing more to help more people make down payments.
The association, which represents more than 100,000 real-estate brokers and agents, is now lobbying Ottawa to create intergenerational RRSP loans that would give parents the option of helping their kids buy a home by allowing them to tap into their retirement savings. The group is also pushing for the maximum withdrawal limit to be increased by $10,000.
Source: http://www.canadianrealestatemagazine.ca/news/liberals-hesitating-on-campaign-promise-over-fears-of-worsening-crisis-235010.aspx
An internal document suggested that high housing prices are a key reason the Liberals don’t appear to be in a hurry to fulfill an election pledge that would enable Canadians to dip back into their registered retirement savings to help pay for a home.
The detail surfaced as policy-makers considered new measures aimed at cooling real estate markets and to slow the rise of record-level household debt loads, The Canadian Press reported.
During the election campaign, the Liberals promised to expand the Home Buyers’ Plan to permit those affected by major life events — death of a spouse, divorce, or taking in an elderly relative — to borrow a down payment from their RRSPs without incurring a penalty.
The current plan allows first-time buyers to borrow up to $25,000 tax-free from their RRSPs to put toward the purchase of a home. The amount must be repaid within 15 years.
The Liberal government unveiled its housing plan late last month, but home ownership only got a passing mention in the strategy. The plan committed to spending billions to build up Canada’s stock of affordable rental housing — a strategy Social Development Minister Jean-Yves Duclos is expecting to put downward pressure on housing prices.
Organizations like the CREA, however, argued the government should be doing more to help more people make down payments.
The association, which represents more than 100,000 real-estate brokers and agents, is now lobbying Ottawa to create intergenerational RRSP loans that would give parents the option of helping their kids buy a home by allowing them to tap into their retirement savings. The group is also pushing for the maximum withdrawal limit to be increased by $10,000.
Source: http://www.canadianrealestatemagazine.ca/news/liberals-hesitating-on-campaign-promise-over-fears-of-worsening-crisis-235010.aspx
Monday, December 4, 2017
Canadians have to rethink their home ownership dreams – CMHC
The head of the federal housing agency argued that more Canadians may have to rethink the idea of owning a home, especially in major cities where prices have surged.
“The dream of home ownership may be fading for some,” Canada Mortgage & Housing Corporation president Evan Siddall said, as quoted by Bloomberg. “Housing affordability has become a serious problem in our major cities.”
The remarks came after Prime Minister Justin Trudeau introduced $40 billion of spending over the next decade to fix up public housing projects and offer new rent subsidies to poorer families. Prices in Vancouver and Toronto have surged and traditional single-family homes can often fetch more than $1 million, prompting buyers to move into distant suburbs and lawmakers to introduce special taxes on foreign owners.
Higher prices are likely behind a decline in Canadian home ownership rates, which have also fallen in other industrialized nations, Siddall said. Canada remains vulnerable to household debts that have reached 175% of disposable income, he said.
Toronto home prices have climbed 63% over the last five years, with about half of that gain coming in the last two years, according to the Teranet-National Bank Home Price Index. In Vancouver, prices have jumped 65% over five years.
Source: http://www.canadianrealestatemagazine.ca/news/canadians-have-to-rethink-their-home-ownership-dreams--cmhc-234871.aspx
“The dream of home ownership may be fading for some,” Canada Mortgage & Housing Corporation president Evan Siddall said, as quoted by Bloomberg. “Housing affordability has become a serious problem in our major cities.”
The remarks came after Prime Minister Justin Trudeau introduced $40 billion of spending over the next decade to fix up public housing projects and offer new rent subsidies to poorer families. Prices in Vancouver and Toronto have surged and traditional single-family homes can often fetch more than $1 million, prompting buyers to move into distant suburbs and lawmakers to introduce special taxes on foreign owners.
Higher prices are likely behind a decline in Canadian home ownership rates, which have also fallen in other industrialized nations, Siddall said. Canada remains vulnerable to household debts that have reached 175% of disposable income, he said.
Toronto home prices have climbed 63% over the last five years, with about half of that gain coming in the last two years, according to the Teranet-National Bank Home Price Index. In Vancouver, prices have jumped 65% over five years.
Source: http://www.canadianrealestatemagazine.ca/news/canadians-have-to-rethink-their-home-ownership-dreams--cmhc-234871.aspx
Thursday, November 30, 2017
Government meddling in real estate will not fix it – analyst
The Liberals’ latest plan to fix the Canadian housing market’s problems might prove to be a valiant but ultimately futile attempt, according to veteran markets analyst Don Pittis.
Writing for CBC News, Pittis noted that despite the noble intentions, the newly introduced plan should not be expected to serve as the panacea that its proponents are hoping it to be.
“While the new government strategy makes a welcome political gesture toward solving problems created by the high cost of housing, there is evidence that the problem is bigger, more complicated and more intractable than any government can handle, even with this latest decade-long multi-billion-dollar plan,” Pittis wrote.
“The criticisms [of the plan] could be grouped into four general categories. It wasn’t enough. It was too late. It didn’t do the right things. And it didn't help the right people,” Pittis explained. “All those critiques may be fair. But what no one, including the federal government, was going to admit was that solving the housing crisis is simply impossible.”
Also, while some quarters are proposing that the government keep its hands off entirely and let the free market regulate itself, “voters don’t like the idea of some Canadian families living in cardboard boxes and others in mansions. And the government knows it.”
In a bitter irony, a solution will come in the form of a sudden crash that will come about once the property bubble bursts – and by then, “the complaint that federal spending plan is too late will become a virtue.”
At the moment, the best choice that Canadians can go for is a brutal realism that eschews previous generations’ ideas of the perfect home.
“Canada is going through a difficult transition that others have gone through before. There is no longer room for every family to have its suburban picket fence,” Pittis concluded.
Source: http://www.canadianrealestatemagazine.ca/news/government-meddling-in-real-estate-will-not-fix-it--analyst-234682.aspx
Writing for CBC News, Pittis noted that despite the noble intentions, the newly introduced plan should not be expected to serve as the panacea that its proponents are hoping it to be.
“While the new government strategy makes a welcome political gesture toward solving problems created by the high cost of housing, there is evidence that the problem is bigger, more complicated and more intractable than any government can handle, even with this latest decade-long multi-billion-dollar plan,” Pittis wrote.
“The criticisms [of the plan] could be grouped into four general categories. It wasn’t enough. It was too late. It didn’t do the right things. And it didn't help the right people,” Pittis explained. “All those critiques may be fair. But what no one, including the federal government, was going to admit was that solving the housing crisis is simply impossible.”
Also, while some quarters are proposing that the government keep its hands off entirely and let the free market regulate itself, “voters don’t like the idea of some Canadian families living in cardboard boxes and others in mansions. And the government knows it.”
In a bitter irony, a solution will come in the form of a sudden crash that will come about once the property bubble bursts – and by then, “the complaint that federal spending plan is too late will become a virtue.”
At the moment, the best choice that Canadians can go for is a brutal realism that eschews previous generations’ ideas of the perfect home.
“Canada is going through a difficult transition that others have gone through before. There is no longer room for every family to have its suburban picket fence,” Pittis concluded.
Source: http://www.canadianrealestatemagazine.ca/news/government-meddling-in-real-estate-will-not-fix-it--analyst-234682.aspx
Thursday, November 23, 2017
Real estate is driving consumer optimism says Nanos
Optimism in Canada’s real estate market is giving consumers are warm feeling as we head into winter.
The weekly barometer of Canadian consumer confidence from Bloomberg and Nanos shows an overall uptick in confidence to 59.46 for the week ending November 17, up from 58.83 a week earlier.
Although short of the 61.19 recorded in August, the index remains well above the 2017 average of 58.41.
“Over the past four weeks positive views on the future value of real estate and the economy have increased,” said Nanos Research Group Chairman Nik Nanos.
The subindex focused on job security and personal finances including mortgages was down slightly while the measure of optimism in real estate and the overall economy gained.
"While the latest survey appears to confirm building confidence in the economy and real estate values, there is a perhaps more tentative outlook regarding perceptions of job security and personal finances--factors that can affect future household spending,” explained Bloomberg economist Robert Lawrie.
Source: http://www.canadianrealestatemagazine.ca/market-update/real-estate-is-driving-consumer-optimism-says-nanos-234227.aspx
The weekly barometer of Canadian consumer confidence from Bloomberg and Nanos shows an overall uptick in confidence to 59.46 for the week ending November 17, up from 58.83 a week earlier.
Although short of the 61.19 recorded in August, the index remains well above the 2017 average of 58.41.
“Over the past four weeks positive views on the future value of real estate and the economy have increased,” said Nanos Research Group Chairman Nik Nanos.
The subindex focused on job security and personal finances including mortgages was down slightly while the measure of optimism in real estate and the overall economy gained.
"While the latest survey appears to confirm building confidence in the economy and real estate values, there is a perhaps more tentative outlook regarding perceptions of job security and personal finances--factors that can affect future household spending,” explained Bloomberg economist Robert Lawrie.
Source: http://www.canadianrealestatemagazine.ca/market-update/real-estate-is-driving-consumer-optimism-says-nanos-234227.aspx
Monday, November 20, 2017
Canada's core housing need is stable says CMHC
The share of Canada’s population that is not able to access acceptable housing has remained stable over the past decade.
Data from CMHC and Statistics Canada reveals that 1.7 million Canadian households were in core housing need in 2016, amounting to 12.7%, around the same as in 2006.
“While the proportion of Canadian households living in core housing need has remained stable over the last ten years, different trends exist among provinces and territories,” said Benjamin Williams, Director, Housing Indicators and Analytics. “Between 2011 and 2016, housing conditions have worsened in the Prairies region and in Ontario, and improved in Quebec, British Columbia and in most of the Atlantic region. Core housing need was prevalent in the territories; the rate in Nunavut remained the highest in the country at 36.5%.”
The need is higher in Ontario which accounts for all of the CMAs with the highest core housing except for Vancouver and Victoria. 1 in 7 of Ontario’s households were in core housing need last year, up 130,000 from 2011 with the share reaching 15.3%. In Toronto the rate in 2016 was 1 in 5 households.
Vancouver’s share was 14.9% in 2016 although that was a decrease from 2011.
Rising shelter costs have contributed to a rise in core housing need in all provinces with an increase except for Alberta according to census data.
Source: http://www.canadianrealestatemagazine.ca/market-update/canadas-core-housing-need-is-stable-says-cmhc-234177.aspx
Data from CMHC and Statistics Canada reveals that 1.7 million Canadian households were in core housing need in 2016, amounting to 12.7%, around the same as in 2006.
“While the proportion of Canadian households living in core housing need has remained stable over the last ten years, different trends exist among provinces and territories,” said Benjamin Williams, Director, Housing Indicators and Analytics. “Between 2011 and 2016, housing conditions have worsened in the Prairies region and in Ontario, and improved in Quebec, British Columbia and in most of the Atlantic region. Core housing need was prevalent in the territories; the rate in Nunavut remained the highest in the country at 36.5%.”
The need is higher in Ontario which accounts for all of the CMAs with the highest core housing except for Vancouver and Victoria. 1 in 7 of Ontario’s households were in core housing need last year, up 130,000 from 2011 with the share reaching 15.3%. In Toronto the rate in 2016 was 1 in 5 households.
Vancouver’s share was 14.9% in 2016 although that was a decrease from 2011.
Rising shelter costs have contributed to a rise in core housing need in all provinces with an increase except for Alberta according to census data.
Source: http://www.canadianrealestatemagazine.ca/market-update/canadas-core-housing-need-is-stable-says-cmhc-234177.aspx
Monday, November 13, 2017
MCAN Mortgage sees headwinds amid policy changes
The outlook for the Canadian housing market remains mixed according to MCAN Mortgage Corporation.
The lender says that the market is likely to remain volatile for the remainder of the year with a mixed performance regionally. The full impact of multiple changes in mortgage insurance rules, underwriting, taxes, and interest rates will take 6-12 months.
MCAN believes that there is still a risk of a price correction into 2018 in several markets. It says that actual sales activity in the year to September was down 11% with the GTA leading decline in three quarters of markets.
The firm made its forecast in its third quarter financial results with net income of $9.9 million, up 1% from the same period of 2016.
Impaired mortgages improved to $3.5 million from $4.4 million during the quarter while the impaired total mortgage ratio increased to 0.14% from 0.12%.
Total mortgage arrears improved to $19 million from $22 million with the quarterly total comprised entirely of single family mortgages of which $7.4 million were uninsured.
Source: http://www.canadianrealestatemagazine.ca/market-update/mcan-mortgage-sees-headwinds-amid-policy-changes-233838.aspx
The lender says that the market is likely to remain volatile for the remainder of the year with a mixed performance regionally. The full impact of multiple changes in mortgage insurance rules, underwriting, taxes, and interest rates will take 6-12 months.
MCAN believes that there is still a risk of a price correction into 2018 in several markets. It says that actual sales activity in the year to September was down 11% with the GTA leading decline in three quarters of markets.
The firm made its forecast in its third quarter financial results with net income of $9.9 million, up 1% from the same period of 2016.
Impaired mortgages improved to $3.5 million from $4.4 million during the quarter while the impaired total mortgage ratio increased to 0.14% from 0.12%.
Total mortgage arrears improved to $19 million from $22 million with the quarterly total comprised entirely of single family mortgages of which $7.4 million were uninsured.
Source: http://www.canadianrealestatemagazine.ca/market-update/mcan-mortgage-sees-headwinds-amid-policy-changes-233838.aspx
Thursday, November 9, 2017
This could cut $70m from cost of Ontario homes
Utilizing technology for building permits could save $70 million on the cost of new homes in Ontario with millions more saved in the non-residential sector.
The Residential Construction Council of Ontario (RESCON) wants to run a pilot program for e-permitting following a study with Ryerson University's Centre for Urban Research and Land Development.
An investigation into how other jurisdictions use e-permitting is also being undertaken by University of Toronto professor Arash Shahi.
"We're talking really of a two-stage process, where the first stage is e-permitting, the submission of plans and applications electronically, which are reviewed manually at the municipality," says Shahi. "The second stage, which produces the most savings, is automated e-permitting, where those plans and applications are submitted online and then automatically reviewed using software — and there are quite a few companies making this software."
Shahi is part of RESCON’s working group looking into a pilot project in the province.
If the use of software which links into the CAD document speeds up the permit process as expected, it would cut costs for developers which could be passed onto homebuyers.
"While there are online submissions today in Toronto, they end up printing off the documents and reviewing them," says Shahi. "What we're talking about is reviewing the documents on large screens the size of televisions and using software to automate the process."
Source: http://www.canadianrealestatemagazine.ca/market-update/this-could-cut-70m-from-cost-of-ontario-homes-233500.aspx
The Residential Construction Council of Ontario (RESCON) wants to run a pilot program for e-permitting following a study with Ryerson University's Centre for Urban Research and Land Development.
An investigation into how other jurisdictions use e-permitting is also being undertaken by University of Toronto professor Arash Shahi.
"We're talking really of a two-stage process, where the first stage is e-permitting, the submission of plans and applications electronically, which are reviewed manually at the municipality," says Shahi. "The second stage, which produces the most savings, is automated e-permitting, where those plans and applications are submitted online and then automatically reviewed using software — and there are quite a few companies making this software."
Shahi is part of RESCON’s working group looking into a pilot project in the province.
If the use of software which links into the CAD document speeds up the permit process as expected, it would cut costs for developers which could be passed onto homebuyers.
"While there are online submissions today in Toronto, they end up printing off the documents and reviewing them," says Shahi. "What we're talking about is reviewing the documents on large screens the size of televisions and using software to automate the process."
Source: http://www.canadianrealestatemagazine.ca/market-update/this-could-cut-70m-from-cost-of-ontario-homes-233500.aspx
Monday, November 6, 2017
OREA calls for higher real estate agent education standards
The education program for real estate agents should be tougher and set North America-leading standards.
That’s the call from the Ontario Real Estate Association which says that current training for agents is outdated and should be replaced with a program that produces highly educated, well-trained and practice-ready professionals.
“Raising the professional standards of Ontario Realtors begins with improving the education that happens before becoming a licensed professional,” said Ettore Cardarelli, OREA President. “A stronger education program will better prepare salespeople for our increasingly complex real estate market, and the challenges that come with helping families through the biggest purchase of their lives.”
OREA’s Real Estate College was the sole provider of real estate education licensing prior to 2008 when the Real Estate Council of Ontario took control of the curriculum and standards. Since then, OREA says, the program has fallen behind.
“The current curriculum diminishes the importance of a Realtor, homes and property to Ontarians,” said Cardarelli. “Despite our best efforts to upgrade the standards by which real estate licensing education is granted, our hands have been tied since 2008 by RECO, the government regulator. This is our opportunity to have our recommendations for improving education considered and hopefully implemented.”
OREA has influenced the provincial government in its decision to review the Real Estate and Business Brokers Act 2002 in a bid to improve standards.
Source: http://www.canadianrealestatemagazine.ca/market-update/orea-calls-for-higher-real-estate-agent-education-standards-233423.aspx
That’s the call from the Ontario Real Estate Association which says that current training for agents is outdated and should be replaced with a program that produces highly educated, well-trained and practice-ready professionals.
“Raising the professional standards of Ontario Realtors begins with improving the education that happens before becoming a licensed professional,” said Ettore Cardarelli, OREA President. “A stronger education program will better prepare salespeople for our increasingly complex real estate market, and the challenges that come with helping families through the biggest purchase of their lives.”
OREA’s Real Estate College was the sole provider of real estate education licensing prior to 2008 when the Real Estate Council of Ontario took control of the curriculum and standards. Since then, OREA says, the program has fallen behind.
“The current curriculum diminishes the importance of a Realtor, homes and property to Ontarians,” said Cardarelli. “Despite our best efforts to upgrade the standards by which real estate licensing education is granted, our hands have been tied since 2008 by RECO, the government regulator. This is our opportunity to have our recommendations for improving education considered and hopefully implemented.”
OREA has influenced the provincial government in its decision to review the Real Estate and Business Brokers Act 2002 in a bid to improve standards.
Source: http://www.canadianrealestatemagazine.ca/market-update/orea-calls-for-higher-real-estate-agent-education-standards-233423.aspx
Thursday, November 2, 2017
Economy looking strong as provincial gap narrows
The Canadian economy is expected to end the year with growth of 3.1% with some positive expansion of regional economies.
BMO’s Blue Book forecasts 2017 to match the strongest growth in Canadian GDP since the financial crisis and some positive trends for the provinces.
"The big story at the regional level is a narrowing gap between the best and worst performers, as the recession fades in oil-producing provinces, while British Columbia and Central Canada should moderate after a few years of blistering growth," said Robert Kavcic, Senior Economist, BMO Capital Markets.
Leading the predicted growth is Alberta at 4.1% while BC and Ontario should expand by around 3%. Growth should be around 2.7% for Quebec; just over 2% for Manitoba; almost 2% for Nova Scotia and PEI; 1.7% for Saskatchewan; and 1.5% for New Brunswick.
Newfoundland & Labrador is set to contract by 2% though as major spending projects reach completion.
Source: http://www.canadianrealestatemagazine.ca/market-update/economy-looking-strong-as-provincial-gap-narrows-233218.aspx
BMO’s Blue Book forecasts 2017 to match the strongest growth in Canadian GDP since the financial crisis and some positive trends for the provinces.
"The big story at the regional level is a narrowing gap between the best and worst performers, as the recession fades in oil-producing provinces, while British Columbia and Central Canada should moderate after a few years of blistering growth," said Robert Kavcic, Senior Economist, BMO Capital Markets.
Leading the predicted growth is Alberta at 4.1% while BC and Ontario should expand by around 3%. Growth should be around 2.7% for Quebec; just over 2% for Manitoba; almost 2% for Nova Scotia and PEI; 1.7% for Saskatchewan; and 1.5% for New Brunswick.
Newfoundland & Labrador is set to contract by 2% though as major spending projects reach completion.
Source: http://www.canadianrealestatemagazine.ca/market-update/economy-looking-strong-as-provincial-gap-narrows-233218.aspx
Monday, October 30, 2017
Home ownership seeing gradual decline among Canadians – census
Latest census results revealed that 30-year-old Canadians are less likely to own a home today than their baby boomer parents did at the same age, mirroring a modest but unmistakable decline in the national home ownership rate.
At age 30, 50.2% of millennials owned their homes, compared to 55% of baby boomers at the same age. Young adults today are more likely to live in apartments than their 1981 counterparts, are less likely to live in single-detached homes, and — as Statistics Canada found over the summer — more likely than ever before to still be living at home.
The figures should change the way Canada thinks about its real estate sector, according to Graham Haines, research and policy manager at the Ryerson City Building Institute in Toronto. Policy-makers have focused almost exclusively on policies to promote home ownership over the last 20-plus years, he said, pointing to tax policy and incentives.
“We have to start thinking about — if rent is going to start becoming a more important part of our real estate sector once again — how we make sure we’re building the right type of rental, rental where we need it and rental that’s affordable for the people who are going to be using it,” Haines said, as quoted by The Canadian Press.
In 2016, more than 9.5 million of the 14.1 million households captured in the census owned their homes, an ownership rate of 67.8% — down from 69% in 2011 after 20 steady years of baby boomers flooding the real estate market.
Since 2011, the census shows, the value of homes has steadily increased to a national average of $443,058, up from $345,182 in 2016 dollars. Vancouver had the highest prices in the country with the average home valued at over $1 million. Toronto was at $734,924 and Calgary at $527,216. Montreal came in at $366,974.
Overall, affordability remains an issue for almost a quarter of Canadian households, a figure that hasn’t changed much in a decade, with the pressure most acute in the hot housing markets of Toronto and Vancouver.
The federal Liberal government has promised to address affordability issues as part of an $11.2 billion, 11-year housing plan to be released in the coming weeks. It’s expected to have a heavy focus on building affordable units, with a new portable housing benefit that would be tied to individuals, rather than properties.
Source: http://www.canadianrealestatemagazine.ca/market-report/ab/home-ownership-seeing-gradual-decline-among-canadians--census-233110.aspx
At age 30, 50.2% of millennials owned their homes, compared to 55% of baby boomers at the same age. Young adults today are more likely to live in apartments than their 1981 counterparts, are less likely to live in single-detached homes, and — as Statistics Canada found over the summer — more likely than ever before to still be living at home.
The figures should change the way Canada thinks about its real estate sector, according to Graham Haines, research and policy manager at the Ryerson City Building Institute in Toronto. Policy-makers have focused almost exclusively on policies to promote home ownership over the last 20-plus years, he said, pointing to tax policy and incentives.
“We have to start thinking about — if rent is going to start becoming a more important part of our real estate sector once again — how we make sure we’re building the right type of rental, rental where we need it and rental that’s affordable for the people who are going to be using it,” Haines said, as quoted by The Canadian Press.
In 2016, more than 9.5 million of the 14.1 million households captured in the census owned their homes, an ownership rate of 67.8% — down from 69% in 2011 after 20 steady years of baby boomers flooding the real estate market.
Since 2011, the census shows, the value of homes has steadily increased to a national average of $443,058, up from $345,182 in 2016 dollars. Vancouver had the highest prices in the country with the average home valued at over $1 million. Toronto was at $734,924 and Calgary at $527,216. Montreal came in at $366,974.
Overall, affordability remains an issue for almost a quarter of Canadian households, a figure that hasn’t changed much in a decade, with the pressure most acute in the hot housing markets of Toronto and Vancouver.
The federal Liberal government has promised to address affordability issues as part of an $11.2 billion, 11-year housing plan to be released in the coming weeks. It’s expected to have a heavy focus on building affordable units, with a new portable housing benefit that would be tied to individuals, rather than properties.
Source: http://www.canadianrealestatemagazine.ca/market-report/ab/home-ownership-seeing-gradual-decline-among-canadians--census-233110.aspx
Thursday, October 26, 2017
Why longer amortization may start trending
When the new tighter restrictions on mortgage lending come into effect in just over two months they could spark a new trend – longer amortizations.
With OSFI’s stress test requiring borrowers of uninsured mortgages to prove they can afford payments 2% above their contract rate, fewer people will qualify.
However, switching to a longer amortization period could help offset the restriction says Ratespy.com founder Rob McLister. He told the Financial Post that the lower payments from a 35-year period compared to 25 years could enable qualification but noted that interest rates would be higher.
OSFI responded that, while it has not included amortization as part of the updated B-20 Guideline, it would be “monitoring” regulated lenders as the new rules are implemented in January.
Mortgage lenders may choose not to try to circumvent the tighter rules fearing that the regulator may intensify scrutiny.
Meanwhile, comments from the chief executive of the Canadian Credit Union Association says the rule changes will hamper competition in the mortgage market.
Martha Durdin told the Globe and Mail that the stress test will make it harder for existing homeowners to shop around for a new deal as they may not qualify for a new mortgage.
Source: http://www.canadianrealestatemagazine.ca/market-update/why-longer-amortization-may-start-trending-232822.aspx
With OSFI’s stress test requiring borrowers of uninsured mortgages to prove they can afford payments 2% above their contract rate, fewer people will qualify.
However, switching to a longer amortization period could help offset the restriction says Ratespy.com founder Rob McLister. He told the Financial Post that the lower payments from a 35-year period compared to 25 years could enable qualification but noted that interest rates would be higher.
OSFI responded that, while it has not included amortization as part of the updated B-20 Guideline, it would be “monitoring” regulated lenders as the new rules are implemented in January.
Mortgage lenders may choose not to try to circumvent the tighter rules fearing that the regulator may intensify scrutiny.
Meanwhile, comments from the chief executive of the Canadian Credit Union Association says the rule changes will hamper competition in the mortgage market.
Martha Durdin told the Globe and Mail that the stress test will make it harder for existing homeowners to shop around for a new deal as they may not qualify for a new mortgage.
Source: http://www.canadianrealestatemagazine.ca/market-update/why-longer-amortization-may-start-trending-232822.aspx
Thursday, August 31, 2017
National Bank reports 8% growth in net income
Another of the big banks has seen third quarter profits rise, confirming the trend across the group.
National Bank of Canada says its net income was up 8% year-over-year to $518 million, a $40 million rise. The first 9 months of 2017 saw profits rise to $1.499 billion from $949 million in the same period of 2016.
“For the third quarter of 2017, the Bank posted excellent results owing to solid performance across all its business segments,” said Louis Vachon, President and Chief Executive Officer of National Bank. “Sustained revenue growth and cost control also contributed to this performance.”
Residential mortgages contributed to the sustained growth for National’s personal lending business which was up 5% year-over-year. Overall the personal and commercial banking division gained 21% to $240 million.
Source: http://www.canadianrealestatemagazine.ca/market-update/national-bank-reports-8-growth-in-net-income-230185.aspx
National Bank of Canada says its net income was up 8% year-over-year to $518 million, a $40 million rise. The first 9 months of 2017 saw profits rise to $1.499 billion from $949 million in the same period of 2016.
“For the third quarter of 2017, the Bank posted excellent results owing to solid performance across all its business segments,” said Louis Vachon, President and Chief Executive Officer of National Bank. “Sustained revenue growth and cost control also contributed to this performance.”
Residential mortgages contributed to the sustained growth for National’s personal lending business which was up 5% year-over-year. Overall the personal and commercial banking division gained 21% to $240 million.
Source: http://www.canadianrealestatemagazine.ca/market-update/national-bank-reports-8-growth-in-net-income-230185.aspx
Monday, August 28, 2017
Housing bubble has already burst says BMO’s Porter
Not everyone agrees that Toronto has been in a housing bubble but BMO’s chief economist is in no doubt.
“By any traditional definition, we were in the grips of a full-on bubble earlier this year,” Doug Porter told CBC’s Metro Morning on Friday. He backed that up with stats on house prices rising 40% in around 15 months, a situation last seen in the late 1980s which was widely accepted as a bubble.
Porter continued that the Ontario government’s measures to cool the market helped burst the bubble.
Although prices remain elevated in the GTA, there has been a 13% drop in four months and Porter expects softening to continue with a “full-blown buyer’s market ahead.”
He believes that further interest rate rises will continue to affect affordability even as prices ease, with first-time buyers still facing challenges to homeownership.
Source: http://www.canadianrealestatemagazine.ca/market-update/housing-bubble-has-already-burst-says-bmos-porter-230002.aspx
“By any traditional definition, we were in the grips of a full-on bubble earlier this year,” Doug Porter told CBC’s Metro Morning on Friday. He backed that up with stats on house prices rising 40% in around 15 months, a situation last seen in the late 1980s which was widely accepted as a bubble.
Porter continued that the Ontario government’s measures to cool the market helped burst the bubble.
Although prices remain elevated in the GTA, there has been a 13% drop in four months and Porter expects softening to continue with a “full-blown buyer’s market ahead.”
He believes that further interest rate rises will continue to affect affordability even as prices ease, with first-time buyers still facing challenges to homeownership.
Source: http://www.canadianrealestatemagazine.ca/market-update/housing-bubble-has-already-burst-says-bmos-porter-230002.aspx
Thursday, August 24, 2017
How the rising loonie affects real estate
As a mortgage broker I have been asked very frequently in the last couple of months how I think the rising loonie (Canadian dollar) that has reached 80 cents vis-a-vis the US dollar (USD) will affect the real estate market in Toronto.
Well, the 10 percent rise in the loonie since May technically means that the economy is robust and that some of that positivity should rub off on real estate and send prices rising if one was only looking at locals buying for personal use.
However, since April property sales and prices in the Toronto region have fallen, mainly due to the 16 point plan implemented by the Ontario government in April to cool sales and prices by clamping down on international buyers and local speculators.
The rise of the loonie, even if it reaches 83.33 cents to the USD in the short term as predicted by the topnotch Paris based firm Day by Day SAS , will have a limited uplifting effect on the real estate market in Toronto.
Already prices in Toronto have toppled by 15% and more from their highs in April of this year. This has not escaped the foreign buyers’ attentions who have to pay a 15% tax if they wish to buy property in the Greater Golden Horseshoe(GGH) area- this means Toronto and the surrounding southern Ontario region. However, most of these buyers usually have their money in USD accounts, so they will enter the market only when prices drop another 10% so as to bring the Toronto prices in line with what they were in April in USD terms. As this happens negative sentiment will lead the downward spiral to overshoot and prices might fall even further than expected.
Also the Bank of Canada recently raised the prime rate prompting higher variable mortgage rates. Besides this, the Canada 5 year bond yield has gone up by a meteoric 80% rise since May! 5 year fixed mortgages, which are dependent on this 5 year rate have shot up quite substantially as well to the 3% region or higher from 2.5%. This also will affect the property prices and should send them reeling as new buyers grapple with the notion of higher monthly payments.
So this potent combination of the 16 point plan of April, higher interest rates and yields has in the short term tamed the Toronto real estate market that had seen a runaway increase which by March of this year had reached over 37% from last year. Though prices have fallen since, the year on year rise is still in the double digits. The rise of the loonie is overshadowed by the aforementioned developments.
For the time being the sellers’ market in Toronto has turned into a buyers’ market with homes selling at more or less the listing prices without any bidding wars, which is a good sign for local buyers, but they need more respite. Prices need to go down a bit more.
But will this last? The long term outlook – 9 months or more- is that the loonie will ease which will jack up prices as foreign buyers and local speculators jump in. However should interest rates rise, which seems to be the scenario currently, the lower loonie will have to vie with higher interest rates which will act as a headwind and stabilize prices followed by single digit increases rather than the double digit ones of the past two years.
In short, for the time being, the rising (or declining) loonie cannot contend with government regulation nor interest rates and yields. Its power to decide the direction of the real estate market is very limited at this point.
Source: http://www.canadianrealestatemagazine.ca/news/how-the-rising-loonie-affects-real-estate-228975.aspx
Well, the 10 percent rise in the loonie since May technically means that the economy is robust and that some of that positivity should rub off on real estate and send prices rising if one was only looking at locals buying for personal use.
However, since April property sales and prices in the Toronto region have fallen, mainly due to the 16 point plan implemented by the Ontario government in April to cool sales and prices by clamping down on international buyers and local speculators.
The rise of the loonie, even if it reaches 83.33 cents to the USD in the short term as predicted by the topnotch Paris based firm Day by Day SAS , will have a limited uplifting effect on the real estate market in Toronto.
Already prices in Toronto have toppled by 15% and more from their highs in April of this year. This has not escaped the foreign buyers’ attentions who have to pay a 15% tax if they wish to buy property in the Greater Golden Horseshoe(GGH) area- this means Toronto and the surrounding southern Ontario region. However, most of these buyers usually have their money in USD accounts, so they will enter the market only when prices drop another 10% so as to bring the Toronto prices in line with what they were in April in USD terms. As this happens negative sentiment will lead the downward spiral to overshoot and prices might fall even further than expected.
Also the Bank of Canada recently raised the prime rate prompting higher variable mortgage rates. Besides this, the Canada 5 year bond yield has gone up by a meteoric 80% rise since May! 5 year fixed mortgages, which are dependent on this 5 year rate have shot up quite substantially as well to the 3% region or higher from 2.5%. This also will affect the property prices and should send them reeling as new buyers grapple with the notion of higher monthly payments.
So this potent combination of the 16 point plan of April, higher interest rates and yields has in the short term tamed the Toronto real estate market that had seen a runaway increase which by March of this year had reached over 37% from last year. Though prices have fallen since, the year on year rise is still in the double digits. The rise of the loonie is overshadowed by the aforementioned developments.
For the time being the sellers’ market in Toronto has turned into a buyers’ market with homes selling at more or less the listing prices without any bidding wars, which is a good sign for local buyers, but they need more respite. Prices need to go down a bit more.
But will this last? The long term outlook – 9 months or more- is that the loonie will ease which will jack up prices as foreign buyers and local speculators jump in. However should interest rates rise, which seems to be the scenario currently, the lower loonie will have to vie with higher interest rates which will act as a headwind and stabilize prices followed by single digit increases rather than the double digit ones of the past two years.
In short, for the time being, the rising (or declining) loonie cannot contend with government regulation nor interest rates and yields. Its power to decide the direction of the real estate market is very limited at this point.
Source: http://www.canadianrealestatemagazine.ca/news/how-the-rising-loonie-affects-real-estate-228975.aspx
Thursday, August 17, 2017
Homebuyers willing to sacrifice indoor space for outdoors
Outdoor living is becoming increasingly popular and a new poll shows that homebuyers are willing to have less indoor space if that means more room outside.
Having a larger buffer between their home and their neighbours’ properties is a key factor in the trade-off for 46% of millennials and 53% of other demographics.
The poll by homebuilder Taylor Morrison, which sold its Canadian operations to Mattamy Homes in 2014, also reveals that women are more likely than men to want a feature-rich outdoor space (62% vs. 51%) rather than a larger interior floor space.
Asked how they would spend $10k-$15k to improve their new home, outdoor living enhancements such as outdoor living rooms and tiles that match those used indoor topped the list. That marks a shift away from higher spending on kitchen interiors.
Source: http://www.canadianrealestatemagazine.ca/market-update/homebuyers-willing-to-sacrifice-indoor-space-for-outdoors-229575.aspx
Having a larger buffer between their home and their neighbours’ properties is a key factor in the trade-off for 46% of millennials and 53% of other demographics.
The poll by homebuilder Taylor Morrison, which sold its Canadian operations to Mattamy Homes in 2014, also reveals that women are more likely than men to want a feature-rich outdoor space (62% vs. 51%) rather than a larger interior floor space.
Asked how they would spend $10k-$15k to improve their new home, outdoor living enhancements such as outdoor living rooms and tiles that match those used indoor topped the list. That marks a shift away from higher spending on kitchen interiors.
Source: http://www.canadianrealestatemagazine.ca/market-update/homebuyers-willing-to-sacrifice-indoor-space-for-outdoors-229575.aspx
Thursday, August 10, 2017
Housing starts rise for 7th consecutive month
The six-month trend for housing starts was higher in July, the 7th consecutive month of gains and rising to 217,550 from 215,175 in June.
“British Columbia and Alberta were the main contributors to the higher trend in housing starts, said Bob Dugan, CMHC’s chief economist. “While BC’s construction coincides with near-record low completed and unsold units in the past few months, Alberta’s inventory of new unsold homes is ramping up, highlighting the need for managing inventories.”
The CMHC figures show that housing start were lower in Toronto with apartments and single-family homes mainly responsible while there were strong increases for semi-detached and town homes. This suggests a shift towards more affordable housing types.
Vancouver starts were up slightly, especially in Burnaby, New Westminster and Coquitlam and mostly driven by apartments and townhomes. Homes under construction in the region remain at record highs.
Calgary and Ottawa also saw increased starts and there were strong gains for Gatineau, London (reaching a new record for July) and Nova Scotia.
The standalone monthly SAAR of housing starts for all areas in Canada was 222,324 units in July, up from 212,948 units in June.
Source: http://www.canadianrealestatemagazine.ca/market-update/housing-starts-rise-for-7th-consecutive-month-229283.aspx
“British Columbia and Alberta were the main contributors to the higher trend in housing starts, said Bob Dugan, CMHC’s chief economist. “While BC’s construction coincides with near-record low completed and unsold units in the past few months, Alberta’s inventory of new unsold homes is ramping up, highlighting the need for managing inventories.”
The CMHC figures show that housing start were lower in Toronto with apartments and single-family homes mainly responsible while there were strong increases for semi-detached and town homes. This suggests a shift towards more affordable housing types.
Vancouver starts were up slightly, especially in Burnaby, New Westminster and Coquitlam and mostly driven by apartments and townhomes. Homes under construction in the region remain at record highs.
Calgary and Ottawa also saw increased starts and there were strong gains for Gatineau, London (reaching a new record for July) and Nova Scotia.
The standalone monthly SAAR of housing starts for all areas in Canada was 222,324 units in July, up from 212,948 units in June.
Source: http://www.canadianrealestatemagazine.ca/market-update/housing-starts-rise-for-7th-consecutive-month-229283.aspx
Thursday, August 3, 2017
Face-to-face deals giving way to online transactions – report
A new report from HSBC Bank found that face-to-face transactions involving industry professionals like real estate agents and mortgage brokers are gradually waning in popularity, amid a growing number of deals being made via online channels and the popularity of the applications that facilitate these.
Fully 74 per cent of Canadians surveyed in the study have searched for financing options online, and 77 per cent said that they used online tools to find mortgage products that they can afford. Meanwhile, 27 per cent of the respondents said that dealing with other people is their biggest pet peeve when buying a home, with price negotiations (22 per cent) and legal work (20 per cent) not far behind.
The HSBC study further found that 29 per cent of Canadians deal with agents completely or mostly online, a proportion rapidly catching up with the 39 per cent of respondents dealing with agents completely or mostly offline. 32 per cent used a combination of face-to-face meetings and online transactions.
This is despite Canada somewhat lagging in terms of giving opportunities for consumers to complete transactions online, according to RateSpy.com founder Rob McLister.
“The trend is starting to pick up steam but we are nowhere near the point where the average (person getting a mortgage) is going to close a mortgage online,” McLister told the Financial Post. “It is changing. You have banks promoting an end-to-end no-human-being mortgage process. You can apply online, upload your documents. You can do everything but sign the paperwork with a lawyer.”
UK-based tech expert James Dearsley, who was quoted in the HSBC report, stated that physical visits are slowly but surely becoming a thing of the past.
“Virtual reality will allow home buyers to live in a virtual version of a home for several days to truly try before they buy,” Dearsley said, adding that “artificial agents” enabling smoother and easier transactions represent a very real possibility for the industry.
“The traditional role of the real estate agent is ripe for reinvention, as we are already seeing through the rise of online do-it-yourself platforms that allow homeowners to market their own properties and negotiate directly with sellers,” he explained. “All houses may be sold this way in the future, with property websites offering end-to-end marketing, search, financing, negotiation, transaction and conveyancing services that significantly reduce the time and hassle for homebuyers.”
Source: http://www.canadianrealestatemagazine.ca/news/facetoface-deals-giving-way-to-online-transactions--report-228974.aspx
Fully 74 per cent of Canadians surveyed in the study have searched for financing options online, and 77 per cent said that they used online tools to find mortgage products that they can afford. Meanwhile, 27 per cent of the respondents said that dealing with other people is their biggest pet peeve when buying a home, with price negotiations (22 per cent) and legal work (20 per cent) not far behind.
The HSBC study further found that 29 per cent of Canadians deal with agents completely or mostly online, a proportion rapidly catching up with the 39 per cent of respondents dealing with agents completely or mostly offline. 32 per cent used a combination of face-to-face meetings and online transactions.
This is despite Canada somewhat lagging in terms of giving opportunities for consumers to complete transactions online, according to RateSpy.com founder Rob McLister.
“The trend is starting to pick up steam but we are nowhere near the point where the average (person getting a mortgage) is going to close a mortgage online,” McLister told the Financial Post. “It is changing. You have banks promoting an end-to-end no-human-being mortgage process. You can apply online, upload your documents. You can do everything but sign the paperwork with a lawyer.”
UK-based tech expert James Dearsley, who was quoted in the HSBC report, stated that physical visits are slowly but surely becoming a thing of the past.
“Virtual reality will allow home buyers to live in a virtual version of a home for several days to truly try before they buy,” Dearsley said, adding that “artificial agents” enabling smoother and easier transactions represent a very real possibility for the industry.
“The traditional role of the real estate agent is ripe for reinvention, as we are already seeing through the rise of online do-it-yourself platforms that allow homeowners to market their own properties and negotiate directly with sellers,” he explained. “All houses may be sold this way in the future, with property websites offering end-to-end marketing, search, financing, negotiation, transaction and conveyancing services that significantly reduce the time and hassle for homebuyers.”
Source: http://www.canadianrealestatemagazine.ca/news/facetoface-deals-giving-way-to-online-transactions--report-228974.aspx
Monday, July 31, 2017
Seniors increasingly reliant upon online info for real estate decisions
More and more Canadian seniors are making good use of the internet and vital components such as apps to access various services, according to a new analysis from HomEquity Bank.
In its recently released report titled (App)ropriate at any Age: Tech-savvy Seniors on the Rise in Canada, the bank revealed that its average client is approximately 72 years of age.
“Contrary to popular belief, online and digital usage among seniors is rapidly increasing,” the report stated. “Previously, HomEquity Bank received almost all inquiries through a call centre. Now, 90 per cent come through our website – we predict this will only continue to grow.”
“Boomers are more likely than other generations to own and consume content on tablets – we’ve seen this firsthand with 19 per cent of HomEquity Bank site-visits originating from tablets. 42 per cent of these site visits come from desktop users and 39 per cent are through mobile,” the bank’s report added.
HomEquity cited the growing popularity of other apps that fit seniors’ needs as indicative of the trend. Among these are home-sharing service Airbnb (which monetizes seniors’ extra home space), reading-list platform Goodreads (which give seniors plenty of outlets to spend their free time on), and reminder app Pillboxie (which helps seniors keep track of their medicine intake schedules).
Source: http://www.canadianrealestatemagazine.ca/news/seniors-increasingly-reliant-upon-online-info-for-real-estate-decisions-228867.aspx
In its recently released report titled (App)ropriate at any Age: Tech-savvy Seniors on the Rise in Canada, the bank revealed that its average client is approximately 72 years of age.
“Contrary to popular belief, online and digital usage among seniors is rapidly increasing,” the report stated. “Previously, HomEquity Bank received almost all inquiries through a call centre. Now, 90 per cent come through our website – we predict this will only continue to grow.”
“Boomers are more likely than other generations to own and consume content on tablets – we’ve seen this firsthand with 19 per cent of HomEquity Bank site-visits originating from tablets. 42 per cent of these site visits come from desktop users and 39 per cent are through mobile,” the bank’s report added.
HomEquity cited the growing popularity of other apps that fit seniors’ needs as indicative of the trend. Among these are home-sharing service Airbnb (which monetizes seniors’ extra home space), reading-list platform Goodreads (which give seniors plenty of outlets to spend their free time on), and reminder app Pillboxie (which helps seniors keep track of their medicine intake schedules).
Source: http://www.canadianrealestatemagazine.ca/news/seniors-increasingly-reliant-upon-online-info-for-real-estate-decisions-228867.aspx
Friday, July 28, 2017
Canadians are world’s second most digitally active homebuyers
Canadian homebuyers are highly likely to research their housing options online and are second only to the UK for doing so.
Figures from HSBC show that 90% of Canadians who bought a home recently used an online channel, compared to the global average of 83% (the UK was top-placed at 93%).
The lender has looked at the trends in digital real estate and forecasts an increase with funding for disruptive tech firms in the industry increasing from U$221 million in 2012 to more than $2 billion last year.
"From online mortgage specialists to paperless mortgage renewals, technology is rapidly changing how we engage with and serve our customers in Canada and across the globe," said Larry Tomei, Executive Vice President and Head of Retail Banking and Wealth Management, HSBC Bank Canada.
Researching, financing and buying homes are all set for increased disruption, Tomei says, and there are some key trends already developing.
Drones and other tech-based viewings of homes will rise with virtual reality even allowing prospective buyers the ability to ‘live’ in the home for a few days before making their decision.
Dealing with real estate agents online will also becoming more prevalent. HSBC says that 29% of recent homebuyers began their conversation with an agent online (global average 31%).
Robo-advisors may see an increase but the lender’s report shows that dealing with a person is still important when arranging a mortgage. Although 74% of Canadian homebuyers use online channels for research, only 11% would be happy dealing with a robo-advisor for their mortgage compared to 41% talking to the bank and 35% to a mortgage broker.
“The research supports what we already know: while more and more Canadians are embracing disruptive technology in new and exciting ways, the need for the human touch hasn't diminished,” Tomei concluded.
Source: http://www.canadianrealestatemagazine.ca/market-update/canadians-are-worlds-second-most-digitally-active-homebuyers-228802.aspx
Figures from HSBC show that 90% of Canadians who bought a home recently used an online channel, compared to the global average of 83% (the UK was top-placed at 93%).
The lender has looked at the trends in digital real estate and forecasts an increase with funding for disruptive tech firms in the industry increasing from U$221 million in 2012 to more than $2 billion last year.
"From online mortgage specialists to paperless mortgage renewals, technology is rapidly changing how we engage with and serve our customers in Canada and across the globe," said Larry Tomei, Executive Vice President and Head of Retail Banking and Wealth Management, HSBC Bank Canada.
Researching, financing and buying homes are all set for increased disruption, Tomei says, and there are some key trends already developing.
Drones and other tech-based viewings of homes will rise with virtual reality even allowing prospective buyers the ability to ‘live’ in the home for a few days before making their decision.
Dealing with real estate agents online will also becoming more prevalent. HSBC says that 29% of recent homebuyers began their conversation with an agent online (global average 31%).
Robo-advisors may see an increase but the lender’s report shows that dealing with a person is still important when arranging a mortgage. Although 74% of Canadian homebuyers use online channels for research, only 11% would be happy dealing with a robo-advisor for their mortgage compared to 41% talking to the bank and 35% to a mortgage broker.
“The research supports what we already know: while more and more Canadians are embracing disruptive technology in new and exciting ways, the need for the human touch hasn't diminished,” Tomei concluded.
Source: http://www.canadianrealestatemagazine.ca/market-update/canadians-are-worlds-second-most-digitally-active-homebuyers-228802.aspx
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