Found 9 blog entries tagged as housing.

It might not seem like it, but Canadian real estate is in the middle of one of the most significant supply booms ever. Canada Mortgage and Housing Corporation (CMHC) data show 2021 housing starts made a big jump. More importantly, the surge of new home construction is beginning to reach the market. New home completions have hit one of the highest levels ever. One Big Six bank even sees it breaking the 1970s high this year.

Canadian New Home Starts Were Up 21% In 2021

Canadian housing starts fell recently, but they’re still much higher than they used to be. The seasonally adjusted annual rate (SAAR) of starts hit 261,000 homes in December. It was down from the SAAR of 268,000 units a month before. Even with that drop, this is much…

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Canadian housing market trends 2022

The Canadian housing market has been a fixture in media headlines and an ever-present topic of conversation around dinner tables and water coolers by those who continue to work in an office setting in the wake of COVID-19. Early on in the pandemic, some expected a steep decline in home sales and prices in Canada, but nobody could have predicted what actually materialized in the market. Come May 2020, regional real estate markets began their rebound. The spike in demand continued through 2021, resulting in record-breaking price growth and what many would consider to be the hottest year in Canadian real estate. So, what can we expect in 2022? Here are five trends to keep your eye on.

Interest rates are expected to rise.

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Canadian real estate has outgrown productive investment, and it’s not slowing down. Statistics Canada (Stat Can) data shows building permits, considered a leading indicator for future building intentions, climbed in November. The growth is entirely attributed to home building, now running 50% above pre-2020. More housing is nice, but Canada is already sinking more investment into housing than businesses. The acceleration of this trend shows it’s not even considering a slow down.

Canadian Building Intentions Have Increased 7%

The total of building permits made a sharp increase in the latest data. Building permits reached $11.2 billion in November, up 6.8% seasonally adjusted from a month before. In current dollars, this is a new record high and…

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Canadian housing market

Perhaps you have been wondering how a young family living in a detached home in Toronto or Vancouver can afford it. It could be that they already own another home. In fact, they may possess multiple homes as part of their investment strategy, new research has discovered. It’s no secret that the red-hot Canadian housing market has been driven by a number of factors including enormous demand, tight inventory and historically low borrowing costs. And in some markets, investors are a bigger factor than in others, with federal proposals to rein in accelerating prices.

Are investors making it more difficult for first-time homebuyers to get their foot in the door, amid sky-high valuations and bidding wars? For now, the industry is processing the data to…

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The last 18 months have made for volatile market conditions, but according to the Canadian Real Estate Association (CREA), there has been more stabilization across the county.

Monthly snapshot

However, there is still lots of demand chasing a scarce amount of listings. As CREA’s Senior Economist and Director of Housing Data and Market Analysis Shaun Cathcart says in the latest housing market report, the market may remain challenging as we head into the twilight months of 2021.

As always, we will keep you posted on the pulse of the Canadian housing market. Check back next month to see October’s snapshot with the most up-to-date insights!

Remember, contact a REALTOR®  for detailed information about your neighbourhood and its price trends.

Courtesy:…

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OCTOBER 22, 2021

The whole world is undergoing a housing shortage, but vacant homes are barely budging. The OECD‘s latest data drop shows 42 million of its 426 million homes are vacant. Yes, roughly one in ten homes in advanced economies are empty. There are literally years of housing supply being used as an alternative to gold.

Rather than pondering why it’s so attractive to have vacant homes, many countries doubled down on reasons to hoard. If we only build more homes and give the investors cheap money, there can be enough to hoard too, right? I mean, you almost tried, so partial points. Let’s take a look at how bad the issue has become.

Canada Has Over 1.3 Million Vacant Homes, About 6 Years Of Supply

Canada has one of the highest…

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Photo: James Bombales

The rate of growth for housing prices across the country has notably dropped compared to the earlier, more hectic market months of 2021.

In a recent monthly housing market update report, senior RBC economist Robert Hogue noted that the housing market has “calmed down considerably this summer,” which is taking the pressure off of Canadian housing prices.

Although home prices are still on the rise, the pace of appreciation is less than what it was prior to the summer. For the past three months, the average rate of increase was 0.8 per cent month-to-month, a noticeable difference from the first quarter of 2021 when the average rate was 2.6 percent monthly. The rate of price appreciation during the last three months is…

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Popular outrage at the soaring price of Canadian housing has a fix that almost no one is talking about — certainly not those aspiring to be Canada's prime minister.

While they have not framed it specifically as a method of curbing Canada's property sector, central bankers are the exception to that rule. Bank of Canada governor Tiff Macklem insists he is preparing to push a lever expected to have a real effect on the escalating price of houses: hiking interest rates.

People with a stake in Canada's diverse housing sector, including homeowners, investors and those aspiring to buy, will be paying close attention to Wednesday's latest data from the Canadian Real Estate Association.

They will also be watching Canada's inflation numbers coming…

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The 2021 Budget won’t make Canadian real estate more affordable for homebuyers, but consumers have dodged a policy “bullet” after much speculation around changes to the capital gains tax exemption, or other measures aimed at cooling the hot Canadian housing market.

The Federal Government has introduced the following budget items related to housing:

  • $2.5 billion to Canada Mortgage and Housing Corporation over seven years, to fund the Rapid Housing Initiative, Affordable Housing Innovation Fund, Canada Housing Benefit and Federal Community Housing Initiative
  • $1.3 billion, advanced and reallocated to previously announced funding to build and repair units and convert commercial space into rentals
  • $3.8 billion to build, repair and support…

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