Next Week – I’m away but reachable! (may take a little longer than normal to respond)
I will be away From Sunday August 11th – Thursday August 15th. My family and I are spending a few days at a cottage.
– In the second week of September I will be launching a very charming 3 bedroom home in the Toronto West End (very close to the junction neighbourhood). MORE INFO COMING!
– Also, I am currently working to earn a fantastic condo listing in the heart of “The Junction”. It’s a 2 bedroom, 2 bath with parking and a locker AND LOW MAINTENANCE FEES!. Great space! STAY TUNED
GTA Commercial REALTORS® Report Commercial Market Figures (CLICK HERE TO DOWNLOAD) – Many of my clients own commercial property and some are asking for this information.
TORONTO, August 2, 2013 – Toronto Real Estate Board Commercial Division Members reported 681,000 square feet of combined industrial, commercial/retail and office space leased through the TorontoMLS system in July (space leased on a per square foot net basis for which pricing was disclosed). This result, which was driven by the industrial market segment, was 55 per cent higher compared to July 2012. Year-over-year growth in average lease rates reported on a per square foot net basis was mixed in July. Average industrial and office lease rates were down compared to last year, whereas the average commercial/retail lease rate was up.
“The July leasing numbers were a very good start to the third quarter and it is especially encouraging to see the industrial market segment leading the way. According to the Bank of Canada’s latest Business Outlook Survey, firms are expecting to increase their capital expenditures and employment levels over the next year. In many cases, this should translate into increased demand for space moving forward as well,” said TREB Commercial Division Chair Cynthia Lai.
There were a total of 50 industrial, commercial/retail and office sales reported through the TorontoMLS system in July for which pricing was disclosed. This sales result was down by 12 per cent compared to July 2012. While industrial property sales were down on a year-over-year basis, commercial/retail and office sales were up.
Average selling prices per square foot were down for industrial properties and up substantially for commercial/retail and office properties. Much of the change in average selling prices per square foot was due to changes in the type and location of property sold this past July compared to July 2012.
Last week I reported that we experienced the best July in sales since 2009! This in part fuelled the governments focus on CMHC’s capping the amount mortgages they insure. Read for more info below.
Canada tightens mortgage lending rules to cool housing market
Tue Aug 6, 2013 12:20pm EDT: By Andrea Hopkins
TORONTO (Reuters) – Canada’s federal housing agency took small step to tighten mortgage lending in 2013, limiting guarantees it offers banks and other lenders on mortgage-backed securities in another attempt to keep a lid on the country’s robust housing market.
The move by the Canada Mortgage and Housing Corp may drive mortgage rates up by a small amount as banks and other big lenders are shut out of an inexpensive way to issue loans and have to take on more risk themselves at a time when some say Canada’s housing market is overheated.
“CMHC is pushing back on the banks, (saying) ‘You’re going to take more risks on your balance sheet if you want to write these mortgages.’ Well, the banks aren’t going to write the mortgages,” said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services, which owns Canadian bank shares.
“No way are they going to take on risk when everyone is concerned about the housing market … so this is going to cool off the housing market.”
Canada’s five biggest mortgage lenders – Royal Bank of Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Bank of Nova Scotia and Bank of Montreal – have used the CMHC’s National Housing Act Mortgage Backed Securities (NHA MBS) program to convert loans into securities with CMHC, or government, backing.
The program allows investors to buy government-backed mortgage paper and allows the lenders to issue mortgages at a lower cost.
Canadian mortgage rates have bumped along near record lows in recent years, fueling a housing boom that has driven double-digit price increases in many markets and sparked fears of a housing bubble. The government has tightened mortgage lending rules four times in five years, and the national market cooled in the second half of 2012 and early part of 2013. A surge in spring demand for homes has prompted a debate over whether the market is heating up again as mortgage rates remain low.
Real Life Experience
In my own business – I am constantly in bidding wars for lack of good quality inventory. Even as mortgage rules tighten and shut out some buyers there is still not enough products to satisfy the demand. Just earlier this week I participated in bidding war in Oshawa (my clients are relocating from the Toronto West End) – Not known for bidding wars this Oshawa home is a gem in fantastic neighbourhood! 3 offers were competing and my clients were successful. The difference: in Oshawa a big detached 3000 sqft 10 year new home in great condition is roughly can be had for under $430,000!
Have a wonderful weekend and a great week, Anthony