Good morning everyone;
I hope this March break has been a good one!
This week the weather has been all over the place but the real-estate market is consistent. Below is a link to a great video that will provide an overall outlook to the Canadian Housing market this year. Another robust year is expected! In some markets a slight cooling is forecasted but super tight free hold inventory and low interest rates will make the GTA market quite active with pricing still slightly increasing.
In the Market
Canadian Housing Outlook – Derek Burleton, Deputy chief Economist at TD Bank Group joins BNN for his housing outlook and Teranet data analysis.
Date: 14-03-12
http://money.ca.msn.com/video/?videoid=cdc9906d-aeb7-4c4b-a622-947bb89e7b78
Canadian housing starts pick up again in Feb: CMHC / Updated: Mon, 10 Mar 2014 09:37:33 GMT | By Reuters, Reuters
TORONTO (Reuters) – Canadian housing starts rose more than expected in February, data released on Monday showed, but the modest increase did not sway economists’ expectations that the country’s housing market will cool this year.
By Leah Schnurr
TORONTO (Reuters) – Canadian housing starts rose more than expected in February, data released on Monday showed, but the modest increase did not sway economists’ expectations that the country’s housing market will cool this year.
The seasonally adjusted annualized rate of housing starts rose to 192,094 units last month from a upwardly revised 180,481 in January, the Canada Mortgage and Housing Corp (CMHC) said. That topped expectations for an increase to 189,500.
Activity had decreased in January due to unusually harsh winter weather and the rebound in February suggested some of the weather-related impact was starting to wash out of the economic data.
The six-month moving average showed housing starts stood at 192,236 units. Since August 2013, the trend has remained in a range between 185,000 and 195,000, in line with CMHC’s outlook for a stable housing market this year, the report said.
A booming Canadian housing market in recent years prompted fears of a U.S.-style collapse, but Canada has so far avoided such a correction. The Canadian government intervened four times to tighten mortgage rules, which has helped rein in the market.
Most economists believe an increase in borrowing costs this year and an economy that is growing only modestly will lead to a softer but stable market in 2014.
“We remain of the view that construction activity will edge lower over the course of the year as the forecasted increase in interest rates should restrain demand,” said David Tulk, chief Canada macro strategist at TD Securities in Toronto.
“A smaller contribution from the housing market is consistent with the macro theme of domestic fatigue that will leave headline growth at or below its trend rate until net exports are able find their footing both in response to a weaker currency and a fundamentally stronger US economy.”
Urban starts increased by 7.5 percent to 175,584 in February. Multiple urban starts surged by 13.3 percent to 116,458, while single-detached urban starts decreased by 2.4 percent to 59,126.
Activity increased in urban centers in Quebec and in the Atlantic region, was stable in Ontario, and decreased in the Prairie provinces and British Columbia.
Home Inspection Regulations/Change Coming Soon
By: Mark Weisleder Real Estate, Published on Sun Dec 22 2013
Today anyone can call themselves a home inspector in Ontario. That is a scary proposition since most consumers depend on the opinion of a home inspector before making one of the biggest purchases of their lives. More than 1,500 home inspectors operate in the province yet there are no mandatory training or technical standards for them to meet.
The results are often a leaky roof, cracked foundation or outdated electrical wiring or plumbing that was missed and which ends up costing unwary consumers thousands of dollars to repair after closing. In extreme situations, consumers have lost their homes. Many inspectors do not carry errors and liability insurance, meaning that if they make a mistake, even if you win a lawsuit, you may recover nothing.
The Ontario Ministery of Consumer Services formed a panel of industry experts to recommend changes to the home inspection industry, which included home inspectors, educators, a realtor, a lawyer, educators, engineers and an insurance broker.
Their report is aptly titled “A Closer Look: Qualifying Ontario’s Home Inspectors.”
The recommendations’ aim is consumer protection, achieved through the following principles:
- Home inspectors should be regulated and called “licensed home inspectors.”
- Licensed home inspectors will require minimum qualifications, including a written exam, field test and experience requirements. Ongoing professional development and education will also be required so inspectors stay up to date.
- Increasing consumer awareness by providing information on the services inspectors provide. For example, some inspectors may offer energy audits, new home warranty inspections, chimneys, well, septic, mould, drainage or termite testing, while others may not.
- Home inspectors should not be required to enter unsafe or not readily accessible areas of a home.
- A centralized registry of licensed home inspectors accessible to consumers.
- A code of ethics that outlines expected behaviour of inspectors, including disclosure of any referral fees or incentive programs.
- Mandatory errors and omissions and general liability insurance for all licensed home inspectors.
- A complaint and dispute resolution process for consumers.
- A delegated administrative authority, similar to the Real Estate Council of Ontario that regulates real estate agents, overseen by the government, to license and regulate home inspectors. For example, the code of ethics would be written by the government but the administrative authority would enforce it, with the power to penalize or suspend any inspector who violates the code. This authority would pay for itself through the fees charged for licensing and education.
The goal is to introduce these regulations within the next 18 months, to permit home inspectors to become licensed.
I spoke with Graham Clarke, an experienced home inspector with Carson Dunlop who was on the panel. As Graham indicated, almost everyone involved with the homebuilding and selling business — from real estate agents, lawyers, mortgage brokers, lenders, builders and appraisers — are regulated by the government in some manner. It is time for the home inspection industry to become similarly licensed and regulated.
The government is also asking for feedback. A form to complete can be found at
http://www.ontariocanada.com/registry/view.do?postingId=14645&language=en
If you have views on this important issue, send in your feedback to the government now. Change is coming to the home inspection industry, and the consumer should be the winner.
Have a fantastic weekend and a great week, Anthony