Good morning everyone; I hope everyone has adjusted to the time change and are not feeling too down with it becoming dark at 5pm now!
Winter is definitely in the air and the real-estate market in the GTA is starting to slow a tad. Having said that, inventory is still low and bidding wars are common.
Greater Toronto REALTORS® Report Resale Housing Market Figures TORONTO,
November 5, 2014 – Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 8,552 sales through the TorontoMLS system in October. This result represented an increase of 7.7 per cent compared to October 2013. New listings were also up on a year-over-year basis, but by a lesser 3.4 per cent.
“Strong growth in sales was evident across all major home types during the first full month of fall. This suggests that there are a lot of households across the Greater Toronto Area who remain upbeat about the benefits of home ownership over the long term, whether we’re talking about first-time buyers or existing home owners looking to change their housing situation,” said Mr. Etherington.
The average selling price for October 2014 transactions was $587,505 – up 8.9 per cent compared to the average of $539,286 reported for October 2013. The MLS® HPI composite benchmark price was up by 8.3 per cent over the same period. Low-rise home types, including singles, semis and town houses, continued to be the driver of year-over-year growth in the average price and the MLS® HPI composite benchmark.
“While sales growth has tracked strongly so far this fall, many would-be home buyers have continued to have difficulties finding a home due to the constrained supply of listings in some parts of the Greater Toronto Area, particularly where low-rise home types are concerned. The resulting sellers’ market conditions are forecast to drive strong price growth through the remainder of 2014 and indeed into 2015 as well,” said Jason Mercer, TREB’s Director of Market Analysis.
Greater Toronto REALTORS® Report Commercial Market Figures
TORONTO, November 5, 2014 – Toronto Real Estate Board President Paul Etherington announced that, in October 2014, TREB Commercial Network Members reported leases for 704,582 square feet of combined industrial, commercial/retail and office space within the TREB market area for which pricing was disclosed on a per square foot net basis.
This result was up by 38.8 per cent compared to 507,501 square feet of combined space leased in October 2013. Almost 75 per cent of total leased space was accounted for by the industrial market segment.
Year-over-year changes in average lease rates were mixed in October. Industrial and commercial/retail lease rates were down to $4.96 per square foot net and $21.02 per square foot net respectively. In contrast, average office lease rates were up to $15.33 per square foot net. It is important to note that year-over-year price changes on monthly data reflect both market-based price changes as well as changes in the type and location of properties leased.
“Demand for commercial real estate, whether for lease or for sale, is obviously very dependent on business’ outlook for the economy. The fact that the amount of leased space was up this past October compared to the previous year could suggest that some businesses are expecting an increase in demand for the goods or services they produce. This could be seen as a positive indicator for demand in the GTA moving forward,” said Mr. Etherington.
“However, it is important to be mindful of the fact that there has been some economic volatility in some parts of the world which has, in turn, resulted in volatility in financial markets. It is possible that this could impact some business’ real estate decisions,” continued Mr. Etherington.
There were 54 industrial, commercial/retail and office property sales in October. This result represented a decline compared to 73 sales reported during the same month in 2013. Of the three major segments, industrial properties accounted for the greatest share of sales, at 42.6 per cent.
Average sale prices, on a per square foot basis for transactions with pricing disclosed, were down for industrial and commercial/retail properties and up for office properties. Similar to the leasing market, average price changes can be the result of both market forces and changes in the type and location of properties sold.
Mortgage Insurance – Very interesting! Please review this Market Place video.
I personally feel that everyone needs some sort of term, whole life and/or critical illness insurance.
What kind and how much depends on your situation. When buying a property and securing a mortgage, buyers are always offered the option of buying mortgage insurance.
This is basically insurance that will pay off your mortgage in the event that one of the mortgagee’s dies.
Personally, I have never been a fan of this type as this product becomes a depreciating return, I.e. Your premium remains the same each month although your mortgage debt is lowered each month that would in essence be paid off. Added to this negative relationship is a new level of risk. What if the insurance companies don’t pay out even if a mortgagee dies?
Typical life insurance can cover all your debt obligations and more and the “payout” does not shrink every month. Typically, before you are accepted for coverage you should have a medical exam (Blood work, questionnaire, and the insurance company follows up with your doctor before underwriting a policy.
Always read all documents and make sure you know what you are signing! Click on the video link below to see the CBC’s Market Place Report.
Marketplace: In Denial http://youtu.be/qe61HVGIwUo
My wife and I decided to insure ourselves after the birth of our children. We have traditional life insurance. I’m sure a pretty typical reflex with kids. I’m very glad we did.
CMHC expects steady housing market in 2015 – Canadian Press
OTTAWA – The Canada Mortgage and Housing Corp. says it expects housing starts in 2015 to be about the same as they were this year, and in line with economic and demographic trends.
The national housing agency says “some moderation is expected” in 2016.
The CMHC says that on an annual basis, it expects housing starts to range between 186,300 and 191,700 units in 2014, with a point forecast of 189,000 units.
Next year, the agency says it expects housing starts to range between 172,800 and 204,000 units, with a point forecast of 189,500 units.
In 2016, the CMHC says it expects housing starts to range between 168,000 and 205,800 units, with a point forecast of 187,100 units.
The agency says it expects Multiple Listings Service sales to range between 467,400 and 482,000 units in 2014, with a point forecast of 476,100 units.
Next year, it says it expects MLS sales to range between 457,300 and 507,300 units, with a point forecast to 482,500 units.
The CMHC says the average MLS price in 2014 is expected to be between $401,600 and $405,400, with a point forecast of $404,800.
Next year, the agency says it expects the average MLS price to be between $403,600 and $417,800, with a point forecast of $410,600, while in 2016 the average MLS price is forecast to be between $407,300 and $424,500, with a point forecast of $417,300.
Canada’s least affordable city is…
A new quarterly report from Desjardins says that Vancouver is Canada’s least affordable market currently, due to house prices relative to income. Overall the ability of Canadians to afford property has dipped slightly the poll reveals, but there are a number of different stories. In Quebec for example, prices have stagnated but income has grown, making it more affordable than previously. Ontario has some affordable areas but Toronto isn’t one of them and of course in Alberta there are some areas that are far more affordable than Calgary. See the full report.
Calgary market stays hot
House prices went up again in Calgary last month; rising 10 per cent compared to October last year. New figures from Calgary Real Estate Board show that there were 2,147 resales with condos continuing to be the biggest driver with a 14 per cent increase year-over-year. “Tight rental market conditions combined with low mortgage rates have supported demand growth for condominium product in Calgary,” said CREB president Bill Kirk, noting apartment sales have also set a year-to-date record, totalling 4,202 units. “Much of this demand is coming from both first-time homebuyers and investors.” The heat in the condo market isn’t down to low supply either; listings were up 30 per cent year-over-year and there was a net increase in inventory. Single-family units also saw high growth with a 9.7 per cent rise on a year earlier. Prices are also still trending higher with year-over-year increases approaching 10 per cent across all property types.
What’s the biggest home-buying priority for Vancouverites?
It’s perhaps not too surprising that house prices rank highly when purchasers in Vancouver are choosing where to live along with other factors such as proximity to work and family. However a new poll by Angus Reid does provide some interesting insights into the decisions and concerns of Vancouverites. The vast majority for example say that people born in the city are being priced out and a large number have considered moving to a more affordable area. Many say they have had to give up a lot in order to live where they want. On the plus side Vancouver scores highly as a place to raise children and most areas of the city rank well in terms of safety. See all the results.
Poloz: Interest rate rises to combat hot property market is a bad idea
The governor of the Bank of Canada said today that it would not be a good idea to raise interest rates in a bid to tackle imbalances in certain sectors of the economy such as property. Stephen Poloz said that such measures would hurt other sectors including auto manufacturers and construction and would hit confidence in the economy. Speaking in Toronto the governor said that the Bank’s focus is achieving its 2 per cent inflation goal. He highlighted spare capacity in the economy such as exports and the labor market.
Have a great work week, Anthony