Daily Headlines
Building Permits in Canada See Significant Increase in November, Led by Multi-Family and Non-Residential Sectors
Preconstruction faces significant headwinds
Bank of Canada will continue to raise interest rates
GTA Preconstruction Condo sales lowest since the Financial Crisis in Q1 2009
Ontario introduces legislation that would allow three units on one property
Bank of Canada raises interest rates by 0.50% and expects interest rates will need to rise further.
Rent continues to move up - Housing affordability is a major issue in Canada
GTA and Surrounding Area Housing Market Review - September 2022
Our monthly analysis of GTA housing market based on TRREB data.
Bank of Canada says to expect further rate hikes as demand continue to remain high
In a speech yesterday, the Governer of Bank of Canada, Tiff Macklem indicated that further interest rates are warranted to quell the near-term inflation expectations. While there are foreign forces that influence inflation, the domestic demand, driven by labour shortages, is still quite high.
Toronto office space goes from record low to record high vacancy rates… all in 3 years
A quick look at the office vacancy rates in downtown Toronto.
Adding another 1.25% to today’s mortgage rates - not an unlikely scenario.
The Organisation for Economic Co-operation and Development (OECD), a global policy think tank, released a report that estimates the Bank of Canada will raise overnight rates as high as 4.5% in 2023 in order to tame inflation.
Home prices have dropped since February - but mortgage payments are still higher?
We all know that the interest rate caused a big drop in home prices from their peak in February. The average home price in Toronto West was down from $1,699,095 in February to $1,364,437 in August, according to TRREB. But if you took out a mortgage in August, you are still looking at a higher monthly payment.
Multifamily continues to grow in Canada as rental markets remain strong
Investors continue to pour money into multifamily housing in Canada. 73.2% of building permits issued in 2021 are multi-unit building permits. In the first half of 2021, the multifamily market saw $7.1 billion in sales.
Inflation slows for another month but not enough to stop interest rate increases.
Year over year inflation is down for a second consecutive month. Inflation excluding gasoline is also down for the first time since June 2021. However, it is still too early for the Bank of Canada to stop interest rate increases.
With interest rates this high, should we pick variable or fixed rates?
If you had locked yourself into a five-year mortgage at record low-interest rates, you could consider yourself one of the lucky ones. For those shopping around for mortgages now, you are probably deciding whether you should choose fixed or variable rates.
More details on the $500 one-time tax-free payment to low-income renters
The federal government proposed a one-time payment of $500 to low-income renters as part of the 2022 Budget to make housing more affordable. A recent press release from the Department of Finance shines more light on the details of the plan including eligibility.
With higher interest rates, is the mortgage stress test still required?
The mortgage stress test was a safety measure put in place to prevent mortgage defaults when interest rates rise. Now that the interest rates have risen close to the minimum threshold of 5.25% set in June of 2021, is it still reasonable to test home buyers at their mortgage rate plus 2%?
StatsCan: Investment in building construction for July 2022
Single-family home investments remain relatively flat while multi-unit construction increased 1.8% to $7.1 billion in Canada for the of July. Ontario and British Columbia continue to see growth in both single-unit housing and multi-unit housing construction.
GTA and Surrounding Area Housing Market Review - August 2022
We reviewed the average housing price, sales volume and sales to new listing ratio for GTA and surrounding areas based on TRREB’s August reports. While there are many factors that impact a specific house’s price, the data sheds light on the overall trends in the market.
What to expect for the upcoming recession?
By now, everyone is fully aware of the high likelihood of a recession. The Bank of Canada has explicitly taken a strong position on interest rate hikes at all costs to tackle inflation. However, RBC Chief Economist and his team released their outlook on the upcoming recession and its expected to be “moderate” by historical standards.