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The Bank of Canada might not be done hiking just yet

Posted in Appraisal, Bylaws / Regulations, CMHC, Communications, Development, Finance, Housing, Industry Trends, Newsworthy

The Bank of Canada might not be done hiking just yet

Investors wagering that the Bank of Canada is ready to throw in the towel on its tightening cycle are setting themselves up for disappointment, say market strategists at some of the country’s biggest banks. As policy makers around the world pivot toward a more dovish interest-rate outlook, front-end traders are betting Canadian officials are set to follow suit and forgo raising rates again until at least 2020. Yet analysts at firms including TD Securities and Scotiabank disagree, arguing that...

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Unaffordable Housing Is Hurting Canada’s Job Market

Posted in Appraisal, Bylaws / Regulations, CMHC, Communications, Development, Finance, Housing, Industry Trends, Newsworthy

Unaffordable Housing Is Hurting Canada’s Job Market

A lack of affordable housing is holding back worker mobility, the Bank of Canada says. A top-ranking official with Canada’s central bank suggests high housing costs are holding the country’s labour market back. Bank of Canada senior deputy governor Carolyn A. Wilkins says investing in employees through training and education, for example, is one way to boost the labour market — but it isn’t the only approach needed. The availability of affordable housing plays an important...

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New supply should be for all, not just the top tier

Posted in Appraisal, CMHC, Communications, Development, Finance, Housing, Industry Trends, Legislation, Newsworthy, Real Estate Law

New supply should be for all, not just the top tier

Much attention has been devoted to the feverish pace of housing construction nationwide, although whether this has successfully addressed the problem of supply remains an open question. However, a recent study published by the Housing Policy Debate journal argued that these inventory injections have in the past few years tended towards being valued at market prices, a fact that will still exclude a considerable number of would-be buyers. The report stressed that governments at all levels...

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Canadian companies bet on rentals amid record immigration

Posted in Appraisal, Bylaws / Regulations, CMHC, Communications, Housing, Industry Trends, Newsworthy, Tenancy Law

Canadian companies bet on rentals amid record immigration

Bentall Kennedy LP, the real estate arm of insurer Sun Life Financial Inc., is boosting its exposure to rental apartments as immigration in Canada’s biggest city booms. The Toronto-based firm, which managed $22 billion of assets in Canada as of September, plans to increase multi-residential investments to about 15 per cent of its portfolio from below 10 per cent, according to Doug Poutasse, head of strategy and research at Bentall. The “Canadian economy peaked but it is not necessarily coming...

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Rental market braces for influx of tenants

Posted in Appraisal, Bylaws / Regulations, CMHC, Communications, Finance, Housing, Industry Trends, Newsworthy, Tenancy Law

Rental market braces for influx of tenants

Rising interest rates and strict mortgage qualification resulted in fewer Canadians seeking homeownership than rental accommodations last year, and 2019 will bring more of the same. “It’s going to continue,” said Marcus & Millichap’s Vice President and Broker of Record Mark Paterson. “People will continue renting rather than dealing with residential mortgages. The rental market right now can barely keep up with the vacancy rate in Toronto, for example, being around 1%.” Competition for...

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Toronto City Council Approves Affordable ‘Housing Now’ Plan

Posted in Appraisal, Bylaws / Regulations, Communications, Development, Finance, Housing, Industry Trends, Legislation, Newsworthy

Toronto City Council Approves Affordable ‘Housing Now’ Plan

This week, Toronto City Council voted to approve the ‘Housing Now’ plan, part of John Tory’s campaign promise to build 40,000 affordable rental units over the next 12 years. This first phase of the plan calls for the construction of 10,000 residential homes — 3,700 of which will be affordable — on 11 City-owned sites. The plan offers $280 million in financial incentives for private developers and non-profits to construct buildings with affordable housing components on these specific sites. The...

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Record Year for Condo Rent Increases

Posted in Appraisal, Development, Finance, Housing, Industry Trends, Newsworthy, Real Estate Law, Tax Law

Record Year for Condo Rent Increases

Rents for condominium apartment leases signed in the Greater Toronto Area during 2018 increased by an average of 9.3%, topping the 8.3% growth recorded in 2017 and marking the highest rate of increase since Urbanation began tracking condo rental transactions in 2010. Over the past eight years, condominium rents have grown by an average of 4.1%. On a year-over-year basis, rent growth moderated in the fourth quarter to 6.7%, representing the slowest annual pace since Q1-2017 (nearly two years...

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Renting vs. Buying: Why It Might Be A Good Time To Hold Off On A House Purchase

Posted in Appraisal, Communications, Development, Finance, Housing, Industry Trends, Newsworthy

Renting vs. Buying: Why It Might Be A Good Time To Hold Off On A House Purchase

In the long-running debate on renting versus buying, the scales have tipped a little towards renting — at least in Canada’s largest cities. Rapid house price growth a few years ago, combined with rising interest rates today, mean renting has become cheaper than buying on a national level for the first time in years, National Bank of Canada said in a report this week. The report found the mortgage payment on a median two-bedroom condo had risen to around $2,000 in the fourth quarter of...

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Morneau Sees Canadian Expansion on Track Despite Headwinds

Posted in Appraisal, Bylaws / Regulations, CMHC, Communications, Development, Employment, Finance, Housing, Industry Trends, Legal, Legislation, Newsworthy

Morneau Sees Canadian Expansion on Track Despite Headwinds

Despite trade headwinds and an oil shock, Canada’s economy remains on track to grow this year and in the “forecastable future,” Finance Minister Bill Morneau said. Morneau, speaking in an interview Friday at the World Economic Forum in Davos, Switzerland, said a November shock in Canadian crude prices is negatively impact the nation’s economy, but private sector economists continue to anticipate the expansion will continue. “There are headwinds, I don’t want to dismiss that as a challenge, but...

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How Quebec came to rule Canadian real estate in 2018

Posted in Appraisal, Bylaws / Regulations, CMHC, Communications, Development, Finance, Housing, Industry Trends, Legislation, Newsworthy, Real Estate Law

How Quebec came to rule Canadian real estate in 2018

For residential real estate, 2018 was the year of Quebec. While housing markets lost steam in other parts of the country, Quebec’s market remained poised as sales and prices grew. That was one of the takeaways from data released this week by the Canadian Real Estate Association (CREA), which presented a broad picture of resale  markets across Canada. The data also raised some interesting questions: For instance, in a year in which prices and sales declined in many regions, was it the average...

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