Tag Archive for “condos”

Mortgage brokers in Toronto have been busier than their colleagues in the rest of Canada lately, as the city's housing market continues to outpace the nation in sales and price increases. But the trend is unlikely to carry on for very long, according to an analysis in the Montreal Gazette.

House prices in Toronto have skyrocketed over the last 12 months, rising 10.5 percent compared with more modest gains in Montreal (3.7 percent) and slight devaluation in Vancouver (down 3.1 percent), the Gazette reports. Nationwide, prices are expected to flatten and begin falling in 2013 and 2014. The Bank of Canada recently announced it would keep its overnight target lending rate at 1 percent, furthering the availability of affordable mortgages across the country. Despite the low rates, lenders have begun to tighten their standards as the availability of mortgage insurance through the Canadian Mortgage and Housing Corporation diminishes. This could have the effect of slowing the housing market in most areas of the country.  Continue reading »

A small piece of land in Toronto may be the focal point of Canada's housing bubble, as the site being used as a parking lot and police impound near Lake Ontario will soon become a 75-story glass building that will become the nation's third tallest condo tower, according to a recent report from Bloomberg.

The condo tower, Ten York, will add to Toronto's skyscrapers, which have made the city home to the largest number of high rises under construction of any other city in North America and nearly three times as many as New York, the news source stated.

“Condo construction has always been rather prone to boom and bust cycles, and this one seems particularly strong,” Sheryl King, an economist with Bank of America Merrill Lynch in Toronto, told the news source. “Builders seem to overestimate how much demand is going to be out there, and that’s when you tend to see some abrupt pull-back.” Continue reading »

Although some signs are pointing to the housing market in Toronto cooling down, Ross McCredie, CEO of Sotheby's International Realty Canada, is preparing for an increase in demand.

The realty firm is planning to add a second office in Toronto as well as sign new agents in anticipation for continued growth, The Globe and Mail recently reported. McCredie first experienced success in the Toronto real estate market when he quickly sold the most expensive units at the Four Seasons Private Residences in Yorkville.

However, not all areas of the city are primed for a surge in real estate activity, the source said. The mid-range condo market could be hurt by a rise in interest rates. Continue reading »

Low mortgage rates have made investing in Canadian real estate an appealing option for some citizens, but there are still certain safeguards investors must consider before purchasing a home.

In a recent Globe and Mail report, financial columnist Rob Carrick discussed the top suggestions for Canadians considering real estate as an investment. According to Carrick, buyers should examine mortgage rates carefully, as they are currently at historic lows but any change in rates could damage the affordability of a home.

"The unhappy ending for housing will come when rising rates start pushing up the cost of financing the astronomical cost of a house in cities like Vancouver and Toronto," Carrick explained. Continue reading »

Several economists have recently commented on the potential oversupply of Toronto's condominium market, as the city continues to build high-rise apartment buildings in record numbers. With supply expected to eventually outweigh demand, prompting unit values to drop, some local condo owners have decided to sell before it's too late.

According to a recent Toronto Sun report, some experts predict the Toronto condo market will experience a significant crisis beginning in 2013. The source examined the case of Eileen Campbell, a 65-year-old Toronto condo owner who has decided to sell her apartment before demand potentially plummets and newer buildings are available.

"In my mind, if there is that much inventory for people to choose from, would they choose (to buy) a brand-new place or a place that's been here for a while?" Campbell told the source. "I'd rather get my equity out now and move onto something else." Continue reading »

Several real estate experts predict Calgary will be among the healthiest Canadian markets in 2012, as unemployment remains relatively low and condo construction continues to surge.

According to the Calgary Herald, multi-family housing construction recently surpassed earlier projections by the Canada Mortgage and Housing Corporation, which expected 3,500 such housing starts during 2011. Apartment construction eclipsed the CMHC's prediction in Novemeber.

The report said negative global economic news has affected some prospective homebuyers, but many Calgary residents are coming back to the housing market. Continue reading »

The condo boom in Canada has been a driving force behind the country's rejuvenated housing market, but some experts warn condo prices may soon plummet.

According to the Bank of Canada's December Financial System Review, multiple-unit housing is vulnerable to price declines, as condo buildings are increasingly being completed but vacancies in new buildings are prevalent.

"The supply of completed but unoccupied condominiums is elevated, which suggests a heightened risk of a correction in this market," the report said.

The Toronto condo market is especially vulnerable, as the city is currently North America's leader in high-rise construction and prices continue to rise, leading some experts to say supply may soon outweigh demand. However, others believe the city's condo market will remain strong into the new year. Continue reading »

Ottawa homeowners are increasingly buying condominium units under construction, hoping the investment pays off long-term, but some experts say buyers should beware.

According to a report by the Ottawa Business Journal, investors may have a tough time finding tenants in two or three years as new buildings are completed and demand for each unit declines. Excess supply could push rental prices down and vacancy rates up, the report said.

"It's going to be interesting to see if the rental market – meaning the (available percentage) of rentals – will go up, meaning there's a lot of inventory on the market," said A.J. Plant, a broker at Exit Realty Matrix, as reported by the news source. "That will affect the rental prices."

About 20 percent of Ottawa condo starts are being purchased by investors, the report said. Continue reading »

Fueled by a continued stretch of low mortgage rates and condominium construction, Canadian housing starts in October were stronger than expected.

According to a recent Canada Mortgage and Housing Corporation report, the seasonally adjusted annual rate of housing starts slightly declined from 208,800 in September to 207,600 in October. However, considering a Reuters forecast predicted 195,000 starts during the month, the SAAR was higher than expected. Continue reading »

With high home prices and skyrocketing condominium construction, Toronto has been a driving force in Canada's resurgent real estate market, and some experts don't foresee a slowdown soon.

According to the Canada Mortgage and Housing Corporation, although continuing increases may cease, the housing market in Toronto will remain mostly unchanged in 2012 as prices remain high and sales stabilize. Continue reading »