Annual pace of housing starts plummets
A big decrease took place between April and May; The annual pace of Canadian housing starts fell 23% in May from the previous month, with sharp declines in Toronto, Vancouver and Montreal. Canada Mortgage and Housing Corporation (CMHC) said the seasonally adjusted annual rate of housing starts came in at 202,494 units in May compared with 261,357 units in April as apartment, condo, and multi-unit housing starts fell dramatically in those three cities. Vancouver housing starts plummeted by 45%, with Toronto posting a 28% decrease and Montreal seeing its pace slow by 35%. In each of those cities, multi-unit starts …
As interest rates rise again, what does it reflect?
The Canadian mortgage market has already seen a significant shift from floating rates to fixed rates among borrowers, and last week’s rate hike decision by the Bank of Canada will only further accelerate this trend. The 25-basis-point increase in the central bank’s policy rate means that borrowers across the country are also adjusting their mortgage rates upward. While fixed rates are also rising, many economists believe that the central bank may have further rate hikes in store for the remainder of the year. However, the recent increase in the five-year Canadian government bond yield, which has a significant impact on …
Housing Market is Still Hot: Local Experts Highlight the Significance of Reliable Advice
In the realm of personal finances, few decisions carry as much weight as buying a house. It’s a colossal investment that demands not only finding the perfect value for your money but also ensuring long-term financial stability beyond the closing date. Recent data from the Canadian Real Estate Association (CREA) reveals a significant 30% drop in home sales in April 2022 compared to the previous year. Thunder Bay, in particular, witnessed a 5.7% decrease in average home prices, with single detached homes averaging around $345,000. Wes Case, President of the Thunder Bay Real Estate Board, emphasizes that the current market …
Toronto’s New Multiplex Allowances Signify A Very Big Milestone, Here’s Why
Toronto recently made a seismic move by approving new planning rules that allow multiplexes of up to four units in every neighborhood. This decision is a significant step toward breaking the stranglehold that exclusionary zoning has had on residential growth in the city. Prior to the amalgamation of Toronto and its former satellite cities in 1998, apartment buildings, single-family homes, basement flats, and laneway housing coexisted, albeit not always harmoniously, side by side, however, the suburbanization of the city, which was already well underway, accelerated after amalgamation. The notion of a car in every garage and a highway in every …
Home Sales Bounce Back in April As National Average Home Price Rises
Despite affordability challenges, rising housing demand has pushed Canada’s national average home price up to $716,000, in April — a 6% month-over-month rise, which was driven by increases in Nova Scotia (+7%), Ontario (+6%) and B.C. and Alberta (+4%), according to monthly resale data from the Canadian Real Estate Association. In seasonally adjusted terms, the MLS home price index was up 1.6% month-over-month. While the average sale price remains down 3.9% from April 2022, it has now surged by $103,500 since January 2023. “With interest rates at a top, and home prices at a bottom, it wasn’t all that surprising …
How to take advantage of the new tax-free first home savings account
April 1, 2023 marked the official launch date of the tax-free first home savings account (FHSA), Canada’s newest registered savings plan. As financial institutions start offering these in the weeks and months ahead, here are five things you need to know to take full advantage of these new plans. Tax-free in; tax-free out The 2023 federal budget description of “tax-free in; tax-free out” succinctly summarizes the attractiveness of the FHSA, which gives prospective first-time homebuyers the ability to contribute up to $40,000 and save on a tax-free basis towards the purchase of a first home in Canada. The …
RBC sees sluggish start to Canada’s spring housing market
Canada’s largest bank is expecting a slow start to the spring housing market as higher interest rates keep many buyers out, despite a drop in prices. “It’s sunny outside, but I don’t think just because it’s sunny, you’re going to see a real spring-back in mortgage originations,” Neil McLaughlin, head of personal and commercial banking at Royal Bank of Canada, said at a conference Wednesday. The benchmark home price is down about 16 per cent in the past year in Canada, but at $704,000 (US$519,000), it’s still nearly 30 per cent higher than three years ago. Prices may have to fall further, …
