Connect with us

Buzz

3 hurdles the Ontario housing market will have to contend with in 2019

Editor

Published

on

[ad_1]







Photo: James Bombales

It’s forecast season for Canadian housing market experts, and most are predicting a relatively cool 2019, with only slight increases in home sales and prices.

Of course, every housing market will have its own challenges to face, and Ontario is no exception. In 2017, the market had to contend with the Ontario government’s Fair Housing Plan, while this year it struggled to adjust to the effects of a stricter mortgage qualification test.

Next year will bring a new set of headwinds, which should keep a lid on activity. Livabl has rounded up the latest industry commentary to keep you in the know about the top three.

Interest rates that keep climbing

GTA home sales were down 1.1 percent month-over-month in October, in what Scotiabank economist Marc Desormeaux says is the start of a slower period for the market.

“Greater Toronto and Hamilton sales prices rose by about 1 percent [in October], while new listings retreated by about 3 percent in both cities,” he writes, in his most recent note.

The reason? Higher mortgage rates, which are eating into the budgets of many would-be homebuyers. The Bank of Canada has indicated that it will continue to hike the overnight rate well into 2019, so it’s likely that this cooler period is here to stay.

But Desormeaux does note that a relatively low level of supply amid strong buyer demand should keep activity from dipping too sharply in 2019.

Housing Market News Alerts

Sign up for news alerts on the Toronto housing market

A lack of land where new homes can be built

Speaking of low supply, the Ontario homebuilding industry released a new study this week warning that a lack of available land for new housing could drive GTA home prices up in the near future.

Currently, just 4.5 percent of greenfield in the Greater Toronto and Hamilton Area (GTHA) is available for new development. Up to 55 percent of land designated for development by 2031 is currently claimed, while 40 percent has already been built upon, 8 percent is under construction and 7 percent has recently been approved by local municipalities.

The region is set to grow by 115,000 residents per year, and the Building Industry and Land Development Association (BILD) believes that the flood of new buyers will overwhelm the market, driving prices upwards.

“Growth policies implemented by the former provincial government from 2006 and 2017 have reduced the amount of available land for new housing communities, increased land prices and have caused home prices to skyrocket,” said Dave Wilkes, president and CEO of BILD, in a statement.

A tight rental market

This month, the Ontario government announced that rent control legislation would no long apply to new housing units added to the province’s rental market.

Several industry associations praised the move, having argued for months that rent control discourages developers from starting purpose-built rental projects. But according to Bullpen Research & Consulting president Ben Myers, the bigger problem facing the province is a lack of purpose-built and rented condo units, in a time when more and more people are looking to rent.

“This change won’t significantly move the needle on new purpose-built rental supply,” he writes, in his latest analysis. “If I had to put a number on it, I’d say we’ll get 500 to 1,000 more rental apartment starts per year because of the elimination of rent control over the next five years.”

Myers does believe that the decision could lead to an increase in investors choosing to rent out condo units, which could provide much needed supply to a tight rental market.

“The biggest impact as a result of this move will be keeping private investors interested in buying pre-construction condos to lease out,” he writes. “Condo investors have been responsible for over 75 percent of all new rental supply for the past 20 years in the GTA and without them, rental rates in the GTA would be much, much worse.”

[ad_2]

Source link

قالب وردپرس

Buzz

New home? Prepare for the unexpected

Editor

Published

on

By

(NC) Buying a house, getting married or having your first baby are all major life events that are likely to affect your finances. But whether you’re in the midst of a major life event or not, it’s important to check in on your finances regularly to maintain good financial health.

Your financial health encompasses things like your spending, savings, borrowing and future financial plans. It also means dedicating a set amount of savings for unexpected future events. It can even include optional credit protection insurance, such as TD protection plans, to help cover your debt balances in case of death, a covered critical illness or total disability.

Even though it can be tough to think about the unexpected, life is unpredictable and it’s important to plan for the unexpected. Find more information at td.com.

Continue Reading

Buzz

Mortgage pitfalls to avoid

Editor

Published

on

By

(NC) Throughout life, you may have moments where you’ll make a large purchase or invest in a costly item, like your family home. But whether you’re in the market for your first new property or already have a mortgage, leaving this asset unprotected can be costly.   

Insuring your housing financial debt, as well as debt for other big-ticket items like a new boat for your lakefront cottage or keepsake jewelry like an engagement ring, is a smart investment in your well-being.

To help protect your debt balances like a mortgage, your bank may have optional credit protection insurance products.

“Your home is one of your biggest assets, yet illness can happen at any stage of life. Worrying about your mortgage when the focus should be on health isn’t a situation anyone would wish for,” explains Shirley Malloy, vice president at TD. “Fortunately, we offer mortgage protection to provide coverage for your outstanding balance should you face a covered critical health event.”

Mortgage protection can be purchased whether you’re in the process of applying for a mortgage or already have a home financing solution. But what about protection options for credit card debt?

“Given the unprecedented circumstances of this year, many Canadians are trying to plan for the unexpected to protect themselves and their finances,” says Malloy. “TD balance protection plus is an optional product designed to help you deal with your credit card payment obligations in the event of a covered event, such as loss of employment.”

Continue Reading

Buzz

Is your internet too slow? It’s probably not you

Editor

Published

on

By

(NC) We all know the aggravation of a school lesson that just won’t stop freezing or the family video call that looks more like a photo montage. And, as we adjust to the impact of COVID-19 on our day-to-day, that slow connection can have frustrating consequences.

Working from home and learning remotely, both need fast, stable internet, something not enough Canadians have yet. Even if you have fast devices in your home, if the infrastructure in your area is not optimal, your connection won’t be either.

Right now, cities have the infrastructure needed to ensure access. But rural and remote communities are hugely underserved, with fewer than half having high-speed internet, and fewer than a third of households on reservations have high-speed connections.

Fortunately, change is coming. The Universal Broadband Fund is backing projects across Canada right now to ensure the reliable, high-speed internet connections families need to work, study, access services online, and safely stay in touch with each other.

The fund existed before COVID, but as a response to the pandemic, its timetable has been moved up by four years to a target of 98 per cent of Canadians with high-speed internet access by 2026. With the faster pace, at least 90 per cent of us should be connected by the end of 2021.

The fund is focused on improvements in rural and remote communities across Canada to fix the disconnect between internet access for urban and rural households.  This means more remote work opportunities, better access to remote learning and safer access to healthcare, no matter where you live.

It’s not just for good connections at home, either. The improvements mean much better access to mobile networks on highways between remote communities. The result is better, safer navigation and access to emergency services for your family, even on the road in the middle of nowhere. Mobile projects will be focused on serving Indigenous communities and the roads leading to them.

The shape these improvements will take in your area will depend on where you live. Canada is huge, and its communities are hugely diverse, with diverse needs. Keep an eye out for local projects — they’re a small part of something much bigger.

Continue Reading

Chat

Trending