Toronto Market Continues To Build Momentum In May

Toronto area prices rose again in May, for the fourth month in a row, and were also higher than last May. Freehold prices in particular were significantly higher than the previous month, and have now pulled even with last year after being lower for the first four month of the year. Condominium apartment prices also… Read More

Ontario Government ‘More Homes, More Choice’ Act

On June 6, the Ontario Government passed new legislation to deal with the housing crisis through a five point plan: 1. Speed: cut out government bureaucracy that slows down the development process; 2. Cost: encourage developers to build more housing by reducing the layers of permits, government approvals and charges by municipalities and making these… Read More

Toronto Market Gains Strength In April

After a slow start to the year, hampered by a lingering and unpleasant winter, the Toronto area market kicked into a higher gear in April. Sales for the first three months of the year were very similar to 2018, but April sales of 9,042 houses and condos were 16% higher than last year. The number… Read More

New Mortgage Qualification Rules – More Unintended Consequences

As previously reported here, the B-20 ‘stress test’ mortgage qualification rules (requiring buyers to qualify ‘as if’ the mortgage rate were 2 points higher than it actually is) has resulted in a significant reduction in the number of real estate sales across the country. In turn, this caused an unintended knock-on impact on economic activity… Read More

Interest Rates Unlikely To Rise In 2019

The latest data from Statistics Canada shows that GDP has actually fallen in four of the past six months, suggesting that, after the longest (if one of the weakest) recoveries ever, we are heading toward a recession within the next year or so. Click to view monthly GDP chart This is why the Bank of… Read More

Canada Is A Haven For Money Laundering

There’s a lot of ‘dirty money’ in the world, and many complex schemes to ‘launder’ this money and convert it into ‘clean’ funds. Real estate is a very popular venue for such laundering, particularly in Canada, as we have some of the weakest laws in the world to defend against money laundering. A recent report… Read More

First-Time Home Buyer Incentive – Will It Help?

The federal budget included a proposed measure that would see the federal government take on part of the costs of buying a home. The basic elements of the plan are: It will be available only to first-time homebuyers; It will be administered by CMHC and will only be available for CMHC-insured mortgages; Buyers must have… Read More

Toronto Considering Land Transfer Tax Increase

In early 2007, the City of Toronto instituted a Toronto Land Transfer Tax (on top of the Ontario Land Transfer Tax) as a way to increase revenues while avoiding large (and politically unpopular) increases in property taxes or decreases in expenses. This tax applies only to properties in the “Old Toronto” 416 area code. For… Read More

Toronto Condo Market Continues to Soar

Toronto area condominium apartment prices continued to move upward last month, with average prices 6% higher than February, 2018. Almost certainly we will see another all-time high for condominium prices before the spring is over. Under-pricing and bidding wars are rampant and buyers are eager (even desperate) to buy condos now before prices go even… Read More

Toronto Market Continues on Steady, Balanced Trend

Toronto area prices were slightly (1.6%) higher in January than last January, while the total number of homes sold was almost exactly the same. The inventory of homes for sale was the same as last year, as well as last month, and right on the 3 months’ supply level that is regarded as ‘balanced’, that… Read More