Intended consequences of new housing policies: CEO, CMHC

Intended consequences of new housing policies: CEO, CMHC

Finance Minister Bill Morneau announced a broad suite of initiatives on Oct. 3 to ensure that overheated housing markets do not compromise Canada’s economic growth. Canada Mortgage and Housing Corporation welcomes these initiatives and indeed had a hand in developing them with the Department of Finance.

Globe and Mail – Globe and Mail

CMHC to issue first ‘red’ warning for housing market

Canada’s housing agency is raising the alarm over the country’s real estate sector, warning about a strong risk of problems on the horizon. Canada Mortgage and Housing Corp. will increase the risk rating in its overall assessment of the country’s residential market to “strong” from “moderate” when it issues a new report on Oct. 26.

Globe and Mail – globe and Mail

New mortgage rules will drive up rents: Urbanation

According to a new study that predicts Ottawa’s new stricter mortgage qualification will make the region’s rental market even less affordable.The average monthly rent for a condominium in the GTA rose an annualized 9 per cent in the third quarter, to $1,986 according to Toronto market research firm Urbanation Inc..

Globe and Mail – CBC

Airbnb says Toronto should regulate ‘professional’ renters

Airbnb Canada‘s public policy manager Alexandra Dagg told Metro Morning that she’d like to see the city of Toronto create regulations that target “professional” renters. Dagg said that Airbnb is “engaged” with the city in discussing appropriate regulations for the home sharing platform.

CBC

When condo construction hits delays, can purchasers back out?

Condo purchasers in central Edmonton who feel stuck after building construction delays are calling for legislation to hold developers accountable. “I think there should be some sort of legislation moving forward,” said 25-year-old Brennan Belliveau, who in late 2014 put a $60,000 down payment on a unit in a downtown highrise that has not yet been built.

CBC

Ottawa moves up review of drywall dumping duties

The federal government has asked for an accelerated review of anti-dumping duties on drywall imports, but the new schedule isn’t expected to immediately rollback duties blamed for higher prices for consumers. The Finance Department says it wants to help middle-class families in Western Canada, especially those involved in the reconstruction of Fort McMurray.

The Chronicle Herald – Canadian Manufacturing – Calgary Herald

Staying true to its character will help Fort McMurray rise from the ashes

Few cities epitomize the word resilience as much as Fort McMurray. Its fortunes have been largely dependent on being able to find innovative ways to get a precious commodity from the ground. Since the 1960’s people with a can-do attitude have been attracted to this borderline subarctic climate because of the great opportunities.

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Ottawa’s Minto Group new net-zero townhomes

Ottawa home builder, The Minto Group recently launched Ontario’s first four net-zero townhouses in Kanata’s Acadia community. The townhouses range from 1500 sq. ft. to 1900 sq. ft. and begin at $352,900. The net-zero technology adds some $45,000 to $50,000 to the cost of the homes.

Sustainable Biz Canada

Growth plan fuelling GTA housing prices: Benjamin Tal

A leading Canadian economist is adding his voice to those who argue that the Ontario government’s growth plan is largely to blame for pricing homes beyond the reach of many buyers. Places to Grow, is “the number one reason GTA house prices are rising,” said Benjamin Tal, deputy chief economist for CIBC World Markets.

Toronto Star – Globe and Mail

Four things people get wrong about housing

Some misconceptions about housing must be addressed. With new federal measures coming into place to settle the market down, we’re going to be talking ever more about real estate. To help start the conversation, let’s look at four things people have wrong about housing.

Globe and Mail

Timbercreek Financial not impacted by new mortgage rules

Timbercreek Financial (TF-T) commented that the recently announced changes to the rules relating to insured residential mortgages are not expected to impact the Company’s portfolio or financial performance. “We do not have any exposure to insured mortgages, which is the target of the rule changes,” said Andrew Jones, CEO of Timbercreek Financial. 

Marketwired

Rental property built in Toronto leads fight with City

First, they started building a four-bedroom house without a permit. But what two brothers ended up building wasn’t the single-family home they’d promised — it was a 21-room student residence, also without a permit. Now the building sits empty because the City of Toronto refuses to let anyone occupy it.

Toronto Star

Three operators evaluate returns at U.S. Multifamily Exec Conference

As rent growth begins to plateau, finding market inefficiencies becomes more critical than ever for apartment owners. For Ronald Ladell, senior vice president at AvalonBay Communities, and James Schloemer, CEO at Continental Properties, building signature brands has been one way to differentiate themselves.

Multifamily Executive

US homebuilder sentiment rises as sales improve

U.S. homebuilders’ confidence eased this month after surging to the highest level in nearly a year in September. Even so, builders remain optimistic overall about sales growth in months ahead, a reflection of how steady job gains are leading more Americans to buy newly built homes.

The Chronicle Herald

Average US 30-year mortgage rate rises

Long-term U.S. mortgage rates rose this week as the prospect of a year-end interest-rate increase by the Federal Reserve grew more likely. Mortgage giant Freddie Mac said Thursday the average for a 30-year fixed-rate mortgage increased to 3.47 per cent from 3.42 per cent last week.

The Chronicle Herald

RENX Columnists

Xenophobic NIMBYs

After the announcement of the foreign buyers tax, the Urban Development Institute suggested to the provincial government several ways that they might combat unintended impacts of the tax to the housing market and the economy in general.

Read more

Market Conditions

Housing overheating but don’t expect a collapse: report

Forget all the housing crash talk says a new report by Moody’s Analytics, which used the Brookfield RPS house price index for its model, that suggests prices acceleration in Canada’s housing market will slow down without any hard landing.

Financial Post

Housing market continues to expand in Q3: Royal Lepage

Canada’s residential real estate market continued to grow in the third quarter of 2016, posting a double-digit year-over-year aggregate house price increase, according to the Royal LePage House Price Survey. Greater Vancouver home prices increaed by 30.6 per cent in the quarter and the GTA increased by 13.6 per cent.

Canada Newswire

New mortgage rules ripple through Canada’s housing market

For almost a decade Canada’s housing market has withstood just about anything that government officials have thrown at it in an attempt to restrain breakneck growth. Measures introduced by Prime Minister Justin Trudeau’s federal government on Monday may finally bring it to heel, analysts and economists say.

Toronto Star

Housing costs consume majority of disposable income in B.C.

Once British Columbians pay for essential costs such as food, taxes and child care, nearly half of their leftover income is consumed by housing, according to a new tool that measures home affordability. And for a quarter of B.C.’s residentsit is more than two-thirds of disposable income goes to shelter costs.

Vancouver Sun

Mortgage and Finance

New federal mortgage rules take effect today

New federal rules that will cut into the purchasing power of some first-time homebuyers take effect today. The rules involve a stress test for all insured mortgage applications to ensure the borrower can still service their loan in the event interest rates rise or their personal financial situation changes.

Toronto Star

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New Developments

Conversion of St. Vincent’s school delayed by funding issues

Plans to turn a vacant Saint John high school into mixed-income apartments have run into funding problems. The $12-million project would see 58 apartments, a community hall, and an early childhood education centre placed in the former St Vincent’s School on Cliff Street that was built in 1919.

CBC

Taxes and Utilities

FNF Canada and MPAC extend property-data program to appraisers

FNF Canada a Division of Fidelity National Financial (FNF) and MPAC are pleased to announce the extension of their existing agreement to provide residential property data to real estate appraisers across Ontario.

Canada Newswire

Real estate billionaire says customers troubled by tax

A Chinese real estate billionaire looking to invest in Canada says his customers are troubled by British Columbia’s tax on foreigners purchasing homes in Vancouver according to Frank Wu, the chairman of Central China Real Estate Ltd.

Financial Post – Toronto Star

Affordable Housing

Vancouver to host housing experts from around the world

It became clear by the halfway point of Vancouver’s 10-year housing and homelessness strategy that the plan wasn’t about to resolve the city’s growing affordability crisis. Next week the city is hosting experts from around the world at a housing summit intended to help fuel a rethink of the plan.

Vancouver Sun

Other

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