Steve Randal
REP

The number of non-resident owners of real estate in The Greater Golden Horseshoe has declined since the introduction of Ontario’s Fair Housing Plan in the spring.

Ontario’s Ministry of Finance says that new data shows that the share of homes bought by those who are not citizens, permanent residents of Canada, or foreign corporations, was down by 1.5% in the period from May 27 to August 18, 2017 compared to April 24 to May 26, 2017.

That means that 3.2% of 66,434 transactions in the GGH involved at least one foreign entity, down from 4.7% in the previous period. In the whole of Ontario, 2.6% of 101,698 transactions involved a foreign individual or corporation while Toronto’s share was 5.6%, down from 7.2% before the FHP was implemented.

“The measures that we introduced as a part of the Fair Housing Plan are working—we are seeing increased housing supply and evidence that more people are finding affordable homes. Ontario continues to be a place that welcomes all new residents, drawn by its rising employment and strong economy,” commented Ontario’s finance minister Charles Sousa.

Copyright © 2017 Key Media Pty Ltd

Joannah Connolly
REW

The dollar-volume value of home resales across the province in August was 22% higher than one year previously – but that is mostly to do with the rise in prices rather than unit transactions, reveals the British Columbia Real Estate Associations’ (BCREA) latest monthly report, published September 14.

The sales dollar volume totalled a very healthy $6.2 billion last month, but the number of sales across the province only increased 2.4% year over year, to 9,962 units.

The total value increase was mostly caused by the 19.1% annual rise in the average resale home price in the province, now at $678,168.

BC’s relatively muted growth in unit transactions compared with last August stands in contrast to that of Greater Vancouver, where home sales last month increased by 22% year over year. However, that was in comparison with the slow Greater Vancouver sales seen in August 2016, partly caused by the local foreign buyer tax, which did not affect other areas of the province.

Home sales across BC in August were just slightly down from July’s total of 9,275 units.

“BC home sales in August remained unchanged from July, on a seasonally adjusted basis,” said Cameron Muir, BCREA chief economist.

“Strong economic conditions are underpinning demand. However, rising home prices combined with upward pressure on mortgage interest rates is expected to temper demand over the balance of the year.”

Only one of BC’s 11 real estate boards (Powell River) reported a year-over-year declines in the number of home sales in August, but four of the boards posted lower sales dollar volumes than the same month last year.

Of the larger markets, Greater Vancouver’s August dollar volume saw the largest jump, at 43% higher than during the dampened activity of August last year.

Year-to-date across the province, total sales dollar volume is down 15.9% compared with the same period last year, at $51.8 billion – largely because this figure includes the slow start of 2017 and is compared against the very hot spring market of 2016.

Residential unit sales so far this year have fallen 15% on an annual basis to 73,267 units, while the average MLS® residential price is down 1.1% to $706,839.

For more information and a breakdown of local board statistics, read the full BCREA report.

© 2017 REW.ca

Foster Martin one to four bedroom homes at 1484 Martin Street 334 homes by Landmark Premiere Properties

Mary Frances Hill
The Province

Foster Martin

Where: 1484 Martin Street, White Rock

What: 334 homes in three towers

Residence sizes and prices: One to four bedrooms ranging from 806 to 3,748 square feet; from the mid-$500,000s to more than $6 million

Developer and builder: Landmark Premiere Properties Ltd.

Sales centre: 105 — 1688 152nd Street

Sales phone: 604-531-7111

Hours: noon — 5 p.m. daily

While there are plenty of reasons to downsize from a long-time family home — economics, easier maintenance, children grown and gone, to name a few — buyers are not always ready to make dramatic compromises in the shift to condo life.

For Andrea Finlay, the designer who worked on the interiors at Foster Martin in White Rock, meeting these high standards involves working to transform a condominium into a comfortable haven by considering homeowners’ daily contact with tactile, sensuous materials.

“Sensitive sight lines and well-defined spaces are key,” says Findlay, principal of Studio Finlay, a Vancouver-based design company.

Joan Kallman worked with Landmark Premiere Properties on the furniture, accessories and styling, while Finlay concentrated on the suite’s space planning and detailing, the design for the bathrooms and kitchen, and plumbing and finishing specifications.

“The tactile experience of the home needs to communicate quality and thoughtfulness — the touch and movement of the door hardware, the feel of the plumbing fixtures and the honed marble and stone surfaces,” she adds.

“The option of built-in shelving on either side of the fireplace provides a functional home for life lived and create depth in the space.”

In many respects, homebuyers’ standards for living well carries directly into the principles behind the community itself. The Foster Martin community will include health and wellness practitioners, cafés, restaurants, a spa and a daycare.

Finlay says her team played with the scale of details in the display suite, creating depth and a well-defined entryway with oversized baseboards. Considering the homeowners’ views and paying attention to the details of the physical space — ceilings and millwork, for example — was crucial in the overall plan to create homes that are at once spacious and comfortable, she says.

“We were very careful with locating ceiling drops to help define spaces and create areas that would feel more intimate. We carefully designed functional millwork for the vanities and kitchen and specified fixtures and finishes that were classic and timeless.”

The bold marble look in the kitchen, including quartzite countertops, stands out among the dark wood finish to lighten and soften the space and create a sophisticated, grown-up polish. Finlay gives credit to the quality of these classic materials, and the relationship of these surfaces to the movement of natural light throughout the day.

“Using classic materials that not only have a visual, but tactile experience helps to soften the space and provide a quiet contrast to the hardwood floors,” Finlay says.

“As the suites feature amazing panoramic views from their floor-to-ceiling windows, the honed quartzite counter softens the movement of light from the glazed walls to provide a balance of warmth and texture.”

© 2017 Postmedia Network Inc.

Life with the Hip Crowd at Second + Main

REW

Main Street, once a working-class neighbourhood, has experienced quite a revival over the last decade. Dubbed one of the top 15 coolest streets in North America by real estate firm Cushman & Wakefield, this eclectic enclave offers some of the city’s best in art, culture, shopping, dining, nightlife and walkability.

This is where Second + Main is calling home. 

Create Properties’ Second + Main is a 12-storey mixed-use building offering a collection of 233 condominiums, ranging from 400-plus up to approximately 1,000 square feet, of highly functional space.

The building, which sits on the former Maynard’s liquidation centre at East 2nd and Main Street, presents a mix of studios, one-, two- and three-bedroom residences, as well as a selection of two-bedroom micro units.

“Second + Main intersect so many areas … it is only minutes to Olympic Village, Mount Pleasant and Chinatown and is the gateway to the arts district and the tech hub,” says Lindsay Maciver, marketing director at Magnum Projects. “It is truly one of the most unique locations that very few other developments can boast.”

Perhaps what really makes Second + Main stand out on the inside is its smart modular designs. Some condos will have movable walls, flexible built-in furnishings that integrate couch and bed, while others will feature kitchen islands that can convert into dining spaces, and flexible closet storage systems in most homes.

Targeting LEED Gold sustainability standards, each condominium includes air-conditioning, wide-plank laminate flooring, expansive windows, large terraces or patios, and secured underground parking with bike storage, to name just a few of its attributes.

The bright, open-concept kitchens come complete with European cabinetry (also in the bathrooms), mirrored backsplash, polished premium Quartz countertops, integrated kitchen appliances as well as a wall oven and induction stove top. 

To engage a sense of community, there will be arooftop terrace with a fireside lounge, two outdoor kitchens with BBQs, children’s play area and shared urban gardens. Overlooking Vancouver cityscapes to the North Shore mountains and beyond, the communal terrace will provide the perfect backdrop for entertaining family and friends.

That’s not all. Second + Main will have a fitness room with state-of-the-art equipment and an indoor entertaining room with full kitchen.

Second + Main has been creating a lot of buzz of late. Maciver believes it’s “because of a combination of so many amazing things, including an incredible location and unique, finely crafted features. These features will change the way people live today by giving them choices of how they want to live.“

She went on to say: “The architecture is very interesting. Second + Main fronts East 2^nd and then it steps down to East 3^rd into a garden terrace that introduces the Main Street public plaza, which will really encourage residents and artists to gather and socialize.”

Residents will also be able to leave their cars at home. Second + Main is situated on two major transit arteries and close to cycle routes and all the urban amenities you want.

The Second + Main sales centre, located at 180 East 2nd Ave opens end of September.

© 2017 REW.ca

Chinese buyers still appreciate Canada

Huffpost
other

Interest in Canadian real estate among Chinese buyers soared 30 per cent in the first half of this year, compared to a year earlier, according to data from Juwai.com, China’s largest real estate portal.

The data suggests that neither the foreign-buyer taxes in the Toronto and Vancouver areas nor a crackdown by the Chinese government on cash outflows has slowed the Chinese middle class’ voracious appetite for homes abroad.

“People are no longer worried that Chinese are responsible for high local prices, but Chinese buying continues unabated,” said Byron Burley, a British Columbia-based vice-president at Juwai.

“Chinese buyers still appreciate Canada. Chinese students are still coming here to study. Chinese investors still believe the Canadian market is a good one, and Chinese seeking a better life are still taking Canada as one of their preferred destinations.”

The cities with the most Chinese buyer interest in the first half of 2017 were Toronto, Montreal, Vancouver, Ottawa and Victoria.

Interest in Canada grew faster than overall Chinese buyer interest in foreign homes, which grew 8.7 per cent over the past year, Juwai said.

But Canada lost its rank as the number-three destination for Chinese homebuyers, falling to fourth place behind Thailand. The U.S. and Australia remained the number one and two markets, respectively.

“The fact that Thailand has pushed past Canada as a favored country for Chinese investment doesn’t represent any loss of interest in Canada,” Burley said.

“Many of the buyers active in Southeast Asia are new to the market and don’t yet have the wealth necessary to purchase in a developed country like Canada, where average prices are much higher.”

Of those surveyed by Juwai, 74.9 per cent said they were buying for their own use, while 32.3 per cent said they were buying for investment, and 23.7 per cent said it was for education. Respondents were able to choose more than one answer.

Ambivalent attitude towards Chinese investment

 

The Juwai data comes as a new poll from Angus Reid shows Canadians are feeling “either ambivalent or skeptical about Chinese investment in this country.”

With Canada’s federal government holding exploratory talks on a trade deal with China, 35 per cent of Canadians said Chinese investment is more bad than good for Canada, with only 15 per cent saying it is more good than bad. Fully half said it’s about equally good and bad.

Canadians were more likely to feel positive about investment from the U.S., U.K. or European Union than investment from China, the survey found. But Canadians were more pessimistic about trade with Russia or the United Arab Emirates, Canada’s largest trading partner in the Middle East.

Fifty-eight per cent of respondents said discouraging Chinese investment would be “worth it to prevent Chinese takeovers of Canadian companies.”

Canadians were most positive about Chinese investment in technology, retail and manufacturing, with a majority saying investment in those areas should be encouraged. But very few Canadians agreed that investment in banking and finance (26 per cent) and military/defence (17 per cent) should be encouraged.

The survey did not ask about investment in residential real estate.

Copyright © 2017 TheHuffingtonPost.com, Inc.

Brace yourself for five years of glacial growth in Canada?s housing market, Moody?s warns

Garry Marr
The Vancouver Sun

Single-family house prices may be overvalued by as much as 60 per cent in Toronto, but cooling measures may take a bigger bite out of markets away from the country’s largest metro area, says a new report.

Moody’s Analytics maintains the brakes are being put on the housing market across the country and Canadians need to prepare for “several years of retrenchment” with at most as 1.3 per cent annual price growth per year over the next half a decade.

“Exact turning points are difficult to predict, but the combination of restricted mortgage lending, taxes on foreign purchases in the largest metro areas, and the expectation of higher mortgage rates means that house prices are likely to experience a slowdown in the next few years, especially if speculative home purchases in Toronto and Vancouver are reduced or shut down,” writes Andres Carbacho-Burgos, in the eight page report, released Tuesday.

Meanwhile, ratings agency DBRS said in a report Tuesday that booming housing markets in British Columbia and Ontario boosted job growth over the past decade in sectors such as construction, home-related retail and real estate by 28 per cent — faster than other parts of Canada. DBRS said if house prices fall dramatically, other sectors of the economy should be able to absorb those jobs thanks to strong economic growth and steady population gains.

In the past two months, the Bank of Canada has raised the overnight lending rate 50 basis points, while the prime lending rate at most financial institutions has jumped from 2.7 per cent to 3.2 per cent. Long-term rates have also been trending upwards, and some suggest the central bank is not done and will raise rates another 25 basis points in October.

“Affordability as measured by the median dwelling price to median family income ratio is also close to a record low, so it is hard to see house prices maintaining the same momentum as before,” the Moody’s report states.

Consumers with insured loans backed by Ottawa have faced tougher lending restrictions for about the past year but the Office of the Superintendent of Financial Institutions is now looking into cracking down on non-insured mortgage loans, the portion of the market with 20 per cent or more equity in their own home.

Moody’s Analytics does say the effects of tougher lending standards, higher mortgage rates and policy interventions from provincial governments will make reactions uneven across the country.

“Greater Toronto is likely to maintain moderate house price growth, while the more policy-restricted market in Vancouver will lead to prices holding steady in coming years,” the report says.

Average sale prices in the Greater Toronto Area have dropped almost 25 per cent from April, according to the Toronto Real Estate Board’s last set of results for August. That slide coincides with provincial efforts to slow the housing market down, including a province-wide extension of rent control increases that are now tied to inflation and a 15 per cent tax aimed at foreign buyers.

“Although inflows of wealth and real estate speculation get most of the blame for increased overvaluation and reduced housing affordability in Toronto and Vancouver, excess demand is a more permanent culprit,” Moody’s said.

“Household formations in Toronto and Vancouver, as well as in Toronto’s satellite metro areas like Guelph and Oshawa, have exceeded the national rate of household formation for some years now, and residential construction in these two metro areas has failed to keep up.”

In the census metro area for Toronto, Moody’s said it can see average annualized price growth of 10.7 per cent from the third quarter of 2017 to second quarter of 2018. It sees an another 8.5 per cent of annualized growth from third quarter of 2018 to the second quarter of 2019.

The Vancouver census area picture is not as rosy with annualized price increase from the third quarter of 2017 to the second quarter of 2018 of only 1.1 per cent. The following year will see prices drop 1.7 per cent in the Vancouver area.

Moody’s composite house index says national prices will rise 6.8 per cent in 2017, but drop 0.1 per cent in 2018, rise one per cent in 2019 and then 1.3 per cent per year for 2020, 2021 and 2022.

The report suggests Toronto has not been left unscathed by regulatory and interest rate changes, but has withstood the moves better than the national market.

“The more restrictive environment means that prices will grow at a much smaller rate: A decline from 27 per cent growth in the second quarter to only 11 per cent in the subsequent year for Toronto is no slight accomplishment, and there will be significant slowdowns in the neighbouring metro areas as well,” says Moody’s.

“Outside of Ontario with its tight demographic situation and higher average median income, the combination of rising interest rates, more restrictive mortgage regulations, and increasing provincial restrictions such as the Vancouver transfer tax creates a bleak short-term outlook for
house prices.”

© 2017 Financial Post

BCREA
BCREA

Download Document

Ephraim Vecina
Canadian Real Estate Wealth

Along with the meteoric rise in the national economic growth rate, and increasing proportion of Canadians are now gaining access to significant wealth via their residential properties.

This, according to the latest edition of the “Wealthscapes” report from Toronto-based firm Environics Analytics. Among the study’s most noteworthy findings was that nationwide net worth went up by 12 per cent in 2016 compared to the previous year, with house values accounting for much of the rise.

The study also found that nearly 20 per cent of the nation’s homes are now located at neighbourhoods with average net worth of above $1 million, attesting to the increased wealth that Canadians are enjoying amid a vibrant economy and exciting prospects of further growth.

“For the most part, 2016 was a good-news financial story,” Environics Analytics vice president of demographic and economic data Peter Miron said. “Strong performance in the stock market buoyed Canadian investments. The biggest housing markets experienced strong real estate appreciation. And many Canadians increased their saving rates. This is the wealthiest Canadians as a whole have ever been.”

Vancouver’s net worth stood at $1,217,630, representing a 19.4-per-cent growth rate from 2015 to 2016. Meanwhile, Toronto households gained 17-per-cent net worth in the same time frame (up to $1,154,107), and Victoria saw a 15.4-per-cent increase (up to $1,055,468).

Also, despite the oil industry remaining on shaky ground, Calgary gained 9 per cent in its household net worth average (up to $1,039,607).

The report added that despite the growing risk of asset overvaluation, majority of households are moving towards creating a solid financial footing for the future. Canadians increased their savings and investments last year—by 5.6 per cent to $95,710 and by 13.2 per cent to $182,238, respectively—while moderating consumer and credit card debt, which grew by 2.6 per cent and 3.3 per cent, respectively.

The full report on the “Wealthscapes” survey results can be viewed here.

Copyright © 2017 Key Media Pty Ltd