Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canada’s Largest Bank Says It’s Putting “Greater Weight” On Home Price Declines
RBC’s chief risk officer has stated the bank is putting a “greater weight” on price declines. Canada’s largest bank reiterated they believe prices will fall around 8% at the national level, from the peak. They also see unemployment rising to 9 percent until March 2023, further adding this will keep prices depressed until late 2023.
Canadian Realtor Commissions Are Growing Over 11x Faster Than The Economy
Canada’s Realtors are having a great year, as people take advantage of low interest rates. Ownership transfer rates, which are primarily commissions, reached $59.96 billion in Q3 2020. This is up a whopping 137.44% from the previous quarter. The rate of growth is more than 11x that of GDP, which it’s also a record size of GDP.
Canada Announces A National Foreign Buyer Tax Is Coming Next Year. It’s Useless
Canada is going national with their foreign speculation taxes. The country’s recent economic statement included a roll out of a national foreign buyer tax within the next year. Two of the hottest markets, Toronto and Vancouver, aren’t likely to see a big change though. They’re already subject to non-resident speculator taxes. However, markets like Montreal and Halifax may see a near term impact on demand.
Toronto Real Estate
Toronto Will Finally Get A Vacant Home Tax, After Bleeding Millennials For Years
The City of Toronto’s staff is recommending a vacant home tax, after years of complaints. The proposed tax would start at one percent, and they believe up to one percent of supply may be impacted. The target date for implementation will be 2022, with the final details revealed in Q2 2021. The tax comes during Toronto’s housing affordability crisis. Young adults have been leaving the City in droves, and the pandemic’s work from home, is likely to have accelerated the outflow to the suburbs.
Toronto New Home Inventory Reaches Highest Level Since February, Condos Sales Fall
Greater Toronto home resales are hot, but new home sales? Not so much. There were 4,254 new homes sold in October, down 10% from last year. Inventory also edged lower as well, with 15,386 units for sales, down 22% from last year. Despite the decline in inventory, this is the first time new home inventory has reached pre-pandemic levels.
Toronto Real Estate Sees Suburban Prices Soar, While Condos Slide Further From Peak
Toronto real estate is on fire… well at least the suburbs are. Across the board, the price of a typical home reached $902,500 in November, up 10.56% from last year. In the City, the price hit $958,200, up 5.95% from last year. The City is seeing prices grow at nearly half the rate of the whole board. This implies the suburban prices are growing much faster than in the City.
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It is long time that real inflation is over %10 , they make the number the way shows low inflation
The Bank of Canada bring interest rate to 0, then to negative to pump housing market for another
%20 in 2021 , Remember the policy maker and government work for banks and top %5 of people make over 200,000 not for average people.