Wednesday, December 23, 2020
Tuesday, December 15, 2020
Royal LePage sees Canadian home prices rising 5.5% in 2021
Canadian real estate brokerage Royal LePage expects home prices to rise 5.5 per cent in 2021, building on unexpectedly strong growth this year, driven by a shortage of properties for sale and record low interest rates.
Royal LePage said the aggregate price of a home in Canada is set to rise year-over-year to $746,100 in 2021. The median price of a two-storey detached house and condominium are projected to increase six per cent and 2.25 per cent to $890,100 and $522,700, respectively. The aggregate home price is based on a weighted model that uses median prices and includes all housing types.
The forecast is at odds with others, including government-backed mortgage insurer Canadian Mortgage and Housing Corporation, which predicts price decline in 2021, and some of the country's biggest banks, which foresee more muted growth.
"The upward pressure on home prices will continue," supported by lack of supply to meet surging demand and policy makers promise to keep interest rates at record low, Royal LePage chief executive Phil Soper said.
The average Canadian home price rose more than 15 per cent in October from a year earlier to an all-time high, according to the Canadian Real Estate Association.
Lenders Royal Bank of Canada and Bank of Nova Scotia said in their fiscal 2020 annual reports they expect house price growth of 0.6 per cent over the next 12 months, citing economic uncertainties spurred by the coronavirus pandemic, weakness in condominium markets and constrained housing affordability.
Royal LePage expects the shift to larger homes, which has driven a surge in sales and prices of single-family houses this year, will moderate as "life returns to normal," easing some of the pressure on condo markets.
Condominium demand is expected to be healthy in most of Canada's biggest cities, except Toronto, where softer demand is seen continuing in the city centre, the group said.
Ottawa and Vancouver are expected to lead the country, with increases of 11.5 per cent and nine per cent respectively, while Calgary and Edmonton are set to lag with growth of 0.75 per cent and 1.5 per cent. Toronto prices are expected to rise 5.75 per cent.
Friday, December 4, 2020
GTA REALTORS® Release November 2020 Stats
The record pace of home sales in the fall continued with 8,766 sales reported in November by Greater Toronto Area REALTORS® through the Toronto Regional Real Estate Board’s (TRREB) MLS® System. This result was up by 24.3 per cent compared to November of last year.
Generally speaking, year-over-year growth in sales was stronger for single-family homes in the GTA regions surrounding the City of Toronto, but annual single-family growth rates remained robust in the ‘416’ area code as well. “Home buyers continued to take advantage of very low borrowing costs in November, especially those looking to buy some form of single-family home. Competition between buyers for ground-oriented homes has been extremely strong in many neighbourhoods throughout the GTA, which has continued to support double-digit annual rates of price growth,” said Lisa Patel, TRREB President.
The MLS® HPI Composite Benchmark was up by 10.6 per cent in November 2020 compared to November 2019. The average selling price for all home types combined was up by 13.3 per cent to $955,615.
Market conditions tightened in many single-family market segments in November, resulting in double-digit year-over-year increases in average selling prices for detached houses, semi-detached houses and townhouses.
In contrast to the single-family market segments, buyers continued to benefit from much more choice in the condominium apartment market compared to last year, particularly in the City of Toronto. The number of new condominium apartment listings in November was almost double that reported in November of last year. More options in the condo apartment market translated into a small year-over-year decline in the average condominium apartment selling price in the ‘416’ area code.
“The condominium apartment market is certainly more balanced than in previous years, with some buyers benefitting from lower selling prices compared to last year. However, this may be somewhat of a short-term phenomenon. Once we move into the post-COVID period, we will start to see a resumption of population growth, both from immigration and a return of non-permanent residents. This will lead to an increase in demand for condominium apartments in the ownership and rental markets,” said Jason Mercer, TRREB Chief Market Analyst.
Wednesday, December 2, 2020
The Five Holiday Hazards to Watch Out For
CHRISTMAS TREES
Whether you've got an artificial or real tree, they can quickly become a fire hazard. If you're opting for a real tree, choose one that does not have brown needles, which indicate dryness and are more prone to catch fire. Make sure your holiday lights don't have any frayed wires. Keep your tree at least three feet away from heat sources like a fireplace, radiator or candles. And make sure your tree is stable with a sturdy stand.
OVERUSED POWER SOCKETS
From outdoor lights to radiators to tree lights, a lot of electricity gets used during the holidays. Make sure to spread out your electrical use evenly across all the power sockets by using extension leads.
DECORATIONS
Some decorations require you to use ladders in awkward places, which can put you at risk. Make sure you're using your ladder in optimal weather conditions where there's no ice and wind. And make sure you've got the right ladder size for the job.
CANDLES
Nothing exudes winter warmth better than a set of flickering candles. Keep your home safe by ensuring candles are kept away from trees, decorations and anything else that can burn. Make sure they're in stable holders and never leave them unattended. For peace of mind, opt for flameless LED candles, many of which come with a remote control for easy operation.
WRAPPING PAPER
Before you enjoy the new gift you just opened, make sure you throw out the wrapping paper as soon as possible. Some paper, ribbons and foils contain lead and can be very dangerous if babies and pets come in contact with them. Having loose wrapping paper lying around the house also poses a fire hazard, so it's best to discard them right after the gift-opening session.
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