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GTA Condo Market Comparison and Analysis

In June 2021, the condo sales for most of the nine popular regions increased by large double-digits compared to June 2020. 

A total of 2,162 condo sales occurred in the City of Toronto in June, increased by 35 per cent year-over-year but down by eight per cent from this May.

The average selling price for condos in the City of Toronto in June was $729,000, remaining stable for the past few months.

The total sales volume for the City of Toronto in June was $1.6 billion, and on average condos took 15 days on the market to sell.

As in any June in history, the condo market cooled down as summer approaches, but the firm prices show that the competitions between buyers are still intense.

Num of Sales

Avg Sale Price

Total Volume 

Avg DOM

Avg SP/LP

 

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GTA New Home Sales and Benchmark Prices -June 2021

The GTA experienced an active new home market in June 2021, with 2,775 condos and 1,085 single-family homes sold. 

 

The remaining new home inventory for the GTA in June was 11,451 units.

 

In the City of Toronto, 867 new condo apartments were sold in the month, more than double the sales in June 2020. In the new single-family market segment, York Region saw the highest sales, with 426 units sold. 

 

The benchmark price for new condo apartments in June dropped slightly from May to $1,058,366, while the benchmark price for new single-family homes was up by $25K to $1,405,597.

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Days on Market(DOM) JUN 2021 – City of Toronto Condo Apartments

In June 2021, the average DOM for the condo market in the City of Toronto was 15 days, one day faster compared to June 2020.

The average DOM for the East Region was less than two weeks, and areas by the lake were more popular than the others.

In the West Region W02 was the most active, the condos of which were sold within eight days on average.

In the Central Region, condos sold the fastest, 11 DOM for the 87 sales, in C15 of North York.

Please feel free to contact us if you need any further information.

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PATH MAP – Toronto’s Downtown Pedestrian Walkway

PATH MAP - Toronto’s Downtown Pedestrian Walkway

The PATH is a mostly underground pedestrian walkway network in downtown Toronto that spans more than 30 kilometres of restaurants, shopping, services and entertainment.

The walkway facilitates pedestrian linkages to public transit, accommodating more than 200,000 business-day commuters as well as tourists and residents. The PATH provides an important contribution to the economic viability of the city’s downtown core.

PATH Facts

With 3.7 million square feet of retail space, there are 1,200 restaurants, shops and services in the PATH, generating roughly $1.7 billion in sales annually. An estimated 4,600 jobs are located in the PATH. The PATH generates approximately $271 million in federal, provincial, and municipal tax revenue annually.

More than 75 buildings are connected to the PATH. Six subway stations, three major department stores, nine hotels, and Toronto’s busiest transit hub – Union Station – are accessible through the PATH. The PATH provides links to some of Toronto’s most popular tourist and entertainment attractions, including the Hockey Hall of Fame, Roy Thomson Hall, the Air Canada Centre and CF Toronto Eaton Centre. City Hall and Metro Hall are also connected through the PATH.

Each segment of the walkway system is owned and controlled by the owner of the property through which it runs. There are about 35 corporations involved.

It is possible to walk through the PATH from the waterfront to Downtown Yonge, and from the Entertainment District to Yonge St. all of which connect through Toronto’s world class Financial District.

PATH History

The first underground path in Toronto originated in 1900 when the T Eaton Co. joined its main store at 178 Yonge St. and its bargain annex by tunnels. By 1917 there were five tunnels in the downtown core. With the opening of Union Station in 1927, an underground tunnel was built to connect it to the Royal York Hotel (now known as the Fairmont Royal York). The real growth of PATH began in the 1970s when a tunnel was built to connect the Richmond-Adelaide and Sheraton Centres.

In 1987, City Council adopted the recommendation that the City become the co-ordinating agency of PATH and pay for the system-wide costs of designing a signage program.

In 1988, design firms Gottschalk, Ash International, and Keith Muller Ltd. were retained in by the City of Toronto to apply the design concept for PATH.

PATH’s name and logo are registered to the City of Toronto. The City co-ordinates and facilitates the directional signage, maps and identity markers throughout the system.

In the early 1990s, signage for PATH was developed to provide pedestrians with better ease of use and functionality. The signage enhances PATH’s visibility and identity, ultimately increasing its use, attracting more people to downtown Toronto, and drawing more businesses there.

In 2016-2017, the City of Toronto and Toronto Financial District BIA hired Steer Davies Gleave to develop a new PATH Wayfinding system. Extensive public consultations, conversations with property managers and review by the PATH Partnership Group resulted in the new PATH wayfinding installed throughout the PATH in spring 2018.

PATH Extension Under York Street

The PATH extension under York Street is an exciting project that will see Toronto’s south PATH extended and connected to the downtown transportation hub at Union Station, updated ageing below-ground infrastructure, and further connect the heart of the city to its waterfront.

Work began on this long-term project on January 4, 2019 and lane restrictions on York Street were put in place to help facilitate the construction. All lanes are expected to re-open in Spring 2020, and by Summer 2020 the new section of the PATH under York Street is expected to officially open to the public.

*Please note that this article only reflects the views of the author, and does not represent the stance of the company.

*The information provided here is for general information purpose only, which does not necessarily reflect the views or opinions of Bay Street Group. We assume no responsibility for its accuracy, completeness, or sufficiency.
*As for intellectual property rights of others, anyone who believes that their work has been reproduced in a way that constitutes copyright infringement may contact us.

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Bank of Canada maintains interest rate: Read the official statement

Bank of Canada maintains interest rate: Read the official statement

Here’s the official statement from the Bank of Canada’s interest rate decision on Wednesday, July 14, 2021:

The Bank of Canada today held its target for the overnight rate at the effective lower bound of 0.25 per cent, with the Bank Rate at 0.5 per cent and the deposit rate at 0.25 percent. The Bank is maintaining its extraordinary forward guidance on the path for the overnight rate. This is reinforced and supplemented by the Bank’s quantitative easing (QE) program, which is being adjusted to a target pace of $2 billion per week. This adjustment reflects continued progress towards recovery and the Bank’s increased confidence in the strength of the Canadian economic outlook.

The global economy is recovering strongly from the COVID-19 pandemic, with continued progress on vaccinations, particularly in advanced economies. However, the recovery is still highly uneven and remains dependent on the course of the virus. The recent spread of new COVID-19 variants is a growing concern, especially for regions where vaccinations rates remain low.

Global GDP growth is expected to reach 7 per cent this year and then moderate to about 4.5 per cent in 2022 and just over 3 per cent in 2023. This a slightly stronger forecast than the one in the Bank’s April Monetary Policy Report (MPR) and primarily reflects a stronger U.S. outlook. Global financial conditions remain highly accommodative. Rising demand is supporting higher oil prices, while non-energy commodity prices remain elevated. The Canada-US exchange rate is little changed since April.

In Canada, the third wave of the virus slowed growth in the second quarter. However, falling COVID-19 cases, progress on vaccinations and easing containment restrictions all point to a strong pickup in the second half of this year. The Bank now expects GDP growth of around 6 per cent in 2021 — a little slower than was expected in April — but has revised up its 2022 forecast to 4.5 per cent and projects 3.25 per cent growth in 2023.

Consumption is expected to lead the recovery as households return to more normal spending patterns, while housing market activity is projected to ease back from historical highs. Stronger international demand should underpin a solid recovery in exports. As domestic and foreign demand increases and confidence improves, business investment will gain strength. Employment has once again begun to rebound, and we expect the hardest-hit segments of the labour market to post strong gains as the economy re-opens. However, the pace of the recovery will vary among industries and workers, and it could take some time to hire workers with the right skills to fill jobs. The aftermath of lockdowns and ongoing structural changes in the economy both mean that estimates of potential output and when the output gap will close are particularly uncertain.

CPI inflation was 3.6 per cent in May, boosted by temporary factors that include base-year effects and stronger gasoline prices, as well as pandemic-related bottlenecks as economies re-open. Core measures of inflation have also risen but by less than the CPI. In some high-contact services, demand is rebounding faster than supply, pushing up prices from low levels. Transitory supply constraints in shipping and value chain disruptions for semiconductors are also translating into higher prices for cars and some other goods. With higher gasoline prices and on-going supply bottlenecks, inflation is likely to remain above 3 per cent through the second half of this year and ease back toward 2 per cent in 2022, as short-run imbalances diminish and the considerable overall slack in the economy pulls inflation lower. The factors pushing up inflation are transitory, but their persistence and magnitude are uncertain and will be monitored closely.

The Governing Council judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 per cent inflation target is sustainably achieved. In the Bank’s July projection, this happens sometime in the second half of 2022. The Bank’s QE program continues to reinforce this commitment and keep interest rates low across the yield curve. Decisions regarding further adjustments to the pace of net bond purchases will be guided by Governing Council’s ongoing assessment of the strength and durability of the recovery. We will continue to provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation objective.

*Please note that this article only reflects the views of the author, and does not represent the stance of the company.

*The information provided here is for general information purpose only, which does not necessarily reflect the views or opinions of Bay Street Group. We assume no responsibility for its accuracy, completeness, or sufficiency.
*As for intellectual property rights of others, anyone who believes that their work has been reproduced in a way that constitutes copyright infringement may contact us.

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Here’s what the Toronto skyline could look like in 2030

Here's what the Toronto skyline could look like in 2030

Whether you live in Toronto, you’ve had the chance to visit, or you plan on visiting someday soon, one thing you’ll notice right away is the city’s constantly evolving skyline.

And given that new developments are announced (quite literally) every other week, the skyline you see today won’t be the same one you see two years from now… let alone ten years from now.

To show just how vastly different Toronto’s skyline could be a decade from now, here we put together 3D renderings of what the city’s ever-changing skyline could possibly look like in 2030.

And while that is less than ten years away, it’s safe to say that things are going to look quite different… and soon, too.

The renderings are based on the most recent architectural plans and development proposal filings available to the public, with all approved and under construction projects shown in blue and proposals awaiting approval shown in purple.

Located at 23 Spadina Avenue, Canada House is set to be “the most luxurious condominium in Concord CityPlace” and will feature two towers, rising 68 and 79 floors above the skyline of the downtown Toronto waterfront. Canada House is already under construction.

Concord Canada House

We also proceed to show the changes across the city, from west to east, pointing out some of the tallest and most impressive towers set to be built in the coming years.

Next up is the proposed Union Park from Oxford Properties, which, if approved, would take up four acres of land at Front Street West and John Street, just north of the Rogers Centre and the CN Tower. There, they plan to add four mixed-use towers to Toronto’s skyline.

Renderings courtesy of Oxford Properties Group

Mirvish + Gehry skyscraper project in Toronto’s Theatre District on King Street has been years in the making, will see two towers rise at 260 King Street West, with the western tower serving as the tallest Frank Gehry-designed building in the world at just over 1,000-ft. The neighbouring eastern tower will trail behind shortly, standing at 874-ft.

@Bousfiledsinc/Twitter

Next is a neighbouring development 212 King, a recently proposed 79-storey mixed-use tower from Dream Office REIT and Humbold Properties that will be situated at the corner of King and Simcoe and would incorporate three preserved heritage buildings into the tower’s base while revitalizing the ground floor with active retail and public uses.

Rendering by Norm Li

Next, Union Centre from Westbank Corp and Allied Properties REIT, a 52-storey Bjarke Ingels Group-designed office tower slated for Lower Simcoe and Station Street, just west of Union Station.

Union Center/City of Toronto

200 Queens Quay, a proposed two towers that would stand 41 and 71 storeys, atop of a 12-storey podium. If approved, it would replace an eight-storey above-ground parking garage.

 

Rendering submitted to the City of Toronto

Next is The Hub, a proposed 57-storey, non-residential building comprised of 123,854 square metres of retail and office uses.

Rendering submitted to the City of Toronto

11 Bay, a 54-Storey redevelopment at the bottom of Bay Street from QuadReal and Barney River. It’s proposed for the site where the Harbour Castle Conference Centre is located.

11 Bay podium, designed by Hariri Pontarini Architects for QuadReal and Barney River

Next is One Yonge by Pinnacle, slated for Yonge and Queens Quay, which is expected to have three towers, including the SkyTower, standing at 65, 80, and 95 stories, respectively. When completed, the massive project will house 2,800 units, a hotel and residence, and a pedestrian skybridge.

This is another project that’s been anticipated for many, many years in Toronto. One Yonge is currently the tallest approved and under construction building in Toronto, in Canada.

Pinnacle International

Next up is Menkes’ Sugar Wharf development. The two-tower Phase 1 is almost complete, topped by Sugar Wharf D. Phase two proposes an additional three towers, and at-large, the development will serve the city in the residential, commercial, and community realms of real estate.

Menkes

Heads north to Yorkville, where the Mizrahi The One development is located. Originally proposed to have 85 stories, the tower is now asking for 94 and is currently under construction. If the changes are approved, it would stand just over 1,100-ft., making it the tallest tower planned in Canada.

onebloorwest.com

Finally, at 1200 Bay, a soaring mixed-use super-tower from Dutch real estate firms Kroonenberg Groep and ProWinko. Set to rise 87-storeys above the intersection of Bay and Bloor, the tower is just eight storeys shorter than the city’s future record-breaking SkyTower by Pinnacle International at 1 Yonge Street – which will be the second tallest building in all of Toronto behind just the CN Tower once it’s completed.

Rendering courtesy of Herzog & de Meuron

While many of these developments are still mere proposals, while construction is well-underway for others, it’s safe to say that big changes are coming to Toronto’s skyline, and it won’t be long until we see Toronto’s skyline evolution come to life.

 

*Please note that this article only reflects the views of the author, and does not represent the stance of the company.

*The information provided here is for general information purpose only, which does not necessarily reflect the views or opinions of Bay Street Group. We assume no responsibility for its accuracy, completeness, or sufficiency.
*As for intellectual property rights of others, anyone who believes that their work has been reproduced in a way that constitutes copyright infringement may contact us.

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Housing market continues to moderate in May

Housing market continues to moderate in May

Ottawa, ON, June 15, 2021 – Statistics released today by the Canadian Real Estate Association (CREA) show national home sales and new listings were both down between April and May 2021.

Summary:

National home sales declined by 7.4% on a month-over-month basis in May.

Actual (not seasonally adjusted) activity was up 103.6% year-over-year.

The number of newly listed properties fell back by 6.4% from April to May.

The MLS® Home Price Index (MLS® HPI) rose 1% month-over-month and was up 24.4% year-over-year.

The actual (not seasonally adjusted) national average sale price posted a 38.4% year-over-year gain in May.

Home sales recorded over Canadian MLS® Systems fell by 7.4% month-over month in May 2021, building on the 11% decline recorded in April. Activity nonetheless remains historically high, but in contrast to March’s all-time record it is now running closer to levels seen in the second half of 2020.

Month-over-month declines in sales activity were observed in close to 80% of all local markets. It was a mixed bag of results, with a slowdown in sales observed in most large markets across Canada.

With May 2021 activity setting a record for the month, and May 2020 sales marking the worst May since the late 1990s, the actual (not seasonally adjusted) number of transactions this year represented a 103.6% increase on a year-over-year basis.

“While housing markets across Canada remain very active, we now have two months of moderating activity in the books, and that goes for demand, supply and prices,” stated Cliff Stevenson, Chair of CREA. “More and more, there is anecdotal evidence of offer fatigue and frustration among buyers, and the urgency to lock down a place to ride out COVID would also be expected to fade at this point given where we are with the pandemic. As always, your best bet is to consult with your local REALTOR® for the best information and guidance about buying or selling a home in this rapidly changing market,” continued Stevenson.

“With the synchronous cooling off of demand, supply and prices in recent months, one could draw comparisons to last year’s initial lockdowns, but this year feels different,” said Shaun Cathcart, CREA’s Senior Economist. “Of course, the main difference this year is that the slowdown in the market was coincident not just with record COVID cases and fresh lockdowns but with the take up in the vaccination rate, so maybe we all finally have something else to think about other than housing and being stuck at home all the time. Going forward there is still a good probability of increased churn in resale markets as we get more certainty around our post-COVID lives and people move around more than they would have in a non-COVID world. But for now at least, with the light at the end of the tunnel so close, it feels like housing may take a back seat to us all starting to get our lives back to normal this summer.”

The number of newly listed homes declined by 6.4% in May compared to April. At a time where so many markets are struggling with historically low inventory, sales activity depends on a steady stream of new listings each month. As such, the concurrent gains in new supply and sales in March followed by synchronous declines in April and May suggest the slowdown in sales may not only be a demand story. New listings were down about 70% of all local markets in May.

The national sales-to-new listings ratio was 75.4% in May 2021, down slightly from 76.2% posted in April. The long-term average for the national sales-to-new listings ratio is 54.6%, so it remains historically high; although, it has been moderating since peaking at 90.7% back in January.

Based on a comparison of sales-to-new listings ratio with long-term averages, only about a quarter of all local markets were in balanced market territory in May, measured as being within one standard deviation of their longterm average. The other three-quarters of markets were above long-term norms, in many cases well above.

The number of months of inventory is another important measure of the balance between sales and the supply of listings. It represents how long it would take to liquidate current inventories at the current rate of sales activity.

There were 2.1 months of inventory on a national basis at the end of May 2021, up from a record-low 1.7 months in March but still well below the long-term average for this measure of over 5 months.

The Aggregate Composite MLS® Home Price Index (MLS® HPI) rose 1% month-over-month in May 2021 – a noticeable deceleration. Most of the recent deceleration in month-over-month price growth has come from the single-family space compared to the more affordable townhome and apartment segments.

The non-seasonally adjusted Aggregate Composite MLS® HPI was up 24.4% on a year-over-year basis in May. Based on data back to 2005, this was another record yearover-year increase; although, it is not likely to go much higher at this point.

While the largest year-over-year gains continue to be posted across Ontario, this is also where month-over-month price growth has been slowing the most. Meanwhile, price growth has continued to accelerate in some other parts of the country, thus serving to reduce the year-over-year growth disparity between Ontario and other provinces.

The MLS® HPI provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.

The actual (not seasonally adjusted) national average home price was a little over $688,000 in May 2021, up 38.4% from the same month last year. That said, it is important to remember that the national average price dropped last April and May during the initial lockdowns as the higher-end of every market was effectively shut down. That serves to stretch these year-over-year comparisons over and above what is actually happening to prices.

The national average price is also heavily influenced by sales in Greater Vancouver and the GTA, two of Canada’s most active and expensive housing markets. Excluding these two markets from calculations cuts close to $140,000 from the national average price.

*Please note that this article only reflects the views of the author, and does not represent the stance of the company.

*The information provided here is for general information purpose only, which does not necessarily reflect the views or opinions of Bay Street Group. We assume no responsibility for its accuracy, completeness, or sufficiency.
*As for intellectual property rights of others, anyone who believes that their work has been reproduced in a way that constitutes copyright infringement may contact us.

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Despite Fears of Canada’s Housing Market Overheating, House Prices Continue to Rise

Despite Fears of Canada’s Housing Market Overheating, House Prices Continue to Rise

Market observers are pointing to alarming trends that are stoking fears of Canada’s housing market entering a bubble in the near future.

Among the main factors inflaming the Canadian residential real estate segment is runaway price growth, particularly in crucial hubs like Toronto, Vancouver, Ottawa, and Montreal.

Charles St-Arnaud, chief economist at Alberta Central and former Bank of Canada economist, said that the overheated activity in these markets – which collectively account for some 50% of the national population – might force the central bank to make “extremely careful” adjustments to interest rates should the need arise.

This cautious approach will be necessary since the historically low rates are conducive to better affordability, St-Arnaud explained.

“The housing market will probably be the first casualty of higher rates,” St-Arnaud said. “When rates go up, that affordability will disappear very, very quickly.”

Even something as small as a 25-basis-point hike “will have more impact than we’ve seen over the past 20, 30 years,” the economist added.

Royce Mendes, senior economist at CIBC Capital Markets, argued that Canadians’ savings built up over the pandemic year – hailed as a potential lifeline of the nation’s recovery once the economy fully restarts – will likely impel significantly increased spending in housing over the next decade.

This consumer activity could end up making the case for a rate higher than the pre-pandemic level.

“All that money has to eventually go somewhere,” Mendes told Reuters. “It is not just going to sit in the bank accounts of households for decades into the future.”

The latest consensus of house prices are forecast to rise 15% on average this year nationally.

“Headlines will probably flag housing market declines in the short term, but don’t let them fool you…this market is still extremely strong across geography and segment. Even if we’ve likely seen peak momentum its still a long way back from the moon” noted Robert Kavcic, senior economist at BMO Capital Markets.

*Please note that this article only reflects the views of the author, and does not represent the stance of the company.

*The information provided here is for general information purpose only, which does not necessarily reflect the views or opinions of Bay Street Group. We assume no responsibility for its accuracy, completeness, or sufficiency.
*As for intellectual property rights of others, anyone who believes that their work has been reproduced in a way that constitutes copyright infringement may contact us.

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Ontario sets 2022 rent increase guideline at 1.2 percent

Ontario sets 2022 rent increase guideline at 1.2 percent

Wednesday, June 16, 2021

Ontario has released its rent increase guideline for 2022, setting it at 1.2 percent on the heels of the 2021 rent freeze. This number represents the maximum most landlords can raise their tenants’ rent between January 1 and December 31, 2022, without the approval of the Landlord and Tenant Board (LTB).

The rent increase guideline was determined using the Ontario Consumer Price Index (CPI), which measures inflation calculated monthly by Statistics Canada using data that reflects economic conditions over the past year. The guideline applies to most residential rental accommodations covered by the Residential Tenancies Act, and excludes rental units in buildings occupied for the first time after November 15, 2018, social housing units, long-term care homes and commercial properties.

Rent increases are not automatic or mandatory. Landlords may only raise rent if their tenants were given at least 90 days’ written notice using the correct form. In most cases, the rent increase cannot be more than the rent increase guideline. In addition, at least 12 months must have passed since the first day of the tenancy or the last rent increase.

Last year, Ontario passed legislation to freeze rent at the 2020 level for the vast majority of rented units covered under the Residential Tenancies Act as a way to help give Ontarians financial relief from the challenges of the COVID-19 pandemic. The rent increase freeze will end on December 31, 2021, and landlords wishing to raise rents must send a notice to tenants before the freeze is lifted.

Landlords can also apply to the Landlord and Tenant Board for above-guideline rent increases for certain circumstances, including after conducting and paying for major capital work.

*Please note that this article only reflects the views of the author, and does not represent the stance of the company.

*The information provided here is for general information purpose only, which does not necessarily reflect the views or opinions of Bay Street Group. We assume no responsibility for its accuracy, completeness, or sufficiency.
*As for intellectual property rights of others, anyone who believes that their work has been reproduced in a way that constitutes copyright infringement may contact us.

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Canadian Home Sales Now Expected To Rise Double The Previous Estimate

canadian home sales now expected to rise double the previous estimate

Concerns have been running high about the heat of Canada’s pandemic-fuelled housing market, and policymakers have stepped in. 

The mortgage stress test was tightened. As of June 1, the qualifying rate rose to 5.25%, from 4.79%, reducing homebuyers’ buying power by about 4%. A national 1% tax on the value of vacant homes owned by non-residents is to start in January 2022. 

HAVE THE POLICYMAKERS DONE ENOUGH?

Not according to some economists, who say policy makers’ “light touch” has only “prolonged the much-needed rebalancing of Canada’s housing market.” 

RBC senior economist Robert Hogue argues in a report that none of the actions “address the thorny problem of low supply in a market hungry for new ownership options.”

In fact, some will only serve to stoke that demand, such as the First-Time Home Buyers Incentive in Toronto, Vancouver, and Victoria and broader eligibility for the GST rebate on new housing, he said. 

“With meaningful relief of market tensions till several months off,” RBC expects sales to stay historically strong and prices to continue to rise. “A much-desired soft landing has been pushed into 2022,” said Hogue. 

RBC now expects sales to climb 16% this year over last, a big increase from its January forecast of a 6.5% increase. It has also boosted its price forecast to a gain of 13% to $697,400 nationally from 8.4%. 

B.C.’s surprise foreign buyer tax and Ontario’s Fair Housing Plan in 2016 and 2017 were major catalysts that helped rebalance the market, RBC says. 

Without these, other factors will work on the market, but not quickly. A gradual rise in interest rates, stress test tightening, rising prices and a return to the office will cool demand “a few degrees” over time. 

One thing the federal government did not do was prod municipalities to improve the speed or burden of the housing project approval process or tackle planning and zoning issues that would increase supply. 

 “Slow approvals, and zoning and other regulatory obstacles have been at the core of Canada’s escalating prices over the past 10-15 years,” said Hogue. 

RBC expects sales to continue to moderate this year and into 2022, with an annual 21% drop next year to 505,300 units. That sounds like a lot but Hogue says that’s still a solid level historically. In 2022, the economists see a price gain of 3.3%.

The soft landing is good news for homeowners, who will hang onto a huge price appreciation, but not such good news for first-time buyers. 

Affordability will continue to worsen. RBC says that the price gains during the pandemic have seen mortgage payments for a standard house in Canada ($724,000) rise from $330 to $2,500 a month. If prices rise as much as RBC thinks they will over the next 12 months it will add another $150 to that monthly payment. 

“Clearly, future buyers will face more intense affordability pressure across many parts of the country. Homeownership will become a more distant dream for an increasing number of Canadians. And a heavier debt load will come to those who will realize it,” Hogue said.

*Please note that this article only reflects the views of the author, and does not represent the stance of the company.

*The information provided here is for general information purpose only, which does not necessarily reflect the views or opinions of Bay Street Group. We assume no responsibility for its accuracy, completeness, or sufficiency.
*As for intellectual property rights of others, anyone who believes that their work has been reproduced in a way that constitutes copyright infringement may contact us.

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