Here’s a round up of the trending real estate news in the Greater Golden Horseshoe.
Canadian Home prices break records in June
The Teranet-National Bank House Price Index recently released its June report revealing record-breaking increases in home prices. The house price index is a tool that measures the rate at which Canadian single-family home prices have changed over time. All indexes have a base value of 100 in June 2005, and thus an index of 130 means home prices have increased 30 per cent since June 2005.
The Teranet-National Bank House Price Index was up 2.6 per cent in June from May, the largest June increase in 19 years. Home prices rose in 10 of the 11 Canadian metropolitan markets surveyed. Hamilton and Toronto led the pack with 4.1- and 3.7-per-cent increases, respectively – a month-over-month record for both markets.
Other regions also saw an uptick in price, notably Guelph and Oshawa, up 5.3 per cent.
Year-over-year increases were led by Toronto, which recorded a 29.3-per-cent rise, and Hamilton, up 25.6 per cent. In all seven of the Golden Horseshoe markets not included in the composite index, (Barrie, Brantford, Guelph, Kitchener-Waterloo, Oshawa, Peterborough and St. Catharines-Niagara), prices were up more than 20 per cent year-over-year.
Well, that didn’t take long…
The Bank of Canada (BoC) raised the target for its overnight lending rate for the first time in seven years on July 12. The same day BoC increased its rate 0.25 percentage points, Canada’s five major financial institutions quickly followed suit.
How will this affect Canadians? Consumers with loans based on the prime rate will have to pay more interest on money borrowed for such things as variable-rate mortgages, home equity lines of credit, student loans and lines of credit.
GTA home price growth cools in Q2
Royal LePage’s recent House Price Survey and Market Survey Forecast revealed that prices in the Greater Toronto Area experienced double-digit growth in the second quarter of 2017, but have temporarily slowed on a month-to-month basis.
“While we didn’t see a direct impact to annualized home price appreciation in [Q2] as a result of the new policies, they have led to a psychological pause, with prospective homeowners adopting a ‘wait and see’ approach, sitting on the sidelines [hoping] that property values will decrease across the region,” says Dianne Usher, senior vice-president, Johnston and Daniel, a division of Royal LePage. “However, we believe that the hit to consumer con dence will only create a temporary lull in sales activity and anticipate that the region’s seller’s market will continue over the coming months.”
* Aggregate prices are calculated via a weighted average of the median values of homes for reported property types in the regions surveyed
BILD celebrates 25th annual charity bbq
More than 300 BILD members gathered on July 12 to celebrate the Building Industry and Land Development Association (BILD) 25th annual Charity BBQ in support of Habitat for Humanity GTA. This year’s theme – Super Heroes celebrating 25 years of good deeds – was fun and fitting.
Before the barbecue, the eighth annual Race for Humanity saw 19 teams gather at Woodbine Beach for an Amazing Race-style scavenger hunt, which raised $8,000 for Habitat for Humanity GTA.
Since 2003, BILD members have built 14 homes through various fundraising events such as Race for Humanity. To date, more than $1.1 million has been raise for Habitat for Humanity GTA.
More than 200 homes sold at richlands in just five hours!
Fieldgate Homes, Arista Homes, Opus Homes and Deco Homes recently celebrated the launch of the highly anticipated Richmond Hill development, Richlands. The 800-home development was met with overwhelming consumer support.
The line-up of prospective purchasers resulted in more than 200 homes being sold in just five hours of the launch event.
Builders: Fieldgate Homes, Arista Homes, Opus Homes and Deco Homes
Location: Elgin Mills and Leslie Avenue, Richmond Hill
Home type: single-detached, semi-detached and townhomes
Price range: $1 million to $2.4 million
For more information, visit richlands.ca
Ground-breaking day AT Southside
Malibu Investments recently celebrated the start of construction at Southside Residences at Gramercy Park with a ground-breaking ceremony. Purchasers, special guests, company executives and dignitaries gathered to mark this significant milestone in the development process, and with it, move one step closer to welcoming residents to their new homes.
Southside offers so many wonderful options for entertainment, relaxation and social enjoyment. Residents will live in a great central location, close to Yorkdale Mall, the big box stores and just steps to the subway, Hwy. 401 and Allen Road.
Builder: Malibu Homes
Location: Allen Road and Wilson Avenue
Home type: condos
Transit score: 95
Hamilton & Kitchener-Waterloo-Cambridge see double-digit home price growth in Q2 2017
According to Royal LePage’s recent House Price Survey and Market Survey Forecast, home prices in Hamilton and Kitchener-Waterloo-Cambridge (KWC) have experienced double-digit price growth.
“Hamilton continues to see a lot of interest from buyers within the GTA, who are seeking high-quality homes at more affordable price points,” says Joe Ferrante, broker of record, Royal LePage State Realty. “This is contributing to the city’s extremely high year-over-year home price increases.”
“[KWC’s] increasing popularity has enticed many Torontonians into the market in search of more affordable inventory, leading the Tri-Cities to experiences unprecedented price growth in recent months,” says Keith Church, broker of record, Royal LePage Grand Valley Realty.
Canadian household debt at an all-time high: CMHC
While the credit situation of Canadian mortgage holders remains stable, there are record-high levels of household debt, according to a new report from Canada Mortgage and Housing Corp. (CMHC).
Using data from credit reporting agency Equifax, CMHC assessed the trends in the mortgage market in 2016. Here are some of the findings: