Reverse mortgages take off in Canada as more seniors look to 'age in place'
Regulators are keeping an eye on growth of the loans, and say there are risks
More Canadian seniors have been tapping into their home equity for cash to fund their retirements over the course of the pandemic, giving an earnings boost to the lenders that offer reverse mortgages and other similar loans.
One of those, Equitable Bank Inc., reported a 262 per cent year-over-year surge in its reverse mortgage product in first-quarter 2022 earnings announced this week. Altogether, Equitable originated $304-million worth of the loans, up 23 per cent over the final quarter of 2021.
Reverse mortgages typically function like home equity lines of credit and allow Canadians to put up the equity in their home in exchange for a lump sum of cash or a consistent flow of payments.
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Regulators are keeping an eye on growth of the loans, and say there are risks
More Canadian seniors have been tapping into their home equity for cash to fund their retirements over the course of the pandemic, giving an earnings boost to the lenders that offer reverse mortgages and other similar loans.
One of those, Equitable Bank Inc., reported a 262 per cent year-over-year surge in its reverse mortgage product in first-quarter 2022 earnings announced this week. Altogether, Equitable originated $304-million worth of the loans, up 23 per cent over the final quarter of 2021.
Reverse mortgages typically function like home equity lines of credit and allow Canadians to put up the equity in their home in exchange for a lump sum of cash or a consistent flow of payments.
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Assignment Detached Home for Sale in Barrie
Top reason you will love this property!
- 4 Bed 🛏 4 Bath 🚿
- Asking price: $1,369,900
- 2,502 Sq.ft
- Lot Size: 38 x 99
- Upgrades worth 12K
- Deposit required 150K
- Closing in July 2023
- 5 mins to Hwy 400
- 3 mins to Go station
- 5 mins to Georgina College
- Mins to all shops, restaurants & parks
- Close to all amenities
Call Hojjatollah Izady at 647-772-9502 for more info.
hoizady@yahoo.com
.
Top reason you will love this property!
- 4 Bed 🛏 4 Bath 🚿
- Asking price: $1,369,900
- 2,502 Sq.ft
- Lot Size: 38 x 99
- Upgrades worth 12K
- Deposit required 150K
- Closing in July 2023
- 5 mins to Hwy 400
- 3 mins to Go station
- 5 mins to Georgina College
- Mins to all shops, restaurants & parks
- Close to all amenities
Call Hojjatollah Izady at 647-772-9502 for more info.
hoizady@yahoo.com
.
As Home Prices Fall, More Buyers Are Backing Out of Deals
In early February, a three-bedroom house in Clarington, Ontario sold for $1,035,000. It was on the market for just four days.
Cut to three months later, and that same house, came back on the market where it sat for 10 days before selling for just $850,000.
It’s no secret that home prices in the GTA are falling, with the outer suburbs fielding the brunt of this decline. Although this news is likely to set off alarm bells for would-be sellers hoping to cash out on their home in a red hot market, they’re not the only ones coming face-to-face with a bleaker financial outlook.
GTA real estate professionals across the board are reporting noticeably higher rates of buyers backing out of deals months after having their offers accepted and deposits submitted. Sellers, left with no buyer, are forced to re-list in a considerably cooler market where their home will inevitably fetch a lower price.
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In early February, a three-bedroom house in Clarington, Ontario sold for $1,035,000. It was on the market for just four days.
Cut to three months later, and that same house, came back on the market where it sat for 10 days before selling for just $850,000.
It’s no secret that home prices in the GTA are falling, with the outer suburbs fielding the brunt of this decline. Although this news is likely to set off alarm bells for would-be sellers hoping to cash out on their home in a red hot market, they’re not the only ones coming face-to-face with a bleaker financial outlook.
GTA real estate professionals across the board are reporting noticeably higher rates of buyers backing out of deals months after having their offers accepted and deposits submitted. Sellers, left with no buyer, are forced to re-list in a considerably cooler market where their home will inevitably fetch a lower price.
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Interest Rate Hikes Could Lower Canadian Home Prices By 10%
In a missive to clients on Monday, Stephen Brown, Senior Canada Economist at Capital Economics, wrote that home prices are usually the first domino to fall when interest rates rise and he expects things will be no different this time. Moreover, because home sales have begun falling, especially in Toronto, Montreal and Vancouver, Brown wonders not whether or not home prices will decrease but by how much.
Fixed mortgages rates have also been increasing for the last few months as a prolusion to rate hikes, and lately variable rates, which comprise over 50% of new mortgage originations, are rising in tandem with the prime rate.
Brown anticipates that home sales will halve from their first quarter peak, which would be around a 25% fewer than the average in 2019, because prices are so elevated that they have become radically divorced from market fundamentals. In the absence of red-hot sales, there’s nowhere for prices to go but down, Brown wrote.
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In a missive to clients on Monday, Stephen Brown, Senior Canada Economist at Capital Economics, wrote that home prices are usually the first domino to fall when interest rates rise and he expects things will be no different this time. Moreover, because home sales have begun falling, especially in Toronto, Montreal and Vancouver, Brown wonders not whether or not home prices will decrease but by how much.
Fixed mortgages rates have also been increasing for the last few months as a prolusion to rate hikes, and lately variable rates, which comprise over 50% of new mortgage originations, are rising in tandem with the prime rate.
Brown anticipates that home sales will halve from their first quarter peak, which would be around a 25% fewer than the average in 2019, because prices are so elevated that they have become radically divorced from market fundamentals. In the absence of red-hot sales, there’s nowhere for prices to go but down, Brown wrote.
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Getting a Fixed-Rate Mortgage? It’ll Cost Nearly $800 More a Month
Government of Canada bond yields are climbing ever higher, and they’re taking fixed mortgage rates along for the ride, as the nation’s big banks just passed another price hike along to borrowers.
Uninsured lowest five-year fixed rates from the Big Six hit the threshold of 4.39% this week (and 4.24% for preferred rates), as GoC five-year bond yields — which set the fixed cost of borrowing — spiked to a new decade high of 2.88% on May 6.
Bond yields have been steadily ratcheting higher since the second half of 2021, in anticipation of the Bank of Canada’s (BoC) fresh hiking cycle; year-to-date, they’ve increased 150.93 basis points (bps), up 107.8 bps in the last three months alone.
Government of Canada bond yields are climbing ever higher, and they’re taking fixed mortgage rates along for the ride, as the nation’s big banks just passed another price hike along to borrowers.
Uninsured lowest five-year fixed rates from the Big Six hit the threshold of 4.39% this week (and 4.24% for preferred rates), as GoC five-year bond yields — which set the fixed cost of borrowing — spiked to a new decade high of 2.88% on May 6.
Bond yields have been steadily ratcheting higher since the second half of 2021, in anticipation of the Bank of Canada’s (BoC) fresh hiking cycle; year-to-date, they’ve increased 150.93 basis points (bps), up 107.8 bps in the last three months alone.
Rate Hikes Hit Canada Housing With First Price Drop in Two Years
Canadian home prices fell for the first time in two years as a rapid rise in interest rates looks set to threaten one of the world’s hottest housing markets.
Benchmark home prices declined 0.6% in April from the month before, the first drop since April 2020, according to data released Monday from the Canadian Real Estate Association. The number of sales, meanwhile, plunged 12.6%.
The shift is coming as the Bank of Canada embarks on an aggressive campaign of rate increases to fight inflation running at a three-decade high. Markets are betting that the policy interest rate, which began the year at 0.25%, will have to rise to 3% over the next year.
The sharp jump in Canadian home prices since the pandemic -- they’re up 24% over the past 12 months -- was partly driven by emergency-low rates that helped the economy through the Covid-19 crisis. But now rate increases have left the nation’s housing market looking increasingly vulnerable.
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Canadian home prices fell for the first time in two years as a rapid rise in interest rates looks set to threaten one of the world’s hottest housing markets.
Benchmark home prices declined 0.6% in April from the month before, the first drop since April 2020, according to data released Monday from the Canadian Real Estate Association. The number of sales, meanwhile, plunged 12.6%.
The shift is coming as the Bank of Canada embarks on an aggressive campaign of rate increases to fight inflation running at a three-decade high. Markets are betting that the policy interest rate, which began the year at 0.25%, will have to rise to 3% over the next year.
The sharp jump in Canadian home prices since the pandemic -- they’re up 24% over the past 12 months -- was partly driven by emergency-low rates that helped the economy through the Covid-19 crisis. But now rate increases have left the nation’s housing market looking increasingly vulnerable.
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Bidding war no more: How to make an offer in Canada’s cooling housing market
The apparent cooling in Canada’s housing market is leaving many buyers and sellers alike confused about how to price and bid on homes in the normally fervent spring market, real estate brokers say.
Those who spoke to Global News said the new market is resulting in negotiation power swinging back into the hands of buyers in many cases.
The difference between the mid-winter market — before the Bank of Canada started hiking interest rates — and today is “day and night.”
Back in January and February, properties across Ontario, be they cottages or in the urban core, were all seeing multiple offers and going well above asking.
“Every single house that went on the market was expecting and was getting multiple offers, really high demand”.
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The apparent cooling in Canada’s housing market is leaving many buyers and sellers alike confused about how to price and bid on homes in the normally fervent spring market, real estate brokers say.
Those who spoke to Global News said the new market is resulting in negotiation power swinging back into the hands of buyers in many cases.
The difference between the mid-winter market — before the Bank of Canada started hiking interest rates — and today is “day and night.”
Back in January and February, properties across Ontario, be they cottages or in the urban core, were all seeing multiple offers and going well above asking.
“Every single house that went on the market was expecting and was getting multiple offers, really high demand”.
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The strategy then saw sellers accept offers on a single date, playing on the expectation that a bidding war would drive up the end price. Buyers had little leverage here, as sellers were under no pressure to accept the first offer they received.
“Why would they take a bully (offer) when they feel like they could get, like, an astronomical, magical number on offer night?”
The Toronto Regional Real Estate Board last week reported the number of April sales in the market dropped by about 41 per cent from the same month last year and 27 per cent from March.
Many prospective buyers are waiting on the sidelines, looking to see where interest rates will land and how the housing market reacts before jumping back into their search.
Similar slowdowns were seen in many other Canadian housing markets including Montreal and Vancouver.
Craig Munn at the Greater Vancouver Real Estate Board told Global News that while the market has seen a slowdown from 2021, today’s pace of homebuying represents more of a return to normalcy from the record-breaking pandemic era.
“With homebuyer demand coming down, we’re seeing fewer multiple offers in the market,” he said, noting that units such as townhomes are among property classes still seeing strong demand.
A lack of supply is the main factor keeping Vancouver from becoming a buyer’s market, Munn said.
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“Why would they take a bully (offer) when they feel like they could get, like, an astronomical, magical number on offer night?”
The Toronto Regional Real Estate Board last week reported the number of April sales in the market dropped by about 41 per cent from the same month last year and 27 per cent from March.
Many prospective buyers are waiting on the sidelines, looking to see where interest rates will land and how the housing market reacts before jumping back into their search.
Similar slowdowns were seen in many other Canadian housing markets including Montreal and Vancouver.
Craig Munn at the Greater Vancouver Real Estate Board told Global News that while the market has seen a slowdown from 2021, today’s pace of homebuying represents more of a return to normalcy from the record-breaking pandemic era.
“With homebuyer demand coming down, we’re seeing fewer multiple offers in the market,” he said, noting that units such as townhomes are among property classes still seeing strong demand.
A lack of supply is the main factor keeping Vancouver from becoming a buyer’s market, Munn said.
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▪️ساخت یک خانه در کانادا چقدر هزینه دارد؟
طبق برآورد Altus Group’s 2022 Canadian Cost Guide ساخت یک خانه تک خانواده در کانادا در هر اسکورفیت بین 100 تا 275 هزینه دارد، که البته تاحدی بسته به مکان خانه دارد. اما درست مثل قضیه خرید خانه، ساخت خانه در شهرهای تورنتو و ونکوور از دیگر نقاط کانادا گرانتر است. هزینه ساخت خانه در ونکوور در هر اسکورفوت بین 150 تا 275 دلار و در تورنتو بین 165 تا 260 دلار است. در مونترال این رقم اندکی پایین تر و از 130 تا 190 دلار است. البته به این اعداد و ارقام نباید اکتفا کرد هزینه های جانبی دیگری مثل تمیز کردن و صاف کردن زمین، یا پایین آوردن و آوار کردن ساختمان قبلی را نیز باید اضافه کنید.
▪️The average cost of building a house in major Canadian cities:
Vancouver: $150 – $275
Calgary: $125 – $200
Edmonton: $125 – $200
Winnipeg: $120 – $190
Greater Toronto Area: $165 – $260
Ottawa: $125 – $205
Montreal: $130 – $190
Halifax: $100 – $155
St. John’s: $120 – $155
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طبق برآورد Altus Group’s 2022 Canadian Cost Guide ساخت یک خانه تک خانواده در کانادا در هر اسکورفیت بین 100 تا 275 هزینه دارد، که البته تاحدی بسته به مکان خانه دارد. اما درست مثل قضیه خرید خانه، ساخت خانه در شهرهای تورنتو و ونکوور از دیگر نقاط کانادا گرانتر است. هزینه ساخت خانه در ونکوور در هر اسکورفوت بین 150 تا 275 دلار و در تورنتو بین 165 تا 260 دلار است. در مونترال این رقم اندکی پایین تر و از 130 تا 190 دلار است. البته به این اعداد و ارقام نباید اکتفا کرد هزینه های جانبی دیگری مثل تمیز کردن و صاف کردن زمین، یا پایین آوردن و آوار کردن ساختمان قبلی را نیز باید اضافه کنید.
▪️The average cost of building a house in major Canadian cities:
Vancouver: $150 – $275
Calgary: $125 – $200
Edmonton: $125 – $200
Winnipeg: $120 – $190
Greater Toronto Area: $165 – $260
Ottawa: $125 – $205
Montreal: $130 – $190
Halifax: $100 – $155
St. John’s: $120 – $155
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Forwarded from خرید و فروش املاک در تورنتو
قابل توجه خريداران و فروشندگان محترم خانه:
با يك تيم حرفه ای در زمينه فروش و خريد منزل رویایی شما از ابتدا تا انتها همراه شما هستيم.
خدمات ارائه شده:
- ارائه وام با کمترین نرخ بهره موجود در بازار
First, Second, Third Mortgages
- ارزیابی رایگان منزل شما Home Evaluation
- یافتن منزل رویایی شما با توجه به محل و بودجه
- دستیابی به اطلاعات کامل بازار جهت تصمیم گیری صحیح شما در هنگام خرید و یا فروش خانه
- خدمات ویژه برای خریداران بار اولی First Time Home Buyer
- خرید خانه برای سرمایه گذاری Investment Property
- تازه واردین به کانادا Newcomers
- غیر ساکنین کانادا Non-Resident
- خدمات بازسازی Renovation
☎️راههای ارتباطی با ما از طریق تلفن، ایمیل، واتس اپ، فیس بوک، اینستاگرام و تلگرام:
+1 (647) 772-9502
hoizady@yahoo.com
وب سایت ما:
https://www.homelifecimerman.com/Hojjatollah-Izady
فیسبوک ما:
https://www.facebook.com/Hojjatollah.Izady
اینستاگرام ما:
https://www.instagram.com/ihoizady/
واتس آپ ما:
https://wa.me/message/72TR24AJCPDPJ1
گروه تلگرام ما:
https://t.me/Buy_and_Sell_Property_in_Toronto
.
با يك تيم حرفه ای در زمينه فروش و خريد منزل رویایی شما از ابتدا تا انتها همراه شما هستيم.
خدمات ارائه شده:
- ارائه وام با کمترین نرخ بهره موجود در بازار
First, Second, Third Mortgages
- ارزیابی رایگان منزل شما Home Evaluation
- یافتن منزل رویایی شما با توجه به محل و بودجه
- دستیابی به اطلاعات کامل بازار جهت تصمیم گیری صحیح شما در هنگام خرید و یا فروش خانه
- خدمات ویژه برای خریداران بار اولی First Time Home Buyer
- خرید خانه برای سرمایه گذاری Investment Property
- تازه واردین به کانادا Newcomers
- غیر ساکنین کانادا Non-Resident
- خدمات بازسازی Renovation
☎️راههای ارتباطی با ما از طریق تلفن، ایمیل، واتس اپ، فیس بوک، اینستاگرام و تلگرام:
+1 (647) 772-9502
hoizady@yahoo.com
وب سایت ما:
https://www.homelifecimerman.com/Hojjatollah-Izady
فیسبوک ما:
https://www.facebook.com/Hojjatollah.Izady
اینستاگرام ما:
https://www.instagram.com/ihoizady/
واتس آپ ما:
https://wa.me/message/72TR24AJCPDPJ1
گروه تلگرام ما:
https://t.me/Buy_and_Sell_Property_in_Toronto
.
Housing Market Snapshot for April 2022
قابل توجه خريداران و فروشندگان محترم خانه:
با يك تيم حرفه ای در زمينه فروش و خريد منزل رویایی شما از ابتدا تا انتها همراه شما هستيم.
خدمات ارائه شده:
- ارائه وام با کمترین نرخ بهره موجود در بازار
First, Second, Third Mortgages
- ارزیابی رایگان منزل شما Home Evaluation
- یافتن منزل رویایی شما با توجه به محل و بودجه
- دستیابی به اطلاعات کامل بازار جهت تصمیم گیری صحیح در هنگام خرید و یا فروش خانه
- خدمات ویژه برای خریداران بار اولی First Time Home Buyer
- خرید خانه برای سرمایه گذاری Investment Property
- تازه واردین به کانادا Newcomers
- غیر ساکنین کانادا Non-Resident
- خدمات بازسازی Renovation
☎️راههای ارتباطی با ما از طریق تلفن، ایمیل، واتس اپ، فیس بوک، اینستاگرام و تلگرام:
+1 (647) 772-9502
hoizady@yahoo.com
وب سایت:
https://www.homelifecimerman.com/Hojjatollah-Izady
فیسبوک:
https://www.facebook.com/Hojjatollah.Izady
اینستاگرام:
https://www.instagram.com/ihoizady/
واتس آپ:
https://wa.me/message/72TR24AJCPDPJ1
لینک تلگرام:
https://t.me/Buy_and_Sell_Property_in_Toronto
.
قابل توجه خريداران و فروشندگان محترم خانه:
با يك تيم حرفه ای در زمينه فروش و خريد منزل رویایی شما از ابتدا تا انتها همراه شما هستيم.
خدمات ارائه شده:
- ارائه وام با کمترین نرخ بهره موجود در بازار
First, Second, Third Mortgages
- ارزیابی رایگان منزل شما Home Evaluation
- یافتن منزل رویایی شما با توجه به محل و بودجه
- دستیابی به اطلاعات کامل بازار جهت تصمیم گیری صحیح در هنگام خرید و یا فروش خانه
- خدمات ویژه برای خریداران بار اولی First Time Home Buyer
- خرید خانه برای سرمایه گذاری Investment Property
- تازه واردین به کانادا Newcomers
- غیر ساکنین کانادا Non-Resident
- خدمات بازسازی Renovation
☎️راههای ارتباطی با ما از طریق تلفن، ایمیل، واتس اپ، فیس بوک، اینستاگرام و تلگرام:
+1 (647) 772-9502
hoizady@yahoo.com
وب سایت:
https://www.homelifecimerman.com/Hojjatollah-Izady
فیسبوک:
https://www.facebook.com/Hojjatollah.Izady
اینستاگرام:
https://www.instagram.com/ihoizady/
واتس آپ:
https://wa.me/message/72TR24AJCPDPJ1
لینک تلگرام:
https://t.me/Buy_and_Sell_Property_in_Toronto
.
Home building picks up in April except in Toronto
Canada's most populous city saw a 38% decrease in housing starts
The pace of new home construction started to reverse course in April, bucking a downtrend that has been in place for most of the year, according to data from the Canada Mortgage and Housing Corp.
Standalone housing starts grew eight per cent month over month to 267,330 units, the CMHC said, with the six-month, seasonally adjusted moving average also growing to 257,846 units, up from 253,226 units in March.
“On a trend and monthly (seasonally adjusted annual rate) basis, the level of housing starts activity in Canada remains historically high, hovering well above 200,000 units since June 2020 and increased from March to April,” CMHC chief economist Bob Dugan said in a press release accompanying the data.
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Canada's most populous city saw a 38% decrease in housing starts
The pace of new home construction started to reverse course in April, bucking a downtrend that has been in place for most of the year, according to data from the Canada Mortgage and Housing Corp.
Standalone housing starts grew eight per cent month over month to 267,330 units, the CMHC said, with the six-month, seasonally adjusted moving average also growing to 257,846 units, up from 253,226 units in March.
“On a trend and monthly (seasonally adjusted annual rate) basis, the level of housing starts activity in Canada remains historically high, hovering well above 200,000 units since June 2020 and increased from March to April,” CMHC chief economist Bob Dugan said in a press release accompanying the data.
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“The increase in monthly housing starts in Canada’s urban areas was driven by higher multi-unit and single-detached starts in April. Among Montreal, Toronto and Vancouver, Toronto was the only market to post a decrease in total starts, which was driven by lower multi-unit and single-detached starts.”
Toronto saw a 38 per cent decrease in its seasonally adjusted, annualized pace, with starts falling to 24,605 units in April. Toronto has been facing a housing supply shortage that has struggled to keep up with the immense demand in Canada’s most populous city. Housing will be a key issue in the upcoming Ontario provincial election as party leaders tout their plans to address housing affordability.
Last time Canadian home prices dropped was in April 2020, when COVID-19 had shut down the economy.
Canada's average home price slides to $746,000, sales plummet amid rising rates
Sales of homes sold over $1.5 million in Toronto increased by 31 per cent from 2021.
Toronto housing sales are slowing down, but not when it comes to homes over $1.5 million
A condo building is seen under construction surrounded by houses as condo towers are seen in the distance in Vancouver, B.C., on Friday March 30, 2018. The local real estate board says the benchmark price of a detached home in Metro Vancouver fell nearly 10 per cent year over year as more sellers listed properties but house hunters continued to take their time. THE CANADIAN PRESS/Darryl Dyck
Rising rates put B.C. housing ‘on a path to normalizing’ as prices and sales slide in April
In the province’s latest budget in April, Doug Ford’s government promised to set a target of 1.5 million new homes over the next 10 years.
The plan would also target demand, as Finance Minister Peter Bethlenfalvy said the government would stick to its plan of increasing the Non-Resident Speculation Tax to 20 per cent from 15 per cent.
Liberal leader Steven Del Duca’s housing platform includes a similar plan to add 1.5 million homes. He would also create the Ontario Home Building Corp. to build affordable homes for first-time buyers, as well as relax zoning rules to allow for more multi-family buildings.
Overall, urban housing starts saw a 10 per cent monthly boost in April to 245,324 units, largely driven by multi-unit gains of 14 per cent to 178,092 units. Single-detached urban starts increased by about one per cent for the month to 67,232 units. Housing starts in rural areas came in at an adjusted annual rate of 22,006 units.
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Toronto saw a 38 per cent decrease in its seasonally adjusted, annualized pace, with starts falling to 24,605 units in April. Toronto has been facing a housing supply shortage that has struggled to keep up with the immense demand in Canada’s most populous city. Housing will be a key issue in the upcoming Ontario provincial election as party leaders tout their plans to address housing affordability.
Last time Canadian home prices dropped was in April 2020, when COVID-19 had shut down the economy.
Canada's average home price slides to $746,000, sales plummet amid rising rates
Sales of homes sold over $1.5 million in Toronto increased by 31 per cent from 2021.
Toronto housing sales are slowing down, but not when it comes to homes over $1.5 million
A condo building is seen under construction surrounded by houses as condo towers are seen in the distance in Vancouver, B.C., on Friday March 30, 2018. The local real estate board says the benchmark price of a detached home in Metro Vancouver fell nearly 10 per cent year over year as more sellers listed properties but house hunters continued to take their time. THE CANADIAN PRESS/Darryl Dyck
Rising rates put B.C. housing ‘on a path to normalizing’ as prices and sales slide in April
In the province’s latest budget in April, Doug Ford’s government promised to set a target of 1.5 million new homes over the next 10 years.
The plan would also target demand, as Finance Minister Peter Bethlenfalvy said the government would stick to its plan of increasing the Non-Resident Speculation Tax to 20 per cent from 15 per cent.
Liberal leader Steven Del Duca’s housing platform includes a similar plan to add 1.5 million homes. He would also create the Ontario Home Building Corp. to build affordable homes for first-time buyers, as well as relax zoning rules to allow for more multi-family buildings.
Overall, urban housing starts saw a 10 per cent monthly boost in April to 245,324 units, largely driven by multi-unit gains of 14 per cent to 178,092 units. Single-detached urban starts increased by about one per cent for the month to 67,232 units. Housing starts in rural areas came in at an adjusted annual rate of 22,006 units.
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