Taking the first step to buy a home is putting an offer on a property you like! Let me help you navigate the buying process.

Please contact me for all your real estate needs!
647-772-9502
hoizady@yahoo.com
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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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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 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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▪️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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Home sales have taken a 41.2 per cent decline since April 2021, and new listings also declined 11.7 per cent to 18,413. But, the average home price has risen 15 per cent to $1,254,436 since April 2021.

Please contact me for all your real estate needs!
647-772-9502
hoizady@yahoo.com
.

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:
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گروه تلگرام ما:
https://t.me/Buy_and_Sell_Property_in_Toronto
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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
.

One of the World’s Frothiest Housing Markets Turned Into a Seller’s Headache Overnight

House hunters from Toronto to small Ontario suburbs are changing how they navigate the tight housing landscape with interest rates heading higher.
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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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“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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▪️پس از دوسال افزایش قیمت، حالا بازار مسکن در حال فروکش است و به بازار اصطلاحا buyer's market نزدیک می شود.

▪️طبق آمار گزارش شده توسط Canadian Real Estate Association (CREA) نسبت فروش-به-لیستینگ جدید در ماه آپریل از 76 درصد به 66 درصد رسیده است، که پایین ترین سطح از جون 2020 می باشد. این نسبت تعیین کننده آن است که در بازار فروش ملک چه کسی بیشترین قدرت را دارد.

▪️داگلاس پورتر اکونومیست ارشد بانک BMOنیز اعلام کرد در تورنتوی بزرگ این نسبت به 45 درصد کاهش یافته است که نشان می دهد حالا بازار، بازار خریداران buyer’s market است. این نسبت طی دوازده ماه گذشته بیش از 70 درصد بوده یعنی بازار به نفع فروشندگان بوده است.

▪️به گزارش CREA، طی ماه مارچ و آپریل فروش 12.6 درصد کم شده است که پایین ترین سطح از تابستان 2020 می باشد.
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Canadian Home Prices Fall for Second Month in a Row as Mortgage Rates Bite

The scales are tipping ever closer to balanced territory in housing markets across Canada as rapidly rising borrowing costs have impacted homebuyer behaviour and purchasing power.

The April numbers from the Canadian Real Estate Association reveal home sales fell by 25.7% from the previous record-breaking year — down 12.6% from March alone — marking the slowest month seen since the summer of 2020 with sales down in 80% of local markets. However, CREA points out, the market remains quite hot from a historical perspective, as the third-busiest April on record.
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Is Now the Time to Buy?

Slowly, but surely, there were fewer buyers — or none at all — coming forth on offer night. The frantic urgency that had driven buyers over the course of the pandemic seemingly dissipated. Offer conditions such as upon inspection or financing — unheard of just a few short months prior — began to re-emerge.

The gut feeling of an imminent slowdown grew, especially among those working in suburban housing markets. Then, the April data drove it home: sales and prices were indeed falling, both month over month and from the February peak, as mortgage rate hikes whittled buyers’ purchasing power. According to numbers, it’s most prominent in the markets outside of the core: the average price of a home in Durham has slid $153,658 (12.5%) over the last two months, while York Region dipped by $160,952 (10.1%). Halton and Peel aren’t far behind, down 9.56% and 5.68% — $146,276 and $74,849 — respectively.
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And the pain extends well beyond the GTA. A broker in Peterborough, says he’s seen a significant shift over the last three to four weeks, as conditions reverse from the “quite substantial” run up the local market experienced at the start of the pandemic; sales and dollar volume are each down 28.9% and 15.5% on an annual basis.

It’s not as easy to sell a house right now. “The vocabulary has changed so much in the past few weeks: it has gone from, ‘What do we need to get this house? How high do we need to go? We really want this house,’ to, ‘This is our top, this is as high as we feel comfortable for the house.’ The buyers have more choice, and there’s a little more uncertainty there; they’re looking out for themselves and their situation, as opposed to just getting a house.”
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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

What rising mortgage rates mean for your HELOC

Borrowers should anticipate this summer will crank up the dial on their debt

Canadians love borrowing money. But the days of cheap loans are numbered with the Bank of Canada aggressively raising interest rates in order to target inflation.

And the borrowers who are most at risk are those carrying a balance on their home equity lines of credit (HELOCs).

Here’s more on why you might want to prioritize paying off a HELOC — and how you can do that wisely without putting the rest of your finances at risk.
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Canadians love their HELOCs
HELOCs allow homeowners to tap into their home equity to free up cash for other ventures, such as investments and renovations.

While some households were cutting back on their reliance on HELOCs, Statistics Canada noted there’s been an uptick in borrowing activity. A February 2022 report showed that Canadians were holding $168.5 billion in HELOC debt — a $2.3 billion increase from a year earlier.

But that may soon prove to be a real liability, experts say. That’s because HELOCs are variable-rate loans, meaning when the central bank increases its overnight rate, lenders follow suit.

How soon will this impact consumers?
The effect for HELOC holders will be almost instantaneous, says Robert Hogue, senior economist with RBC Economics in Toronto.

For nearly two years, the Bank of Canada chose to hold interest rates near zero, but record-setting inflation rates forced the bank to act earlier this year. In March, it increased its rate by 25 basis points — or 0.25 per cent. The bank then increased the rate by another 50 basis points in April.

Its next announcement will be June 1, and Hogue says economists anticipate the bank will add on another 50 basis points, bringing the rate up to 1.5 per cent — although it may take some time for the change to impact consumers’ wallets.

“In terms of cash flow … for many people, they may not see that big a difference,” says Hogue. “It’s just that it’s gonna take longer for them to pay back their loan.”

But he adds what should concern borrowers is the cumulative effect of the bank’s plan to raise rates several more times before the end of the year.

“We think that the overnight rate will reach 2.5 per cent by the fall,” says Hogue. “The bottom line is that variable rates are on their way up — and quite significantly. Certainly this will, over time, make it tighter for a number of Canadian households.”

What should borrowers do?
Raphael Ambrozewicz, a financial advisor and personal financial planner with Vancouver’s BlueShore Financial, says HELOC holders should only be concerned if they’re carrying a large balance on their line of credit, or if they need to make a big purchase soon and their budget is already tight.

Ambrozewicz ran the math on what an increase will mean for consumers. For every $100,000 they owe, an increase of half a per cent will translate into $42 more a month in interest, or $500 at the end of the year.

“On paper, $42 is not a lot — it depends on one’s budget,” says Ambrozewicz. “But when you account for inflation, the price of gas, and everything else out there that’s going significantly higher, $42 per month could be a lot.”

However, Ambrozewicz wouldn’t advise clients to prioritize paying down their HELOC — which he says is still one of the cheapest options for borrowing money — over higher interest debts like credit cards.

With the BoC indicating there are more hikes ahead, the incremental increases could start to take a toll on anyone whose budget is already maxed out.

Ambrozewicz recommends planning for your interest payments to double. If that makes you start to sweat, both Ambrozewicz and Hogue suggest touching base with a financial expert to get some advice.

“If you’re feeling some kind of a pinch or stress and you’re not sure how to handle it, pick up a phone, come in to talk to your banker,” says Ambrozewicz. “There’s no need to panic.”
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