Want to know what was trending in Toronto real estate over the past week? Never miss an important update with our weekly GTA real estate news roundup! Commuting time is crucial for the young home buyers, Toronto and Vancouver housing markets go opposite directions, new Airbnb restrictions to be considered and more.
Daily commute is a top factor for young professionals from Toronto when choosing a place to live. 76 per cent of respondents to a survey for the Toronto Region Board of Trade said their daily commute was one of the top three considerations in where to locate — ahead of distance to amenities (59 per cent) and the cost of living (53 per cent).
65 per cent said they would compromise on the kind of housing they chose if it meant being closer to work. The online Environics survey showed 77 per cent of the 803 respondents would consider living further from their jobs if they had better public transit. 31 per cent said they relied on a car and had a daily commute of 37 minutes on average. 44 per cent used transit, with the commute time average 42 minutes and 25 per cent walked or biked for an average trip of 21 minutes.
The Globe and Mail: Toronto, Vancouver housing markets move in drastically different directions
Canada's two most expensive housing markets have moved in different directions over the past year, leaving average national sales with an appearance of relative stability, the article claims.
Greater Toronto Area home sales fell 27 per cent in October compared with a year earlier, while Greater Vancouver saw home sales climb 35 per cent in October on an annual basis, according to statistics released Wednesday by CREA. Sales fell in more than half of all local markets in Canada, "led overwhelmingly by the GTA and nearby cities," CREA said.
However, sales climbed 2.5 per cent in the Greater Toronto Area in October over September, they were also up 9 per cent in the Niagara region, and 6.6 per cent in the Hamilton-Burlington area. CREA chief economist Gregory Klump said sales momentum has started to recover this fall, but said it may slow again with the introduction of tougher new mortgage stress-testing rules, which come into effect on Jan. 1.
Toronto-area land prices have gotten so high that developers are struggling to build new homes that people can afford. Buyers are no longer lining up, despite discounts and incentives. The cost of land has nearly tripled in some areas the past five years, accounting for roughly half the price of a new home. In 2011, it was a little more than a third.
The result of this is a shortage of supply, which is expected to become even more extreme in the next years. The 2019 forecast calls for as few as 66,100 houses to break ground, 13 percent lower than in 2017. With all the troubles in Canada’s housing, developers are shifting business to U.S. states including Florida and Texas.
Citing concerns about the city's overheated rental market, Coun. Ana Bailao successfully moved a motion blocking lawful secondary suites from being listed on short-term rental platforms like Airbnb. Bailao says those suites, often basement apartments, are a key form of affordable housing in a city with extremely low vacancy rate. Airbnb says about 730 of its 10,000 listings in Toronto are secondary suites.
If the new rules are approved by the council, Torontonians will only be allowed to rent out their primary residences for the short-term (28 days or less). Hosts will be able to rent out three rooms inside a house, or the entire residence. If they choose to rent out the entire residence, they can only do so 180 days out of the year.
Currently, there are no municipal regulations governing short-term rentals. The city is moving to put regulations in place in part because of concerns about rental availability.
Huffington Post: Toronto, Vancouver Housing Shortages Will Keep Prices Soaring: CIBC
The efforts of provincial government and federal regulators to cool off Canada's hottest housing markets will have short term effects, and Toronto and Vancouver will soon be back to their old tricks, according to a new report from CIBC.
With another round of mortgage rule-tightening to kick in in January, many analysts are predicting a slowdown for the housing market. But deputy economist Benjamin Tal says this slowdown will be mild and short-lived because of the shortage of housing supply, both in Vancouver and Toronto. With the rising levels of immigration, the demand is growing much faster than supply and, according to Tal, those cities are expected to become even less affordable.
Benjamin Tal also doesn't believe the new mortgage rules will change much, because he expects borrowers to adjust to the new conditions rather quickly.
Jamie Sarner blog: Mortgages for Condos: What You Need to Know Before you Get Pre-approved
Compared to previous generations, who were more inclined to marry young and purchase their first homes together, in 2017 realtors and mortgage companies alike claim that the market has changed: now, as opposed to married couples, single career-oriented young professionals are keeping the condo market alive and allowing it to thrive.
According to one recent report in the Globe and Mail, an average one-bedroom condo in downtown Toronto rents for approximately $1,500 per month. A condo with similar amenities, purchased for around $300,000, may be cheaper to own—a typical monthly mortgage payment is $1,391. It makes sense why many millennials choose to buy rather than rent, and this article goes through the essentials they need to consider before entering the market.