Detached Home Market Cools + CMHC Forecasts 14% Price Increase

In Toronto: The single-detached home market is cooling, but the condo sales slump appears to be over, with sales reaching pre-pandemic levels.
Elsewhere: CMHC sends another SOS regarding rising house prices, the housing market remains the tale of two Americas and why the international housing windfall hasn’t hit Italy.

Toronto

Houses that would normally have 5-15 offers get none: John Pasalis (BNN Bloomberg)

John Pasalis, President of Realosophy, joins BNN Bloomberg to discuss the April figures from the Toronto Regional Real Estate Board. He says there is less anxiety in the low-rise market and buyers are starting to be more patient.

Is the condo sales slump over? New construction sales in the Toronto area close to pre-pandemic levels in the first quarter (Toronto Star)

Seventy-six percent of new condos launched in the first three months of 2021 were sold by the end of the quarter, the highest level since 2017, according to Urbanation, a market research firm that tracks GTA development. . The average selling price in the first three months of this year in the Toronto area was $1,261 per square foot, an increase of 8.8% or approximately $100 per square foot year over year. the other.

Toronto housing stagnates in April as prices fall from record low (BNN Bloomberg)

“It makes sense that we have had a pullback in market activity from March. We have seen a blistering pace of home sales since the summer of 2020 while seeing little population growth. We may be starting to deplete the pool of potential buyers within the current GTA population. In the long term, sustained sales growth requires sustained population growth,” TRREB President Lisa Patel said in a statement.

Toronto real estate market: Single-family homes cool while condos continue to sizzle (Yahoo!)

The condo market struggled during the early months of the pandemic as people fled the city, but it’s been hot lately. The average selling price rose to $691,791 in April from $676,052 in March.

Canada

Home prices in Canada could climb 14% in second year of pandemic as low rates fuel demand, CMHC says (The Globe – Paywall)

In its outlook, CMHC reiterated that the virus has exacerbated inequalities between wealthy, well-paid workers, who are often homeowners, and low-income workers, who are mostly renters. A greater proportion of well-paid workers kept their jobs and were able to save more money, and they were also able to take advantage of low borrowing costs. Pandemic-related restrictions have halted most activity in sectors such as entertainment and travel, which hit low-wage earners the hardest.

Douglas Todd: Jagmeet Singh dives into housing, BC megaprojects, India and race (Vancouver Sun)

“There are things that put pressure on housing that need to be stopped,” Singh said in a wide interview from his apartment in Ottawa. They understand how Canada is used internationally and domestically as “a safe place to put your money in the housing market, to treat it like a commodity or a stock.” Money laundering, Singh added, “directly contributes to the rising cost of housing.” But the Liberals, he said, have failed to properly staff the ministry that is supposed to crack down on the dirty money movement. The leader of the NDP wants Ottawa to subsidize more housing construction. And he’s not opposed to rent control.

Sabrina Maddeaux: Generation Y flees Canada’s big cities as the government pampers baby boomers (National Post)

Throughout this period, Canadian house prices have reached such high levels that even the IMF has become concerned. At first, Canada denied there was a problem and urged millennials to save more and stop buying avocado toast. Then they admitted there might be a problem, but said anyone concerned about foreign influence in the market was xenophobic. Finally, this month, MP Adam Vaughan, Parliamentary Secretary for Housing, admitted that Canada has built a housing market that is better suited to foreign investors than local buyers. However, after a year that saw house prices skyrocket 30-40%, he wouldn’t tolerate even a 10% drop.

How is it legal? ‘: Real estate sales tactics come under fire as Canadian home prices spiral out of control (The Globe – Paywall)

Mr Parsons, 60, filed a complaint with the province’s property regulator, claiming the sale was unprofessional and unethical. “How is this legal? They list an amount and I try to buy it. They don’t show auctions in their listing,” he said in his filing with the Real Estate Council of Ontario (RECO). bid and wait and see if it was high enough.

United States

Federal judge overturns moratorium on tenant evictions (NY Times – Paywall)

The Justice Department immediately appealed and requested an emergency stay of the order pending a superior court decision. Late Wednesday evening, Judge Friedrich agreed to stay her decision until May 12 to give the owners time to file legal documents opposing a longer delay, while clarifying that this decision did not reflect the “merits “at the government’s request. It is still unclear how the decision will impact tenants. It does not necessarily bind state housing court judges, who rule on eviction orders, and two other federal courts have upheld the moratorium, adding to confusion over its fate.

Buying a house during COVID-19? The housing market is a tale of two Americas, and first-time buyers are struggling (USA today)

Take Chappaqua, New York, which is 35 miles north of midtown Manhattan and a hamlet where Bill and Hillary Clinton live. Two years ago, homes priced above $2 million stayed on the market for a long time, says Usha Subramaniam, a real estate broker at Compass. In 2019, two homes sold for over $2 million. Last year, amid the pandemic, that number jumped to 17. This year, 17 homes in that price range had sold or were under contract as of April.

Why Morgan Stanley Is Convinced The Housing Market Isn’t In A Bubble (Yahoo!)

The booming real estate market and boiling stock market may conjure up memories of bubbles for some. Even Treasury Secretary Janet Yellen said this week that interest rates may need to rise from the current near-zero level to avoid overheating. And even pronouncing “2006,” writes Tirapattur, carries a lot of baggage when it comes to housing, as it was the trigger that imploded the economy 15 years ago.

InternationalI

Italy: The land that the real estate windfall has forgotten (The Globe – Paywall)

Don’t expect to make any money on your Italian investment. The dire economic and demographic forces facing the country suggest that a turnaround in ownership anytime soon seems unlikely, even as Italian banks now offer mortgages at rates of 1% or less. Italy has been in near-permanent recession since the 2008-2009 financial crisis and its GDP has shrunk by 9% in 2020, after becoming the first country in the world to go into full lockdown.

From repurposing empty offices to month-long street party: London mayoral candidates tout post-COVID plans (Radio Canada)

She is a candidate for mayor, representing the Liberal Democrats, and housing is one of her top priorities. She offered a pitch that hopes to capitalize on the pandemic: turning empty offices into affordable housing. “This is a once-in-a-generation opportunity to finally solve our housing crisis,” said the 33-year-old, who was a member of the European Parliament until her post was abolished after Brexit.

Top photo credit: iStock/Getty

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