Tag Archives: millennial home purchase

Latest-News228-x-170

Millennials are ‘generation screwed’ on real estate

Latest News


Millennials are ‘generation screwed’ on real estate

Millennials are ‘generation screwed’ on real estate

By Tim Hudak and Joe Vaccaro
Millennials want to be homeowners. Eight in 10 consistently say that home ownership is important to them, real estate is a good investment, and owning a home gives them a sense of pride. But millennials also say that owning a home is more difficult now than it was for their parents. They have a point.
According to the Toronto Real Estate Board, the average price of a GTA home is expected to rise by double digits again this year, hitting a new average of $825,000. Prices keep rising because housing supply is not keeping up with population growth and demand.

https://www.thestar.com/opinion/commentary/2017/02/22/millennials-are-generation-screwed-on-real-estate.html


Sleep well Toronto homeowners, your nightmare could be coming soon

By Christopher Hume
Toronto Storeys
Toronto homeowners had better hope their city’s red hot real estate market doesn’t cool off anytime soon. If and when that happens, living in Canada’s largest city would cost them a whole lot more than it already does.
The reason is the Municipal Land Transfer Tax (MLTT). In 2016, it resulted in a whopping 42 per cent of the increase in Toronto’s tax revenue to the tune of $184 million. Were that to dry up, the city would have to look elsewhere to make up the shortfall. Most likely that would mean a hike in property tax rates, something Mayor John Tory and many city councillors ― not to mention homeowners ― vehemently oppose.
http://torontostoreys.com/2017/02/sleep-well-toronto-homeowners-your-nightmare-could-be-coming-soon/


BMO declares Toronto housing bubble amid ‘dangerously’ hot prices

By John Gray
BNN
After months, if not years of hand-wringing about Canada’s hot housing markets, BMO is calling it: Toronto’s housing market is in a bubble.
“Let’s drop the pretence. The Toronto housing market — and the many cities surrounding it — are in a housing bubble,” BMO Chief Economist Doug Porter wrote in a note to clients Tuesday.
Housing prices in Toronto and the surrounding area have become “dangerously detached” from economic fundamentals and are rising simply on the belief that prices will continue to soar higher, according to Porter.
http://www.bnn.ca/bmo-declares-toronto-housing-bubble-amid-dangerously-hot-prices-1.672542


Toronto’s Tory rejects BMO’s bubble claim; calls housing market ‘healthy’

By John Gray
BNN
Toronto Mayor John Tory is rejecting the notion the city’s housing market is in a bubble and insists the rapid rise in home prices shows the market is healthy.
“Reports will come out from economists – I don’t dismiss them, I read them all – but I also talk to a lot of people in the federal government, the provincial government [and] in the private sector and none of those people, to a person, has as yet told me there is any kind of panic driven or panic-inducing situation,” Tory told reporters on Thursday.
“There is a robust market with rapidly rising prices at the moment which is of course a concern – but it is a concern more because it makes it harder for people to buy a home as opposed to a concern that we should be pushing panic buttons,” he said.

http://www.bnn.ca/toronto-mayor-john-tory-rejects-bmo-s-bubble-claim-argues-housing-market-is-healthy-1.673655


Define bubble: When ‘even pigs are flying’ in Toronto area housing market

By Michael Babad
The Globe and Mail
Define bubble: “Used to refer to a significant, usually rapid, increase in asset prices that is soon followed by a collapse in prices and typically arises from speculation or enthusiasm rather than intrinsic increases in value,” according to Oxford Dictionaries.
Or, as Capital Economics sees it: When existing homeowners inflate prices “by leveraging their considerable housing equity to buy newer, bigger or more beautiful homes.”
Or, as Bank of Montreal puts it: When “even pigs are flying.”
http://www.theglobeandmail.com/report-on-business/top-business-stories/define-bubble-when-even-pigs-are-flying-in-toronto-area-housing-market/article34089215/?cmpid=rss1


Ontario’s lack of foreign-buyer data sparks concern about a Toronto housing crisis

By Mike Hager
The Globe and Mail
Up! Up! Up!”
That’s where Toronto’s real estate market is heading, according to a Chinese-language promotional article posted last month on Fang.com, a Beijing-based web portal that lists thousands of homes for sale in countries around the world.
“You will really cry if you still don’t buy,” the same posting blares.
http://www.theglobeandmail.com/news/toronto/ontario-isnt-moving-fast-enough-to-track-foreign-buyers-observers/article34074430/


Contested development

By Jennifer Pagliaro
Toronto Star
Many question whether the Ontario Municipal Board should be allowed to continue wielding its unelected power over a city crunched for resources.
The house on the corner is the last holdout amidst rampant condo development.
Surrounded by cranes and the constant crash of heavy machinery from the mud pit that is now right next door, the two-storey red-brick home has stood at the corner of Broadway and Redpath Aves., northeast of the busy Yonge St. and Eglinton Ave. intersection, since at least 1931.
http://projects.thestar.com/ontario-municipal-board-reform/contested-development/


Why a mortgage that leaves room for retirement saving is a must-have

By Rob Carrick

The Globe and Mail

The cost of owning a house and starting a family just might be the lost opportunity to get a good head start on saving for retirement.
With the March 1 deadline for contributions to registered retirement savings plans just ahead, it’s a good time to look at how to balance life’s biggest financial responsibilities. Home ownership, starting a family and retirement saving – can you do it all?
In cities with reasonably priced housing, you certainly can. But in expensive markets such as Toronto, Vancouver and their satellite cities, only high earners will manage this balance. Something will have to give in the household budgets of everyone else, and it’s probably going to be retirement saving.
http://www.theglobeandmail.com/globe-investor/personal-finance/get-a-mortgage-that-leaves-room-for-retirement-saving/article34086689/


 

 

SHARE  

Featured Products


Tim Hudak, OREA CEO

OREA calls on government to strike affordable homeownership task force

Latest News


OREA calls on government to strike affordable homeownership task force

(Marketwired) — The best way to ensure millennials have a good shot at achieving the Canadian dream of homeownership is by putting more homes on the market, the Ontario Real Estate Association (OREA) told the Standing Committee on Finance and Economic Affairs January 18, 2017. In its 2017 pre-budget consultation, OREA recommended the creation of an affordable homeownership task force to determine how government can best improve housing supply and expand consumer choice.

“We are facing a critical housing supply shortage that is putting homeownership out of reach for Ontario’s first-time buyers and young families,” said Valerie Miles, OREA government relations committee chair. “In some markets, housing inventory is at all-time lows and prices are at record highs. Increasing the housing stock is necessary to give buyers more options at affordable levels. We need industry leaders to come together on this issue before the supply problem gets any worse.”

The Building Industry and Land Development Association (BILD) recently reported that housing supply has plummeted over the past decade. The lack of housing supply is a main driving factor for increasing prices of new single-family detached houses and highrise condos in the GTA.

In its pre-budget consultation, OREA recommended several ways to increase housing stock, including: reducing the red-tape around getting building permits approved; dedicated funding to help service land designated for development to incent builders to start projects sooner; and moving away from the proposed one-size-fits-all intensification targets under the provincial growth plan to allow developers to build “missing middle” housing types, namely townhomes, duplexes and stacked townhomes.

Tim Hudak, OREO CEO
Tim Hudak, OREO CEO

“The government is asking Ontarians for ways to create jobs, grow the economy and help people in their everyday lives — a strong real estate market checks off all three boxes,” said Tim Hudak, OREA CEO. “Every home transaction generates $55,000 in economic spin-offs which creates jobs and supports local business, while homeownership offers endless social benefits for families and communities. If the goal of the pre-budget consultation is to build up Ontario’s future, then finding ways to make home ownership affordable is a great place to start.”

This month, Ontario increased the land transfer tax rebate to $4,000, which was previously $2,000, to help make homeownership more affordable for first-time buyers.

“The government deserves credit for taking positive steps to address affordability,” said Hudak. “We need more efforts like this to keep the dream of homeownership alive in Ontario. We look forward to continuing to work with policy makers on improving affordability even further.”

The Ontario Real Estate Association represents 70,000 brokers and salespeople who are members of the 39 real estate boards throughout the province. OREA serves its members through a wide variety of professional publications, educational programs, advocacy, and other services.

OREA.com


SHARE  

Featured Products