Hart Real Estate Academy Fills Void Left by OREA College

The Hart Real Estate Academy has officially launched with the mandate of helping new and existing real estate professionals satisfy their educational and professional requirements, thereby raising the bar in Ontario.

The academy will provide interactive in-class sessions both face-to-face and online as REALTORS® learn the business and partake in pre-registration and articling courses, ensuring a higher calibre of graduate.

Effective, July 1st, 2018, The Ontario Real Estate Association (OREA) is no longer offering in-class learning sessions for many of its registrant and articling courses through OREA Real Estate College. Students will only be able to take these courses via correspondence or online self-study, with no interactive instructor and peer component.

Surina Hart, Gino Schincariol and Lorne Andrews, certified real estate instructors and industry professionals, spearheaded Hart Real Estate Academy in response to OREA’s decision to ensure class sessions are available for students who prefer to learn in an interactive live or online setting.

“Hart Real Estate Academy classes are designed to provide students with useful content to ensure that the material is not only covered to enable a passing grade on the exam, but also to provide practical information to enhance participants’ real estate skills,” Andrews explains.

“We’re educators who are making a difference in the lives of real estate sales professionals, brokerages, buyers and sellers,” says Hart. “We believe in helping students acquire the knowledge, skills and resources they need for the future, now – so they save money and time – and, most important, are well equipped to overcome the challenges often presented within the earlier months of their careers.”

Classes offered by Hart Real Estate Academy are facilitated by certified real estate instructors and industry professionals, with the face-to-face sessions being held at York University’s Aviva Tennis Centre.

“There has been a lot of discussion in the real estate industry about the need for increased educational requirements and more practical training to effectively raise the professional bar in our industry, and I believe that the Hart Academy has timed its entry into the market perfectly,” states Don Kottick, Past President of the Real Estate Institute of Canada (REIC) and a Director with the Canadian Real Estate Association (CREA). “I’m confident that graduates of the Hart Academy will enter the market better equipped for success and work to a higher standard of professionalism – just what the industry needs.”

For more information, please contact:

Hart Real Estate Academy
1-877-404-8307 | info@hartrealestateacademy.com

www.hartrealestateacademy.com
www.facebook.com/hartrealestateacademy

MPAC Delivers Nearly 900,000 Property Assessment Notices Across Ontario

The Municipal Property Assessment Corporation (MPAC) will begin mailing nearly 900,000 Property Assessment Notices to property owners across Ontario to reflect changes in assessment that have taken place over the last year.

While 2017 is not a province-wide Assessment Update year, MPAC continues to review properties and is legislatively responsible for updating property information in order to return an accurate Assessment Roll for 2018 taxation.

This year, property owners will receive a Notice from MPAC if there has been:

  • change to property ownership, legal description, or school support;
  • change to the property’s value resulting from a Request for Reconsideration, an Assessment Review Board decision, or ongoing property reviews;
  • property value increase/decrease reflecting a change to the property; for example, a new structure, addition, or removal of an old structure; or
  • change in the classification or tax liability of the property.

“Assessing all properties in a fair and consistent way matters to us because we know how important this information is to the communities we serve,” said Rose McLean, MPAC President and Chief Administrative Officer. “The Property Assessment Notices we begin mailing today will help ensure property information is accurately reflected on municipal assessment rolls.”

MPAC encourages property owners who receive a Notice this year to login to aboutmyproperty.ca by using the Roll Number and unique Access Key on their Notice. Aboutmyproperty.ca provides easy access to the information MPAC has on file for a property and can help owners compare their assessment to others in their area.

Property owners who receive a 2017 Property Assessment Notice and disagree with their assessment have until April 2, 2018 to submit a Request for Reconsideration (RfR) with MPAC – free of charge. For greater convenience, RfRs can also be filed directly through aboutmyproperty.ca.

Quick Facts

  • In 2016, every property owner in Ontario received a Property Assessment Notice as the result of a province-wide Assessment Update, reflecting a January 1, 2016 valuation date. The 2016 assessed value will be the basis for property taxes for the 2017-2020 property tax years.
  • MPAC continues to review and update property assessment information in non-Assessment Update years. Properties change ownership, new homes or additions are built, structures are removed or demolished and properties change use. Notices are mailed each year to reflect these changes.
  • In 2017, MPAC delivered more than $37 billion in taxable assessment growth to municipalities across Ontario.

About MPAC

The Municipal Property Assessment Corporation (MPAC) is an independent, not-for-profit corporation funded by all Ontario municipalities, accountable to the Province, municipalities and property taxpayers through its 13-member Board of Directors. Our role is to accurately assess and classify all properties in Ontario in compliance with the Assessment Act and regulations set by the Government of Ontario. We are the largest assessment jurisdiction in North America, assessing and classifying more than five million properties with an estimated total value of $2.4 trillion.

MPAC’s province-wide Assessment Updates of property values have met international standards of accuracy. Our assessors are trained experts in the field of valuation and apply appraisal industry standards and best practices. Our assessments and data are also used by banks, insurance companies and the real estate industry.

For more information about 2017 Property Assessment Notices mailed this fall, visit mpac.ca.

SOURCE Municipal Property Assessment Corporation

Canada’s Real Estate Sector Remains Resilient

The Canadian real estate industry is still performing well, according to the 2018 Emerging Trends in Real Estate report published today by PwC Canada and the Urban Land Institute (ULI). Despite the industry’s steady performance, interviewees shared a concern of potential headwinds resulting in some real estate investors rebalancing their portfolios, and others taking a more defensive posture. Affordability concerns remain a dominant theme for residential real estate in Toronto and Vancouverand the report discusses rapid development outside urban centres across the country. The report also finds that investors, developers and occupiers  are rethinking how they approach their real estate investments, from ambitious intensification plans, to building communities, to investments outside major urban centres due to increased focus on new transit-centric hubs.

Commercial Real Estate
According to the report, major pension funds, large institutional investors (including REITs), which already own the majority of Class A properties, given current pricing, are continuing to focus on developing new Class A properties. These new properties could fuse commercial, retail and service properties alongside residential developments building new urban communities.

E-commerce is forecast to grow to 8% in 2018 from 4.5% in 2013.  This growth in e-commerce is having a profound effect on the retail sector and many interviewees believe retail investors need to rethink their overall retail strategy, through enhanced technology application and data analytics, as well as reinventing the retail experience. The growing penetration of e-commerce continues to push fulfillment and warehouses to the top of the list of investment and development prospects in 2018.

“Our national and local economies are greatly impacted by the real estate sector and therefore a healthy industry is good for Canada. Affordability concerns continue to be the major theme we are hearing in the residential markets in cities like Vancouver and the GTA, but there are no really good answers to this issue on the horizon” says Frank Magliocco, National Real Estate Leader, PwC Canada. “Rebalancing, rethinking, and reinventing real estate in an increasingly challenging environment is critical to be successful today, and those that are able to move quickly and leverage strategic partners will be the real winners.”

“Those who can find solutions where others see obstacles are redefining development and creating some new, yet authentically local spaces,” says Richard Joy, Executive Director, ULI Toronto.

Affordability
Housing affordability continues to be an issue and concern for some parts of the country. Higher prices (rental and ownership) are driving people to smaller cities in search of less costly housing options. These new communities are developing as governments are increasing their investments in transit hubs connecting smaller cities and suburbs to urban centres. Some of the major Canadian transit investments currently underway include: the Eglinton Crosstown (Toronto), the Valley Line LRT (Edmonton) and the REM in Montreal.

The report also finds that more than one in three young adult Canadians, aged between 20–34, are living with at least one parent. Higher prices are spurring growth in multigenerational households in markets like Toronto and Vancouver. As a result, developers are now focusing on building larger condos, and adapting homes that can accommodate the various needs of this type of consumer.

The introduction of a foreign buyers’ tax to curtail foreign investment in British Columbia (August 2016) has had little impact on the market, as prices have rebounded to pre-tax levels. Respondents to the survey feel the same about Ontario’s strategy. In addition, there continues to be significant concern about the impact of expanded rent control legislation to the supply of rental apartments in Ontario.

Data Analytics and Technology
Data and technology are significantly impacting the real estate industry for all stakeholders – consumers, investors and developers. According to the report, more than US$2.9B is projected to be invested in real estate technology globally. Some notable advances include consumers viewing properties using 3-D virtual tours, investors using data analytics to find better deals, and developers conceiving entire communities and parks based on new digital design technology.

“With such rapid advancements in new technologies and a competitive landscape, real estate industry players need to have a forward-thinking and comprehensive strategy for assessing and analyzing new solutions, as well as implementing changes – to help drive innovation in this sector. Those who don’t will be left behind,” adds Miriam Gurza, Managing Director, National Real Estate Consulting Leader.

Top Five Canadian Markets to Watch in 2018
VancouverThis market has the highest investor demand and redevelopment opportunities in Canada. However, regional developers and investors anticipate those opportunities will be more conservative in 2018 due to the impact of policy changes and interest rate hikes.

Toronto: Demand will remain high for the best assets, as institutional capital and other investors continue to seek stable long-term opportunities. But these same investors will be careful about their decisions as they seek yield either in development or elsewhere in the world.

MontrealMany institutional players have begun divesting older stock properties to focus on new developments aimed at attracting millennial and seniors’ markets. This is placing some pressure on owners of older buildings to compete and contributing to a growing divergence between new and old.

OttawaThe relative affordability of this market is luring people to the city from other geographic areas, particularly high-priced Toronto, as millennials and young families search for a better, less expensive lifestyle. Technology companies are expanding or moving into this market as well, eager to capitalize on the influx of talent—and doing their best to attract more talent to the city.

WinnipegThough there’s still weakness in the residential sector, it’s offset by an abundance of non-residential activity. The $467-million Southwest Transitway, which will link the University of Manitoba to the downtown, as well as the $400-million True North Square, a four-tower mixed-use project in the downtown core, are just some of the real estate activities pushing Winnipeg into the top five.

Additional quotes from ULI:

“From coast to coast we are seeing continued robust demand to invest in prime real estate in our cities, whether office buildings, industrial facilities, rental apartments and even retail,” says Wendy Waters of ULI British Columbia.

“Even in Alberta where there have been economic struggles, there has been continued investor interest in retail and multi-residential properties,” says Amy Vandervelde, Chair of ULI ALberta

To access the full report, please click here.

About PwC Canada
At PwC, our purpose is to build trust in society and solve important problems. More than 6,700 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms, which comprises more than 236,235 people in 158 countries. Find out more by visiting us at www.pwc.com/ca.

© 2017 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved.

PwC refers to the Canadian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see http://www.pwc.com/structure for further details.

About the Urban Land Institute (ULI) and ULI Toronto
The Urban Land Institute (www.uli.org) is a non-profit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in sustaining and creating thriving communities worldwide. Established in 1936, the Institute has more than 40,000 members representing all aspects of land use and development disciplines. The Urban Land Institute is an active and growing organization in Canada. With over 2000 members across the country, Canada’s first ULI District Council ULI Toronto (toronto.uli.org) was established in 2005, with a second District Council in British Columbia and another one being created in Calgary. ULI Toronto has over 1500 members.

SOURCE PwC (PricewaterhouseCoopers)

 

Canada’s housing market remains at a high degree of vulnerability and housing starts set to level off

Canada’s housing markets remain highly vulnerable with evidence of moderate overvaluation and price acceleration, according to  Canada Mortgage and Housing Corporation (CMHC). After a boost in residential construction in 2017, housing starts are projected to decline by 2019, but to remain close to the average level from the last 5 years.

This analysis is from two key CMHC reports released today: the Housing Market Assessment (HMA) and Housing Market Outlook (HMO).

CMHC’s HMA continues to find housing markets in Toronto, Hamilton, Vancouver, Victoria and Saskatoon highly vulnerable. There is low evidence of overbuilding overall at the national level but there are growing concerns surrounding overbuilding in Calgary, Edmonton and St. John’s. In these markets, the supply of new and unsold homes outweighs the demand for housing.

Housing Market Assessment (HMA) highlights

  • Despite the recent easing in Toronto’s resale market, we continued to detect moderate evidence of price acceleration with strong growth in home prices among all housing types. High house prices could not be explained by fundamental economic drivers such as income and population growth.
  • Hamilton’s housing market remained highly vulnerable for the fifth consecutive quarter. House prices continued to grow more quickly than levels supported by economic and demographic fundamentals.
  • Vancouver’s housing market remained highly vulnerable, with evidence of moderate overheating and price acceleration, and strong overvaluation. Imbalances remained between demand and supply in the resale home market, especially for multi-family units.
  • Victoria’s overheating persisted due to continued elevated sales for apartments and townhomes in the resale market, but very low inventories in the new home market of unsold homes to support the strong demand.
  • The Quebec CMA market is now reported to have low levels of vulnerability. However, overbuilding remains an area of concern as we continue to see vacancy rates increasing for conventional rental housing.

CMHC’s HMO provides a forward-looking analysis anticipating emerging trends in Canada’s new home, resale and rental housing markets. Variables covered include housing starts, MLS® sales, and vacancy rates. Other economic factors considered in our analysis include economic and employment growth, migration, population and mortgage rates.

After the expected boost in residential construction for 2017, housing starts are projected to decline by 2019. Sales in the existing-homes market are expected to decline relative to the record level of more than 535,000 MLS® sales registered in 2016.

The average MLS® price should increase over the forecast horizon, but at a slower rate than in the past four years. The average should lie between $493,900 and $511,300 in 2017 and between $499,400 and $524, 500 by 2019.

Housing Market Outlook (HMO) regional highlights

British Columbia

Housing starts and MLS® sales in B.C. are expected to decrease in 2018 and 2019, but will remain above historical levels, while MLS® prices will continue to grow at a slower pace as the housing market moves towards more balanced conditions. Rental demand will continue to be strong through the forecast period, with vacancy rates remaining tight and average rents rising.

Prairies

Alberta and Saskatchewan’s gradual recovery from the oil-price shock that started in 2014 will likely contribute to positive net interprovincial migration flows, supporting housing markets. Housing market conditions are expected to continue to slowly transition from a buyer’s market to a more balanced one in 2018 and 2019. However, the overbuilding in many CMAs is expected to put downward pressure on new housing construction. Manitoba has a more diversified economy compared to the other two provinces, which has allowed it to mitigate the risk of large economic swings that the oil-producing provinces experience when oil prices move significantly.

Ontario

Ontario MLS® sales and starts will trend lower over the forecast horizon, with modest growth in home prices expected relative to the recent past. Rising mortgage carrying costs will exert downward pressure on housing demand and shift demand to multi-unit homes which includes condominium and rental units. Housing demand will hold up better in eastern and southwestern Ontario centres given higher affordability levels, fewer market imbalances and generally better economic conditions.

Québec

Stronger employment growth will stimulate housing demand in 2018 and 2019. As a result, the province’s resale markets will continue to tighten and prices are projected to rise. Meanwhile, population aging will continue to provide support to residential construction in the apartment segment.

Atlantic Canada

Housing starts, MLS® sales and prices are expected to rise gradually over the forecast period, but continued economic growth will rely heavily on boosting exports.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

“We continue to see a high degree of vulnerability in Canada’s housing market, fuelled by moderate overvaluation and price acceleration. House price growth continues to outpace economic fundamentals like household income and population growth. In 2018 and into 2019, housing starts are projected to decline while house prices should increase over the forecast horizon, but at a slower rate than in the past four years.”

Bob Dugan, Chief Economist, Canada Mortgage and Housing Corporation

Source CMHC

 

 

8-10 Ontarians Want to See Home Affordability addressed in the 2018 Election

New research shows a majority agrees that the provincial government needs to encourage more housing supply

Ontario political parties should address home affordability in their 2018 election platforms, according to 85% of Ontarians in new research conducted by Ipsos and commissioned by the Ontario Real Estate Association (OREA), Ontario Home Builders’ Association (OHBA) and Federation of Rental-Housing Providers of Ontario (FRPO). Six-in-ten Ontarians (63%) agree the provincial government needs to encourage more housing supply by reducing regulation, in order to provide affordable housing options for more Ontarians.

According to the study, millennials are most intent on seeing home affordability addressed by Party leaders. Nine-in-ten (90%) Ontarians between the ages of 18 and 34 want Parties to address the issue in the next election, compared to 82% of Gen X’ers. Furthermore, 9-in-10 (88%) millennials state that they would be more likely to vote for a Party whose platform promotes home affordability.

As advocates for greater home supply and home affordability in the province, OREA, OHBA and FRPO have joined forces to ensure that these issues remain a priority for Party leaders and policy makers by hosting thought leaders at the Housing Summit on Tuesday, June 13.

The three associations say the solution to home affordability is increasing the supply of housing in the province, and thereby consumer choice, by streamlining the building approvals process and reducing red tape, which is preventing new homes and rentals from coming to market. Nearly 7-in-10 (66%) millennials agree that the provincial government needs to encourage more housing supply by reducing regulation on the home building industry, the research shows.

Full results from the research study are being presented at the Housing Summit in Toronto. Academia, economists, housing industry leaders, MPPs and senior government officials, including Finance Minister Charles Sousa, are expected to come together at the Summit to discuss the issues facing Ontario’s housing market.

QUOTES

“The best way to get millennials out of mom and dad’s basement and into a home of their own is to build more housing that young buyers can afford. If they want to appeal to voters in the next election, all political Parties need to put home affordability and housing supply front and centre in their election platforms.”

Tim Hudak, Chief Executive Officer, OREA

“Ontarians still believe in the dream of home ownership, but the challenges of today’s housing supply keeps pushing their dream beyond reach. If political parties are serious about improving housing affordability, they need to let voters know how they’re going to help Ontarians achieve their dream.”

-Joe Vaccaro, Chief Executive Officer, OHBA

“New rental housing is needed across Ontario to assist with affordability and provide tenants choice. All parties need to support solutions and regulations that encourage new supply and investment benefiting tenants.”

-Jim Murphy, President & Chief Executive Officer, FRPO

OREA represents 70,000 brokers and salespeople who are members of the 39 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy, and other services. www.OREA.com

OHBA is the voice of the land development, new housing and professional renovation industries in Ontario. OHBA represents over 4,000 member companies, organized through a network of 29 local associations across the province. www.ohba.ca

FRPO is the province’s leading advocate for quality rental housing. FRPO represents over 2,200 rental housing providers who supply and manage homes for over 350,000 tenant households across Ontario. www.frpo.org

Many Canadians Delaying Home Purchase

Royal Bank of Canada

Canadians cite belief that home prices may come down, lack of affordability and economic unpredictability as main reasons for delaying purchase

  • Over 80 per cent of Canadians feel that buying a home is a good or very good investment.
  • Only one-quarter of Canadians plan to purchase a home this year (down from 29 per cent in 2016); and highest among millennials (aged 18 – 34 years).
  • One in three Canadians would be concerned if their mortgage payment increased by more than 10 per cent.

The idea of a white picket fence may be antiquated, but the dream of home ownership is alive and well in Canada. But with the average Canadian home price topping out at over $500,000 (Canadian Real Estate Association) many Canadians are finding home ownership to be out of reach.

Despite this, according to the 2017 RBC Home Ownership Poll the majority of Canadians (82 per cent) believe that home ownership is a good investment…just not right now. The number of Canadians intending to buy a home within the next two years has decreased to 25 per cent, from 29 per cent in 2016. Millennials (aged 18 to 34), however appear to be feeling more optimistic than other age groups with two in five (39 per cent) saying they intend to buy a home in the next two years.

Why are Canadians delaying home buying?
Among Canadians who are delaying purchasing a home, the top three reasons cited include: belief that house prices may come down (58 per cent), uncertainty about the economy (51 per cent) and concerns about affordability (38 per cent).

“For many Canadians, buying a home is a financial and personal milestone – often the biggest investment one will make,” says Nicole Wells, Vice President, Home Equity Financing, Products and Segments, RBC. “In today’s market, the best advice is to start with understanding exactly how much you can afford and focus on your wants and needs ahead of starting the house hunt. This will help set expectations and get you started on finding the home that fits your budget and lifestyle. Knowledge and education are key.”

Ongoing cost of ownership
As home prices and carrying costs continue to climb, Canadians admit they are feeling the pressure. Fewer Canadians believe they are well positioned to weather a downturn in the market (65 per cent versus 73 per cent in 2016) or a potential increase in interest rates (57 per cent versus 63 per cent in 2016). Another one-third of Canadians (36 per cent) would be concerned if their mortgage payment went up by 10 per cent or more.

“The homeowner journey starts long before you get the keys, and continues well beyond the first mortgage payment. Create a budget by knowing what you can comfortably afford throughout the home ownership journey. From there, arm yourself with expert advice, the right tools and resources to stay informed today, tomorrow and well into the journey,” adds Wells.

Empowering consumers to make informed decisions
In the information age, consumers are not starved for resources – they are starved for time. Understanding what tools are available and using them can help get the home buying research started how they want, when they want. With tools available to help with everything from assessing affordability, to interest rate changes, determining the best type of mortgage for your situation and even finding the neighbourhood that matches your lifestyle, research and information are critical to good decision making when buying a home.

Regional expectations on price vary
When it comes to housing prices, expectations vary greatly from region to region. Residents in British Columbia and Ontario feel strongly that they are living in a sellers’ market where demand is exceeding the number of homes available. But that is where the comparisons stop. For the first time in three years, fewer residents of B.C. believe prices will go up by this time next year, showing a change in perception that may impact the trend of the market. Meanwhile, all other provinces show an increase in the number of people who feel that prices will go up.

Believe prices will go up

Seller’s Market

2016

2017

2016

2017

British Columbia

50%

36%

53%

60%

Alberta

22%

35%

6%

10%

Man/Sask

23%

41%

30%

27%

Ontario

51%

56%

44%

61%

Quebec

34%

36%

13%

16%

Atlantic

28%

39%

11%

13%

Whether it is your first or fifth time buying a home, RBC offers the following tips for success:

Be patient: It is easy to get worked up and emotional during the home buying process. Staying focused and patient can help ease the stress that comes with this financial investment and can stop you from making a rushed decision on a home.

Be informed: From budget constraints, to neighbourhood desires, know what you want and what you are willing to compromise. Try RBC’s True House Affordability tool to get pre-qualified in 60 seconds, and understand how much home you can afford.

Be flexible: Stay open-minded to different locations that match your preferences and budget. Try RBC’s Neighbourhood Finder and learn what neighbourhood may be right for you, what amenities are nearby and the cost of homes. Although you might have your heart set on a specific neighbourhood, a nearby borough or even a similar pocket elsewhere might fit into your price range and still offer the lifestyle and amenities you want.

Go local: The RBC poll shows that the home buying journey varies for Canadians based on where they live. Seek advice from market experts who know your city and neighbourhood as they will be able to offer the best advice for your situation. If you are considering your next home, try RBC’s Home Value Estimator and find out what your current home is worth today versus when you first bought it.

Consider the costs: Saving for a home is no easy feat and it starts well before you begin your house hunt. Start by having a savings plan in place and aim to put down more than the minimum required down payment. Run scenarios to see how much you can afford over time as your monthly income fluctuates. This includes factoring in future events like having children.

About RBC
Royal Bank of Canada is Canada’s largest bank, and one of the largest banks in the world, based on market capitalization. We are one of North America’s leading diversified financial services companies, and provide personal and commercial banking, wealth management, insurance, investor services and capital markets products and services on a global basis. We have over 80,000 full- and part-time employees who serve more than 16 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 35 other countries.

RBC helps communities prosper, supporting a broad range of community initiatives through donations, community investments and employee volunteer activities. For more information please see: http://www.rbc.com/community-sustainability/.

About the annual RBC Home Ownership Poll
These are some of the findings of the annual RBC Home Ownership Poll conducted by Ipsos from January 13 to January 25, 2017 on behalf of RBC, through a national survey of 2,073 Canadians ages 18+ who completed their surveys online. Quota sampling and weighting are employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

SOURCE RBC Royal Bank

For further information: Sophie Connor, sophie.connor@rbc.com, RBC Communications, 647-823-4790

RELATED LINKS
http://www.rbc.com

Humber College new education provider for Ontario real estate agents

The Real Estate Council of Ontario announced today that the consortium of Humber College Institute of Technology & Advanced Learning and NIIT Canada will be the future provider of registration education for aspiring real estate salespersons and brokers (commonly called real estate agents) in the province.

After a rigorous Request for Proposal (RFP) process, Humber and NIIT Canada were selected to design, develop, administer and deliver the New Program. Their innovative solution best met the requirements set out in the RFP.

The New Program will launch on July 1, 2019. Students enrolling until that date will enroll with the current provider, the OREA Real Estate College.

“We’re pleased to announce that the New Program will be developed by this partnership of two innovative leaders in professional education,” said RECO Registrar Joseph Richer. “The New Program will bring together the best in local real estate knowledge and education delivery, and leading edge expertise in program development. It will help ensure that students are practice-ready when they begin their real estate careers.”

“Humber has a strong industry reputation for credential testing and delivery of professional designation programs,” said Alister Mathieson, vice-president, Advancement and External Affairs, Humber College. “Further, Humber is closely connected with our local and provincial communities, and the opportunity to deliver specialized education and skills to real estate salespersons and brokers will help contribute to Ontario’s economy as newly trained professionals enter the workforce.”

“NIIT Canada is truly honored to have been selected as the provider of the real estate professional training programs to RECO. We are looking forward to developing the highest quality of training programs for Ontario’s real estate professionals. Canada is a very important market for us and we are committed to expanding our operations in Canada, specifically Ontario, through our Toronto office to better serve the needs of our Canadian customers,” said Sapnesh Lalla, President, NIIT Corporate Learning Group.

This milestone follows a four-year process that included: extensive research and consultation with the real estate sector, education providers and regulatory bodies; the distribution of a white paper on RECO’s vision for registration education; and a public RFP that was distributed broadly.

Upon its launch in July 2019, the New Program will offer courses in-class, in real-time virtual classrooms, and through self-paced e-learning modules to more than 12,000 students annually.

More information is available on RECO’s website.

About RECO:

The Real Estate Council of Ontario regulates real estate professionals in the province on behalf of the Ontario government by enforcing the Real Estate and Business Brokers Act, 2002 (REBBA 2002). We protect the public interest through a fair, safe and informed marketplace. RECO holds registered brokers and salespersons to professional standards, protects the public interest, and enhances consumer confidence in the real estate profession. In addition, RECO strives to educate consumers to ensure they understand the benefits of a regulated real estate sector.

About Humber College:

Established in 1967, Humber College is one of Canada’s leading post-secondary institutions offering programs to over 29,200 full-time students and 23,000 continuing education students. Humber College partners with government, industry and community in the development and delivery of customized training programs, and government and industry credential testing programs, including: Ontario Building Code certification examinations, and programs for IHM Property Management and Condominium Management and Administration. From the 1980s through to 2000, Humber College was a delivery partner of the original Real Estate Education Program, delivering courses to over 18,000 students.

About NIIT Learning Solutions (Canada) Limited:

NIIT Learning Solutions (Canada) Limited is a subsidiary of NIIT Limited, a global leader in skills and talent development, established in 1981. NIIT Limited offers multi-disciplinary learning management and training delivery solutions to institutions, individuals, and corporations in over 40 countries. NIIT’s comprehensive suite of Managed Training Services includes custom curriculum design and content development, learning administration and delivery, strategic sourcing, learning technology, and advisory services. NIIT’s global customers include leading global energy and petrochemical companies headquartered in Europe; some of the largest multi-national banks, insurance, and financial services companies in North America; and market-leading global technology companies. The Learning and Performance Institute, UK has internationally accredited NIIT as a forward-thinking, reputable provider, committed to learner outcomes, performance development, and customer satisfaction.

SOURCE Real Estate Council of Ontario

For further information: James Geuzebroek, Director, Communications, Real Estate Council of Ontario, 416-207-3108, james.g@RECO.on.ca

RELATED LINKS
http://www.reco.on.ca

What $1 Million Can Buy Across Canada

new home financing

Bang for your buck varies significantly, as the location, size, home finishes and condition of a $1 million home range widely by region

According to Royal LePage, Canada’s leading real estate services provider, extreme variances in recent home price appreciation across Canada have contributed to vast differences in the types of properties a prospective homeowner can expect to buy with a $1 million budget. While the once-exclusive $1 million home has become the norm in certain markets, in others, it can purchase anything from an ultra-luxury abode to an entry-level residence.

A $1 million home’s location, size, proximity to amenities and current condition ranked as the top four factors that influenced its pricing, not unlike homes in other price ranges. However, together, these four characteristics varied considerably from region to region, with Canada’s two hottest markets – Toronto and Vancouver – offering smaller, more dated two-storey “starter” homes when compared to larger, luxurious mansions elsewhere. While the average number of bedrooms and bathrooms typically found in a $1 million dollar home did not differ by region as materially as the aforementioned four factors, there were noticeable differences between certain regions. In January, 2017, a $1 million home in the City of Vancouver had an average of 2.6 bedrooms and 2.1 bathrooms, while on Canada’s other coast, a $1 million home in Halifax had an average of 3.1 bedrooms and 3.8 bathrooms. Looking to Central Canada, $1 million secured an average of 3.4 bedrooms and 2.5 bathrooms in the City of Toronto, while purchasing a $1 million home in Winnipeg delivered the biggest bang for your buck, with an average of 4.1 bedrooms and 4.0 bathrooms.

In fact, of the seven cities studied across Canada – including Vancouver, Calgary, Saskatoon, Winnipeg, Toronto, Montreal and Halifax – Winnipeg provided the most living space overall, with $1 million fetching on average, a 3,505 sq. ft. luxury home in a desirable neighbourhood. During the same period, $1 million in Saskatoon secured the largest lot size of all regions, with an average of 65,838 sq. ft. In contrast, Vancouver offered prospective homebuyers the least amount of home for $1 million, with an average of 1,229 sq. ft. on a 3,134 sq. ft. lot.

“There are striking differences in the options available for those who are looking to purchase a $1 million two-storey home in Canada,” said Dianne Usher, senior vice president of Johnston and Daniel, a division of Royal LePage. “From an older starter home in Vancouver to a waterfront property with all of the bells and whistles in Halifax, the amount of value and space that prospective buyers receive is largely dependent on the characteristics of the market in which they are located.”

When looking at inventory levels and sales activity, $1 million properties and transactions have been more prevalent in highly sought-after markets where greater demand has pushed home values higher. As a result, this has led these regions to experience a weakening in the overall value received for $1 million when compared to other areas across the nation that are less constrained by supply and demand.

While smaller, regional markets have continued to maintain their value over the last decade, 10 years ago prospective homeowners in Canada’s largest metropolitan areas were able to purchase fully-renovated homes in desirable neighbourhoods with considerably more space for $1 million.

“What used to be considered a luxury price point is now the status quo in Canada’s two hottest markets,” added Usher. “Once carrying significant purchasing power, $1 million is now either below or on par with the price of an average two-storey home in Toronto and Greater Vancouver. Now, instead of a fully upgraded three bedroom, three bathroom two-storey property in prestigious neighbourhoods like Rosedale or West Vancouver, you’re getting a much smaller two or three bedroom, two bathroom property in need of renovation in a less sought-after location.”

“However, significant value can still be found in the suburbs or city-centres like Saskatoon and Montreal, where homes are more affordable, landing you substantially more home with better features as a result.”

The profile of a $1 million buyer was also found to vary by region, with developers and first-time buyers dominating the $1 million two-storey property segment in Canada’s largest metropolitan areas, while wealthy young to middle-aged professional couples with children acted as the predominant purchasers elsewhere.

Aggregate and regional $1 million two-storey home attributes

RegionYearBedroomsBathroomsLiving AreaLot Size
Canada20073.93.32,860 sq. ft.26,684 sq. ft.
20163.83.02,454 sq. ft.23,226 sq. ft.
January 20173.82.92,436 sq. ft.22,624 sq. ft.
Greater Vancouver20074.03.42,664 sq. ft.16,429 sq. ft.
20163.83.22,175 sq. ft.8,402 sq. ft.
January 20173.73.22,166 sq. ft.8,149 sq. ft.
Greater Toronto Area20074.03.42,843 sq. ft.17,170 sq. ft.
20163.82.92,387 sq. ft.8,336 sq. ft.
January 20173.82.92,363 sq. ft.8,168 sq. ft.
Greater Montreal Area20075.85.95,429 sq. ft.12,756 sq. ft.
20164.12.82,732 sq. ft.13,058 sq. ft.
January 20174.12.82,758 sq. ft.13,040 sq. ft.
RegionYearBedroomsBathroomsLiving AreaLot Size
Vancouver20073.52.61,846 sq. ft.4,798 sq. ft.
20162.62.11,241 sq. ft.3,134 sq. ft.
January 20172.62.11,229 sq. ft.3,134 sq. ft.
Calgary20073.32.62,513 sq. ft.6,897 sq. ft.
20163.42.82,492 sq. ft.7,129 sq. ft.
January 20173.32.82,477 sq. ft.7,004 sq. ft.
Saskatoon20084.03.33,117 sq. ft.6,250 sq. ft.
20163.12.62,775 sq. ft.71,767 sq. ft.
January 20173.22.72,829 sq. ft.65,838 sq. ft.
Winnipeg20074.34.24,400 sq. ft.23,850 sq. ft.
20164.03.83,385 sq. ft.13,501 sq. ft.
January 20174.14.03,505 sq. ft.13,453 sq. ft.
Toronto20073.93.42,664 sq. ft.5,669 sq. ft.
20163.52.51,747 sq. ft.3,744 sq. ft.
January 20173.42.51,722 sq. ft.3,731 sq. ft.
Montreal20074.52.32,984 sq. ft.3,986 sq. ft.
20164.02.62,585 sq. ft.5,361 sq. ft.
January 20174.02.62,585 sq. ft.5,361 sq. ft.
Halifax20073.32.53,154 sq. ft.23,144 sq. ft.
20162.82.72,945 sq. ft.55,582 sq. ft.
January 20173.13.83,316 sq. ft.43,521 sq. ft.

People armed with a million dollars in search of a waterfront mansion need not look any further than Halifax. With enough million-dollar inventory to satisfy demand, prospective buyers within the region are able to purchase a number of unique types of properties reflective of their tastes and desired lifestyle. In January 2017, the average $1 million two-storey home within the region had 3.1 bedrooms, 3.8 bathrooms, 3,316 sq. ft. of living area and a lot size of 43,521 sq. ft.

While homes tend to be much larger on the fringes of the city and offer prospective homeowners direct access to the water, buyers with seven-figure budgets can also tap into the heart of downtown to find stunning heritage homes. As with the rest of Atlantic Canada, properties in Halifax have maintained their affordability relative to other regions across the nation, landing purchasers just as much, if not more, property than what was previously available a decade ago.

“The value of a million-dollar property in Halifax continues to grow, both when compared to other cities across Canada and when compared to 10 years ago,” said Sandra Pike, team lead, Royal LePage Atlantic. “Recently, the region’s urban sprawl has enticed developers to expand into untapped regions of Halifax, giving prospective purchasers the option of buying brand new, fully upgraded homes with a substantial amount of space for $1 million.”

Methodology

The tables found within this report represent averaged characteristics for two-storey properties that sold between $950,000 and $1,050,000 in 2007, 2016 and January 2017. Highlighted property listings were collected based on a uniform set of criteria, where listings in each region required a standard two-storey that is selling or has been sold in the last two months within 10 per cent of $1 million. To gain additional insight into regional market dynamics and property characteristics, interviews were conducted with Royal LePage real estate professionals in the featured cities.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of over 17,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.

For more information visit: www.royallepage.ca.

For further information, please contact:

Michael Jesus
Kaiser Lachance Communications
p: 647-783-1807
e: michael.jesus@kaiserlachance.com

Canadian House Price Growth Remains Elevated

Mortgages insured by CMHC

Canada Mortgage and Housing Corporation (CMHC) is reporting strong overall evidence of problematic housing market conditions nationally for the second consecutive quarter due to overvaluation and price acceleration in Canada’s housing markets. This assessment largely accounts for market conditions in Vancouver and Toronto where strong price growth has been spreading to neighbouring centres such as Hamilton and Victoria.

Canada saw house prices grow by 7 per cent year-over-year at the end of the third quarter of 2016 after adjusting for inflation. However, removing Ontario from the calculation would have seen house prices remain flat through to the third quarter.

This analysis is the result of insight from CMHC’s quarterly Housing Market Assessment (HMA). The HMA serves as an early warning system, alerting Canadians to areas of concern developing in our housing markets so that they may take action in a way that promotes market stability.

 

 

Report Highlights

  • Overvaluation and overbuilding remain the most prevalent problematic conditions observed across the 15 centres covered by the HMA.
  • Overvaluation and overbuilding are detected in 8 centres.
  • Evidence of problematic conditions has increased in Victoria since the previous assessment due to moderate evidence of price acceleration and overvaluation.
  • Evidence of problematic conditions has decreased in Calgary since the previous assessment as some housing markets in oil-dependent centres are now rebalancing.
  • Strong evidence of problematic conditions continue to be detected in Vancouver, Toronto, Regina, Saskatoon and Hamilton.
  • Evidence of problematic conditions in Ottawa and Atlantic Canada remains weak.

CMHC defines evidence of problematic conditions as imbalances in the housing market. Imbalances occur when overbuilding, overvaluation, overheating and price acceleration, or combinations thereof depart significantly from historical averages. For examples, please consult the Overview section of the national report.

The complete HMA, including national, regional and CMA insight and analysis, is available on our website. To access future CMHC market analysis reports, subscribe to Housing Observer Online.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For more information, follow us on Twitter, YouTube, LinkedIn and Facebook.

 

OREA to Mayor John Tory: “Make Toronto More Affordable for Young Families”

Toronto city counsil

Toronto city councilReal Estate Experts Urge City Council to Reject Proposal to Increase Land Transfer Tax

Finding an affordable home in Toronto is becoming a CN Tower-sized challenge for many young families and it could get worse if Toronto City Council increases the Toronto Land Transfer Tax (LTT). Representatives from the Ontario Real Estate Association (OREA) presented at today’s Toronto Budget Committee meeting, where they urged City Council to reject a proposal by city staff to increase the Toronto LTT.

“Toronto City Council has an opportunity to take action to support more affordable home ownership in our city,” said Tim Hudak, OREA CEO. “Today, home prices are at record highs and new listings are at record lows. It’s become so much harder for first-time home buyers and young families to break into the market. A proposed tax increase could not come at a worse time.”

On the average priced Toronto home, a first-time home buyer pays over $15,000 in taxes to the city and the province. As part of the 2017 budget, city staff are proposing to hike the local LTT. The staff proposal would impose over $85 million in new taxes on home buyers with first-time home buyers paying almost $500 more in LTT on an average priced home.

“Ultimately, Toronto needs to roll back the LTT or, at the very least, not make this punishing tax even worse,” said Hudak. “Voting down the proposal to increase the LTT is a good first step but I encourage Council to go even further. To start, Toronto should follow Ontario’s lead and double the city land transfer tax rebate for first-time home buyers.”

As of January 1, 2017, Premier Wynne doubled the provincial land transfer tax rebate program meaning that first-time home buyers receive up to $4,000 in land transfer tax relief. If the City matched the provincial relief, first-time buyers in Toronto would see up to $12,000 in tax savings. Unfortunately, Toronto is proposing to swipe up to 25 per cent of the provincial savings out of the pockets of young couples and put it into city coffers instead.

“Toronto is a great place to live, work and raise a family; for generations, it’s where thousands of young people got their start in life,” said OREA president Ray Ferris. “Research has demonstrated the LTT has discouraged economic activity and reduced listings since all home sellers know they have to pay the tax on their next purchase. Reducing the LTT will help alleviate the housing supply shortage by bringing much needed housing stock on the market.”

Ontario Realtors suggest that Toronto work with the province to encourage the building of a greater range of housing types, namely townhomes, duplexes and stacked townhomes. Building more of these units would give a growing family more affordable options for staying in Toronto and baby-boomers more options for ‘right sizing’ out of their large detached homes.

About the Ontario Real Estate Association

The Ontario Real Estate Association represents 67,800 brokers and salespeople who are members of the 40 real estate boards throughout the province. OREA serves its REALTOR members through a wide variety of professional publications, educational programs, advocacy, and other services. www.OREA.com

CONTACT INFORMATION

  • For more information, or to schedule an interview, contact:
    Katarina Markovinovic
    Ontario Real Estate Association
    (416) 445-9910 ext. 615
    katarinam@orea.com

Desire for detached homes growing in Ontario, new research from OREA

ontario real estate association logo

ontario real estate association logoAll-time low inventory driving up house prices, reducing affordability for buyers

Half of Ontarians in the market to buy a home in the next two years say they are looking for a detached house, up 13 points from a year ago, shows new research from the Ontario Real Estate Association (OREA). In Toronto, where supply of detached homes is at an all-time low, the demand is up 21 points from a year ago, with 50% of buyers saying they are likely to buy this housing type, according to the Ontario Home Ownership Index, OREA’s semi-annual consumer study conducted by Ipsos Reid.

“With limited supply of this housing type, it’s becoming increasingly difficult to meet the demand,” said Tim Hudak, OREA CEO. “Young families looking for more space, a backyard to play with their kids in, simply don’t have enough options to choose from. Increasing the supply of single-family detached houses, as well as semis and townhouses, will give buyers more choice at affordable levels.”

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 key driving factor for increasing prices of new single-family detached houses and high-rise condos in the GTA.

“Demand for detached houses is up while supply is critically low — no wonder prices are rising so quickly,” said Hudak. “We need more homes on the market; government should give careful consideration to policies that will increase supply. Home ownership is not a fad — it is the Canadian dream.”

According to OREA’s Ontario Home Ownership Index, eight out of ten Ontarians consistently say that home ownership is important to them (79%), real estate is a good investment (82%) and it makes more sense to own rather than rent (81%). ‘Long-term investment value’ is Ontarians’ top reason for buying a home (34%).

Housing Types – Ontario compared to Toronto
Types of homes Ontario and Toronto buyers say they are likely to purchase in the next two years
Ontarians say:Torontonians say:
50% – likely to buy a detached house in the next two years, up 13 points from a year ago50% – likely to buy a detached house, up 21% from a year ago
19% – likely to buy a condo in the next two years, down 7 points from a year ago22% – likely to buy a condo, down 17% from a year ago
19% – likely to buy a semi-detached home, up 4 points from a year ago23% – likely to buy a semi-detached home, up 3 points
14% – likely to buy a townhome, down 2 points from a year ago22% – likely to buy a townhome, up 2 points

Methodology

These are some of the findings of an Ipsos poll conducted between October 27 and 31, 2016, on behalf of the Ontario Real Estate Association (OREA). For this survey, a sample of 1,003 Ontarians from Ipsos’ online panel was interviewed online. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/ – 3.5 percentage points, 19 times out of 20, had all Ontario adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

About The Ontario Home Ownership Index

The Ontario Home Ownership Index is designed to reflect Ontarians’ overall views of the residential real estate market in Ontario, and incorporates measures such as Ontarians’ perceptions of whether the market in their neighbourhood, city, and Ontario, respectively, have improved or worsened in the last year and looking ahead into the future, whether home ownership is important to them and whether it is a good investment in the long-term. The first wave of the index, conducted in the fall 2013, was set to a baseline of 100 points.

About the Ontario Real Estate Association

The Ontario Real Estate Association represents 67,800 brokers and salespeople who are members of the 40 real estate boards throughout the province. OREA serves its REALTOR members through a wide variety of professional publications, educational programs, advocacy, and other services. www.OREA.com

Province Proposes Initiatives to Improve Housing Affordability

Ontario Pension Plan

Ontario Pension PlanOntario will help more people purchase their first home through a proposal to double the maximum Land Transfer Tax refund to $4,000 for eligible first-time homebuyers, as of January 1, 2017.

Charles Sousa, Minister of Finance, along with Chris Ballard, Minister of Housing, were at Gateway Park in Toronto today to highlight the proposal, announced yesterday in the 2016 Ontario Economic Outlook and Fiscal Review.

If passed, the proposal would mean that no Land Transfer Tax would be payable on the first $368,000 of the cost of a first home, and more than half of first-time homebuyers would pay no Land Transfer Tax on the purchase of their home.

Ontario is taking further action to address housing affordability by proposing to:

  •  Freeze the municipal property tax on apartment buildings while undertaking a review of how the high property tax burden for these buildings affects housing affordability in the rental market.
  • Modernize the Land Transfer Tax to reflect the current real estate market, including increasing rates on one or two single-family residences over $2 million. Revenue generated from proposed increased rates would be used to fund the enhancements to the First-time Homebuyers Refund.

Improving housing affordability is part of Ontario’s plan to create jobs, grow our economy and help people in their everyday lives.

Quick Facts

  • Residential investment as a share of GDP has increased to 7.9 per cent in 2015 from 4.8 per cent in 2000.
  • The average purchase price for a first-time homebuyer in Ontario in 2015 was $375,000.
  • In 2015, 99 per cent of single-family residence transactions in Ontario were below $2 million.
  • Eligibility for the Land Transfer Tax refund for first-time homebuyers is proposed to be restricted to Canadian citizens and permanent residents. First-time homebuyers who become Canadian citizens or permanent residents within 18 months of purchasing a home could also apply for the refund.
  • The average municipal property tax burden on apartment buildings is more than double that for other residential properties such as condominiums.

Additional Resources

“We know that rising home values are a good thing for the provincial economy, but also a concern for a growing number of Ontarians. The government is committed to supporting an affordable and stable housing market while balancing the concerns of homeowners, first-time homebuyers and renters. Ontario is taking action to address housing affordability and to help people in their everyday lives.”

Charles Sousa

Minister of Finance

“We’re working to protect renters across the province, to make housing more affordable for all Ontarians and to ensure that Ontario continues to be the best place to live and raise a family.”

Chris Ballard

Minister of Housing and Minister Responsible for the Poverty Reduction Strategy

Federal Tax Obligations When Buying and Selling Property in Canada

canada-revenue-agency

canada-revenue-agencyThe Canadian real estate market is active, particularly in some major Canadian cities like Vancouver and Toronto. Questions have been raised about what federal tax obligations the buyers and sellers of real estate in Canada must meet, and how the Canada Revenue Agency (CRA) ensures tax compliance on these transactions.
This fact sheet is intended to answer these questions and address some myths about real estate transactions in Canada and the CRA’s role in administering the tax rules that apply to these transactions.

Myth – The CRA has a role to play in reducing housing costs.

Fact – The CRA does not have any role to play concerning the affordability of real estate. The CRA has no influence over market-based or economic forces that influence the cost of housing, such as supply and demand, construction costs, and market speculation.

Rising real estate prices do, however, create an incentive for real estate flipping. The CRA has dedicated resources to ensure compliance with the tax rules for property sales and other real estate transactions. The extent of our compliance activities is detailed in How does the CRA address non-compliance in the real estate sector. This work helps to maintain the fairness of our tax system.

Myth – Real estate flipping is illegal.

Fact – Real estate flipping is not against the law. Flipping is a method of buying and selling real estate to earn income. Individuals may also use assignment clauses in real estate contracts to flip a property once or more before a final sale is made.

However, all the money made on real estate flips, including real estate commissions and appreciation in value (the difference between the purchase price and sale price), must be reported to the CRA.

Myth – The sale of a new or substantially-renovated home is GST/HST exempt if the home has remained vacant or has been occupied temporarily by the builder after it is completed.

Fact – In fact, generally, the GST/HST must be charged on sales of new or substantially-renovated homes that were built or substantially renovated for sale, even when the home has remained vacant or has been occupied temporarily by the builder after completion. Please refer to GST/HST Memorandum 19.2.1, Residential Real Property – Sales, for more details, including possible, limited exceptions. For more information on the GST/HST and housing, go to GST/HST and housing.

Myth – Non-resident real estate investors do not have to pay Canadian federal income tax.

Fact – A non-resident who sells any taxable Canadian property must notify the CRA of the sale no later than 10 days after the date of the sale and pay an amount to cover the estimated taxes on that sale.

A person’s residency status is determined on a case-by-case basis by considering a number of factors which include:

  • residential ties in Canada
  • purpose and duration of visits outside Canada
  • social and economic ties outside of Canada

For more information, go to Non-residents of Canada.

What can you do?
If you suspect that someone has not reported income or GST/HST related to a real estate transaction or any other type of transaction, you should contact the CRA’s National Leads Centre. Your identity will not be disclosed, and you can provide information anonymously. For more information, go to the Informant Leads Program.

Taxpayers who have engaged in real estate transactions and have not reported them or have not correctly reported them to the CRA can go to How to change your return to obtain information on how to correct their tax affairs.

For more information on the tax-related obligations of vendors and purchasers, go to Disposing of or acquiring certain Canadian property. For more information on the CRA’s compliance activities, go to Compliance Programs.

Home Inspection Still Necessary in a Hot Real Estate Market

housemasterExperts from HouseMaster Home Inspections say that while there may be multiple bids on a house, buyers shouldn’t forgo the home inspection to help get their offer accepted.
As the weather heats up, there are no signs of the real estate market cooling in the Guelph/Cambridge market. Many real estate markets throughout Toronto remain hotter than ever, categorized by high demand and low inventory. “If you are in the market for a home in and around the GTA, you may find yourself making an offer above the asking price, to keep from losing the house to another bidder,” says Felix Fujs, of the Wellington County-franchise of HouseMaster, the first company to franchise in the home inspection industry in North America. “In some cases, buyers may consider submitting their offers without a home inspection contingency — a clause that allows the buyer to have a professional document of the condition of the major components of the home such as the roof, foundation, and major systems.”
But “buyer beware,” cautions Mr. Fujs. When it comes to buying a home in a hot market, buyers often get burned when they let emotion or pressure cloud their decision. While buyers want to get an accepted offer quickly, eliminating the home inspection to get a leg up over other bidders is not a good investment decision.
“Keep in mind that sellers who are inclined to accept an offer without the buyer’s home inspection contingency (over other offers that have maintained this clause), may be doing so because they know many of the home’s components are older and possibly in need of expensive repairs,” says Mr. Fujs. “I’ve seen buyers skip the home inspection, only later to move in and find that the home needs thousands of dollars in repairs and replacements.”
It can be understandable why home sellers and real estate agents see a deal without a home inspection contingency as an added value. Not having the home inspection saves time for all parties and keeps the deal moving forward, but at what cost? Ontario law does not require sellers to disclose any defect that would have been revealed by a home inspection, according to the Ontario Bar Association. “By not having the opportunity to review a comprehensive inspection by a professional home inspector prior to purchase, buyers can basically be guaranteed they will face unknown repair expenses after they move in,” adds Fujs. Savvy, risk adverse real estate agents and astute home sellers can assist buyers to avoid post sale surprises even in hot markets by having a pre-listing inspection. Home sellers can hire a reputable home inspector to document the condition in writing before the bids even start. Buyers can then review the inspection report and make their offer without an inspection contingency, but with the peace of mind that they know what they are buying, the existing conditions, and what to expect once they move in. Home sellers and agents both win because by having a professional, third-party pre-listing inspection performed, they can still sell the home fast, eliminate negotiations, and accept the highest offer knowing they did the right thing. “In a market this hot, the seller is in the driver’s seat, so disclosing the condition of it through a pre-listing inspection won’t stall the home from selling; it will simply give all parties peace of mind with no surprises after closing,” Fujs adds.
To view a quick informational video on Pre-Listing Inspections visit https://housemaster.com/sellers or contact your local HouseMaster office at 866 955-8617 or email felix.fujs@housemaster.com

About HouseMaster:
Founded in 1979 and Headquartered in Somerville, NJ, HouseMaster is the oldest and one of the largest home inspection companies in North America. With more than 310 franchised areas throughout the US and Canada, HouseMaster is the most respected name in home inspections. For over 35 years, HouseMaster has built upon a foundation of solid leadership and innovation with a continued focus on delivering the highest quality service experience to their customers and providing HouseMaster franchisees the tools and support necessary to do so. Each HouseMaster franchise is an independently owned and operated business. HouseMaster is a registered trademark of HouseMaster LLC.

CONTACT INFORMATION
HouseMaster
866 955-8617
felix.fujs@housemaster.com

Dan Brewer Elected New President of the Appraisal Institute of Canada

appraisal institute of canada logoThe Appraisal Institute of Canada (AIC) announces the election of Dan Brewer, AACI, P.App of Richmond Hill Ontario as AIC’s National President for 2016-2017. Mr. Brewer was formally inducted during the AIC’s Annual Conference held from June 8 – 11, 2016 in Winnipeg, MB.

Dan Brewer has over 38 years of property valuation experience in the private sector and is currently a senior appraiser and consultant for Appraisers Canada Inc with offices in Richmond Hill and Barrie. Dan joined the Appraisal Institute of Canada in 1983 and earned his CRA designation in 1987, then his AACI, P.App in 2006. He is a licensed Real Estate Broker, a licensed Mortgage Broker and he holds the Real Estate Institute of Canada’s CRP designation for Certified Reserve Fund Planners. During the past 24 years Dan has served on several committees at both the provincial and national level and he also speaks at various seminars and conferences. As president-elect, Dan also served as chair of the Professional Practice Committee.

“I am honored to be president of the Appraisal Institute of Canada. AIC has been the preeminent professional valuation association for almost 80 years and I plan to build on its proud reputation as the appraisal professionals of choice within Canada,” states Dan Brewer, president of the Appraisal Institute of Canada. ”

“I look forward to working with the 2016/2017 Board of Directors to represent AIC Members and to continue to strengthen our partnerships within Canada and around the world.”

Joining Mr. Brewer on the AIC Executive Committee are:

Rick Colbourne, AACI, P.App – President Elect – Nova Scotia
Thomas Fox, AACI, P.App – Vice-President – Saskatchewan
Peter McLean, AACI, P.App – Vice-President – Ontario
Daniel Doucet, AAIC, P.App, Fellow – Past President – New Brunswick
Keith Lancastle, Chief Executive Officer, Non-voting member

The 2016/2017 Board Members include:

Craig Barnsley, AACI, P.App, British Columbia
Dan Jones, AACI, P.App, British Columbia
John Manning, AACI, P.App, Alberta
Ernie Paustian, AACI, P.App, Alberta
Darrell Thorvaldson, AACI, P.App, Manitoba
Paula Malcolm-Schaller, CRA, Ontario
Peter McLean, AACI, P.App, Ontario
Daniel Pinard, AACI, P.App, Quebec
Mike Kirkland, AACI, P.App, Newfoundland
Scott Wilson, AACI, P.App, Fellow, Prince Edward Island

For more information about the 2016/2017 board, please visit www.AICanada.ca/board-of-directors/.

The AIC’s highest honour, the Fellow, was also awarded to two AIC Designated Member who have emulated AIC’s values and integrity in every facet of their career. This year’s recipients include: Daniel Doucet, AACI, P.App, Fellow of New Brunswick and Peter Lawrek, AACI, P.App, Fellow of Saskatchewan.

An Honourary AACI was also awarded to Craig Kelman, Owner, Kelman & Associates, who has published AIC’s quarterly publication, Canadian Property Valuation, for more than 30 years and Davida Mackay, the Executive Director of the Nova Scotia Real Estate Association in recognition of close to 30 years of dedicated service to members and her involvement with various provincial and national committees.

ABOUT AIC
The Appraisal Institute of Canada (AIC) is a leading real property valuation association with over 5,000 members across Canada. Established in 1938, the AIC works collaboratively with its 10 provincial affiliated associations to grant the distinguished Accredited Appraiser Canadian Institute (AACI) and Canadian Residential Appraiser (CRA) designations. AIC Designated Members are highly qualified, respected professionals who undertake comprehensive curriculum, experience and examination requirements. Our members provide unbiased appraisal, appraisal review, consulting, reserve fund study and machinery and equipment appraisal services on all types of properties within their areas of competence. For more information, go to www.AICanada.ca and follow AIC on LinkedIn, Twitter, Facebook and the AIC Exchange.

SOURCE Appraisal Institute of Canada

CREA Updates Resale Housing Forecast June 2016

Canadian Real Estate Association

Canadian Real Estate AssociationThe Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations in 2016 and 2017.

Canadian resale housing market trends that defined 2015 have intensified. National sales activity and average prices reached new heights in the first half of 2016 amid a growing supply shortage of single family homes in British Columbia and Ontario, particularly in B.C.’s Lower Mainland as well as in and around the Greater Toronto Area (GTA).

Price gains in these regions stand in contrast to declines in provinces where economic and housing market prospects are closely tied to the outlook for the oil patch and other natural resource industries. Elsewhere, home prices are growing modestly, such as in Ottawa or Montreal.

Activity should begin to rebalance away from B.C. and Ontario, as supply shortages put upward pressure on home prices and constrain transactions even as housing demand remains strong in these provinces and interest rates remain low. Accordingly, sales activity over the second half of the year is expected to ease in B.C., Ontario and on a national basis.

Sales in Alberta, Saskatchewan and Newfoundland & Labrador are expected to struggle to regain traction this year, resulting in continuing softness for home prices. In most other provinces, home sales activity and average prices should improve as their economies strengthen and interest rates remain low.

Nationally, sales activity is forecast to rise by 6.1 per cent to 536,400 units in 2016. This would represent a new annual record, but remain below the peak reached in the 2007 after adjusting for population growth.

British Columbia is forecast to post the largest annual increase in activity (+20.0 per cent) this year, while Alberta is expected the record the largest annual decline in activity (-11.5 per cent). Although housing demand remains strong among many housing markets in Ontario, a lack of supply is projected to constrain the increase in sales activity (+5.2 per cent) this year.

Elsewhere, sales are forecast to rise in Manitoba (+7.1 per cent), Quebec (+5.1 per cent) and Nova Scotia (+5.8 per cent), reflecting anticipated economic improvements in these provinces. In New Brunswick, strong home sales toward the end of last year and a weak start to 2016 is projected to result in a small annual decline in activity this year despite an anticipated improvement in its economic prospects.

In Saskatchewan and Newfoundland & Labrador, where housing market prospects are tied to the outlook for natural resource prices, annual sales activity is forecast to ease by four per cent and one per cent respectively this year.

Prices have continued to push higher in British Columbia and Ontario and sales in these expensive real estate markets have recently hit record highs. Accordingly, CREA’s forecast for the national average price has been revised upward to $490,700 in 2016, representing an annual increase of 10.8 per cent.

Highlighting how provincial sales activity affects the national average price, British Columbia is the only province where the average home price is forecast to climb faster (+13.5 per cent) than the national average in 2016. Ontario’s average price is forecast to rise roughly in line with the national increase.

Elsewhere, average prices in 2016 are forecast to rise by 1.4 per cent in Manitoba, 1.1 per cent in Quebec, 1.4 per cent in New Brunswick, and 0.2 per cent in Nova Scotia. Reflecting recent housing market strength in Prince Edward Island, its average price is forecast to advance by 4.5 per cent in 2016.

The forecast for Alberta’s average price has been revised upward and is now projected to eke out a small gain (+0.6 per cent) this year as the province’s supply of listings continues to be drawn down by sales activity. By contrast, average price is expected to ease in Saskatchewan (-1.4 per cent) and record a marked decline in Newfoundland & Labrador (-8.0 per cent).

In 2017, national sales are forecast to number 537,500 units, which is virtually unchanged (+0.2 per cent) from the forecast for sales this year. Activity in B.C. and Ontario is anticipated to remain strong but unable to match records set this year due to a combination of deteriorating affordability and a lack of supply.

Meanwhile, consumer confidence should begin to strengthen and begin drawing homebuyers off the sidelines in Alberta and Saskatchewan as oil prices improve and their economic prospects strengthen. This should contribute to a modest rebound in sales activity for these provinces in 2017.

British Columbia is projected to post an annual decline of 2.3 per cent in home sales in 2017, while annual sales in Ontario are forecast to edge back by 0.6 per cent in 2017.

By contrast, sales activity is forecast to continue rising in Manitoba, Quebec and Nova Scotia next year, reflecting further anticipated economic improvement in these provinces. Meanwhile, sales in Prince Edward Island are expected to remain near on par with record levels forecast for 2016, as the province’s economy continues to benefit from a lower Canadian dollar.

The national average price is forecast to remain stable (+0.1 per cent or +$400) to $491,100 next year, with modest price gains near or below inflation in most provinces.

Slower national average price growth in 2017 primarily reflects the effect of a projected slowdown in sales activity in British Columbia and Ontario. In these two provinces, luxury sales activity is anticipated to recede from current record levels, resulting in a decline in their share of total sales activity. An ample supply of listings relative to demand will continue to keep price gains in check in other provinces, although inventories have begun to shrink in provinces where supply had been elevated in recent years.

About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 115,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

SOURCE Canadian Real Estate Association
For further information: Pierre Leduc, Media Relations, The Canadian Real Estate Association, Tel.: 613-237-7111 or 613-884-1460, E-mail: pleduc@crea.ca

Canadian home sales drop in May following April’s record

Canadian Real Estate AssociationAccording to statistics released today by The Canadian Real Estate Association (CREA), national home sales dropped in May 2016 after having set an all-time monthly record in April.

Highlights:

  • National home sales dropped 2.8% from April to May.
  • Actual (not seasonally adjusted) activity was up 9.6% compared to May 2015.
  • The number of newly listed homes fell 3.2% from April to May.
  • The MLS® Home Price Index (HPI) rose 12.5% year-over-year in May.
  • The national average sale price climbed 13.2% in May from one year ago; net of Greater Toronto and Greater Vancouver, it advanced 9.1% year-over-year.
  • The number of homes trading hands via Canadian MLS® Systems fell by 2.8 percent month-over-month in May 2016 after having broken all previous monthly sales records in April.

Sales activity dropped in May from the previous month in about 70 percent of all markets, led by those in British Columbia and Ontario where the number of homes listed for sale has fallen to multi-year or all-time lows.

“National sales activity is still strong, even after coming off the record levels of the past couple of months,” said CREA President Cliff Iverson. “But, there are housing markets where sales continue to reflect a cautious mood among homebuyers and uncertainty about the local economy,” he added. “All real estate is local, and REALTORS® remain your best source for information about sales and listings where you live or might like to in the future.”

“Many of the housing markets in BC and Ontario that led the monthly decline in national sales are also places where months of inventory have fallen to all-time lows,” said Gregory Klump, CREA’s Chief Economist. “This suggests a lack of supply may be starting to rein in sales amid a continuation of strong housing demand.”

Actual (not seasonally adjusted) sales activity was up 9.6 percent year-over-year in May 2016 and stood 15.1 percent above the 10-year average for the month of May.

The number of newly listed homes fell by 3.2 percent in May 2016 compared to April. New supply was down in about two-thirds of all local markets, led by the Fraser Valley, Victoria, Edmonton, Montreal and Quebec City.

The national sales-to-new listings ratio edged up to 64.8 percent in May 2016 – the ratio’s tightest reading since October 2009. A sales-to-new listings ratio between 40 and 60 percent is generally consistent with balanced housing market conditions, with readings below and above this range indicating buyers’ and sellers’ markets respectively.

The ratio was above 60 percent in about half of all local housing markets in May, virtually all of which are located in British Columbia, in addition to housing markets in and around Toronto and across Southwestern Ontario.

The number of months of inventory is another important measure of the balance between housing supply and demand. It represents the number of months it would take to completely liquidate current inventories at the current rate of sales activity.

There were 4.7 months of inventory on a national basis at the end of May 2016, which is unchanged from April’s reading and the lowest level in more than six years. Months of inventory have been trending lower since early 2015, reflecting increasingly tighter housing markets in B.C. and Ontario. It currently sits at or below two months in a growing number of local markets in British Columbia, the GTA and environs and in Southwestern Ontario.

The Aggregate Composite MLS® HPI rose by 12.5 percent on a year-over-year basis in May 2016, the biggest gain since February 2007.

For the fourth consecutive month, year-over-year price growth accelerated for all Benchmark property types tracked by the index.

Two-storey single family home prices continued to post the biggest year-over-year gain (+14.7 percent), followed by one storey single family homes (+12.7 percent), townhouse/row units (+11.6 percent), and apartment units (+8.6 percent).

While 9 of the 11 markets tracked by the MLS® HPI posted year-over-year price gains in May, price growth among housing markets continues to vary widely.

Greater Vancouver (+29.7 percent) and the Fraser Valley (+31.7 percent) posted the largest gains, followed by Greater Toronto (+15.0 percent), Victoria (+13.9 percent), and Vancouver Island (+9.5 percent). By contrast, prices fell by -3.9 percent and -2.3 percent in Calgary and Saskatoon respectively.

Year-over-year price growth advanced further into positive territory in Regina (+3.4 percent) and strengthened further in Ottawa (+1.3 percent) and Greater Montreal (+1.9 percent). Home prices in Greater Moncton recorded their tenth consecutive year-over-year gain, rising 8.2 percent from where they stood one year earlier.

The MLS® Home Price Index (MLS® HPI) provides a better gauge of price trends than is possible using averages because average price is prone to being distorted by changes in the mix of sales activity.

The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets. The actual (not seasonally adjusted) national average price for homes sold in May 2016 was $509,460, up 13.2 percent on a year-over-year basis.

If these two housing markets are excluded from calculations, the average price is a more modest $375,532 and the year-over-year gain is trimmed to 9.1 percent.

Even then, this reflects a tug of war between strong average price gains in housing markets around the GTA and in British Columbia versus flat or declining average prices elsewhere in Canada. The average price for Canada net of sales in British Columbia and Ontario in May 2016 was down 0.7 percent year-over-year to $310,007.

PLEASE NOTE: The information contained in this news release combines both major market and national sales information from MLS® Systems from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® Systems are co-operative marketing systems used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 115,000 REALTORS® working through some 90 real estate Boards and Associations.

Further information can be found at http://crea.ca/statistics.

SOURCE Canadian Real Estate Association
For further information: Pierre Leduc, Media Relations, The Canadian Real Estate Association, Tel.: 613-237-7111 or 613-884-1460, E-mail: pleduc@crea.ca

Drew MacMartin Launches Real Estate Service

Drew MacMartin Real EstateDrew MacMartin, a real estate sales representative with over five years of experience as a zoning examiner and city planner in the local area, has announced the launch of a real estate service and website for Newmarket and East Gwillimbury, Ontario, Canada. The service/website is intended to reach out to local residents and investors of the above mentioned Towns and surrounding area to outline the real estate services offered by Drew MacMartin.

The Drew MacMartin Real Estate Services web portal is a member of Keller Williams Realty Centers, affording access to a wide range of properties and market resources. The web portal specializes in buying homes in high growth capital neighbourhoods, as well as selling Homes for top market value. Help is available from mortgages to moving trucks and everything in between.

Drew MacMartin also specializes in Investment Real Estate. All investment properties are pre-screened and analyzed, so their cash-flow potential and income generating yields are understood. He relies on his own real estate investment portfolio to demonstrate his expertise and the potential for clients to grow their own portfolios.

Testimonials, a blog, and social media connections are featured on the website, as with any well-connected, informative online resource should be. Drew MacMartin is a real estate sales representative with a Masters Degree in Land Use Planning and Real Estate Decision Making. Drew MacMartin’s primary strengths are customer service, work ethic, competency and integrity. Speaking to past clients of Drew MacMartin is strongly encouraged.

To learn more about Drew MacMartin and his real estate service/website, visit http://www.drewmacmartin.com. An embedded contact form is also available on the website to submit any requests or questions, or to subscribe to the newsletter.

Media Contact
Company Name: Drew MacMartin Real Estate Services
Contact Person: Drew MacMartin
Email: info@drewmacmartin.com
Phone: 905 726 0654
Address:16945 Leslie Street Unit 7
City: Newmarket
State: Ontario
Country: Canada
Website: http://www.drewmacmartin.com

Most Profitable Day to List Your Home

the red pin

the red pinMay 3rd Tops This Year’s Real Estate Calendar as the Most Profitable Day to List Your Home in the GTA

In a seller’s market, the first Tuesday in May is a better bet than any other date in 2016

TORONTO, ONTARIO According to data analysis by online real estate brokerage TheRedPin.com, homeowners selling their homes can expect to net an average of $17,000 more if they play their cards right and list on Tuesday, May 3 this year. Sellers can also expect to sell 18 per cent faster if they list anytime during the month of May. The second best month to list is October, when homes sell for an average of $10,000 more than the yearly average.

Data collected between 2012 and 2015 reveals that even with the spike in premiums during peak season, the most highly priced homes on average are not selling in the City of Toronto. According to the data, homes in Oakville, Richmond Hill and Markham sold for an average $150,000 higher than homes in the City of Toronto.

A longer data analysis done between 2010 and 2015 by TheRedPin compared sold prices in May to the tepid January market and found that homeowners were able to sell their homes for upwards of $60,000 more in May.

“By listing your home early in the week, you get the shoppers who are keen to see homes before open houses, which usually take place on weekends,” says Rokham Fard, Co-Founder and CMO at TheRedPin. “Data from the past six years suggests that homes take 20 to 30 days on average from when they’re listed until they’re sold. With that in mind, listing in early May will likely position you to sell your home in May and reap the extra profits.”

Not just a seller’s market: May brings home buyers choice

The month of May sees the highest volume of new listings appear on the market, with an average of 20,105 new properties listed during its 31 days. May also sees the highest level of buying activity than any other month of the year, with around one-eighth of all home sales in the GTA taking place in May.

“Although spring is ripe for bidding wars, those who value choice over price can rest assured May is a good time for the house hunt,” says Fard.

For prospective home buyers looking for choice as well as value, there are areas outside the city core where homes are listed for less during the month of May compared to yearly averages, according to Toronto Real Estate Board (TREB) data collected between 2012 and 2015. For example, when analysing calendar averages, homes in Aurora, East Gwillimbury and Essa sold for an average of approximately $17,000 less in May.

“For condo seekers, May is the month when many pre-construction developments release their coveted floor plans and pricing structure,” says Fard. “May can be excellent for condo resales as well. In 2015, on average, condos sold for two per cent below asking in May, so it will be interesting to see if that trend continues this year.”

About TheRedPin.com

Founded in 2010, TheRedPin.com connects people, data and technology. Our platform carries the largest database of active residential listings in the Greater Toronto and Vancouver Area, with plans to expand nationally. TheRedPin is a challenger brand with a unique business model that streamlines the real estate journey, and provides exceptional end-to-end services and benefits not found at other traditional brokerages. We are a tech startup that doesn’t answer to the industry, we answer to our clients and ourselves.

CONTACT INFORMATION

CREA Updates Resale Housing Forecast

Canadian Real Estate Association

Canadian Real Estate Association

The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations for 2016 and extended it to include 2017.

CREA’s recent forecasts anticipated that housing activity would rebalance in 2016, with cooling activity and smaller price gains in British Columbia and Ontario, resulting in slower national price growth. However, many of the defining themes among Canadian housing markets last year have persisted, and in some cases intensified, in early 2016. Interest rate are now also widely expected to remain low for longer, with administered lending rates beginning to rise no earlier than the second half of 2017.

Canadian resale housing market trends this year are expected to resemble those apparent in 2015, with very tight supply leading to strong price gains in British Columbia and Ontario – particularly in the Lower Mainland and in and around the Greater Toronto Area. Price gains in these regions are expected to continue to stand in sharp contrast to moderate price declines among housing markets whose prospects are closely tied to oil and other natural resource prices. In line with the prevailing forecast for stronger Canadian economic growth beginning in the second half of 2016, Canadian home sales activity is now expected to rebalance in 2017.

Nationally, sales activity is forecast to rise by one per cent to 511,400 units in 2016. The annual increase continues to reflect significant regional variations in housing market trends (Chart A).

British Columbia is again forecast to post the largest annual increase in activity (+11.8 per cent), with Alberta expected the record the largest annual sales decline (-18.7 per cent). A lack of supply is expected to hold activity in check in Ontario in 2016 (+0.3 per cent) despite the continuation of very strong demand.

Elsewhere, modest sales gains in Manitoba (+3.4 per cent), Quebec (+3.4 per cent), New Brunswick (+1.2 per cent), Nova Scotia (+1.1 per cent) and Prince Edward Island (+3.3 per cent) are forecast for 2016, reflecting expected improvements in these province’s economic prospects.

By contrast, sales activity in 2016 is forecast to ease in Saskatchewan Newfoundland and Labrador, two of Canada’s major oil producing provinces, by 3.7 per cent and 4.5 per cent respectively.

With prices continuing to push higher in British Columbia and Ontario and sales in these expensive real estate markets hitting record highs, CREA’s forecast for national average price has been revised upward to $478,100 in 2016, representing an annual increase of eight per cent.

British Columbia is forecast to be the only province where average home prices rise materially faster (+10.0 per cent) than the national average, reflecting an increasing proportion of sales above $1 million. The rise in Ontario’s average price (+8.2 per cent) is forecast to be roughly in line with the national increase.

Elsewhere, average prices in 2016 are forecast to rise by 2.1 per cent in Manitoba, 1.6 per cent in Quebec, and 1.1 per cent in both Nova Scotia and Prince Edward Island.

Average prices are forecast recede in Alberta (-2.5 per cent), Saskatchewan (-2.4 per cent), New Brunswick (-0.4 per cent) and Newfoundland and Labrador (-1.4 per cent).

In 2017, national sales are forecast to number 513,400 units. This is little changed (+0.4 per cent) from forecast levels for 2016, as activity in B.C. and Ontario comes off the boil due to deteriorating affordability while confidence begins to recover in provinces hardest hit by weak prices for oil and other natural resources.

Consumer confidence is anticipated to strengthen and begin drawing homebuyers off the sidelines in Alberta, Saskatchewan and Newfoundland and Labrador as their economic prospects improve. This is anticipated to contribute to a modest rebound in sales activity in these provinces in 2017.

British Columbia is the only province forecast to post an annual decline in home sales in 2017, reflecting a combination of a growing shortage of single family homes available for sale and deteriorating affordability. Even so, activity is expected to continue trending near record levels. Ontario is forecast to see sales level off in 2017.

Sales activity is forecast to continue to push higher in Manitoba, Quebec, and Nova Scotia in 2017, reflecting the prevailing forecast for improving economic prospects in these provinces. Sales in Prince Edward Island are also forecast to improve as the province continues to benefit from a lower Canadian dollar.

The national average price is forecast to edge higher by 1.1 per cent to $482,500 in 2017, with modest price gains near or below inflation among provinces.

Slower national average price growth in 2017 reflects weaker price gains in British Columbia and Ontario. Price trends in these provinces reflect an anticipated slowdown in luxury sales activity, a continuing supply shortage of relatively more affordable low rise family homes and an anticipated increase in relatively more affordable condo unit sales as a proportion of total sales activity. In other provinces, an ample supply of listings relative to demand will continue to keep price gains in check.

About The Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

SOURCE Canadian Real Estate Association
For further information: Pierre Leduc, Media Relations, The Canadian Real Estate Association, Tel.: 613-237-7111 or 613-884-1460, E-mail: pleduc@crea.ca