A year-old Toronto tax could be helping York Region’s real estate market, while hindering theirs.
An analysis of the GTA resale market by the CD Howe Institute concludes Toronto’s unique land transfer tax has negatively affected its market and placed an unfair burden on homebuyers.
“The results were actually a bit more than we expected,” analyst Benjamin Dachis said.
They concluded Toronto sales are off 16 per cent from where they should be and house values south of Steeles are down 1.5 per cent.
With the market in a gradual dive, isolating the effects of the tax was a challenge for Mr. Dachis and fellow authors, University of Toronto economics professors Gilles Duranton and Matthew Turner.
Thursday, December 25, 2008
Sunday, December 21, 2008
L'Anse à L'Orme
However, though environmentalists are now happy, Ste. Anne's town council is dissatisfied. The 87 lots that Montreal will purchase from real estate developing giant Grilli to the tune of $5.2 million were slated for a development project.
"We're talking about $100, 000 a year in tax revenue (being lost)," Tierney estimated.
About sixty homes were to be built on the Ste. Anne's part of the land.
Though Tierney told <@Ri>The Chronicle<@$P> he would voice his opposition at last night's council meeting to the projected sale, he did not expect that particular transaction to stop.
However, he did state he wanted to be part of the negotiation process for the sale of the 30-acre land in the hands of the SGF. "If we stopped negotiating now, Ste. Anne's would lose out," he said.
"We're talking about $100, 000 a year in tax revenue (being lost)," Tierney estimated.
About sixty homes were to be built on the Ste. Anne's part of the land.
Though Tierney told <@Ri>The Chronicle<@$P> he would voice his opposition at last night's council meeting to the projected sale, he did not expect that particular transaction to stop.
However, he did state he wanted to be part of the negotiation process for the sale of the 30-acre land in the hands of the SGF. "If we stopped negotiating now, Ste. Anne's would lose out," he said.
Thursday, December 18, 2008
RioCan Real Estate Investment Trust Announces December 2008 Distribution
ORONTO, ONTARIO, Dec 15, 2008 (MARKET WIRE via COMTEX) -- RioCan Real Estate Investment Trust ("RioCan") (CA:REI.UN: news , chart , profile ) today announced a distribution of 11.5 cents per unit for the month of December. The distribution will be payable on January 9, 2009 to unitholders of record as at December 31, 2008.
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $6.3 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 237 retail properties, including 16 under development, containing an aggregate of over 58 million square feet. For further information, please refer to RioCan's website at www.riocan.com.
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $6.3 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 237 retail properties, including 16 under development, containing an aggregate of over 58 million square feet. For further information, please refer to RioCan's website at www.riocan.com.
Wednesday, December 17, 2008
Housing sales hit 20-year low
The selloff in real estate has morphed beyond a correction of overheated individual markets into a broad national slump, with prices posting their worst decline in nearly 20 years in November.
In the face of a collapse in consumer confidence, the number of resale homes sold in Canada plummeted by 42 per cent year-to-year to 27,743, the lowest level since January, 2001.
Between May and November, the average price of an existing home in Canada fell by 11 per cent, matching the drop in 1990 that coincided with the onset of a painful recession. Housing prices would go on to fall by about 20 per cent and it would be another decade before they managed to make new highs.
All markets across Canada will likely fall further in the coming months as confidence continues to fade, said Benjamin Tal, economist at CIBC World Markets.
In the face of a collapse in consumer confidence, the number of resale homes sold in Canada plummeted by 42 per cent year-to-year to 27,743, the lowest level since January, 2001.
Between May and November, the average price of an existing home in Canada fell by 11 per cent, matching the drop in 1990 that coincided with the onset of a painful recession. Housing prices would go on to fall by about 20 per cent and it would be another decade before they managed to make new highs.
All markets across Canada will likely fall further in the coming months as confidence continues to fade, said Benjamin Tal, economist at CIBC World Markets.
Sunday, December 14, 2008
CORNWALL: Discount real estate beckons
Cornwall has experienced near-stagnant growth, with a population increase of 0.7 per cent between 2001 and 2006, compared with Ontario's 6.6 per cent, according to census data.
The surrounding rural areas of Stormont, Dundas and Glengarry counties posted a similarly small increase of 0.8 per cent.
"Cornwall has suffered, and is suffering, probably because of its past of being, historically, a mill town with a lot of odour. And that developed over 75 years, and it's hard to change that," said Terry Landon, a former chair of the Real Estate Council of Ontario and a co-founder of RE/MAX Cornwall Realty.
Although the closure of several manufacturing plants eliminated the odour, some clients still hold a misconception of the area, Mr. Landon said. "There is no doubt that question is asked. We have to go through this education process to convince people to come to Cornwall to see for themselves," he said.
The surrounding rural areas of Stormont, Dundas and Glengarry counties posted a similarly small increase of 0.8 per cent.
"Cornwall has suffered, and is suffering, probably because of its past of being, historically, a mill town with a lot of odour. And that developed over 75 years, and it's hard to change that," said Terry Landon, a former chair of the Real Estate Council of Ontario and a co-founder of RE/MAX Cornwall Realty.
Although the closure of several manufacturing plants eliminated the odour, some clients still hold a misconception of the area, Mr. Landon said. "There is no doubt that question is asked. We have to go through this education process to convince people to come to Cornwall to see for themselves," he said.
Friday, December 12, 2008
Rental vacancy rate drops to `catastrophic' 2.1%
Economic worries and a declining real estate market has some would-be home buyers staying put in rental housing, resulting in sharply declining rental apartment vacancy rates in Toronto.
The Canada Mortgage and Housing Corp. reported yesterday the city's vacancy rate fell to 2.1 per cent this year, compared with 3.2 per cent last year. The drop comes on the heels of a Bank of Canada warning yesterday that some Canadians may lose their homes if the economic crisis gets worse.
"Rising home ownership costs combined with growing economic uncertainty has dampened Ontario home buying activity during 2008, particularly among first-time buyers," said Ted Tsiakopoulos, CMHC regional economist.
The Canada Mortgage and Housing Corp. reported yesterday the city's vacancy rate fell to 2.1 per cent this year, compared with 3.2 per cent last year. The drop comes on the heels of a Bank of Canada warning yesterday that some Canadians may lose their homes if the economic crisis gets worse.
"Rising home ownership costs combined with growing economic uncertainty has dampened Ontario home buying activity during 2008, particularly among first-time buyers," said Ted Tsiakopoulos, CMHC regional economist.
Wednesday, December 10, 2008
Mayor's land-transfer tax helped sink Toronto real estate market
In order to isolate the effect of the new tax from the rest of the winds hitting the real estate market, the study looked at the three kilometres of real estate on either side of Toronto's border with Peel, York and Durham Regions, where no new tax exists, from February to August. It found a deeper slide inside Toronto, where the new tax applies, than outside.
The new land-transfer tax, and a new tax for automobile registrations, caused a months-long political battle at city hall after council narrowly voted in July 2007 to delay the new taxes and Mr. Miller charged that the move put the city in a financial crisis. The new taxes were later approved in October.
Von Palmer, a spokesman for the Toronto Real Estate Board, said the study shows his group's warnings against the tax were right, and urged the city to repeal the tax.
"This validates what we've been telling people," Mr. Palmer said in an interview. "... The reality is that it has hurt the market."
The new land-transfer tax, and a new tax for automobile registrations, caused a months-long political battle at city hall after council narrowly voted in July 2007 to delay the new taxes and Mr. Miller charged that the move put the city in a financial crisis. The new taxes were later approved in October.
Von Palmer, a spokesman for the Toronto Real Estate Board, said the study shows his group's warnings against the tax were right, and urged the city to repeal the tax.
"This validates what we've been telling people," Mr. Palmer said in an interview. "... The reality is that it has hurt the market."
Monday, December 8, 2008
Toronto turning up the heat on landlords
The cold light of day did nothing to flatter the facade of 500 Dawes Rd., a fading 15-storey apartment building with a broken window here, a roost of pigeons there and bricks that are beginning to crumble.
It was a fitting place to make a point, as city inspectors, politicians and reporters spent a few hours yesterday surveying what frustrated tenants say they have endured for years.
The point was this: Life is getting worse in many of the city's aging, low-rent apartment buildings, where tenants of modest means face increasing financial pressure amid deteriorating living standards.
In an effort to stop the slide, city officials are turning up the heat on landlords who let their properties fall into disrepair, lest Toronto see a reduction in the supply of much-needed affordable housing. To that end, the licensing and standards division launched a targeted enforcement program this week, in which a special team of inspectors will audit buildings, issue work orders and take complaints directly from tenants who visit their mobile office.
It was a fitting place to make a point, as city inspectors, politicians and reporters spent a few hours yesterday surveying what frustrated tenants say they have endured for years.
The point was this: Life is getting worse in many of the city's aging, low-rent apartment buildings, where tenants of modest means face increasing financial pressure amid deteriorating living standards.
In an effort to stop the slide, city officials are turning up the heat on landlords who let their properties fall into disrepair, lest Toronto see a reduction in the supply of much-needed affordable housing. To that end, the licensing and standards division launched a targeted enforcement program this week, in which a special team of inspectors will audit buildings, issue work orders and take complaints directly from tenants who visit their mobile office.
Sunday, December 7, 2008
CORNWALL: Discount real estate beckons
There was Perth, Smiths Falls, Rockland, Barrhaven. She must have looked through more than 200 postings on multiple listing services, she recalled.
She finally settled on a two-storey brick home in Cornwall, in a structure once used by Catholic nuns. It didn't matter that she had to commute two hours to and from her job in Ottawa, or that gas prices were at record highs at the time.
It was the perfect home. And it was selling at bargain-basement prices.
Ms. Larue-Harper paid $184,000 for a five-bedroom-plus-one house nearly twice the size of her previous abode in Carleton Place, which she'd sold for $215,000.
"Knowing that we'd get this gorgeous house for the price we did, it was sort of a no-brainer at that point," said Ms. Larue-Harper, who moved to Cornwall with her husband and five children two months ago.
She finally settled on a two-storey brick home in Cornwall, in a structure once used by Catholic nuns. It didn't matter that she had to commute two hours to and from her job in Ottawa, or that gas prices were at record highs at the time.
It was the perfect home. And it was selling at bargain-basement prices.
Ms. Larue-Harper paid $184,000 for a five-bedroom-plus-one house nearly twice the size of her previous abode in Carleton Place, which she'd sold for $215,000.
"Knowing that we'd get this gorgeous house for the price we did, it was sort of a no-brainer at that point," said Ms. Larue-Harper, who moved to Cornwall with her husband and five children two months ago.
Friday, December 5, 2008
Real estate markets in 2009 will be mired in the economic slowdown
Elton Ash, Re/Max regional executive vice-president for Western Canada, said the beginning of 2009 will look a lot like the end of 2008.
"The confidence issue, certainly from our perspective, [will be key] when we look at 2009," Ash said in an interview. "The first quarter of 2009 will certainly be a continuation of the trend we're seeing now, with reduced transactions and average prices coming down in Vancouver and throughout British Columbia."
Ash said consumers should have a better idea after the first quarter of 2009 what kinds of stimuli governments plan to inject into the economy, which should bolster confidence through the rest of 2009.
"The confidence issue, certainly from our perspective, [will be key] when we look at 2009," Ash said in an interview. "The first quarter of 2009 will certainly be a continuation of the trend we're seeing now, with reduced transactions and average prices coming down in Vancouver and throughout British Columbia."
Ash said consumers should have a better idea after the first quarter of 2009 what kinds of stimuli governments plan to inject into the economy, which should bolster confidence through the rest of 2009.
Wednesday, December 3, 2008
A Closer Look at Canada's Decline in Real Estate Prices
For the past couple of months I have been cautioning our readers against making any big conclusions about Toronto’s real estate market based solely on changes in average prices. Toronto has seen a big decline in the number of sales of high end homes this year which has been exaggerating the decline in prices. For more on this read my previous posts Toronto Land Transfer Tax Exaggerates Housing Price Decline and Making Sense of Toronto’s Real Estate Decline in October.
At a national level, economists from TD Economics noticed that national average prices were being skewed down because of steep declines in sales in British Columbia, where average home prices are the highest in Canada. Last month TD Economics published a report titled A Different Look at Canadian Home Prices where they introduced the TD Home Price Index as a more accurate way to measure changes in national prices.
At a national level, economists from TD Economics noticed that national average prices were being skewed down because of steep declines in sales in British Columbia, where average home prices are the highest in Canada. Last month TD Economics published a report titled A Different Look at Canadian Home Prices where they introduced the TD Home Price Index as a more accurate way to measure changes in national prices.
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