2987733729_c345f0d779_o Photo: Ashley Fisher/Flickr Here’s how many first-time buyers are opting for condos across major Canadian markets Many first time buyers in Canada’s biggest cities are settling for less square footage when entering the housing market, but a new study from Genworth Canada tracks just how many are opting for condos over detached homes and townhouses. According to the residential mortgage insurer’s 2017 First-Time Homeownership Study published this week, first-time homebuyers in the nation’s hottest markets are resorting to more affordable condominiums over detached homes and townhouses. In Vancouver, Canada’s least affordable city, 47 per cent of first-time buyers bought a condo, while  35 per cent did so in Toronto and 39 per cent in Montreal. The report is the second of its kind for Genworth to gain insight on Canadians’ financial preparedness. In the study, 1,803 Canadians between the ages of 25 to 40 who purchased a home within the last two years, were interviewed in January and February 2017. The results were analyzed by Environics Research Group. Genworth and Environics found that, between 2015 and 2017, the amount of first-time homebuyers in Canada dropped from 7.3 to 5.8 per cent, representing a 21 per cent decline in the volume of first-time buyers over that period. Environics Research Group Vice President David MacDonald says the decline in new first-time buyers is a result of the financial strain Canadians are feeling. “Effectively, what we’re seeing is a fifth of first-time buyers who would have been here in 2015 were no longer in the market in 2017 and that’s a direct result of the affordability challenges that are in certain markets, as well as the increase for regulatory requirements or financial sustainability requirements for first-time buyers,” says MacDonald. With escalating home prices in major markets, 64 per cent of first-time buyers said they are finding it difficult to purchase a home in Toronto, along with 63 per cent in Vancouver and 62 per cent in Calgary. Between 2015 and 2017, first-time homebuyers in Toronto paid the most for their dwellings, with a median price of $500,000. Followed by Vancouver with $410,000 and Calgary with $385,000. MacDonald says first-time buyers are feeling the pressure of rising home prices and are rethinking their options before choosing to invest. “We know in Toronto, in particular, that one of the motivations for buying their home is that they wanted to get in before prices rose further and we are seeing that balanced by people worrying that maybe now is not the best time to buy or that maybe it’s not as wise a financial decision as it might have been,” says MacDonald. With 54 per cent of first-time buyers making an income between $50,000 and $99,000, 61 per cent put a down payment of less than 20 per cent on their new home, between 2015 and 2017. https://www.youtube.com/watch?v=EAxpSd-lDaw&t=34s To better handle the costs, MacDonald says many first-time buyers are seeking help in order to buy now. “Although home prices have gone up in those markets [Toronto and Vancouver] much faster than elsewhere they were able to get down payments by having more of their parents, the bank of mom and dad, chip in and help them get that first home,” says MacDonald. Conversely, in the last two years the majority of Calgary and Atlantic first-time homebuyers were able to afford a detached home. In Calgary, 48 per cent of first-time buyers bought a detached home, along with 66 per cent in the Atlantic. Even though Canadians are grappling with housing affordability and market uncertainty, MacDonald says first-time buyers are making wise decisions. “In terms of having a knowledgeable and smart first-time buyer I think the Canadian market is still in great shape.” Source: BuzzBuzz News

Category: Starion Blog

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Photo: Ashley Fisher/Flickr

Here’s how many first-time buyers are opting for condos across major Canadian markets

Many first time buyers in Canada’s biggest cities are settling for less square footage when entering the housing market, but a new study from Genworth Canada tracks just how many are opting for condos over detached homes and townhouses.

According to the residential mortgage insurer’s 2017 First-Time Homeownership Study published this week, first-time homebuyers in the nation’s hottest markets are resorting to more affordable condominiums over detached homes and townhouses. Continue reading ..

Condos are king in the Greater Toronto Area and Heres why 

condo canada

 

Records continue to fall in the nation’s hottest housing market.

Condo sales were up 79% year-over-year in February and far outstripped home sales for low-rise units.

“In the GTA in February, there were more than twice as many new condo apartments sold (as) low-rise units,” the Building Industry and Land Development Association (BILD) said in its latest report. “Altus Group recorded 3,542 sales of condo apartments in stacked townhouses and mid and high-rise buildings, and 1,541 sales of new detached and semi houses and low-rise townhomes.”
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WHAT’s DRIVING VAUGHAN’S NEW DOWNTOWN??? TTC: A Tour of Vaughan’s Metropolitan Centre Station.

“I think this may be my favourite of the stations,” said Joanna Kervin, the director for Third-Party Planning and Property with the TTC‘s project to extend the Line 1 (Yonge–University) subway northwest to Vaughan. Kervin led members of the UrbanToronto team on a sneak-preview tour of the Vaughan Metropolitan Centre Station, the northern terminal for the extended line, which the TTC is planning to open at the end of 2017.  Continue reading ..

ont-economic-update-201511262016 Ontario Economic Outlook and Fiscal Review – Doubling the Maximum Refund for First-Time Homebuyers

Modernizing Land Transfer Tax and Other Tax Measures

Land Transfer Tax 

The Province is proposing to modernize Ontario’s Land Transfer Tax (LTT) system to reflect developments in the real estate market, by: 

  • Enhancing support for first-time homebuyers;
  • Updating LTT rates and brackets; and
  • Restricting the refund for first-time homebuyers to Canadian citizens and permanent residents.

Doubling the Maximum Refund for First-Time Homebuyers 

To help Ontarians buy their first home, the Province is proposing to double the maximum refund for first-time homebuyers from $2,000 to $4,000, effective January 1, 2017.
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Bank of Canada makes rate announcement

The Bank of Canada held the target for the overnight rate at ½% Wednesday.

Canada’s economy shrank in Q2, according to the BoC; however it’s still predicting a bounce back by the end of the year.

“Second-quarter GDP was pulled down by the Alberta wildfires in May and by a drop in exports that was larger and more broad-based than expected,” the Bank of Canada said in its announcement. “Exports disappointed even after accounting for weaker business and residential investment in the United States, adjustments in the resource sector, and cutbacks in auto production.”

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OREAINSIGHT

INSIGHTS – Home sales set new all-time record in May
Highlights
  • Residential sales up 9.3% in May 2016 compared to a year earlier.
  • New listings in Ontario numbered 40,432 units in May 2016, a decrease of 7.9% compared to last year.
  • The provincial average price of homes in May 2016 rose 12.8% compared to a year earlier.

Decade of Development to Transform Etobicoke’s Queensway

T’s not close to Downtown Toronto, and it’s not walking distance to a transit hub. Yet, in the stretch between Islington and Kipling Avenues, The Queensway could become one of Toronto’s most active development nodes. Though still lined with the strip plazas, warehouse industrial, and parking lots of older suburbia, the Etobicoke Street is attracting a huge wave of high-rise projects, with a 36-storey tower at 30 Zorra Street recently joining the neighbourhood’s proposed developments.

30 Zorra Street, Toronto, by MSAi

The east and south elevations (l-r) of 30 Zorra Street, image retrieved via submission to City of Toronto

Designed by MSAi, the 379-unit condo tower would join an area already being re-made by three phases of the Remington Group‘s IQ Towers. Located Continue reading ..

Did you know? If a market correction happens, it would benefit Leading Real Estate Investors.

It may go against conventional wisdom, but this is why investors may want to start cheering for a correction. Other real estate investors may want to start fine tuning there investment strategy for the longterm.

There are two major reasons investors would benefit from a market correction, according to one leading investor.
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FOUR VISIBLE SIGNS OF AN UNDERVALUED NEIGHBOURHOOD.

Up-and-coming neighbourhoods represent the strongest potential earnings in real estate investment. Given that condo prices increase after development has finished, buying pre-construction is often the smarter alternative to maximize your profit. With new condos popping up all over the place in Toronto, choosing wisely means predicting the price behaviour of a given neighbourhood’s realty.

There are a few ways you can identify an undervalued neighbourhood so you can get the most out of your property investment and find the smarter alternative:

Spot the social diversity

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