The Canada Mortgage and Housing Corporation has given the Canadian housing market its most-dire assessment for the third time in a row<\/a>, pointing to \u201cstrong evidence of problematic conditions\u201d across the nation. Factors such as slow population growth among young adults, a decline in disposable income, and rising real estate prices are also to blame, according to the Crown Corporation\u2019s quarterly Housing Market Assessment<\/em><\/a>.<\/p>\n Toronto, Vancouver, Hamilton and Victoria are among the most overvalued markets, it reveals, while Quebec joins the ranks of those with overbuilt markets, prompted by a spate of new condo construction. Vancouver, meanwhile, is back in overheated territory, following a few months of slower activity, as demand for condos and townhouses lead to multiple offer situations and rising prices.<\/p>\n However, Toronto stands out as particularly high risk, as there aren\u2019t any underpinning fundamentals supporting price growth says Dana Senagama, the principal market analyst for Toronto at CMHC.<\/p>\n \u201cWe continue to see strong evidence of problematic conditions in Toronto\u2019s housing market,\u201d she says. \u201cEconomic fundamentals like income and population growth cannot fully explain the rapid growth in house prices in Toronto.\u201d<\/p>\n An overhaul to the Ontario Condo Act will come into effect on November 1, providing greater protections for owners, stricter requirements for board members and managers, and an easier way to resolve disputes.<\/p>\n Part of Bill 106, the\u00a0Protecting Condominium Owners Act<\/a>, the new rules will introduce mandatory training for all condo directors and board members via a three-hour online course, and will affect\u00a0meeting notices for owners, voting procedures, reserve fund rules, and disclosure requirements for those granting vendor contracts. Members will also need to brush up on financial, legal, construction and administration matters.<\/p>\n The measures are \u201cto provide greater confidence and security for condo owners in their investment and greater stability in their day-to-day lives,\u201d said Government and Consumer Services Minister Tracy MacCharles to a crowd at the Air Canada Centre\u2019s Maple Leaf Squre in Toronto. According to MacCharles, there are 750,000 condo units in the province, owned by 1.6 million individuals and run by 10,000 condo boards.<\/p>\n A new system to resolve issues between residents or the board is especially anticipated; the current dispute resolution requires the hiring of a private mediator, which can be an expensive, drawn-out process that isn\u2019t always effective, says the province. A new agency dubbed the Condominium Authority of Ontario will provide a tribunal for disputes, as well as an affordable resolution process \u2013 it will cost $25 to enter preliminary negotiations, $50 for mediation, and $125 to take a matter to the tribunal, with the cost footed by the plaintiff.<\/p>\n The management of condos has been a growing issue in Toronto, as reports of alleged board corruption and proxy fraud surfaced in May by a CBC Toronto <\/em>investigation<\/a>.<\/p>\n In today\u2019s tough real estate and jobs market, adult children remaining in the family\u00a0home has become commonplace \u2013 but that doesn\u2019t mean boomer parents are happy with these living arrangements. In fact, over two thirds of those with adult kids in the nest would pay big bucks if it meant getting them out of the house.<\/p>\n A total of 76 per cent of parents would contribute something financially to help their adult child move out, get married, or live with their partners, finds CIBC\u2019s 2017 Gifting Poll<\/a>. Of those, 47 per cent would gift $24,000 to help their kids relocate.<\/p>\n \u201cGiven the option, almost two-thirds of parents would prefer to give cash rather than have their adult child and partner \/ spouse live with them,\u201d the CIBC study states.<\/p>\n The poll finds that:<\/strong><\/p>\n Single-family detached homes, once the highest-sought in the GTA, have seen an undisputed slowdown following the introduction of the Fair Housing Plan \u2013 sales fell 45 per cent in June<\/a>, according to TREB \u2013 but some neighbourhoods remain unscathed and have even enjoyed double-digit growth, finds a report from the RE\/MAX INTEGRA Ontario-Atlantic Region.<\/p>\n The report looked at detached housing in 65 neighbourhoods across the GTA, comparing the first quarter of the year to the second (which was post rule change) and generally found reasonably priced houses within a commuter\u2019s distance from Toronto are still performing well.<\/p>\n The township of Brock saw the greatest growth, with prices rising 11.73 per cent from first to second quarter to $562,711. Caledon came in second, with prices up 8.61 per cent to $1,127,414.<\/p>\n However, one of Toronto\u2019s priciest interior neighbourhoods \u2013 Rosedale \u2013 suffered a whopping 21.9-per-cent decline, to $3,331,250.<\/p>\n While the report finds Toronto continues into buyer\u2019s market territory, Re\/Max regional manager Christopher Alexander says it will offer buyers some long-awaited relief. \u201cBuyers had no choices in Q1, buyers faced competition and had no time to make educated, well-though out decisions,\u201d he stated. \u201cThe current lull may represent the bests buying opportunity in recent years.\u201d<\/p>\n While the resale market for all home types in the GTA have suffered over the last two months,\u00a0one housing category seems\u00a0immune to the Ontario government\u2019s cooling market measures: new construction.<\/p>\n The new homes market performed extremely well in June, with condos in particular reaching a new record, according to the Building Industry and Land Development Association (BILD). Their monthly report was compiled via their data partner, Altus Group.<\/p>\n Sales for multi-family units in both high- and medium-rise homes, as well as stacked Toronto townhouses<\/a> were up a whopping 59 per cent month over month. Sales for all home types rose 23 per cent year over year (28,889 new homes have been sold since the beginning of 2017), sitting 44 per cent above the 10-year average.<\/p>\n \u201cWe continue to see that the Province\u2019s Fair Housing Plan in effect since April has had little impact on the new home market,\u201d says Bryan Tuckey, BILD\u2019s president and CEO. \u201cUnlike the resale market, which experienced a slowdown last month, the numbers reflected in the new homes market are quite different.\u201d<\/p>\n He adds that it\u2019s experiencing the classic supply and demand crunch that once plagued the Toronto real estate market, pushing prices higher. Overall steep housing affordability is also leading\u00a0more buyers to condos: 91 per cent of all new homes sold were condos and townhouses, finds BILD, increasing\u00a089 per cent year over year for condos alone.<\/p>\n According to Altus Group\u2019s Executive Vice-President of Research Consulting Services Patricia Arsenault, a \u201cperfect storm\u201d of factors is contributing to\u00a0condo popularity such as changing buyer expectations and increased investor interest, as condos have seen strong price appreciation in recent months.<\/p>\n BILD reports the average new unit size is 845 square feet, priced at $742, up from $587 per square foot in 2016, and the average price for all new home types increasing, with the exception of detached homes:<\/p>\n A new policy putting fresh focus on creating affordable housing was unveiled by Vancouver\u2019s municipal government on Tuesday, with a plan to build 72,000 new homes by 2026 \u2013 an 85 per cent surge in the city\u2019s existing rental stock.\u00a0 A full 48,000 of those will be rentals, with 20,000 purpose-built units, and another 15,000 designated for lower income households.<\/p>\n \u201cWe\u2019re going above and beyond what\u2019s ever been done in Vancouver to enable new affordable housing for local residents, matched to realistic, local incomes \u2013 housing that people want: rentals, laneway homes, coach houses, duplexes and townhomes in neighbourhoods across the city,\u201d stated Vancouver Mayor Gregor Robertson.<\/p>\n Vancouver has long been pointed to as the most expensive housing market in Canada, with real estate prices far outstripping the pace of inflation or wage growth. According to June numbers from the Real Estate Board of Greater Vancouver, the average price of a detached home is $1,587,900. The median Vancouver household income in 2015 was $79,930, according to Statistics Canada \u2013 only enough to qualify for a maximum mortgage of $625,394, assuming a 20 per cent down payment.<\/p>\n However, the very same\u00a0rental dwellings encouraged by\u00a0Robertson could face tax complications under new Canada Revenue Agency rules that require homeowners to disclose the sale of their principal residence. While principal residences remain exempt from capital gains taxes, any income earning laneway houses or income suites within the lot do not \u2013 and taxes are calculated based on the total property value.<\/p>\n That\u2019s an issue, reports Business in Vancouver<\/a><\/em>, considering the average detached house value increased 112 per cent over the past decade in the Greater Vancouver region \u2013 and by 140 per cent in the City of Vancouver alone. That could spell out an unmanageable tax bill for sellers with income-generating suites who\u2019ve lived in their homes long term, and didn\u2019t buy at the top of the market.<\/p>\n And it appears the CRA is serious about collecting that revenue; it\u2019s estimated the federal government has lost out on billions of dollars in tax revenue prior to closing the loophole, as sellers did not need to disclose the sale of their principal residence at all. The revenue agency is starting to crack down, including\u00a0going after several condo property developers in court for refusing to disclose the records of buyers who picked units during the pre-construction phase, and sold them on assignment<\/a> prior to closing.<\/p>\n The developers, which include PCI Gateway Residential LP and Executive Argos False Creek, are standing firm, citing client confidentiality.<\/p>\nNew Protections and Dispute Process to Come for Ontario Condo Dwellers<\/h2>\n
Here\u2019s $24,000. Now Get Out of My House<\/h2>\n
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Some Neighbourhoods Dodging\u00a0Detached Downturn: RE\/MAX<\/h2>\n
Newly Built Homes Flew Off the Shelves in June<\/h2>\n
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New Plan Brings Thousands of Affordable Units to Vancouver…<\/h2>\n
…But New Federal Tax Rules Could Put Squeeze on Rentals<\/h2>\n