A “critical moment” for Toronto + a scorching September
In Toronto: September has been a big month, but a critical moment is coming as the lack of registrations pushes prices up.
Elsewhere: Canadians are flocking east, can Biden get the funds for the housing he needs and what the Pandora Papers have revealed about real estate and billionaires.
Toronto’s housing market had a hot September (The Globe – Paywall)
There were 9,046 home resales in the Toronto area in September, down 18% from the same period last year. But it was the first month-over-month increase in activity since March, according to the Toronto Regional Real Estate Board, or TRREB. In the Toronto area, the average selling price of a home was $ 1,136,280, an 18% jump from September of last year. On a seasonally adjusted basis, the average price was 1.8% higher than in August.
The board and other real estate organizations are calling on the government to take tougher measures to address supply shortages to alleviate scorching prices that keep many people out of the market and could hurt the market. longer-term savings. The average selling price in the Greater Toronto Area increased both month over month and year over year, although the number of sales was down 18% from the record result September 2020.
According to CMHC’s latest housing market assessment, accelerating and overvaluing prices as home prices continue to rise above income levels is leaving the overall real estate market in Canada at a low. high degree of vulnerability. This means that Canadian real estate is poised for a major downturn with big consequences. And it is primarily Ontario’s vibrant real estate markets, such as Toronto and Eastern Canada, that are driving the entire country to the current high level of vulnerability.
The current patchwork of rooming or multi-tenant house rules in Toronto predate the amalgamation. The new regulatory framework would have created a new multi-tenant house licensing by-law that would replace existing “fragmented” rules, apply city-wide wherever zoning permits, and harmonize standards. Tory said the merger took place over 20 years ago, but rooming houses are one of those issues that “divide this council along these old boundaries.” However, progress is slow, he said.
More than half of them (55%) settled in Nova Scotia, making Halifax one of the fastest growing Canadian cities. During this time, 25 percent have migrated to New Brunswick. “The drop in the spread of COVID in the Maritimes has likely amplified the region’s appeal,” Freestone said in the note. “But relatively affordable housing was probably an even bigger draw, especially as house prices soared in already expensive parts of the country and more Canadians were able to work remotely.”
Led by financier and former Democratic politician Roger Altman, members of the U.S. think tank posed probing questions about whether the housing bubble in Canada would have ripple effects on the global economy, as well as on the employment, inflation, commodity prices and the difficulty of moving. from a low interest rate regime to a regime without monetary stimulus. For Canadians who have heard Macklem’s point of view in the past, the answers were in some ways less revealing than the questions. But among the new things he passed on were fears that inflation might turn out to be more sustainable than expected and that the recovery in jobs might be slower.
“I think there are serious issues with the way we’re doing things right now,” said Murtaza Haider, professor of data science and property management at Ryerson University. Haider says ending blind auctions could impact house price volatility, but more importantly, “greater efficiency and transparency would bring more confidence to the industry, and that should be a priority. for the real estate sector “. In the last election, the federal Liberals made their position clear on the issue when they announced they would ban blind auctions as part of their housing program.
These words resonate today with most Canadians who are appalled by the rapid escalation in house prices and rents. But here’s the catch: They were written 55 years ago in Maclean’s magazine. The May 1967 issue of the magazine contained a detailed account of the deteriorating housing affordability in this country. “(The) idea of a separate home for every middle-class Canadian family is pretty much extinct,” the story continues. “Suddenly, no one can afford it anymore. “
Can Biden keep his promise to expand housing vouchers? (City laboratory)
Yet as Congress seeks to lower the $ 3.5 trillion price tag for Build Back Better legislation, housing activists and other leaders fear their agenda may be sacrificed to negotiate a compromise. A group of more than a dozen nonprofits known as the National Coalition of Housing Justice issued a letter calling on Congress to step up housing assistance against rumors of the cuts. New York Representative Ritchie Torres, who along with other progressives met with Biden earlier this week, circulated a letter to his colleagues seeking support for housing assistance, noting that “these investments could effectively end homelessness in the United States “.
The financial services panel last month approved hundreds of billions of funds for repair and expansion of public housing, tax credits and incentives to increase the private supply of affordable housing and programs for payment assistance for new homeowners or aspiring low income homeowners. Those programs, however, are likely on the chopping block as House Democrats face tough choices about how to scale back their $ 3.5 trillion plan to win over moderate Democratic Sense Joe Manchin (W.Va.) and Kyrsten Sinema (Arizona).
The suburban dream that Ms. Coats’ family embraced has become the American housing system. Reforming it is the key to many existential problems, including reducing segregation and wealth inequalities or tackling urban sprawl and climate change (transport accounts for around a third of the country’s carbon dioxide emissions). But the process will be long and difficult, as single-family neighborhoods are the predominant way of life in the United States and homeowners benefit greatly from it.
Australian properties – including dairy farms in Tasmania, apartments in Sydney’s CBD and even a Hilton hotel – have been secretly bought by wealthy, sometimes controversial foreign figures, an ABC investigation has found. The money came from a corrupt Chinese steel tycoon, a political couple in Sri Lanka and a former oil executive, through opaque corporate structures. Each purchase involved multiple layers of offshore trusts and shell companies, making ownership nearly impossible to track.
Sánchez said he wanted young people “to have access to decent rental housing”. Spanish adults tend to leave their family’s home around the age of 30, almost four years later than the EU average, according to Eurostat. Young people from countries like Italy and Greece also tend to leave the family home around the age of 30. Like Spain, these countries also have relatively high NEET rates, i.e. young people who are neither employed, in education nor in training. Last year, 22.3% of Spanish adults aged 20 to 34 were not employed or enrolled in an education program, according to Eurostat, compared to 17.6% on average in the EU.
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