Canada’s real estate ranked among the world’s most overvalued… The fall market gathers pace… ‘Poor doors’ come to Toronto… Canadian debt levels rise but delinquent debts fall…
Canadian real estate among the world’s most overvalued
The Economist has revealed data that shows that Canada’s real estate is some of the most overvalued in the world; by around 25 per cent in fact. The price-to-rent ratio in Canada was 175.9 per cent in the second quarter of this year, on a par with New Zealand and Hong Kong. Canada also ranks highly on a ratio of prices to average incomes, at 129.7 per cent. Read the full story.
After the August slow-down the fall market gains pace
August was a slower month for real estate after a vibrant July but now that Labour Day has been and gone things are already shaping up for a busy fall. Toronto realtor John Pasalis says that demand is hot and outstripping supply and people are willing to pay prices in excess of market value. Once again it’s the condo market that is particularly frantic, with prices rising and demand high while detached houses are barely seeing an increase in sales with the inventory also being low. Read the full story.
Toronto’s ‘poor doors’ in condo developments
It’s a trend that’s been seen in New York and has sparked criticism and now it’s also being seen in Toronto. Condo developments that include affordable housing are being built with two separate entrances, one for the affordable housing and one for those paying for the more expensive units. The so called ‘poor doors’ have been heavily criticised in New York, not least because critics say that developers use the affordable housing provision to persuade planners to green-light the project and receive subsidies but the finished development is not within the spirit of the plans. There is pressure on New York to ban the practice and it’s unlikely to prove too popular here either. Read the full story.
Canadians taking on more debt
Credit agency Equifax says that Canadians are increasing their debt levels, fuelled by mortgages and personal loans. Figures show that debt levels for the 2nd quarter of this year are up 7.2 per cent on a year before and up 1.8 per cent on the previous quarter. While the levels of debt may be a concern; $20,759 on average without including home loans, the rate of delinquencies is now at the lowest level since before the financial crisis, so Canadians can largely afford the debt… for now. Read the full story.
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