Consumer confidence rises; expectation of higher house prices increases… Toronto sees surge in rental market… Ottawa to restore and increase charge for affordable housing… And commercial real estate sales grow in Calgary…
Consumer expectation rises for real estate price escalation
Canadian consumers were feeling a little better off financially last week, according to the Bloomberg Nanos Canadian Confidence Index. With gasoline prices lower due to a reduced cost of oil, the average Canadian is feeling more confident about their personal finances than they have been since the start of June. The figures show that there is still an expectation of increased house prices over the next six months; 41.5 per cent of those polled think so compared to the 2014 average of 40.4 per cent. Read the full story.
Toronto sees rental market surge
The number of condos on the MLS in Toronto has hit an all-time high according to figures from market researcher Urbanation. The number of units listed during the second quarter of 2014 hit 6,708 marking a 26 per cent increase on a year earlier. New listings were up even more and availability has kept rents lower, rising less than 1 per cent in a year and averaging $2.37 per square foot. The small rent increase continues the trend from the start of the year, compared to last year’s average of 4 per cent. Shaun Hildebrand of Urbanation says that the growth in the rental market suggests a move away from ownership to some extent but is also reflective of more jobs being available allowing the children of baby boomers to move into their own homes. He believes that rent increases will remain low for some time due to high supply levels but is confident that a decline in rents is unlikely. Read the full story.
Ottawa to restore and increase charge for affordable housing
The charge levied by Ottawa city council to fund affordable housing is set to be restored and slightly increased. The $189 charge was added to the development charge for every single and semi-detached home built but the charge was stopped as it wasn’t clear if or how the collected funds were being spent. The new proposal is to restore the fee and increase it to $208 from the start of October. The development fee charges will total $22,173 inside the Greenbelt and $30,362 outside. The $208 fee will likely be passed on to consumers and the collected funds will be used for affordable housing in Longfields next year. Read the full story.
Commercial real estate investment rises in Calgary
The second quarter of 2014 has seen investment sales in commercial real estate in Calgary rise by 13 per cent to $824 million. Figures released this week by RealNet Canada show that 98 of the transactions were for properties priced at over $1 million. Calgary has seen a consistent growth in the commercial market this year, boosted by population growth, low taxes and the improving economic environment. Read the full story.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate