GTA Cities Ranked By Commute Times and Cost

November 16th, 2017

Interesting ranking. Study ranked cities within the GTA and surrounding areas by commute times and cost. Durham ranked the best, which isn’t surprising, given it’s low population per capita and cost psf.

October 2017 Toronto Real Estate Numbers

November 4th, 2017

Toronto real estate numbers for the month of October 2017 are out. Some good and bad news.

Bad news is that the number of sales are down from October 2016 (7,118 in October 2017 vs 9,715 in October 2016).

Good news, is that prices are increasing at a very stable rate. Average sale price in October 2017 was $780,104 vs $762,691 in October 2016. Also, numbers were much better in October 2017 vs September 2017. The number of sales is up, the average sale price is up and number of active listings is down versus the previous month.

Hopefully this trend continues in November as the market appears to be in balance.

New, Tougher OSFI Rules Coming In 2018!

October 17th, 2017

New OSFI rules taking effect January 1, 2018.

OSFI is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages:

Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.

OSFI is requiring lenders to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic and responsive to risk:

Under the final Guideline, federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.

OSFI is placing restrictions on certain lending arrangements that are designed, or appear designed to circumvent LTV limits:

A federally regulated financial institution is prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institution’s maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.

Prices Stable, Sales Down and Supply Up In The GTA!

October 17th, 2017

On a year over year basis, the average sales price at the end of September 2017 was up by 2.6% compared to September 2016 ($775,546 vs $756,021). However, the number of sales was down (6,379 vs 9,830) and supply was up (16,469 new listings vs 15,050 new listings) compared to the month of September 2016. Given supply has been high recently and demand has been falling, we may very well see prices fall slightly this Fall and Winter.

Supply Up, Demand Down In July 2017

August 14th, 2017

Demand and number of sales down, supply up and prices up in July 2017 (compared to July 2016). After a strong Q1 2017, many homeowners are selling to take advantage of high prices. Buyers, however, are taking a break to see if prices will come down. Eventually buyers will re-enter the market to scoop up all the excess listings and the market will finally stabilize.