Drivers and Challenges Impacting 2021 Real Estate Market in Canada

 Economic conditions will continue to improve over the course of 2021, albeit with a temporary blip downwards for GDP and employment growth in the first quarter as we work our way through the remainder of the necessary public health measures, including lockdowns and stay-at-home orders.

In the second half of 2021, once vaccine uptake is more widespread and case counts recede, expect the sectors most impacted by COVID-19, including hospitality and entertainment related sectors, to improve.

Very low borrowing costs will be sustained throughout 2021 to support continued economic recovery. Because of this, negotiated mortgage rates will remain low throughout the year as well. It is possible that mediumand longer-term fixed rates could start edging upward later in 2021 as recovery takes hold and underlying Government of Canada bond yields trend upwards anticipating rate hikes from the Bank of Canada in 2022 and beyond.

Looking longer term, immigration and net growth in non-permanent residents will trend to record levels once the pandemic has subsided with global uptake of the various vaccines. The GTA will continue to be the single-greatest metropolitan beneficiary of immigration into Canada, as the substantial federal government immigration targets take effect.

Population growth will be especially important for the condominium market.

Newcomers looking to purchase their first home or rent a condominium apartment from an investor, will see both condo ownership demand and rental demand pick up substantially, thereby helping to absorb any excess inventory of units available for sale.

The key challenge to the housing market over the next year and beyond will be a familiar one: lack of supply. Policymakers at all levels of government have acknowledged the need for a greater supply of housing and a greater diversity of housing types.

TRREB looks forward to continuing their work with policymakers to find solutions to bring more housing online

A Quick Glance at TRREB’s In-Depth Report

 2020 Market Year in Review :

The first quarter of 2020 started off strong until the pandemic hit in mid-March followed by the province-wide shutdown, which resulted in historical low market activity. However, sales growth quickly rebounded in the latter half of the year, which is a testament to the resilience and flexibility of the regional economy and population. For 2020 as a whole, 95,151 sales were reported through TRREB’s MLS® System, an increase of 8.4% year over year, whereas new listings were up only by  2.6%. The disconnect between new listings and sales accelerated the growth of price. The overall average selling price increased by 13.5% to $929,699 in 2020. Outlook for 2021 Home ownership will remain strong in 2021. Looking ahead, total home sales are expected to range between 100,000 and 110,000. In addition, the overall average selling price for all home types and areas combined will eclipse the $1,000,000 mark for the first time. 

Renting in the GTA :

Despite the economic uncertainty resulting from COVID-19, the demand for rental accommodation remained very strong in the GTA in 2020. However, the number of condominium apartments listed for rent at one point during 2020 almost doubled compared to 2019. Increased supply resulted in more negotiating power for prospective tenants, as well as a decline in average rents for condominium apartments. But looking forward, as economic growth continues to strengthen and population growth starts to accelerate, based on immigration and non-permanent migration, demand for rental units in the GTA will remain strong and potentially accelerate. 

Industrial, Office and Retail Sectors: 

 A shift in commercial market activity was experienced in 2020. Altus Group found that lockdown restrictions and gathering limitations due to COVID-19 posed challenges to the office and retail sectors, which saw year-to-date volumes drop by 61% and 20 %, respectively. However, pent-up demand drove activity in multi-family and residential land markets, and demand for logistics space to keep up with e-commerce sales led to strong investor preference for industrial assets. Investors are cautiously optimistic that 2021 will see a recovery in the second half of the year, driven by continued growth in industrial and multi-family assets, and economic improvement as a result of the vaccine.

Climbing New Home Sales:

 Altus Group also reported a solid year for new home sales. The market saw overall sales grow by 5% to almost 38,000 homes, which is above the 10-year average and the best year reported since 2017. Demand occurred across the built-form spectrum, including detached, semi-detached and row townhouse units, with both townhouse and detached sales almost doubling last year’s volumes. However, strong sales have eroded supply and have put upward pressure on prices. Sales growth was strongest in the 905 regions, with more single-family homes sold in York Region in 2020 than in the entire GTA in 2018. Looking ahead, single-family new home sales are expected to remain active, but will be impacted by declining inventories and rising prices. 

The Mortgage Industry and the Deferral:

Cliff The federal government’s response to the pandemic included the mortgage deferral program, which led 768,000 homeowners to defer their mortgage in 2020. While there were predictions of a “deferral cliff,” there has been no evidence of widespread mortgage delinquencies. Instead, Mortgage Professionals Canada found there was a rebound in activity, and similar to Realtors, mortgage brokers also had a busy year. Even in December, a time we would usually see a seasonal slowdown, activity was still strong with record-high real estate transactions. Healthy activity in the real estate sector with the continuation of low interest rates is expected in 2021. 

Bridging the Gap:

 Between Detached Homes and High-Rises As a result of municipal zoning restrictions, the majority of our urban areas lack a variety of housing – they are mostly occupied by low density single-family homes. Urban Strategies Inc. found that increasing the amount and variety of housing, or in other words, addressing the “missing middle,” in those areas could significantly, and quickly, alleviate the tight housing supply. Allowing secondary units in all Toronto neighbourhoods could result in the rapid addition of 300,000–400,000 units. Increasing the missing middle can stabilize the population in these areas and also help sustain social and retail amenities. The Urban Strategies report demonstrates excellent examples of efficient and aesthetically pleasing missing middle types of development in both urban and suburban settings. 

A Call for Action:

While some things changed, many did not. Housing affordability and tight housing supply, in addition to the variety of supply, continue to remain key issues across our communities. We also heard from consumers, and we know that demand is stronger than ever. With that said, TRREB will continue to call on policymakers to make a stronger commitment to turn the GTA’s housing challenges into long-term solutions

2021 Buying Intentions and Housing Market Outlook:

Ipsos Home Buyers Survey Results In November/December 2020, Ipsos polled GTA consumers on their home buying intentions in 2021. While COVID-19 presented a period of uncertainty, the pandemic does not appear to have dampened home buying intentions. The share of survey respondents who indicated they were likely (combined very likely and somewhat likely responses) to purchase a home to live in over the next year was 30% – in line with the 29 per cent share reported in the fall 2019 and 2018 surveys. Home buying intentions were highest in Peel Region and Toronto – over 30%

Concluding Thoughts on Market Outlook:

 1. As frontline health care workers became the first recipients of vaccines across the globe in December, raising optimism of an end to the pandemic in the coming months, we expect to see continued healthy activity in the real estate sector into 2021. 

2.The governor of the Bank of Canada has reassured Canadians that their overnight rate will likely remain at the effective lower bound until 2023, and continue with their quantitative easing through debt purchasing to ensure continued low interest rates in the credit markets. 

3.While bond yields will increase slightly with market optimism about a return to normal, the fiscal policy of the Bank of Canada and federal government will ensure mortgage rates will also remain near historic lows through much of the coming year and possibly beyond.

 4.With the mortgage deferral programs also appearing to have wound down without large foreclosures required, the mortgage market will remain strong, with our banks and lenders well positioned to continue to extend credit at very low rates. 

5. And as immigration returns and with the federal government’s increased targets for newcomers, demand should remain strong through 2021.

2021 Housing Market Outlook :

The latest Ipsos Home Buyers survey results suggest that home buying intentions for 2021 remain strong from a historic perspective. With this in mind, the following are key points summarizing TRREB’s housing market outlook over the next year: 

1 Combined home sales reported through TRREB’s MLS® System for the GTA, south Simcoe County and Orangeville are expected to range between 100,000 and 110,000 in 2021, with a point forecast of 105,000 transactions.

 2 The pace of new condo apartment listings will start to ebb, especially in the second half of 2021. With single family listings remaining constrained, expect total new listings to range between 155,000 and 165,000, with a point forecast of 160,000. 

3 The overall average selling price for all home types and areas combined will eclipse the $1,000,000 mark for the first time on a calendar year basis. TRREB’s point forecast is $1,025,000, representing a year-over-year increase of 10%.

Looking Ahead :

 Forecasting activity during a pandemic is challenging – leaving uncertainty around the impact from the pandemic on the housing market in 2021. While demand for housing in the GTA is expected to be robust, a softening rental market, restrictions on short-term rentals and sharply rising resale inventories for condominium apartments are expected to dampen demand. Single-family new home sales are expected to remain more active but will be impacted by declining inventories and rising prices. Townhouse units are expected to remain in high demand, given the relative affordability compared to apartment units, but overall sales volumes are expected to dip given the lack of supply. 

GTA REALTORS® RELEASE JANUARY 2021 STATS

 • January 2021 home sales amounted to 6,928 – up by more than 50 % compared to January 2020. This strong start to 2021 included sales growth across all major segments including condominium apartments, both in the City of Toronto and surrounding GTA regions.

• New listings were also up on a year-over-year basis in January, but not by the same annual rate as sales. This means market conditions tightened compared to January 2020, resulting in the continuation of double-digit growth in the MLS®Home Price Index and the average selling price.

• The average selling price for January 2021 was up by 15.5 % to $967,885 year-over-year. The MLS® HPI Composite Benchmark was up by 11.9 % over the same period.

• Price growth was driven by the low-rise market segments, while the average condo apartment price was down in Toronto. However, if we continue to see condo sales growth outstrip condo listings growth, we could start to see renewed growth in condo prices later this year.

Wealthiest Neighborhoods of Canada

Canadian Business Magazine compiled a list of the wealthiest neighborhoods  of  Canada 

Bridle Path, Toronto ( torontolife.com)

Toronto

Lawrence Park North

Lawrence Park is known for being one of Toronto’s first garden-planned communities. The small neighborhood is nestled among rolling hills integrated with several parks. Local residents enjoy amenities found at the nearby Yonge and Lawrence streets, famous for both their shopping opportunities and food. Residents also spend time at the exclusive Granite Club, a local recreation center.
In 2011, Lawrence Park was named the wealthiest neighborhood in Canada. The money flowing through Lawrence Park historically runs deep. Wealth for the area can be traced all the way back to the early 20th century when it was known for being Canada’s aristocratic neighborhood.

The annual household income for Lawrence Park North residents is $906,266, and home prices average $2.81 million. The neighborhood has a variety of home styles ranging from English Tudor style to Georgian and Colonial homes. Many of the residents in the area are current or former Toronto athletes from the Blue Jays and Maple Leafs, as well as high profile business leaders. The neighborhood even houses Canada’s first female astronaut, Roberta Bondar!

Forest Hill South & UCC 

Forest Hill South and UCC (Upper Canada College) are considered one of the most affluent neighborhoods in Toronto with an annual household income of $629,972 and average house prices at $3.18 million. Much like many other affluent neighborhoods, there is a link to a high percentage of married couples at 88%, as well as a focus on education and neighborhood amenities and a sense of community.

Historically, in the 1930’s, wealthy Jewish immigrants began moving into Forest Hill South.  People of the Jewish faith now account for more than 30% of the population, double that of the next cultural background, Russians.  Today, the area is popular with prominent business people, doctors, lawyers, and politicians. Many of the streets are wide and designed to keep traffic slow and at a minimum. This isn’t a necessarily bad thing, as passersby have the opportunity to see the distinguished and intricate landscaping of many of Forest Hill South’s larger and grander homes.

Sunnybrook

Sunnybrook had once been the estate of a well-known horseman named Joseph Kilgour, which also contributes to Sunnybrook’s’ residents love of horses and horse-riding, which is immediately present as you drive among stables and magnificently well-bred horses with pedigrees nearly as strong as their owners’. After Kilgour’s death, the land was donated to the city, and is now used as a riding school and a park for residents to hike, bike, play with their dogs, or go on picnics.

Sunnybrook is also home to one of Canada’s largest hospitals with a staff of over 10,000, which also is testament to the number of doctors and surgeons who live within Sunnybrook’s boundaries.

The average household income is $311,979, seemingly low for one of the wealthiest neighborhoods in Canada. However, the disparity in middle class to extreme wealth is apparent, as Sunnybrook also has an average household net worth over $20 million. In addition, the average house prices are $2.29 million.

York Mills-Windfields,

The York Mills , takes its name from Windfields, the historical estate of famed Don Mills developer E.P. Taylor, which today houses the Canadian Film Centre.

York Mills is part of millionaire’s mile which encompasses the nearby neighborhoods of Bridle Path, Forest Hill, Lawrence Park, and Rosedale. York Mills is a unique neighborhood in the idea that it has gone through what many would call a gentrification of the community. Essentially, through the process of tear-down and rebuild, the affluent coming into the neighborhood have pushed out the lower income and middle class by simply making York Mills too expensive to live in. While apartments and condominiums are home to nearly 30% of the residents, those residents pay high premiums with condos ranging from $350,000 to over $2-million.

With several palatial estates in York Mills it can boast the highest average house price in Canada at $3.4 million. Luckily for the residents, average household income is $1,212,275, giving them just enough to afford the estate-style homes that make York Mills one of the most desirable neighborhoods in Canada.

Bridle Path

Bridle Path is the most affluent neighborhood in Canada, and situated along millionaire’s row with affluent neighbors York Mills and Lawrence Park, which also made this list. Formerly known as North York, Bridle Path is typically known for its multi-million dollar homes and large plot sizes that average two to three acres per residence. Bridle Path, a rather late-comer in the area, wasn’t developed for affluent homes until the late 1930’s and early 1940’s as the needs of the affluent began to expand in the area.

Bridle Path is home to some of Canada’s biggest media moguls, celebrities, doctors, and engineers. Its proximity to the Sunnybrook Health Centre can also explain the high number of health professionals who live in the area.

The average household income is $936,137 with house prices averaging $2.24 million. However, it is the average household net worth that is mind bogglingly incomprehensible at $22.2 million, which explains why Bridle Path is clearly at the top of this list.

Rosedale

Rosedale is an affluent neighbourhood in Toronto, Ontario, Canada, which was formerly the estate of William Botsford Jarvis, and so named by his wife, granddaughter of William Dummer Powell, for the wild roses that grew there in abundance.

It is located north of Downtown Toronto and is one of its oldest suburbs. It is also one of the wealthiest and most highly priced neighbourhoods in Canada. It is known as the area where the city's 'Old Money' lives, and is home to some of Canada's richest and most famous citizens, including Ken Thomson who was the richest man in Canada at the time of his death. Rosedale's boundaries consist of the CPR railway tracks to the north, Yonge Street to the west, Bloor Street to the south, and Bayview Avenue to the east. The neighbourhood is within the City of Toronto's Rosedale-Moore Park neighbourhood. The neighbourhood is divided into a north and south portion by the Park Drive Ravine.

Moore Park

Moore Park is a neighbourhood in Toronto, Ontario, Canada. It lies along both sides of St. Clair Avenue East between the Vale of Avoca section of Rosedale ravine and Moore Park ravine (formerly Spring Valley ravine). The northern boundary is Mount Pleasant Cemetery and the southern the Canadian Pacific Railway tracks. Moore Park is one of Toronto's most affluent neighbourhoods.

The neighbourhood takes its name from its developer, John T. Moore. To encourage buyers, he built two bridges in 1891: the original steel bridge on St. Clair over the Vale of Avoca, and the original wooden bridge on Moore Avenue over Spring Valley ravine. He also helped establish railway service to the neighbourhood.

According Canadian census 2006 , the neighbourhood has 4,474 residents, down 2% from the 2001 census. Average income is $154,825, one of the highest incomes of all Toronto neighbourhoods, and not far below neighbouring Rosedale. The neighbourhood is almost entirely English speaking.

Hoggs Hollow, Toronto

Hoggs Hollow is one of the most affluent neighbourhoods in Toronto, Ontario, Canada, located in the Don River Valley and centred on the intersection of Yonge Street and York Mills Road/Wilson Avenue. Hoggs Hollow is named after Joseph Hogg, a Scotsman who settled in the area in 1824. Hogg operated a whisky distillery and a grist mill, and was viewed as the most successful of all the millers in the valley. The name is usually written without the apostrophe as Hoggs Hollow, but sometimes appears as Hogg's Hollow.

Let's see more weathiest  neighbourhood of other Provinces of Canada

Kerrisdale, Vancouver, British Columbia

In 2011, New Jersey Monthly magazine named Ho-Ho-Kus Borough as the best town to live in in New Jersey. This is because of its low crime, excellent schools, proximity to high-profile urban areas (such as New York City), and of course its affluence. Residents of this borough have a surprisingly relaxed and quiet retreat as stunning early 20th century homes lay hidden among large wooded plots of land. With a small-town life, residents enjoy the best of both worlds as the proximity to shopping and the bustle of city life is only a short distance away.

The population of Ho-Ho-Kus is just under 5,000, with a median household income of $165,827 and average home values of $775,000. The borough has an exceptionally low poverty level, with the majority of its residents being considered upper class or middle upper class.

With its proximity to several urban areas, Ho-Ho-Kus is a popular area for finance and business leaders such as David Duffield who has founded numerous companies, notably PeopleSoft.

Shaughnessy Heights, Vancouver, British Columbia

Shaughnessy Heights is an almost entirely residential neighborhood in Vancouver. The annual household income is $777,184, with average home prices at $3.09 million. This neighborhood has beautiful historic homes, with more than half of the homes built prior to World War II.

The neighborhood was created in 1907 as an alternate affluent community to the West End, which at the time was the elite of Vancouver. With a population of only about 3,000, the town has growth policies that inhibit commercial development as well as property subdivision and multiple dwelling homes, and instead promotes large plots of land for single-family homes.

The neighborhood is home to the exclusive Shaughnessy Golf and Country Club, well positioned to provide the neighborhood the country club feel of the mid-century. This 18-hole championship golf course is a picturesque park-like and forested setting which has hosted numerous Canadian and Pacific Northwest championships, as well as the PGA Tour Bell Canadian Open.

Westmount, West Vancouver, British Columbia

Average Household Net Worth: $8,956,821
Average Annual Household Income: $393,746
Average House Price: $3,165,139

The homeowners of this tony neighbourhood, making their debut on the ranking, would seem to prefer experiencing foreign cultures from the comfort of their multi-million dollar homes: They’re the most likely amongst B.C.’s rich residents to drink European wine (14.4% of households do), but the least likely to have visited the Continent.


Sunnyside & Edgehill, Westmount, Montreal ,Quebec

Sunnyside and Edgehill are neighborhoods located within Canada’s 2nd most populated city, Montreal. The average annual income made by inhabitants is $503,935, and the average home price is $2.49 million. The average individual net worth of Sunnyside and Edgehill homeowners is the second wealthiest in Montreal and the home prices are the most expensive in the city. Massive stone homes reminiscent of English country manors sit on large wooded lots often set back upon rolling hills and terraced gardens.

When not working, 17.8% of residents enjoy their time downhill skiing at nearby Bromont, a mountain less than an hour outside of Montreal, or across the U.S. border at Jay Peak, a mountain in Vermont. Both locations are known for their excellent skiing, amenities, and affluent clientele. Sunnyside and Edgehill residents are both affluent and adventure-seekers, not afraid to hit the 4,000 foot mountains in their free time.

 Lexington Avenue, Westmount, Montreal, Quebec

One of the three Westmount neighborhoods on this list, Lexington Avenue, is notable for many reasons. First, it is home to St Joseph’s Oratory, a Catholic basilica famous for being the largest church in Canada. St Joseph’s is also known for offering one of the most breathtaking views of Montreal. Within the same area of the basilica, the neighborhood is also home to Greene Avenue, known for its upscale shops, fine dining restaurants, and antique stores.

Lexington Avenue residents enjoy the luxuries of an average annual household income just over $590,000 and home prices worth $1.8 million on average. Homes on Lexington Avenue exude luxury, known for being colossal stone structures sporting second and third floor stone balconies.
   
 Summit Park, Westmount, Montreal, Quebec

Much like neighboring Westmount neighborhoods Sunnyside and Edgehill, Summit Park residents enjoy downhill skiing almost as much as the picturesque views from their homes. About 17% of residents claim they are regular downhill skiers.

The Summit Park neighborhood is named after the 57-acre park and bird sanctuary that is situated atop Westmount’s highest peak. Views from Summit Park are some of the more spectacular views of the city, as the homes in this neighborhood look out over one of the city’s highest points. As Quebec’s richest neighborhood, Summit Park is also noted for having the largest percentage of drinkers of craft beer and is ranked as most likely to own a swimming pool.

Residents of Summit Park have an average annual household income of $906,659 with house prices averaging $2.4 million. Average net-worth for residents is around $11 million.

King George Park, Westmount, Montreal, Quebec

Average Household Net Worth: $7,574,692
Average Annual Household Income: $534,971
Average House Price: $2,467,316

The truly old-money locals still call this area Murray Hill Park after the gentleman farmer, William Murray, who sold this land to the City of Westmount in the 1920s. Straddling King George Park (it was renamed in 1939 to mark a royal visit), it runs from Forden Crescent in the north to Grosvenor Avenue in the south. These are the most cultured Montrealers on this list: they were most likely to have visited an art gallery, or to have attended the symphony or ballet in the past year.

Britannia, Calgary, Alberta

Average Household Net Worth: $7,984,224
Average Annual Household Income: $1,334,970
Average House Price: $2,386,579

The neighbourhood of Britannia was designed from the very beginning to be an upscale community: in 1952, when the average Calgary lot was going for $250, building lots in Britannia, which hugs the East bank of the Elbow River, were sold for up to $5,000. Today it remains a landmark collection of some of the best examples of mid-century modern architecture in the city, and it has the real estate prices to prove it, with average home prices of almost $2.4 million. While the residents of Britannia rank 15th in terms of average net worth, their average annual income, at over $1.3 million, makes them the highest-paid on the entire ranking. They’re also the most enthusiastic skiers of their wealthy Calgary peers, with nearly a third hitting the slopes come winter.

Upper Mount Royal (North), Calgary, Alberta

Average Household Net Worth: $7,720,307
Average Annual Household Income: $1,266,518
Average House Price: $1,883,551

These residents leapfrogged their neighbours just a few blocks south to claim a spot on the ranking for the first time. Mount Royal was originally, and somewhat unimaginatively, dubbed “American Hill” because of the large numbers of Americans who had settled there. Perhaps content with this bit of foreign provenance, the residents are among the least likely among Alberta’s rich to spend their vacations abroad.

Elbow Park, Calgary, Alberta

Average Household Net Worth: $7,611,156
Average Annual Household Income: $479,285
Average House Price: $1,987,126

Leadership lives in Elbow Park. At least two twentieth-century premiers lived in the area; in modern times, the neighbourhood has formed the heart of the provincial Calgary-Elbow riding, represented by both Ralph Klein and Alison Redford. But earlier this year, voters chose Greg Clark, the only member of the centrist Alberta Party to be elected to the provincial legislature.

Roxboro, Calgary, Alberta

Average Household Net Worth: $7,368,972
Average Annual Household Income: $810,847
Average House Price: $1,517,409

Calgary’s richest neighbourhoods follow the course of the Elbow River, and Roxboro, a tidy set of tree-lined streets, is the furthest downstream. Bordered by the river to its north and St. Mary’s Cemetery to the east, Roxboro is often mentioned in the same breath as Rideau Park, a similarly affluent riverside eighbourhood to the west.

Heubach Park, Winnipeg, Manitoba

Average Household Net Worth: $5,270,675
Average Annual Household Income: $296,912
Average House Price: $708,541

This neighbourhood’s net worth surged in 2015 to become the wealthiest neighbourhood in the city, despite only placing second by average annual income and average house price (the homes in South Tuxedo park are $200,000 dearer). The former town of Tuxedo’s first mayor was Frederick W. Heubach, and this neighbourhood straddles the south side of the park that still bears his name today.

South Tuxedo Park (West), Winnipeg, Manitoba

Average Household Net Worth: $4,922,681
Average Annual Household Income: $500,102
Average House Price: $916,657

The residents of this part of Tuxedo are a worldly lot—they’re more likely than any of their wealthy peers to have taken an international vacation in the last year. They were four times more likely to have gone to Asia, and almost twice as likely to have gone to Europe. They’re not snobs though; compared to the other rich Winnipeg neighbourhoods on this list, they drink the most beer and are least likely to hit the ballet or symphony.

Tuxedo Park (North), Winnipeg, Manitoba

Average Household Net Worth: $4,254,246
Average Annual Household Income: $250,811
Average House Price: $521,175

All of Winnipeg’s most prosperous neighbourhoods are clustered in what was once the well-heeled town of Tuxedo. The neighbourhood’s spiffy name was chosen to draw upper-crust buyers at the beginning of the 20th century, and the moniker still holds today. By the standards of this list, Tuxedo Park’s denizens are relative teetotallers, but when they do drink, they choose European wine over beer.

Assiniboine Park, Winnipeg, Manitoba

Average Household Net Worth: $4,647,095
Average Annual Household Income: $262,101
Average House Price: $575,082

On the western edge of the Tuxedo neighbourhood, Assiniboine Park is home to Winnipeg’s zoo, where visitors can gawk at Hudson the playful polar bear or admire the red kangaroos. Residents who prefer a more manicured version of nature can test their swings on the 18-hole Tuxedo Golf Course.

Beaufort Avenue South, Halifax, Nova Scotia

Average Household Net Worth: $4,009,219
Average Annual Household Income: $205,278
Average House Price: $891,646

Halifax’s top five richest neighbourhoods are all located in the city’s South End, and the city’s wealthiest inhabitants favour the waterfront property along the Northwest Arm, the inlet that houses such swell hangouts as St. Mary’s Boat Club, the Halifax Rowing Club, and the Waegwoltic Club. The area owes its secluded enclaves to the blasting process that cleared the space for the nearby railway line; those tracks are now the basis of the Halifax Urban Greenway.


Courtsey :  thefinancialword.com, wikipedia, Canadian Business

How REALTORS® do the Homework

When selling your home, what you see your REALTOR® doing is only the tip of the iceberg. The years of study and experience allow your Realtor to provide immediate value for home sellers

WHAT YOUR CREDIT MEANS IN CANADA

“We live in a country where you can’t do much without having credit, and if you’re being responsible about it and not overextending yourself, then it’s always a good thing to have,”

Your credit file is created when you first borrow money or apply for credit. On a regular basis, companies that lend money or issue credit cards to you, including banks, finance companies, credit unions, retailers, send specific factual information related to the financial transactions they have with you to credit reporting agencies.

Credit report

A credit report is a "snapshot" of your credit history. It is one of the main tools lenders use to decide whether or not to give you credit.

Credit Score

Your credit score is a judgment about your financial health, at a specific point in time. It indicates the risk you represent for lenders, compared with other consumers. The credit-reporting agencies Equifax and Trans Union use a scale from 300 to 900. High scores on this scale are good. The higher your score, the lower the risk for the lender. Lenders may also have their own ways of arriving at credit scores. In addition, lenders must decide on the lowest score you can have and still borrow money from them. They can also use your score to set the interest rate you will pay.

Our credit score affects us in a variety of ways these days that we may not be aware of. It affects mortgage rates, insurance rates, and can even affect our ability to get a job.

In order to reach or maintain a healthy score we have to do three things: limit delinquency of payment, limit utilization of credit, and maintain a healthy mix of credit. Considering the largest portion of our credit score is made up of our payment history and the simple exercise of paying your bills on time, a simple solution is to set up automatic bill payments.

It might happens that paying your credit card balance in full every month might actually leave you with a lower score versus someone who never misses a payment, but always carries a balance.

If your score isn’t perfect, don’t sweat it. Having no debt is better than a high credit score. But if your debt situation is out of control, or if your identity has been compromised, checking into your file is the first step in setting things right.

Credit Rating

Experts say establishing a solid credit rating is key to building life-long financial stability and not throwing away money on high interest payments.

Some credit-reporting agencies report the lenders' rating of each of your credit history items on a scale of 1 to 9. A rating of "1" means you pay your bills within 30 days of the due date. A rating of "9" means that you never pay your bills at all or that you have made a consumer debt repayment proposal to the lender.

 A letter will also appear in front of the number:

·         "I" means you were given credit on an installment basis, such as for a car loan, where you borrow money once and repay it in fixed amounts, on a regular basis, for a specific period of time until the loan is paid off.

·         "O" means you have open credit such as a line of credit, where you borrow money, as needed, up to a certain limit and the total balance is due at the end of each period. This category may also include student loans, for which the money may not be owing until you are out of school.

·         "R" means you have "revolving" credit, where you make regular payments in varying amounts depending on the balance of your account, and can then borrow more money up to your credit limit. Credit cards are a good example of "revolving" credit.

"R" Ratings :

The most common ratings are "R" ratings. These are known as North American Standard Account Ratings and are the most frequently used. The "R" indicates that the item being described involves revolving credit. If you always pay on time, it will be coded an R1. If an amount was written off because you never paid it back, it is coded R9. The R ratings are a coding system that translates "on time", " one month late", "two months late", etc., into two-digit codes.

R7: Making regular payments through a special arrangement to settle your debts.

R8: Repossession (voluntary or involuntary return of merchandise).

R9: Bad debt; placed for collection; moved without giving a new address or bankruptcy.

Here are six other things that can hurt your credit rating:

Too much credit:

“Having 10 different credit lines with low balances on them, a creditor will look at that and say, ‘This person is coming to me for an additional loan, but if they max out on all their different credit lines and credit cards, they are going to have way too much debt in comparison to what they’re making, so adding another [loan]could potentially put this person in worse position.

Never using your credit card :

 Part of your credit score is based on your payment history, so never using your card could hurt you because the creditor can’t assess the risk associated with you. “If you have no history, you’re a bit of an enigma to the creditor, But if you do have a history and you’re showing repetitive payments … you become a better risk for the creditor.”

Parking tickets:

If you don’t pay parking tickets or library fines, your municipality will eventually want to collect. “If it ends up in the hands of a collection agency, it’s going to affect your credit score,” 

Divorce: 

If you and your ex-spouse applied for a credit card or line of credit jointly, be aware that you may be responsible for any debts incurred by your ex, even if you split the debts as part of the divorce agreement.

Applying for lots of cards:If you are the type of person who applies for every credit card in every store that you’re offered, beware. A large amount of hard pulls” (inquiries on your credit for the purpose of obtaining new credit) can make you seem like a bigger risk. If you’re showing a lot of inquiries over a short period of time, Lander take it as: It could be that you’re having difficulty managing your money and something is on the horizon that you as the consumer can see but isn’t readily evident to the creditors. That’s a signal to them to say, ‘Whoa, let’s take a look at this because all of a sudden, this person is looking for more credit. If one or two or three of these [cards] start to land, they will have all this credit, but not the income to handle it.'

Renting a car: 

Car rental companies could be doing credit checks on you when you rent, which could increase the amount of “hard pulls” you’re getting. 

Debt-to-credit ratio is the second most important consideration when it comes to credit. Ideally we should be using less than 40 per cent of our available credit.If you have an open credit card that you no longer use, you don’t need to close it, especially if it doesn’t have an annual fee. Considering “a major determining factor in your score is your percentage of available credit, you want to have the highest level of available credit, while using as little of it as possible. If you have a card you no longer use, keeping it open will actual lower your credit utilization rate.Having a lower debt-to-credit ratio equals a higher overall score. The other option before you close an account is to secure an increase on available credit on the cards you are keeping open. Paying off debt should therefore be a priority, and so should having a healthy mix of credit in your name: credit card bills, utility bills, car loans, and so on.

source globe and Mail

TORONTO'S Priority Neighbourhood

What are priority neighbourhoods?

Who: Identified by city council and United Way

When: Started 2004

Why: To reduce crime, increase opportunities for young people and improve services for people in underserved areas.

How: Neighbourhoods were measured for key services, including libraries, schools, community centres, settlement and employment services, as well as for things like median household income, education levels and knowledge of English or French.

What: In total, 13 neighbourhoods were identified: Malvern, Jane-Finch, Jamestown, Kingston-Galloway, Victoria Village, Dorset Park, Eglinton East, Scarborough Village, Black Creek, Westminster-Branson, Crescent Town, Steeles-L'Amoreaux and Kennedy Park.

Under a new ranking system revealed by city staff on Monday, each of Toronto’s 140 neighbourhoods has been given an “equity score” based on 15 criteria that includes health, economics, political participation and education. A team of experts set 42.89 as a benchmark score. Communities that fall below the line are designated as a “Neighbourhood Improvement Area,” which replaces the old “Priority Neighbourhood Area.”

Black Creek scored the lowest, with 21.38. Lawrence Park north was the highest, with 92.05.

Westminster-Branson, ranked 38th overall, came in at 46.57. This north Toronto neighbourhood is one of eight that no longer qualifies as a priority investment area. Malvern, Dorset Park, L’Amoreaux, Yorkdale-Glen Park, Steele, Englemount-Lawrence and Humber Heights-Westmount round out that list.

Each was part of the city’s original neighbourhoods program, which was launched eight years ago after the so-called Summer of the Gun.

The designation meant the community of about 24,000 in Ward 10 received a new community hub and health centre development, renovated facilities and additional recreation and employment supports, among other things.

16 new areas will get extra funding, while 8 drop off the list in a new ranking system means missing out on millions of dollars worth of capital funding and resources.

Added IN Priority designation:

Beechborough-Greenbrook
Oakridge
Elms-Old Rexdale
Regent Park
Thorncliffe Park
South Parkdale
Rockcliffe-Smythe
Rustic
Morningside
Ionview
Downsview-Roding-CFB
York University Heights
Thistletown-Beaumond Heights
Keelesdale-Eglinton-West
Weston-Pellam Park
Kingsview Village-The Westway

Off the list :

Malvern
Dorset Park
Westminster-Branson
Yorkdale-Glen Park
L’Amoreaux
Steeles
Humber Heights-Westmount
Englemount-Lawrence

 SOUTH PARKDALE neighbourhood is one of 16 communities in need that didn’t meet the threshold back in 2005 but do now. A low-income area just outside the southwest downtown core, South Parkdale has high unemployment, a high occurrence of preventable hospitalizations, and a higher than average number of people drawing on social assistance.

THORNCLIFFE PARK: Thorncliffe residents score average in terms of the number of residents who graduated from high school and post-secondary institutions. The difference is that, for many of his constituents, those diplomas were earned outside of Canada and haven’t translated into well-paying careers in Canada.
Instead of single-parent homes, in Thorncliffe, “many families are crowded together in dwelling units."



source:thestar

Renovations that bring the greatest percentage return on investment:

I working with Buyer who is also contractor and we are searching for the house that need some Renovation. After looking some house I and my buyer sat and decided which improvement in the house will appreciate more in money …

"Whatever your home improvement is ... I strongly discourage designing new spaces in a fashion that's incongruous with the rest of the house's architectural vernacular."

According to Remodeling magazine's annual Cost vs. Value Report for 2014  followiing are the few :

v  Front Door :  A new front door, which on average adds 96.6 percent of the amount you spent to the value to your home. "It has to be the right front door." Keep in mind that sometimes painting the existing front door provides the same payoff.

v  Replacing old elements, such as doors, windows and siding, in general yielded a better financial return than bigger remodeling projects, such as additions.

v  The report found that kitchen projects yielded a higher return than bath projects, with a minor kitchen remodel adding 82.7 percent of the project's cost back to the home's value. Kitchens are important, because would-be buyers often overestimate how much they would cost to update. The average cost of a minor kitchen remodel -- new cabinet doors, appliances, countertops, sink, faucet, paint and hardware -- usually $18,856 nationwide, according to the Cost vs. Value report. 

But, like the front door, it's important to do the right kitchen remodel. Adding a $75,000 kitchen to a $100,000 house is unlikely to yield $75,000 in value.

 As a general rule, look to spend about 25% of the home's value for a new kitchen and 12 % to 15% for an updated bathroom.

Which improvements will pay off  what varies not only regionally, but also neighborhood by neighborhood :

v  A pool will add more value to homes in some warmer climate neighborhoods than in colder climate it is just an expanse to have it.

v  Turning attics into usable space or into bedroom  is a popular and profitable improvement.

v  Replacing windows with French doors that open to the backyard is another popular, and not very expensive, renovation project. "It makes the room feel bigger and gives you somewhere to go," 

v  For people who plan to stay in their homes, investing in those projects, as well as in more energy-efficient heating and air conditioning systems and appliances, saves money all year.

Here are the home renovations that Remodeling's Cost vs. Value study says will give you the biggest bang for your buck, as well as projects that generate the lowest return.

Renovations that bring the greatest percentage return on investment:

-- Entry door replacement: 96.6 percent

-- Deck addition (wood): 87.4 percent

-- Attic bedroom: 84.3 percent

-- Garage door replacement: 83.7 percent

-- Minor kitchen remodel: 82.7 percent

Renovations that yield the smallest return:

-- Home office remodel: 48.9 percent

-- Sunroom addition: 51.7 percent

-- Bathroom addition: 60.1 percent

-- Backup power generation: 67.5 percent

-- Master suite addition: 67.5 percent

courtsey : U.S.News & World Report LP

CANADA's Housing Market - who is buying and where..?

Canada’s housing market took off in 2009, fueled by low interest rates. Housing became a main source of economic growth, with annual resale price increases of as much as 13% in May 2010. Price gains slowed to 3.1% as of October partly because of a new rule that shortened the maximum amortization period on mortgages the government insures to 25 years from 30 years. Bank of Canada Governor Stephen Poloz told lawmakers Nov. 20 he doesn’t see a housing bubble and there are signs of a soft landing as indebted Canadians pull back on spending.

International buyers are shoring up high-end housing in Canada after regulators tightened mortgage rules in 2012 to cool the nation’s booming market.In Vancouver and Toronto, price growth of luxury housing in some neighborhoods also outpaced less costly homes.

TORONTO :

Toronto, the condo boom has lured international buyers, transforming Canada’s largest city. Condo developers in the city led a record number of high-rise projects in North America last year, squeezing out everything from cookie factories to parking lots.

Toronto Housing market is fueled by foreign Investors and first time buyers.

Donald Trump’s 65-story luxury condo tower opened in Yorkville, the city’s high-end shopping district, one condo was listed for sale in late November for $15 million. It boasted five bathrooms, an indoor pool, six balconies, four underground parking spots and a monthly
maintenance fee of $8,224.

VANCOUVER :

In Vancouver, which boasts a rugged Pacific coastline and cultural ties to Asia, 40% of buyers of 1,239 such homes were from aboard.

In Vancouver, where 15% of the population speaks a Chinese dialect as a first language, people from China are the largest group of foreign buyers, according to Sotheby’s survey. They are often buying second homes or investment properties.

While the entry point for a Vancouver single-family luxury home is $2.8 million, the city in late November offered the most expensive home for sale in Canada by its main broker network: a $35 million duplex once inhabited by a Lieutenant Governor. The 12,216-square-foot home a few kilometers south of Stanley Park has nine bedrooms and 13 bathrooms.

High prices in Vancouver, Canada’s third-largest city, are driven more by a land shortage and population growth than foreign investors.

MONTREAL :

Montreal, whose downtown is stocked with cafes and clubs, attracts global buyers with its Old World charm.

Montreal, known for its crumbling water pipes and bridges as much as its cobblestone streets, now stands out for drawing the biggest share of foreign owners. They purchased 49% of the 206 homes worth at least $1 million in the first half of 2013.

International buyers have thrust Montreal, a city sometimes overshadowed by Toronto and Vancouver, into the national spotlight.

The majority of international buyers of large single-family homes in Montreal are from China, Syria, Mexico, Russia and the U.S., they
typically are married with children and buy a home worth at least $3.5 million with 5,000 square feet. About 80% of them earn more than $500,000 a year and work in finance, technology, law or are entrepreneurs.

In Montreal, prices of bungalows of around 1,200 square feet (111 square meters) rose as much as 5.4% in the third quarter from a year ago, Houses of at least 3,000 square feet worth about $2.47 million in the Westmount area gained 16.9% in the same period.

There is absolutely a clear distinction between Toronto and Montreal,” Brosseau said. “Montreal is known for more quaint areas, very European feel, like Old Montreal with the cobblestones, horse and carriages.”

This year, the brokerage was selling a $6 million house in Westmount owned by a Middle Eastern family and four out of the first six potential buyers were also non-Canadians. They appreciate the city’s more relaxed lifestyle. Montreal residents still buy alcohol at any shop — they don’t have to go to a government licensed store.

Montreal's boutiques and bilingual culture made the metropolis more international over Toronto and Vancouver.

source: National post

Five things to do if you are over-extended on your mortgage

Mortgage default may be rare in this country, but nearly 9% of indebted households need 40% or more of their gross income to pay their debt service charges, says the Bank of Canada Financial System Review.

If you can see problems coming, then you can take action to avoid foreclosure, which happens when lenders run out of other alternatives and borrowers can do no more to pay their debts. Here are five options to consider when you are being crushed by mortgage payments:

1. Extend amortization: If the mortgage has been paid down to 10 or 15 years, then extending it to 20 to 25 years or even to 30 years will decrease payments. In a lot of cases this will work, says Elena Jara, director of education for Credit Canada Solutions, a Toronto-based non-profit organization which offers free credit counselling.

2. Seek better terms: You can go for lower interest rates with the same or a different lender but with a potential penalty, says Bill Evans, a mortgage broker with Mortgage Architects in Winnipeg.“If you are having trouble with payments with one lender, another may not want to take you on. But if you can present a case for a new income, you can go to a so-called specialty lender such as Home Trust or Optimum Trust for a fresh look at your problem and potential solutions,” Evans says. “If you just want to alleviate the problem, timing is crucial.”

3. Renew at a floating rate: There is more risk but lower interest cost in floating rate mortgages. If you are on a fixed rate mortgage with relatively high rates and want to go to a lower floating rate, perhaps by taking the mortgage to another lender, then there may be relief when it is time for loan renewal. The present lender may add a penalty, but over time, floating rates and the often attractive rate on a one-year closed loan can offer relief, Mr. Evans says.

4. Sell it and rent: In markets with high home prices as a result of speculative building, absentee owners will often rent at relatively low cost. That makes for good deals for renters.

5. Discuss a consumer proposal: The homeowner can avoid outright bankruptcy and foreclosure of the home by talking to creditors, suggests Bruce Caplan, trustee in bankruptcy for BDO Canada Ltd. in Winnipeg. “The homeowner can make a consumer proposal in which a settlement plan is devised for the creditors. Secured creditors such as the banks or private mortgage lenders can work out new terms such as reduced payments or a payment bridge for a period of time with the homeowner,” he suggests.

courtesy National Post

HST ...

HST rebate rules don’t include all your relatives:

Property Law, by Bob Aaron: Third parties named on title could disqualify your tax break.

Many buyers of new homes and condominiums may be surprised to receive a demand from Canada Revenue Agency (CRA) to repay as much as $24,000 in HST new-home rebates that they received on closing their purchases.

The purchase price of a newly constructed home is subject to HST. Typically, the price in a builder offer assumes that the purchaser is eligible for a rebate of part of the HST, and assigns it back to the builder as required by the purchase agreement.

In order to qualify for the HST rebate, the house or condominium must be acquired for use as the primary place of residence of the titled purchaser or his or her relation.

The tax law defines a relation to mean a blood relationship, including a child and grandchild, a brother or sister, and relationships by marriage or common-law partnerships.

Cousins, aunts, uncles, nephews or nieces, friends and business associates are excluded from eligibility.

if just one of the buyers does not qualify, even as the owner of a one per cent interest in the property, none of the buyers can get the rebate. If they received it on closing, and assigned it back to the builder as is typical, CRA will ask for it to be paid back, with interest. In other words, all of the buyers must qualify, not just most of them. There is no percentage allocation.

The CRA claim arises when a third party, who is not a close relation, has been placed on title at the insistence of a mortgage lender. This often occurs when the buyers themselves do not qualify for a mortgage.