Corinne McCabe , Broker

Bosley Real Estate Ltd., Brokerage

Cell 416-888-9842 | corinne.mccabe@me.com

Market Update for March 31, 2023

To ensure every Canadian has a safe and affordable place to call home, Budget 2023 proposes new measures to build on this important progress. Over the past year, the federal government has taken significant steps towards making housing more affordable for Canadians. These have included:


• Introducing a two-year ban on non-resident, non-Canadians purchasing residential property to help curb speculation and ensure that houses are used as homes for Canadians to live in, rather than as financial assets for foreign investors;


• Introducing a one per cent annual underused housing tax on the value of non-resident, non-Canadian owned residential property that is vacant or underused;


• Introducing a new Tax-Free First Home Savings Account to allow Canadians to save up to $40,000, tax-free, to help buy their first home;


• Making sure that profits from flipping properties held for less than 12 months are taxed fully and fairly;


• Doubling the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers to offset closing costs involved in buying a first home;


• Introducing a new, refundable Multigenerational Home Renovation Tax Credit, which will provide up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability, starting in 2023;


• Applying the Goods and Services Tax/Harmonized Sales Tax to all assignment sales of newly constructed or substantially renovated residential housing, to help address speculative trading in the housing market;


• Launching a new $4 billion Housing Accelerator Fund to remove barriers and incentivize housing supply growth, with the goal of creating at least 100,000 net new homes across Canada;


• Launching a $200 million stream under the Affordable Housing Innovation Fund to develop and scale up rent-to-own projects;


• Launching a third round of the Rapid Housing Initiative, which is providing $1.5 billion to create 4,500 new affordable housing units for Canadians in severe housing need, with 25 per cent of investments going towards housing projects targeted towards women;


Launching the New Tax-Free First Home Savings Account


In Budget 2022, the government committed to introducing a Tax-Free First Home Savings Account—a new registered plan to give prospective first-time home buyers the ability to save $40,000 on a tax-free basis. Like a Registered Retirement Savings Plan (RRSP), contributions will be tax-deductible, and withdrawals to purchase a first home—including from investment income—will be non-taxable, like a Tax-Free Savings Account (TFSA). Tax-free in; tax-free out.


• Budget 2023 delivers on this commitment and announces that financial institutions will be able to start offering the Tax-Free First Home Savings

Account to Canadians as of April 1, 2023. 


A Code of Conduct to Protect Canadians with Existing Mortgages 


Elevated interest rates have made it harder for some Canadians to make their mortgage payments, particularly for those with variable-rate mortgages.


• That is why the federal government, through the Financial Consumer Agency of Canada, is publishing a guideline to protect Canadians with mortgages who are facing exceptional circumstances. Specifically, the government is taking steps to ensure that federally regulated financial institutions provide Canadians with fair and equitable access to relief measures that are appropriate for their circumstances, including by extending amortizations, adjusting payment schedules, or authorizing lump-sum payments. Existing mortgage regulations may also allow lenders to provide a temporary mortgage amortization extension— even past 25 years.


This guideline will ensure that Canadians are treated fairly and have equitable access to relief, without facing unnecessary penalties, internal bank fees, or interest charges, which will help more Canadians afford the impact of elevated interest rates.


Read

This property has SOLD at 2603 159 Dundas ST E in Toronto

This property has SOLD at 2603 159 Dundas ST E in Toronto.
Imagine Living In This Delightfully Bright, Perfectly Laid Out One Bedroom Condo, With Oodles Of Storage While Enjoying The Finest Of Downtown Living. Close To U Of T, Metropolitan U, George Brown, Dundas Square, Theatres, Restaurants, Shops Etc., You've Got It All Here! This Location In The Garden District Is Perfect For A Student Or Working Professional In Need Of A Pied-A-Terre. Available Fully Furnished Means This Home Is Turn-Key Ready For Any Use. While You're Loving Your New Urban Home In The Sky, Enjoy All The Resort-Like Amenities On The 8th Floor. See It Soon! Bully Offer Registered, Presenting At 9Am March 17.
Read

New property listed in Church-Yonge Corridor, Toronto C08

New featured property at 2603 159 Dundas ST E in Toronto.
Imagine Living In This Delightfully Bright, Perfectly Laid Out One Bedroom Condo, With Oodles Of Storage While Enjoying The Finest Of Downtown Living. Close To U Of T, Metropolitan U, George Brown, Dundas Square, Theatres, Restaurants, Shops Etc., You've Got It All Here! This Location In The Garden District Is Perfect For A Student Or Working Professional In Need Of A Pied-A-Terre. Available Fully Furnished Means This Home Is Turn-Key Ready For Any Use. While You're Loving Your New Urban Home In The Sky, Enjoy All The Resort-Like Amenities On The 8th Floor. See It Soon! Offers On Tuesday, March 21st At 3Pm.
Read

Market Update for March 10, 2023

Toronto Real Estate Prices Just Made The Biggest Monthly Jump Since Rates Began Climbing

 

TRREB data shows home prices climbed in February. Prospective buyers with their buyer-feet ice cold in the snow, stood puzzling and asking, how can it be so? It came without rate cuts. It came without speculators. it came without cheap credit, stimulus, or foreign buyers.

 

The average price increased in the GTA for the first time since August 2022. This could indicate that the market may have found its way off the downward trajectory and back into a seasonal cycle, as prices typically rise from January to February.

 

The average sale price in the GTA came in at $1,095,617 – down 17.7% compared to the same month last year but up $57,000 or 5.5% from January. For the City of Toronto, the average sale price for February was $1,071,043 - down 11.5% compared to the same month last year but up $83,000 or 8.4% from January.

 

It has been almost a year since the Bank of Canada started raising interest rates (8 times). Home prices have dropped over the last year from the record peak in February 2022, mitigating the impact of higher borrowing costs. Many homebuyers have also decided to purchase a lower priced home to help offset higher borrowing costs.

 

The share of home purchases below one million dollars is up substantially compared to this time last year,” said Toronto Regional Real Estate Board (TRREB) President Paul Baron. GTA REALTORS® reported 4,783 sales through TRREB’s MLS® System in February 2023 – down 47 per cent compared to February 2022, the last full month before the onset of interest rate hikes. The number of new listings entered into the system was down by a similar annual rate of 40.9 per cent to 8,367. 

 

Easing inventory pressures are reinforced by other major demand indicators. Active listings, the total remaining inventory, climbed 38.1% to 9,643 homes in February. Fewer sales and more inventory aren’t traditionally fuel for higher prices. That leaves a shift in buyer psychology as the culprit.

 

Has there been a shift in buyer psychology driven by the Bank of Canada? It’s impossible to nail down what caused the shift without asking every buyer. Even then, what a buyer says can differ greatly from their reasons. That aside, two major factors are contributing—mortgage rates and the Bank of Canada (BoC).

 

Does this mean the correction is over? Not exactly, it doesn’t indicate much in terms of market direction. One month doesn’t make a trend, and prices never move in a straight line. Most corrections also face a period where a group of consumers on the sideline jump in and call a bottom.

 

Sometimes they’re right and call the bottom—like Toronto homebuyers in 1996. Other times they learn that academics refer to this as the “return to normal” phase of an asset bubble.

Read