Daily Market Update
Toronto price gap between condos and houses widens
Last year saw the gap between the cost of condos and houses in Toronto widen to a record high last year. While supply of new condos increased the demand for the limited stocks of detached houses saw buyers battling to make deals. Data from RealNet Canada and the Building Industry and Land Development Association shows that average house prices (including townhouses) rose to $705,814 last year, up 8 per cent from the year before; condos averaged $454,476, up 4 per cent. In December the gap between the average cost of a house and a condo reached a record high of 16 per cent, more than $251,000. George Carras of RealNet told The Globe and Mail that “Living in a ground-oriented home is really becoming further and further out of reach.” Read the full story.
Boost to affordability in Calgary
Those trying to afford a new home in Calgary have been given a boost by developer Partners Development Group which has offered 10 per cent of the homes in one of its latest condo buildings to Attainable Homes Calgary Corporation. The scheme allows qualifying applicants to purchase a new home with just a $2000 down payment. The non-profit AHCC has seen growing interest in its service with sales rising 47 per cent last year. The Mayor of Calgary has praised builders who support the scheme in helping more people afford their own homes.
Oil price hits provincial revenues but it’s not all bad news
A new report from the Conference Board estimates that the federal government will lose more than $4 billion in revenue from the lower oil price and the provinces will see a drop of around $10 billion from lost royalties and tax revenue. While Alberta, Saskatchewan and Newfoundland and Labrador will suffer there is better news for the Maritimes, but only in the short term. The report, Regional Shakeup — The Impact of Lower Oil Prices on Canada’s Economy highlights the benefits to oil importing provinces such as Ontario but says that in the longer term there is the potential for equalization payments to fall which would damage provincial finances.
Office vacancies set to rise says Colliers
Ottawa, Vancouver and Toronto are all predicted to see a rise in vacancy rates for offices in the coming years according to a new report. Colliers Canada’s Commercial Real Estate Outlook 2015 looks ahead to the next three years and the role that the offices and industrial markets will play. The report forecasts that continued economic growth in the Us in particular and the softer Canadian dollar will boost exports but oil and natural resources will be under pressure. Expansion in information and communication technology should help the market in Ottawa although there is a predicted increase in vacancies. Vacancy rates in Vancouver and Toronto are likely to increase due to additional supply.
by Insurance Business | Jan 21, 2015