Latest news with #GreaterTorontoArea
National Post
2 days ago
- Business
- National Post
Canada's homebuilding industry feeling strain of U.S. tariffs on costs, supply chain
Article content 'They're taking advantage of the availability of acquiring it and then having it available for the future, which then increases the overhead because you're holding on to that material, rather than acquiring it when you need it,' Shindruk said. Article content With early concerns about the effects of the trade war, Greater Toronto Area-based Altree Developments had forecast a three to five per cent hit to its overall budget, said the company's president and CEO, Zev Mandelbaum. Article content That figure has since decreased due to more Canadian material being available than first anticipated, said Mandelbaum. But he said the roller-coaster of tariff developments — from the latest threat of additional levies to hope that ongoing negotiations will soon lead to a new trade deal — has made it 'impossible' to plan ahead. Article content He added his company has seen a far greater impact on the revenue side of the business over the past six months, as economic uncertainty drove down buyer demand. Article content 'It was more the fear of just … economic instability in Canada that stopped house buying and stopped people from wanting to invest, whether it be locals looking for homes or foreigners looking to invest in the country,' he said. Article content Article content 'That alienation caused us to have less sales, and because of that, that put even more pressure on construction costs.' Article content In its housing forecast for the year, published in February, Canada Mortgage and Housing Corp. predicted a trade war between Canada and the U.S. — combined with other factors such as reduced immigration targets — would likely slow the economy and limit housing activity. Article content The national housing agency had also said Canada was set for a slowdown in housing starts over the next three years — despite remaining above the 10-year average — due to fewer condominiums being built, as investor interest lags and demand from young families wanes. Article content As of June, year-to-date housing starts totalled 114,411 across regions with a population of 10,000 or greater, up four per cent from the first half of 2024. Article content Article content Despite that boost in new construction, a regional analysis shows provinces with industries more exposed to tariffs are experiencing a slowdown, said CMHC chief economist Mathieu Laberge. He noted Ontario's housing starts have dropped around 26 per cent to date year-over-year, while B.C. has seen an eight per cent decline. Article content Article content In Ontario, five of the 10 most tariff-impacted cities also recorded an increase in mortgage arrears during the spring. Laberge said the trade war, or associated macroeconomic factors, likely prompted layoffs in those regions, which meant people couldn't pay their mortgage. Article content He said he expects that will eventually translate to a lower number of homes being built. 'This is a slow filter through, but it's a real one. We see it happening — although maybe not in the housing starts or resales yet,' Laberge said. Article content Lee said the industry is already noticing those effects. Article content 'The big problem now is we're just not getting the kind of starts we need and there's a lot of concern in the industry now,' Lee said. Article content Before tariffs, he said some regions, such as Atlantic Canada and the Prairies, had started to see housing starts rebound from a national lull that was fuelled by previously high interest rates. Other provinces, such as Ontario and B.C. — where houses remain the most expensive — hadn't yet reached similar levels of new construction.
Daily Mail
3 days ago
- Business
- Daily Mail
The $1 million price drop - bustling metropolis sees property prices take a huge dip
Home values have dropped by millions of dollars over the last three years in the Greater Toronto Area, a new analysis found. Ten neighborhoods saw the median sale price of a single-family home fall by 40 percent or more since 2022, according to new research by Wahi, a Canadian real estate listing website and app. Houses in Canada reached their peak values in April 2022, after two years of historically low supply and rock-bottom interest rates spurred by the COVID-19 pandemic. 'Prices for single-family homes have held up better than condos, but Wahi's latest analysis shows how much market trends can vary from neighborhood to neighborhood,' Wahi CEO Benjy Katchen said in a statement. Four neighborhoods in Brampton, the third largest Toronto suburb, were in the top ten in terms of largest percentage drops in value. They included Huttonville (-53 percent), Vales of Humber (-50 percent), Northwood (-44 percent), and Westgate (-40 percent). These areas are among the hardest hit, but the downward trajectory is widespread, with 289 of the 344 neighborhoods that Wahi analyzed having lower prices this year than in April 2022. Windfields, an upper-middle class area northeast of downtown Toronto, had the biggest home price decline as a raw number. The median sale price of a Windfields home declined by $3.1 million since 2022, when a property cost a whopping $6.3 million. Windfields saw a $1 million bigger drop than Wanless Park, the next biggest loser at a $2.2 million decrease over the same period. Some experts view these price cuts as the market coming back down to earth from an artificial pandemic-era boost caused by quantitative easing. Between 2020 and March 2022, home values across the nation surged by about 65 percent. This didn't last because the Bank of Canada, like the US Federal Reserve and most other central banks around the world, raised interest rates to stifle inflation. Higher interest rates make it harder for home buyers to obtain favorable mortgage terms, while also incentivizing home owners to stay in their current residence. Although Canada has been gradually lowering rates since June of last year, the market is not expected to experience same historic levels of price growth as it did in the pandemic, according to a report from the Bank of Montreal. In March 2025, Bank of Montreal Senior Economist Robert Kavcic said that even though resale prices have found a floor in many markets, it will take years before homes return to their 2022 peak values. Assuming there is a stable economy, steady wage growth and neutral interest rates, the investment bank predicts the market will return to 2022 highs in 2029. A recent report from TD, the second largest consumer bank in Canada, offered a rosier outlook on the housing market going into 2026. 'There's been a cloud of uncertainty that has contributed to the negative buying sentiment that's weighed on the housing market,' TD Economist Rishi Sondhi said. 'TD Economics thinks some of that uncertainty should wane in the back half of this year and dissipate even further into 2026.' Sondhi acknowledged that condos in Toronto have declined and said they will likely continue to do so through to the end of the year. The bank forecasts that condo prices will have dropped by 15 to 20 percent since 2023. The ebb in prices doesn't have to be a bad thing, Sondhi added, saying it could be a signal for a resurgence just around the corner. 'Affordability in the GTA condo space has improved because we have seen declining prices since the third quarter of 2023,' he said. 'So, as prices have come down, affordability has improved, which could help the condo market get off the ground a little bit more in 2026.' All data included in Wahi's analysis is sourced from the Toronto Regional Real Estate Board and Information Technology Systems Ontario.
Daily Mail
3 days ago
- Business
- Daily Mail
Report: Home values drop by millions in Greater Toronto Area
Home values have dropped by millions of dollars over the last three years in the Greater Toronto Area, a new analysis found. Ten neighborhoods saw the median sale price of a single-family home fall by 40 percent or more since 2022, according to new research by Wahi, a Canadian real estate listing website and app. Houses in Canada reached their peak values in April 2022, after two years of historically low supply and rock-bottom interest rates spurred by the COVID-19 pandemic. 'Prices for single-family homes have held up better than condos, but Wahi's latest analysis shows how much market trends can vary from neighborhood to neighborhood,' Wahi CEO Benjy Katchen said in a statement. Four neighborhoods in Brampton, the third largest Toronto suburb, were in the top ten in terms of largest percentage drops in value. They included Huttonville (-53 percent), Vales of Humber (-50 percent), Northwood (-44 percent), and Westgate (-40 percent). These areas are among the hardest hit, but the downward trajectory is widespread, with 289 of the 344 neighborhoods that Wahi analyzed having lower prices this year than in April 2022. Windfields, an upper-middle class area northeast of downtown Toronto, had the biggest home price decline as a raw number. The median sale price of a Windfields home declined by $3.1 million since 2022, when a property cost a whopping $6.3 million. Windfields saw a $1 million bigger drop than Wanless Park, the next biggest loser at a $2.2 million decrease over the same period. Some experts view these price cuts as the market coming back down to earth from an artificial pandemic-era boost caused by quantitative easing. Between 2020 and March 2022, home values across the nation surged by about 65 percent. This didn't last because the Bank of Canada, like the US Federal Reserve and most other central banks around the world, raised interest rates to stifle inflation. Higher interest rates make it harder for home buyers to obtain favorable mortgage terms, while also incentivizing home owners to stay in their current residence. Although Canada has been gradually lowering rates since June of last year, the market is not expected to experience same historic levels of price growth as it did in the pandemic, according to a report from the Bank of Montreal . In March 2025, Bank of Montreal Senior Economist Robert Kavcic said that even though resale prices have found a floor in many markets, it will take years before homes return to their 2022 peak values. Assuming there is a stable economy, steady wage growth and neutral interest rates, the investment bank predicts the market will return to 2022 highs in 2029. A recent report from TD , the second largest consumer bank in Canada, offered a rosier outlook on the housing market going into 2026. 'There's been a cloud of uncertainty that has contributed to the negative buying sentiment that's weighed on the housing market,' TD Economist Rishi Sondhi said. 'TD Economics thinks some of that uncertainty should wane in the back half of this year and dissipate even further into 2026.' Sondhi acknowledged that condos in Toronto have declined and said they will likely continue to do so through to the end of the year. The bank forecasts that condo prices will have dropped by 15 to 20 percent since 2023. The ebb in prices doesn't have to be a bad thing, Sondhi added, saying it could be a signal for a resurgence just around the corner. 'Affordability in the GTA condo space has improved because we have seen declining prices since the third quarter of 2023,' he said.
Yahoo
3 days ago
- Business
- Yahoo
Seniors rarely downsize — here's why that's hurting first-time homebuyers
Realtor Barry Lebow specializes in helping seniors downsize — moving out of the family homes they've lived in for decades to a smaller place that's a better fit for their aging lifestyle. From the outside, that might look like the natural progression: feeding a healthy bit of turnover into the housing supply as move-up buyers seek their own family home. But the reality is a bit different when it comes time to sell, Lebow, who works in the Greater Toronto Area, said in an interview. "Our customers are not always happy customers," he said. "Almost all seniors do not want to move." Experts say it's a myth that seniors who own their homes are keen to downsize to fund their retirements, when the reality is they're largely staying put, in part because they don't like the downsizing options, making it harder for young prospective buyers to break into the housing market. Seniors are in fact the demographic that's least likely to move, according to data from the 2016 census. "It's actually quite rare," said Mike Moffatt, founding director of the Missing Middle Initiative at the University of Ottawa. Lebow said that when seniors do move, it's often because they're facing mobility or money issues — or both. He acknowledged there's a type of older Canadian who's keen to cash out on the family home, move into a smaller condo or apartment and take on a new lifestyle. But these are the unicorns, he said. In his work, it's common to come across seniors with three- or four-bedroom houses and no children at home to fill them anymore. More space than they need, in all likelihood, but no motivation to let it go. "Moving is a traumatic experience," Lebow said, whether it's the financial cost or the emotional toll of changing addresses and purging years of accumulated belongings. Beyond the typical home showings and paperwork, his job has ranged from rehoming a pet dog who couldn't be accommodated in a new abode to acting as de facto mediator when the prospect of mom or dad downsizing becomes a tense family conflict. Some of his clients are also facing cognitive decline, Lebow said, and only see their real estate agent as the guy trying to throw them out of their home. "Believe me, I've been yelled at," Lebow said. A Canada Mortgage and Housing Corp. report from November 2023 also found that while there was a bit of a shift toward downsizing as Canadians age, that trend is still limited to a minority of older households. There's also minimal movement to condos or rental properties as Canadians age, the report found. Data from CMHC indicates the "sell rate"— the proportion of Canadians older than 75 who are cashing out of the housing market — fell steadily between 1991 and 2021. Canadians are living longer and might also be in better financial shape as they get older, the agency said, letting them age in place. "In order for them to leave, they would need something that met their needs as much. And often, that doesn't exist," Moffatt said. Among the biggest factors motivating — or hindering — a move are cost and lifestyle, he said. Many seniors still want to be able to garden and host family over the holidays, he said, which makes a one-or-two bedroom condo in the downtown core unappealing. Moffatt said many older Canadians are keen to stay in their existing neighbourhoods, but smaller options are not readily available. Modern infill units set up for street-level access in older, residential neighbourhoods are the kinds of options many seniors need to give moving a second thought. The kind of sixplex-unit zoning recently up for debate at Toronto city council would create the kinds of units that would be right for many would-be downsizers, Moffatt noted. Toronto ultimately decided last month to broaden sixplex zoning to only some wards, leaving the others to opt in if they choose. Moving houses is also expensive when it comes to hiring movers, staging costs and the myriad of taxes and fees for real estate agents and lawyers. Measures to reduce the tax burden seniors face when moving can help to encourage more turnover of family homes, Moffatt said. The Liberal government tabled legislation in May to waive the federal GST on new homes, but it only applies to first-time homebuyers. Moffatt said it would "absolutely" help improve supply in the housing market if that policy were extended to downsizing seniors. Such a move could sweeten the deal for seniors who are open to getting into a smaller condo unit but don't see the financial value in the move. That could spur a positive domino effect in the market: Moffatt explained that when move-up buyers are able to leave behind their starter homes to take on seniors' larger properties, that opens up more supply at the bottom of the housing ladder for first-time buyers. The Canadian Press reached out to Finance Minister François-Philippe Champagne to ask if the federal government would consider expanding the GST rebate to seniors. A Finance Canada spokesperson did not mention seniors in their response, only saying in an email that the GST rebate is meant to help first-time buyers enter the housing market by lowering upfront costs to buying a home and spurring the construction of new housing across Canada. "Incentivizing or reducing the barriers to building housing across the board benefits everyone," Moffatt said. "It is kind of an irony, but one of the best things we can do to help first-time homebuyers is to make it easier for seniors to move into new housing." This report by The Canadian Press was first published July 25, 2025. Craig Lord, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
5 days ago
- Climate
- CBC
Temperatures in Toronto could feel like 44 C on Thursday: Environment Canada
Social Sharing Temperatures in Toronto could feel like 44 C on Thursday, Environment Canada says, as the region braces for another wave of scorching heat this summer. The city and parts of the Greater Toronto Area are under a heat warning that is expected to continue Friday and may extend through the weekend for some areas. The hottest conditions are expected on Thursday, the federal weather agency said in a statement Thursday morning. Daytime high temperatures are expected to reach 35 C, with the humidex making it feel like up to 44 C. Nighttime lows are expected between 20 to 23 C, which Environment Canada said will provide little relief from the heat. On Friday, daytime high temperatures are expected near 30 C. The humidex may make it feel near 40 C. Nighttime lows are expected near 21 C. "While daytime high temperatures will not be as extreme on Friday and into the weekend, nighttime lows are expected to remain warm throughout," Environment Canada said. The heat warning is also in effect for Vaughan, Richmond Hill, Markham, Mississauga, Brampton, Halton Hills, Milton and Oakville. Check in on those at risk of heat illness Environment Canada is advising people to limit exposure to sun and heat by planning activities during the coolest parts of the day, as well as wearing a wide-brimmed hat and lightweight, light-coloured, loose fitting clothing. People are advised to watch for symptoms of heat stroke, which is a medical emergency, in themselves and others. Symptoms can include red and hot skin, dizziness, nausea, confusion and change in consciousness. WATCH | Some Torontonians struggled to stay cool during last month's heat wave: 'Unliveable conditions': Why it's impossible to stay cool for these Toronto residents 30 days ago As the GTA's heat wave rages on, some residents have been struggling to stay cool. CBC's Dale Manucdoc speaks to Torontonians living in buildings without air conditioning and those who have no choice but to work outside. "While you wait for medical attention, try to cool the person by moving them to a cool place, removing extra clothing, applying cold water or ice packs around the body," Environment Canada said in Tuesday's warning. The weather agency also advised people to drink water often, even before feeling thirsty, and close blinds and open windows if the outside is cooler than inside. "If your living space is hot, move to a cool public space such as a cooling centre, community centre, library or shaded park," the heat warning says. People are also advised to check in regularly on those at greater risk of heat illness, including the elderly and those living alone. Signs of heat exhaustion may include headache, nausea, dizziness, thirst, dark urine and intense fatigue. If you experience these symptoms, Environment Canada advises stopping your activity and drinking water.
