What’s Up Wednesday 05/26/2021

General Tyler Hynes 26 May

What's Up Wednesday 05/26/2021

Short and concise info on the last week.

Mortgage Stress Test
The new stress test measures have been confirmed, and will take effect starting on June 1st, 2021. The original group of uninsured mortgage borrowers affected will now also include those who have high ratio mortgage with default insurance. The current stress test interest rate is set at 4.79%. The new stress stress interest rate is set at 5.25% or the offered lender rate +2%, whichever is higher. This is expected to affect the buying power of all Canadian's attempting to buy a home. This is an effort to cool the bidding wars that have driven the sale prices of homes sky high.

Housing Market
The Canadian Real Estate Association realized information regard the overall home price rise from the beginning of the pandemic. In the GTA the overall increase was 17%, but the astonishing numbers come from the surround area 100km around the GTA, averaging over a 40% increase in housing prices within that radius. What this means is that the smaller communities surrounding Toronto has now been affected by the wide spread buying of the vacating residents of the urban centre.

What’s Up Wednesday 05/19/2021

General Tyler Hynes 19 May

Short and concise info on the last week.

Housing Market
Canada's housing market is finally starting to cool. Home sales came down by more than 12% last month and new listings are close behind with more than 5% decrease. Average home price in Canada after removing outliers like the GTA and Vancouver areas, home prices average $551,000.

Prices are still up and climbing, 23% increase compared to this time last year, and just above 2% on the year. Sales are up 256% from this time last year.

Though markets have cooled in the past month, it's more of a stagnation. Prices and sales are still record high year over year. The real question everyone wants to know, will the market continue to stagnate, will it cool, or will it start to heat up again?

Mortgage Default Insurance
CMHC long standing title holder as the largest provider of mortgage default insurance has fallen to a competitor, Sagen. Reports suggest that stricter underwriting rules put into place by CMHC this time last year, limiting the demographics of the people they are willing to insure. Stuart Levings, the President and CEO of Sagen also remarked on the maturity and saturation of the market, and does not believe there will be major swings.

Canadian Economy
There's no surprise that the Canadian job market has suffered due to the recent rise in the pandemic numbers, and increased lockdown measures. Unemployment is up 0.6% as of last month, bringing the numbers to 8.1% overall. Both full-time and part-time are seeing decreased employment and hours worked. Marking the first time in the pandemic that the economy has seen a more than just noticeable change in full-time hours and employment rates overall. Working from home numbers are up, helping the record high housing market numbers as people are spending the vast amount of time at home.
Two of the most affected industries suffering at this point are accommodations and food services. Good producing services were relatively unfazed in April. It is expected that once the latest measures are reduced, the economy will rebound and slowly rebuild.

What’s Up Wednesday 05/05/2021

General Tyler Hynes 5 May

Short and concise info on the last week.

Real Estate and Housing Market

Toronto sales down 20% in the month of April as the market cools. Supply around Ontario is rising as more homes come on the market for prime moving months of the year.

Bidding wars across Canada beginning to cool as supply is increasing and demand is maintaining. Expect the overall selling price of homes to decrease, but listing prices to maintain.

First Time Home Buyers Incentive 2.0
The second version of the First Time Home Buyers Incentive officially launched on May 3rd 2021. Changes are Regional, and only apply to Toronto, Vancouver, and Victoria. Meaning that Provincially nothing has changed. For the 3 affected Regions, household income has been increased to $150,000, and can borrow up to 4.5 times their household income.