Last week we saw vacancy rates in Toronto rise (ever so slightly!), which might mean that rental rates will likely level off (and perhaps even come down… ever so slightly). Hamilton makes headlines again as we see the city becoming more of a metropolitan area with new condos that are very popular for young individuals and first-time buyers looking for low-cost city living when compared to Toronto. And we have great news for variable mortgage holders with Bank of Canada maintaining its interest rate!
To learn more, read on:
We’re finally starting to see supply increase in Toronto, which is good news for renters, which will ease some of the rental rates. Vacancy rates rose to 1.5% in quarter two this year (the highest since 2015) according to Urban Nation.
Rent increases eased to 7.6% from 10.3% last year, bringing the cost of an average-sized unit of 794 square feet to $2,475 ($1,894).
While a vacancy rate of 1.5% may seem like low this is actually considered a high in the Toronto marketplace (compared to 0.8% in the same period last year)!
According to BNN Bloongberg:
“Conditions eased as nine buildings totaling 3,078 units began occupancy in the 12 months through June, a 25-year high for annual completions. While construction has taken a step back, the number of units proposed by builders reached a record 44,093 units in the second quarter, Urbanation said Friday.
“The growth in purpose-built rental applications follows the provincial government’s recent removal of rent control for new buildings,” according to Urbanation. Other programs to encourage new rental housing such as deferrals for development charges and the expansion of low-cost construction loans from Canada Mortgage & Housing Corp. also helped, the Toronto-based research firm said.”
Hamilton continues to be a hot spot for young individuals, as many first-time buyers look to Hamilton as a lower-cost metropolitan alternative to Toronto.
According to CBC News, Hamilton condo costs continue to climb, jumping 9.4% last quarter compared to the same period in 2018, according to a recent report. The median price of a condo in Hamilton is now $369,257, the survey said.
Bungalows prices are also increasing, at the same time demand is decreasing for two-storey homes, according to the Royal LePage House Price Survey. This further demonstrates the shift to younger couples and first-time buyers surging towards the Hamilton area.
“We’re finding there’s a big influx of first-time buyers,” said Blair Gillis, broker and manager with Royal LePage. He said condo prices are still affordable in Hamilton, particularly compared to costs in nearby Toronto.
Across Canada, the cost of a condo rose 3.8 per cent year-over-year to $452,451. So while condo prices are on the rise, Hamilton still remains an affordable option.
For a fantastic new Hamilton development, check out KiWi condos in Hamilton. KiWi Condos starts at just $302,990 ($556 PER SQ FT) and is located just minutes from the new GO station!
SURPRISE! …said no one. Canada is undergoing a massive Condo boom especially seen in both Vancouver and Toronto, and is the largest we’ve seen in 30 years!
“Construction of multi-family dwellings — which include units in condo and rental buildings — roared last month at an annualized rate of about 186,000 starts, or “the highest level on record going back to 1990,” writes BMO senior economist Robert Kavcic.”
“Rapid multi-family construction largely helped push the rate up 26 per cent compared to May, clocking in at an annualized rate of 245,657 homes, according to CMHC. Single-family activity also increased on a month-over-month basis.”
Variable mortgage holders rejoice! It seems the bank of Canada is holding the interest rate steady at 1.75%, based on many factors but included are increased trade tensions and healthy job market.
“In the absence of major economic changes, the bank seems intent to maintain this policy interest rate in the near future,” he said in a written statement.
Co-founder of Ratehub Inc. and president of CanWise Financial mortgage brokerage, James Laird, said the announcement is “welcome news for Canadians considering a variable rate mortgage.”
If you would like to discuss how this news should invest your investment strategy, you can book a quick 1-on-1 meeting with us and we’ll discuss you the best strategies to maximize your returns: