Archive for April, 2019

April 15, 2019

Is there a housing affordability crisis in Toronto? Recent news reports certainly seem to be leaning that way, but is that what’s really going on?

We’re breaking down the stats to look at the Toronto real estate market and what the data has to say about housing affordability.

  1. It’s now more expensive to buy than to rent.

According to the National Bank’s 2018 Q4 analysis, renting has become cheaper than buying in Toronto.

Analysts from the National Bank found that the price of the representative home (non-condo) in the metropolitan market in 2018 Q4 was $902,916. The household annual income needed to afford the representative home: $165,755.

The price of the representative condo in the metropolitan market in 2018 Q4: $536,082.
Household annual income needed to afford the representative condo: $98,413.
The premium/discount for buying compared to renting a two-bedroom condo in the GTA: 12%.

The months of saving required for the down payment of the representative home (at a saving rate of 10%): 112 months.
The months of saving required for the down payment of the representative condo (at a saving rate of 10%): 49 months.

  1. Resale activity was down in 2018.

RBC’s economics team found that resale activity slumped almost 16% in 2018 in Toronto. They don’t expect to see a meaningful rebound in 2019.

  1. Rental availability is at an all-time low.

According to the CMHC, the rental vacancy rate in Toronto dropped to a record low of 1.1% in 2018.

  1. But rental prices are continuing to increase.

Rentals.ca predicted that in 2019 the average rental rates will increase by 6% year over year on a national basis. In Toronto, the annual rental rate could increase as much as 11%.

The average rent for a one-bedroom apartment in Toronto in February of 2019 was $2,149 — the highest in the country, according to Rentals.ca. The average for a two-bedroom: $2,620.

  1. Toronto’s position is dropping in national surveys.

Demographia recently released its annual ‘Housing Affordability Survey’ and ranked Toronto as 10th out of 293 cities around the world for unaffordability. In 2017, Toronto held the 21st position.

The 2018 UBS Global Real Estate Bubble Index also ranked Toronto poorly, putting them as having the third worst “bubble risk” in the world.

Looking at the statistics, the question still remains – does this define an affordability crisis?

And, if it does, what is the solution?

Let us know what you think on social media. GeoWarehouse is on Twitter, Facebook, and LinkedIn.

GeoWarehouse’s property data tools can help you navigate housing affordability issues to find the best areas for your clients. Learn more today by calling 1-866-237-5937 or visiting www.geowarehouse.ca.

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LendView™, Teranet’s exclusive competitive mortgage market intelligence solution, is an exclusive tool that uses real estate data to articulate lenders’ position within the Ontario mortgage marketplace.

Real estate professionals can use LendView™ to access first-to-market, comprehensive insights into each lender’s market position through rich and intuitive data visualizations.

Available report dashboards include:

  • Mortgage Registration Geographic Distribution Report.
  • Map View of Mortgage Registration Distribution Report Lender Share across Ontario Report.
  • Monthly Mortgage Registrations – Market Share Report.
  • Monthly Registration History – Year Over Year Report.
  • Average Mortgage Size Trend Report.
  • Monthly Discharges Report Monthly Discharges Year Over Year Report.
  • Lender Share within Municipality Report
  • Lender Segment Report
  • Mortgage Size Distribution Report
  • And more.

View the full brochure to learn how using LendView™ can simplify the process of aggregating mortgage data and reduce the cost to manage and analyze it: https://www.purview.ca/wp-content/uploads/2019/04/LendView-Brochure-Final-WEB.pdf

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April 12, 2019

The Composite Index down for a sixth month in a row in March

In March the Teranet–National Bank National Composite House Price IndexTM was down 0.3% from the previous month.[1] Apart from the recession year 2009, it was the first March decline in the 20 years of index history. It was also the sixth consecutive monthly decline, for a cumulative drop of 1.7%. Indexes were down on the month for seven of the 11 metropolitan markets surveyed – Ottawa-Gatineau (−1.5%), Victoria (−1.1%), Vancouver (−0.5%), Calgary (−0.5%), Toronto (−0.3%), Winnipeg (−0.3%) and Hamilton (−0.1%). Four markets were up: Halifax (0.8%), Quebec City (0.5%), Edmonton (0.4%) and Montreal (0.1%).

Most of the markets in the composite index have been trending down for months. For Calgary it was the ninth straight month without a rise (cumulative decline 3.7%), for Vancouver the eighth (cumulative −4.3%), for Victoria the sixth (−3.5%). The March rise of the Edmonton index had been preceded by six consecutive months without a rise (cumulative −3.2% over the seven months). Indexes for Winnipeg, Hamilton and Ottawa-Gatineau each retreated in all but one of the last six months (cumulative −2.2%, −2.4% and 2.3% respectively). The Toronto index has fallen in five of the last seven months (cumulative −0.2%). These markets are all in striking contrast with Montreal, which has declined in only one of the last 12 months (cumulative +5.5%). The Halifax index has advanced in each of the last five months (cumulative +2.0%).

Teranet-National Bank National Composite House Price Index™

Despite the recent downtrends, only two markets are down from a year earlier – Calgary (−2.8%) and Vancouver (−2.1%). For Edmonton the 12-month gain was 0.1%, for Winnipeg 0.5%, for Victoria 0.7%, for Halifax 3.0%, for Hamilton 3.2%, for Toronto 3.3%, for Quebec City 3.9%, for Ottawa-Gatineau 5.2%, for Montreal 5.5%. The composite index was up 1.5% from a year earlier.

Besides the Toronto and Hamilton indexes included in the composite, indexes exist for seven other urban areas of the Golden Horseshoe. They are trending down like the indexes for Toronto, Hamilton and Ottawa-Gatineau. Guelph is down 0.4% from six months earlier, Kitchener −0.5%, Peterborough −0.8%, Oshawa −0.9%, St. Catharines −2.3% and Brantford −2.4%. The index for Barrie is up a marginal 0.1%.

Indexes not included in the composite index also exist for seven markets outside the Golden Horseshoe, five in Ontario and two in B.C. In March, four of these were down from six months earlier – Kelowna (−4.8%), Abbotsford-Mission (−3.8%), Sudbury (−2.8%) and Thunder Bay (−2.4%). The index for Kingston was flat. Windsor was up 1.8% from six months earlier, London 1.9%.

For the full report including historical data, please visit www.housepriceindex.ca.

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Investment real estate is a competitive business, particularly in large urban centres like Toronto and Vancouver.

Real estate investors and developers who want to stay ahead of the opposition need to find new ways to play the game.

Establishing a competitive edge means being innovative and looking for novel methods to find business or ways to strengthen your negotiation capability.

Property data tools can be the key to developing this edge. Here’s how:

  1. Knowledge is power.

The more you know, the better. In real estate investing, you want to know more information about a property – and quickly.

When you know details such as the estimated available equity, sales history, comparable sales registered encumbrances, and more, you can use this to start a conversation with the current owner.

This knowledge can help you find properties before they’re even on the market.

It can also help you know where to invest your efforts and help avoid problem deals that waste your time and money.

Consider accessing in-depth information like the GeoWarehouse Property Details Report, or the Demographics Report, to learn more about a property or neighbourhood you’re investigating.

  1. Look at sales, not listings.

Some indexes pull their data from real estate listings – meaning all properties that are on the market, regardless of whether they have sold or not. While this can tell you where properties are being listed for sale, it’s not enough information to be confident in an investment opportunity.

Anyone can list a property for sale, but what’s more important is that the property actually sells. For example, in the first half of 2018 in Calgary, CBC reported that only 44% of properties listed actually sold.

You can gather more concrete, usable information by looking at the final sales data for a property – how much it sold for, where it was listed, how long it was on the market for, etc.

The Province of Ontario Land Registration Information System (POLARIS) uses sales information in its data and products, including the Teranet-National Bank House Price Index.

  1. View the financial status of the property, such as registered mortgages.

You can gain an edge by learning more about a property’s financial status. This might include registered mortgages, liens, transfers, and more.

This can help you avoid a potentially bad deal, which will save you time and money. But you can also use it for your information.

For instance, if you’re looking at a property that isn’t listed, and find that there is a lien on it, you might be able to negotiate with the owner and lien registrant to take on the lien — which could be motivation for the owner to sell.

See registered encumbrances with a GeoWarehouse Parcel Register*.

  1. Look at the ownership history.

Who owns the property now? How many times has it sold in the past? And what were the sale values each time it changed hands?

Although today’s housing market may be different from the housing market of ten years ago, the sales history can still be a valuable way to assess the earning potential. You can use the sales history data to forecast the best scenario, worst scenario, and most likely.

As well, knowing how long the current owner has had the property for can help inform your approach.

If you’re considering a property with a relatively new owner, they may not have as much of an attachment to it, but they may not be ready to move on yet. Conversely, someone who has owned the property for a long time may not want to part ways – or they may be ready to consider downsizing.

Find out the sales history of the property you’re investigating with a GeoWarehouse Property Details Report.

Knowing more from the start can give you a competitive edge and help you make more informed decisions. It all starts with the tools you use.

Access our GeoWarehouse property tools for real estate investors and developers today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

* An official product of the Ontario government pursuant to provincial land registration statutes.

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Teranet is pleased to announce LendView™, a new competitive mortgage market intelligence solution for real estate professionals in Ontario.

LendView™ provides real estate data that articulates competitive positioning by offering a strategic analytics tools that provides insight into mortgage lender performance against the overall market.

“Never before has the industry had access to market share data in such an easy to use platform,” said John Robinson, VP of Commercial Solutions.

“The visual dashboards allow several business functions clear insight into the mortgage market in Ontario and customers who utilize this new tool will definitely have a competitive advantage.”

View the full press release about LendView™ at the Teranet Newsroom: https://www.teranet.ca/teranet-news/teranet-launches-lendview-a-new-competitive-intelligence-tool-for-the-ontario-mortgage-market/

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What’s in store for the Canadian real estate economy in 2019?

Stéfane Marion, Chief Economist and Strategist at the National Bank, shared insights into Canada’s economic future at the Teranet Market Inisghts Forum on March 29, 2019.

Marion gave an economic forecast for 2019 at the Forum, including sharing insights into the Canadian housing market.

Also on the March 29 agenda was the role of AI in real esatate. Roger Vandomme, Chief Data Scientist at SMC, shared ways that Canadian real estate professionals can use AI, predictive analytics, and more in their businesses.

It was a truly insightful morning and we thank everyone who spoke and attended.

See the full recap of the Teranet Market Insights Forum here: https://www.teranet.ca/commercial-solutions-blog/teranet-market-insights-forum-highlights-canadian-economy-forecast-ai-in-real-estate-applications-and-more/.

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April 1, 2019

GeoWarehouse tools enable real estate professionals to become property experts. They give in-depth property data, including comparable sales, registered encumbrances, demographic information, and more.

At GeoWarehouse, we’re always rolling out new features and adding to the store. Recent highlights include:

  • Parcel Registers*: a real-time, up-to-date report for a property within the Land Registration System of Ontario, including the provincial ownership record and registered encumbrances.
  •  Instrument Images*: an image of a registered document within the Land Registration System of Ontario, including liens, mortgages, transfers, and condominium declarations, among others. An Instrument Number is required to purchase an Instrument Image.
  • Property Surveys: an image of the Survey Plan portion of a Surveyor’s Real Property Report, Building Location Survey, or other undeposited Plan provided by third-party surveying firms. Easily acquire dimensions of property boundary and structural elements of the land.
  • Condo Certificates: condo status certificates can be ordered and fulfilled online from participating property management companies using your credit card.
  • And much more!

Subscribers can learn how to use the GeoWarehouse tools to their full capability with in-depth real estate training.

We offer three types of training:

  1. Webinars:

Learn the ins and outs of the NEW GeoWarehouse from the comfort of your computer.

See upcoming sessions here: http://marketing.geowarehouse.ca/acton/fs/blocks/showLandingPage/a/1288/p/p-01cf/t/page/fm/0

  1. Live Training

We’ll bring our training to your group or real estate association.

See all of our upcoming sessions: http://marketing.geowarehouse.ca/acton/fs/blocks/showLandingPage/a/1288/p/p-01f1/t/page/fm/0

Book a session: http://marketing.geowarehouse.ca/acton/form/1288/006d:d-0001/0/-/-/-/-/index.htm

  1. Classroom Training

Request in-class training at Teranet’s 123 Front Street West location in Toronto.

Request a session: http://marketing.geowarehouse.ca/acton/form/1288/00a1:d-0001/0/-/-/-/-/index.htm

We also have video training available on our YouTube channel.

See an example training video below, all about Google Maps® Street View:

If you have any questions about our training session options, please contact Theresa Corindia, our Training Program Leader, at geowarehouse.training@teranet.ca or call 1-866-237-5937 ext. 2224.

* An official product of the Ontario government pursuant to provincial land registration statutes.

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