Canada Mortgage and Housing Corporation today released a new study – Examining Escalating House Prices in Large Canadian Metropolitan Centres. The analysis shows that strong economic and population growth, together with low mortgage rates, have been important drivers of house price growth in Canada. As well, it also shows that the supply response has been weaker in Toronto and Vancouver, than in other Canadian metropolitan areas.

The report looked at data from Toronto, Vancouver, Montreal, Calgary and Edmonton from 2010 to 2016. These cities show marked differences in the growth of their prices. While Toronto and Vancouver showed large and persistent increases in prices, there was only modest price growth in Montréal. Despite softer local economic conditions, home prices rose slightly in oil-dependent Calgary and Edmonton.

Additional key findings:

• House prices increased by 48% in Vancouver from 2010 to 2016 with conventional economic factors such as growth in population and disposal income, as well as low mortgage rates accounting for nearly 75% of that rise.
• House prices increased by 40% in Toronto over the same time period with 40% of the rise being explained by conventional economic factors.
• Price increases have tended to be greater for more expensive single-detached housing, rather than for condominium apartments.
• Supply responses have been proportionately greater for condominium apartments than for single-detached housing.
• Investor demand for condominium apartments has increased. In turn, this increase lifts the supply of rental properties, but these units tend to be more expensive than units from existing purpose-built rentals. There appears to be a wider prevalence of mortgage helpers as well.
• Measures targeted at alleviating supply challenges are more likely to have positive impacts on high-priced markets than measures focused on the demand side

The report represents one of the most thorough examination of house price patterns ever completed in Canada and is the result of advanced, data-driven analyses and engagement with stakeholders and government partners. Models and data sets that support the study’s conclusions will be made available on CMHC’s website in the coming weeks.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry

The Unfair Vancouver Vacant Homes Tax Coalition describes its purpose in the name. The group is calling on the city to do something as the Feb. 2 deadline for the empty home tax declaration approaches.

© THE CANADIAN PRESS IMAGES/Bayne Stanley

Rainer Borkenhagen says the group is made of members that are mostly retired and live across the country, but still own homes in Vancouver.

Borkenhagen himself lives in Gibsons, but owns a condo in Vancouver.

He said he tried to rent his condo once, but it turned out it was more practical to keep it and use it whenever his family needed it.

“We come in to babysit, our other kids use it when they come into town, we use it for social reasons, we use it for medical reasons,” he said.

Borkenhagen said that even if they tried to rent it again, the rent would be too high to actually help younger people looking for a home.

“What Vancouver is trying to do is loosen up the rental housing for the millennials and the average rent for a millennial is somewhere between $900 and $1,200 a month that they can afford,” said Borkenhagen. “I have a $2,400 rental condominium."

He said the group sees the tax more like a penalty than anything else, noting they are not getting anything in return.

“Many of the people our age are thinking, in the long run, to keep our ties with our kids, we'll probably have to move back into Vancouver."

He said most members of the group have owned their homes in Vancouver for decades and still use them throughout the year. Members of the group say the new tax is discriminating against older residents, said Borkenhagen.

He said that if the city wants to create more affordable housing, it should tax everybody, not just those who own second homes.

Empty home declaration

But if you’re thinking about trying to get around the tax, be warned. Vancouver lawyer Kyla Lee says those providing false information, or failing to declare are taking a big risk.

Failure to submit will result in an automatic assumption that the home is vacant and will be subject to the tax, which is one per cent of the assessed home value. Homeowners will also be subject to a $250 penalty for not declaring on time.

As for providing false information, Kyla warns it could lead to charges.

"You can end up with a criminal record if you're charged with fraud and convicted, it's a very, very, serious offence, it's considered a crime of dishonesty. So the consequences for it tend to be more severe,” she said.

The city created an audit program to make sure homeowners are compliant with the new tax. Some homes may be selected for an audit and can be asked to provide evidence to support their declaration as part of an audit program set up by the city.

Vancouver has one of the lowest rental vacancy rates across Canada.

Provided by: Estefania Duran and Michelle Morton with Global News

Canada Mortgage and Housing Corporation (CMHC) has released the 2018 Prospective Home Buyer Survey (#PHBS2018). This survey, the first of its kind for CMHC, explores the dynamics of home buying intentions for three groups of future homebuyers, including First-Time Buyers, Previous Owners and Current Owners, and provides a comprehensive review of overall awareness and understanding of the home buying process.

“The Survey findings provide insights and valuable information for mortgage professionals about their future clients and their needs,” said Nathalie Fredette, Vice-President, Client Relationship Management. “It brings awareness amongst the industry and contributes to financial literacy by helping Canadians make informed and responsible home buying decisions.”

Top motivators for buying a home

• Improved accessibility (less physical obstacles and barriers) and investment opportunity were noted as top motivators across all groups.
• Changes to mortgage regulations and concerns about possible future interest rate increases were not among the top motivators for prospective home buyers in 2017.

Housing expectations

• Over four-in-ten First-Time Buyers and Previous Owners say they would delay their home purchase if they were not able to find their ideal home, with a fairly similar proportion saying they would be willing to compromise on the size of the home and location.
• An existing move-in-ready home is the top choice for all groups of prospective home buyers, followed by a newly constructed home, noted by approximately one-fifth of First-Time Buyers and Previous Owners.

Financing and saving for a down payment

• Among all groups, the two most common actions completed one to two years prior to the purchase of a home are saving for a down payment and determining what type of home to buy.
• About one-in-four prospective home buyers stated that they would be very likely to consider delaying their purchase in the event of an increase in interest rates.
• The majority of future home buyers intend to obtain a mortgage to finance their home purchase, with First-Time Buyers showing higher incidence compared to Previous Owners and Current Owners.
• Across all groups of future home buyers, more than six-in-ten say they are likely to have a financial buffer in case their expenses change in the future.

Survey methodology

In October 2017, CMHC surveyed 2,507 prospective home buyers online. Respondents were all prime household decision-makers who intend to purchase a new home within the next two years, including 1,501 First-Time Buyers, 506 current owners, and 500 previous owners. Similar to the annual Mortgage Consumer Survey, the Prospective Home Buyers Survey is intended as an education tool for mortgage professionals and to support mortgage literacy among Canadian home buyers and homeowners.

Additional survey findings are available here.

CMHC helps Canadians meet their housing needs. As Canada’s authority on housing, we contribute to the stability of the housing market and financial system, provide support for Canadians in housing need, and offer objective housing research and advice to Canadian governments, consumers and the housing industry. Prudent risk management, strong corporate governance and transparency are cornerstones of our operations.

Attached and apartment homes are in demand across Metro Vancouver* while detached home buyers are facing less competition today.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,818 in January 2018, a 19.4 per cent increase from the 1,523 sales recorded in January 2017, and a 9.8 per cent decrease compared to December 2017 when 2,016 homes sold.

Last month’s sales were 7.1 per cent above the 10-year January sales average. By property type, detached sales were down 24.8 per cent from the 10-year January average, attached sales increased 14.3 per cent and apartment sales were up 31.6 per cent over the same period.

“Demand remains elevated and listings scarce in the attached and apartment markets across Metro Vancouver,” Jill Oudil, REBGV president said. “Buyers in the detached market are facing less competition and have much more selection to choose. For detached home sellers to be successful, it’s important to set prices that reflect today’s market trends.”

There were 3,796 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2018. This represents an 8.3 per cent decrease compared to the 4,140 homes listed in January 2017 and a 100.7 per cent increase compared to December 2017 when 1,891 homes were listed.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 6,947, a four per cent decrease compared to January 2017 (7,238) and a 0.2 per cent decrease compared to December 2017 (6,958).

For all property types, the sales-to-active listings ratio for January 2018 is 26.2 per cent. By property type, the ratio is 11.6 per cent for detached homes, 32.8 per cent for townhomes, and 57.2 per cent for condominiums.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is currently $1,056,500. This represents a 16.6 per cent increase over January 2017 and a 0.6 per cent increase compared to December 2017.

Detached home sales in January 2018 reached 487, a 9.7 per cent increase from the 444 detached sales recorded in January 2017. The benchmark price for detached properties is $1,601,500. This represents an 8.3 per cent increase from January 2017 and a 0.3 per cent decrease compared to December 2017.

Apartment home sales reached 1,012 in January 2018, a 22.7 per cent increase compared to the 825 sales in January 2017. The benchmark price of an apartment property is $665,400. This represents a 27.4 per cent increase from January 2017 and a 1.5 per cent increase compared to December 2017.

Attached home sales in January 2018 totalled 319, a 25.6 per cent increase compared to the 254 sales in January 2017. The benchmark price of an attached unit is $803,700. This represents a 17.5 per cent increase from January 2017 and unchanged compared to December 2017

*Editor’s Note: Areas covered by the Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta.

The real estate industry is a key economic driver in British Columbia. In 2017, 35,993 homes changed ownership in the Board’s area, generating $2.4 billion in economic spin-off activity and an estimated 17,600 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totalled $37 billion in 2017.

The Real Estate Board of Greater Vancouver is an association representing more than 14,000 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.

Port Coquitlam Mayor Greg Moore is heading a coalition of cities urging the provincial and federal governments to work on affordable housing solutions. Arlen Redekop / PNG

VANCOUVER — Local politicians in British Columbia are calling for an overhaul of the housing system with significant tax and regulatory changes in order to bring skyrocketing real estate and rental prices back to a level local residents can afford.

The Union of B.C. Municipalities has issued a report containing 32 recommendations for provincial and federal governments based on research and best practices from across Canada and around the world.

Mayor Greg Moore of Port Coquitlam led the initiative for the union and said there are numerous reasons for the crisis in housing affordability that require a “multitude of solutions.”

“The frustrating part that I see is many individuals and associations come out and say, ‘Well if we just did (housing) supply then everything would be solved.’ Well it’s much more sophisticated than that,” he said.

“It has to look at the continuum of housing. Rental plays an extremely important part in that, but so does the demand management side of it.”

Speculation by foreign and domestic investors has contributed to escalating real estate prices in Metro Vancouver, which has had a spillover effect on other B.C. communities and the rental market, he said.

Using taxes as a tool along with stronger regulations at the municipal level is a “winning combination” to fix a complex issue, Moore said.

To curb real estate speculation, the union wants the province to consider expanding its 15 per cent tax on foreign buyers in Metro Vancouver to include other areas, such as Victoria, where markets have been heating up. It also wants a review to determine if the 15 per cent rate is sufficient.

The strategy also calls for more transparency around who owns property.

University of B.C. geography professor David Ley, who contributed to the report, said the United Kingdom provides a good example where regulatory changes now require identifying the owner, preventing foreign investors from dodging taxes or laundering money.

“We want a declaration of who the actual owner is,” Ley said, noting that property in B.C. can be owned by trusts or companies, hiding the person behind the purchase.

Taxes are also being suggested to cut at the heart of the issue of profit-driven property flipping that has fuelled some B.C. markets, Ley said.

The strategy includes a sellers tax on those who flip their homes within a few years of purchase to make a profit. It also calls for a more progressive tax system that hits luxury properties at a higher rate.

“What we need to recognize here is that we’re in a very abnormal situation in Vancouver, abnormal in the scale of the affordability crisis, and it does require determined response from government,” Ley said, adding a similar strategy could be helpful in Toronto where affordability has reached similar crisis levels.

While housing supply is a problem, Ley said it’s too simplistic to expect that increasing the overall supply will be a solution for the market because many units are being built every year.

“The problem is that those are not affordable units and they’re not targeted to a local market or at least to the local wage structure, they’re targeted to an investment market,” Ley said.

The strategy calls for tax breaks on developers building affordable units, and also giving municipalities power to create a progressive property tax system so that those types of developments are provided longer-term breaks.

Moore said giving municipalities more power to zone areas for rental developments would ensure that new buildings remain as rental stock.

The union has been in talks with the provincial government, and Moore said he hopes to see some of the recommendations included in the upcoming budget.

The B.C. Green party released its housing strategy Wednesday that also focuses on speculation, the supply of affordable housing, financial relief for renters and improved transparency and data collection on ownership.

“British Columbians have awaited action for far too long,” said Leader Andrew Weaver in a statement.

“It is time to move past rhetoric and get to work delivering solutions.”

Housing Minister Selina Robinson said in a statement that the province has already taken steps to address the housing crisis by improving supports for tenants and landlords, increasing housing for the most vulnerable, and cracking down on tax cheats.

She said the government welcomes the strategy put forward by municipalities and the upcoming budget will include a plan that “looks at the big picture.”

Provided by: Canadian Press

While improving conditions were noted in both Winnipeg and Saskatoon, Canada’s housing markets remain highly vulnerable overall for the sixth consecutive quarter with evidence of overvaluation and price acceleration, according to Canada Mortgage and Housing Corporation (CMHC).

On a quarterly basis, CMHC issues its Housing Market Assessment (HMA) to provide Canadians with both expert and impartial insight and analysis, based on the best data available in Canada. This report acts as an “early warning system” for the country’s housing markets – an important tool supporting financial and housing market stability.

Results are based on data as of the end of September 2017 and market intelligence as of the end of December 2017.

CMHC’s HMA continues to find housing markets in Toronto, Hamilton, Vancouver and Victoria highly vulnerable due to price acceleration and overvaluation. There is low evidence of overbuilding overall at the national level but there are concerns surrounding overbuilding in Calgary, Edmonton, Saskatoon and Regina. In these markets, the inventory of new but unsold homes and rental vacancy rates remain high. Low vulnerability is detected for housing markets in Manitoba, Québec and the Atlantic.

Report highlights:

• Overvaluation at the national level remains moderate, but strong evidence of overvaluation continues to be seen in Toronto, Vancouver, Hamilton, and Victoria.
• Despite the recent price adjustments, the ratings of high degrees of vulnerability were maintained in Toronto and Hamilton. House prices are not fully supported by economic fundamentals such as personal disposable income and population growth.
• Vancouver’s housing market remained highly vulnerable. Overheating continues to be detected, as demand for multi-family units remains elevated, largely due to their relative affordability compared to single-detached homes. Inventories of both new and resale multi-family units are near all-time lows.
• Victoria’s overvaluation persisted with low inventory levels of new and resale homes.
• House prices in Calgary, Edmonton, Saskatoon and Regina appear broadly in line with fundamentals, but strong evidence of overbuilding is still observable. Both inventories of completed and unsold homes and rental vacancy rates are above the thresholds of overbuilding.
• Manitoba, Québec and Atlantic Canada housing markets were rated as showing low vulnerability.

CMHC defines vulnerability as imbalances in the housing market. Imbalances occur when overbuilding, overvaluation, overheating and price acceleration - or combinations thereof - depart significantly from historical averages.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

“Our market assessment continues to show a high degree of vulnerability for the housing market at the overall national level because of the combination of price acceleration and overvaluation. Regional disparities remained, especially in terms of overvaluation, as some centres in BC and Ontario were still highly overvalued leading to an overall assessment of a high degree of vulnerability.”

— Bob Dugan, Chief Economist

“While house price growth has slowed, house price levels remained high relative to underlying economic fundamentals such as income and population growth. Therefore, we continue to find strong evidence of overvaluation”

— Dana Senagama, Principal Market Analyst (Toronto)

Provided by: CMHC

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The deadline for Vancouver homeowners to declare whether or not their home is occupied is this Friday, Feb. 2, 2018. DARRYL DYCK / THE CANADIAN PRESS

The deadline for Vancouver homeowners to declare whether or not their home is occupied is this Friday, Feb. 2, 2018.

Those who fail to declare or who declare that their home is unoccupied will be subject to the empty homes tax of 1 per cent tax on the assessed taxable value of their home.

Here’s five things to know about the tax, the deadline and what’s next.

What happens if I miss the deadline?

A homeowner who fails to make a declaration by the deadline will be charged a $250 penalty and their property will be deemed vacant and subject to the 1 per cent tax.

A homeowner who makes a false declaration could be fined up to $10,000 per day the declaration is not corrected, as well as being subject to the 1 per cent tax. Those who are late making payments or who do not pay their empty homes tax will be subject to a late payment penalty of 5 per cent, daily interest on arrears and the tax sale process.

How will the city know if my declaration is accurate?

Declarations for both empty and occupied homes could be picked for random audits. If a property is selected for an audit, the homeowner will have to provide proof that their declaration is accurate.

If picked for an audit, how can I prove that I live in my home or that I have a tenant?

If the homeowner resides in the property, proof can be in the form of ICBC vehicle insurance and registration, government-issued personal ID, an MSP invoice, tax returns or notices of assessment, an employment contract or pay stub or insurance certificate for homeowner’s insurance. (The occupant’s personal information must be registered to the property’s address; if not, the homeowner could still fail the audit.)

If the property is rented out by a tenant, proof can be in the form of a tenant agreement, income tax returns or notices of assessment showing rental income, bank statements that show rental income, insurance certificates for tenants insurance or information from a long-term tenant that states they are occupying your home.

What if I made a mistake on my declaration, I missed the deadline or the city says my home is empty but it isn’t?

Homeowners who miss the deadline, made a mistake in their declaration or who left out information in their declaration can file a notice of complaint. Notice of complaints will not be accepted until March 15, 2018.

If the city deems a home to be empty and the homeowner disagrees, they can also submit a notice of complaint beginning March 15.

What if my property is empty because I can’t find a tenant? Can I be exempt from the tax?

There will be no exemptions for homes that are unoccupied because the homeowner wasn’t able to find a tenant. The city encourages owners to lower their asking rental price until they are able to find a tenant.

 Provided by: Stephanie IP

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Canadians have never had it so good.

Canada ranks as the second best country globally once again, according to the 2018 Best Countries report by US News & World Report, Y&R’s BAV Consulting, and the Wharton School of the University of Pennsylvania.

The number two ranking is out of a list of 80 countries, and Canada only trails behind Switzerland at number one.

Canada also came in at number one for quality of life and number four for citizenship.

The quality of life sub-ranking is based on several factors: affordability, job market, economic stability, family-friendliness, income equality, political stability, safety, and quality of public services such as the healthcare and school systems.

Scandinavian countries largely topped the quality of life ranking, with Denmark coming in at number two, Sweden at number three, and Norway at number four. Australia came in at number five.

The citizenship sub-ranking measures a number of factors such as gender equality, human rights, religious freedom, and trustworthiness. Canada ranked number four overall in this category, just being edged out by Norway at number one, Switzerland at two, and Denmark in third place.

According to the publishers, the 2018 Best Countries report and rankings are based on how global perceptions define countries in terms of a number of qualitative characteristics, impressions that have the potential to drive trade, travel and investment and directly affect national economies. Eighty countries, up from 60 in the inaugural rankings, were measured in this year’s report.

So yes, despite our strange love for ketchup, we’re pretty awesome up here.

Here are the 25 best countries to live in the world right now:

1. Switzerland
2. Canada
3. Germany
4. United Kingdom
5. Japan
6. Sweden
7. Australia
8. United States
9. France
10. The Netherlands
11. Denmark
12. Norway
13. New Zealand
14. Finland
15. Italy
16. Singapore
17. Austria
18. Luxembourg
19. Spain
20. China
21. Ireland
22. South Korea
23. United Arab Emirates
24. Portugal
25. India

See also

• Canada ranked #1 most admired country in the world
• Canada ranked #1 country in the world for Quality of Life
• Canada voted 2nd most beautiful country in the world

Provided by: The Daily Hive

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