Canada housing: Latest News

Stable interest rates and a continued cooling in home prices helped give housing affordability in Canada its biggest jump in almost four years in the first quarter of 2023, according to a new report.

mortgage rates are ratcheting up the pressure on Canadian landlords, especially young investors who are facing the harsh side of the interest rate cycle for the first time.A report released Thursday by Royal LePage shows higher payments are even pushing some housing investors to consider selling off their properties. But for 32-year-old Karim Najjar, that decision is about more than just writing off the loss on an investment.Najjar moved to Ottawa from Edmonton in 2017 and jumped into the housing market a year after he arrived.His timing into the market was good, Najjar recalls, as home prices soared in his first few years of ownership.

Two problems facing Canadian real estate seem, at first glance, like an obvious answer to one another.

CMHC, as those boxed out of an unaffordable housing market compete for a limited supply of rental homes.Canada Mortgage and Housing Corp.’s new housing outlook released Thursday warns that rental market conditions in Canada are “expected to further tighten,” raising rents in major markets such as Toronto, Vancouver and Montreal.The existing rental supply is already low, CMHC pointed out in the report, and competition for these units is only getting hotter amid strong immigration levels in Canada.Data from rentals.ca shows that the average rent in Canada was just over $2,000 in March, up 10.8 per cent from the same month last year. The average monthly rent for a one-bed apartment in Toronto rose 22.2 per cent annually.Bob Dugan, chief economist at the CMHC, told reporters on Thursday that the short supply of rental homes is especially evident when units turn over in markets such as Toronto.Last year, the average rent for a Toronto unit that changed hands soared 29 per cent from the previous tenant’s rates, compared with a typical increase of around two per cent year-over-year for renters who stayed in their units, he said.“That’s because there’s not enough supply.

First Home Savings Account (FHSA), a registered savings vehicle introduced by the Liberal government to help Canadians struggling to enter the housing market save toward a downpayment, is now available at some financial institutions.Originally a pledge as part of the 2022 federal budget, the FHSA went live on April 1, but most banks told Global News they weren’t ready on day one.Institutions including RBC, National Bank and Questrade are among those who have since launched the offering this month. Others, including TD Bank and Desjardins, have targeted a summer launch for their FHSAs.So what is the FHSA, and how can you use it alongside other registered savings accounts to reduce your taxable income and save towards your first home?Here’s what you need to know.The FHSA allows individuals to save up to $8,000 per year in a tax-free account, with a maximum contribution room of $40,000.

interest rates over the last year is starting to throttle the pace of homebuilding, the Canada Mortgage and Housing Corp. (CMHC) warned in a new housing supply report Wednesday.As the Bank of Canada’s interest rates rose substantially through 2022 and early 2023, many homebuyers were priced out of the market and home values retrenched from their pandemic-era highs.

A new savings vehicle for Canadians saving towards their first home purchase will technically be available starting April 1, but financial institutions who spoke to Global News say they won’t be ready to offer the account on that date and Ottawa offered no timeline for when deposits might start flowing.

This article is part of Global News’s Home School series, which gives Canadians the basics they need to know about the housing market that they never learned in school.Entering the housing market is viewed by many Canadians as an attractive choice, both financially and for the security of having a home to call your own.The goal is common enough, but the how and when are trickier. How do you know when the timing is right to jump to owning from renting or living with family? Read more: Should you rent or buy a home? Why that calculation might be changing What makes the question so difficult is that it’s not just a matter of dollars and cents — personal circumstances, long-term goals and other life changes all factor into what ends up being, for many, the biggest financial decision of their lives.Here’s what you need to know before you look to buy your first home.There’s one thing that can’t be ignored when buying a home — how much money you’re bringing in.Comparator site Ratehub.ca recently took a look at the minimum income needed to afford a home across 10 Canadian cities.

The Bank of Canada held its benchmark interest rate steady on Wednesday — a decision real estate players and economists say will have major implications for the Canadian housing market.

Rising interest rates and other headwinds in the construction industry have pushed builders in some Canadian markets to shelve condominium projects, while others say condo demand will hold up as supply remains tight.

A wave of buyer’s remorse is taking shape in several heated real estate markets, after housing prices started dropping and the number of sales slowed over the last two months.

Conservative leadership candidate Pierre Poilievre is among the dozens of MPs who own rental property even as he blasts the unfairness of Canada’s housing market for young Canadians, Global News has learned.

Toronto. But he says finding a suitable place in the city was a tall order.“When we looked for a three-bedroom unit, it would be more luxury products like a penthouse or 1,500 square feet which we couldn’t afford,” he said in an interview with Global News.Housing that is bigger than a shoebox condo but smaller than a single-family detached home is referred to as the “missing middle.” Some observers say Toronto has been plagued with a lack of such housing for decades.