Toronto's real estate industry heard Friday they will need to become increasingly nimble and adaptable as tenant expectations and building possibilities evolve.
Speaking at the Toronto launch of a 2020 trends report, PwC director of real estate research Andrew Warren says silos around real estate categories are blurring more than ever before.
The report by PwC and the Urban Lands Institute says mixed developments will become even more common and start to integrate more features like dedicated short-term rental space and package receiving rooms.
High housing costs could also create growth in co-living and other alternative housing models as both younger workers and seniors look for a place to live.
The report also found a rising unease in the industry because of high asset prices and rising costs for land and labour that could leave many in the industry holding back in the year ahead.
It says concerns around cybersecurity are also increasing as technology becomes integrated into real estate.
The Canadian Press
TORONTO – A new study suggests seniors living in Toronto are more likely to stay longer in their family sized homes than they were a decade ago.
The Canada Mortgage and Housing Corporation has released a report tracking home ownership trends among Toronto residents 65 or older.
It says seniors accounted for 25 per cent of home owners in 2016, up five percentage points from levels recorded in 2006.
The corporation attributes the increase to the fact that seniors are working longer and enjoying better health, enabling them to hang on to homes longer before downsizing.
But they say the trend also points to a potential shortage for younger generations.
The report says defering downsizing plans limits the number of larger homes on the market available to prospective buyers, noting the trend is likely to continue as Toronto’s population continues to age.
The Canadian Press
TORONTO — The Greater Toronto Area‘s home price index was up 4.4 per cent last month as the supply of properties for sale tightened and the number of sales jumped 24.3 per cent from July last year, the Toronto Real Estate Board reports.
The overall average selling price for properties in the Greater Toronto Area was up 3.2 per cent year-over-year to $806,755, TREB said in a monthly report issued Tuesday.
The number of properties sold increased to 8,595 from 6,916, with sales of all four categories of housing up by double digits.
“Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses and condominium apartments,” Jason Mercer, the real estate board’s chief market analyst, said in a statement.
On the other hand, he said, sales of fully detached homes have been more affected by a stress test required for federally regulated mortgages and the average price for that category of housing was down 0.9 per cent overall.
In the City of Toronto itself, the average price for fully detached homes fell 9.1 per cent to $1.23 million, offsetting a 2.5 per cent increase in the surrounding 905 area to an average of $929,633.
TREB says that the supply of properties for sale in the Greater Toronto Area was also tighter than it was last year.
There were 14,393 new listings in the GTA during the month, up from 13,873 in July 2018, but the total number of active listings at the end of July was down 9.1 per cent from a year ago.
TREB CEO John DiMichele said there’s a growing demand for residential properties due to population growth.
“As more and more households come to terms with the stress test and move back into the market in the coming months and years, they could suffer from a chronically under-supplied marketplace and an acceleration of home price growth to unsustainable levels,” DiMichele predicted.
“Fortunately, policy makers have acknowledged the housing supply issue and are working toward solutions.”
The board said it welcomes a move by Toronto Mayor John Tory and the city council, which instructed staff to report on ways to increase housing options in neighbourhoods that traditionally have had single-family dwellings.
TREB also said it supports provincial government consultations to “spur on and speed up” the development of different forms of housing.
The Canadian Press
Canada's largest housing market registered another month of double-digit sales gains in June, while deteriorating inventory helped push prices higher.
There were 8,860 property transactions across the Greater Toronto Area in June, representing a 10.4 per cent increase from a year earlier.
Meanwhile, total active listings fell almost six per cent in the month.
The combination of rising sales and fewer homes on the market helped lift the average selling price three per cent to $832,703.
That opened the door for the local real estate board to renew its criticism of stress tests on uninsured mortgages that took effect at the start of last year.
"Over the next year, as demand for ownership and rental housing continues to grow, my hope is that we will see more movement from policy makers on two fronts: alleviating the constrained supply of housing and providing more flexibility around demand-side policies, including the OSFI two percentage point mortgage stress test and allowable amortization periods on insured mortgages,” said Toronto Real Estate Board President Michael Collins in a release.
Toronto region home prices rose a fifth consecutive month in May — up 3.1 per cent on average year over year to $838,540 including all types of housing. The number of sales also grew substantially — showing a 19 per cent year over year increase.
But the Toronto Real Estate Board (TREB) warned that the 9,989 transactions last month remain below the decade-average and follow last May’s 15-year low.
A lack of listings — the number was up only 0.8 per cent compared to last May — could tip the market in favour of sellers and could push prices higher, said the board.
“If we continue to see growth in sales outstrip growth in new listings, price growth will accelerate,” TREB said in a release on Wednesday.
“Many households are not comfortable listing their homes for sale because they feel that there are no housing options available to better meet their needs,” said Jason Mercer, the board’s chief market analyst.
Condos continued to see the largest year over year price gains, up 5 per cent to a regionwide average of $590,876. Detached house prices grew by 0.3 per cent on average. Prices remained higher in the city of Toronto where the average condo sold for $642,891 and the average detached house was $1.39 million.
The market recovery appears to have taken hold in the 905-area communities outside Toronto. Only York and Durham regions showed some slight price declines in some housing categories. Peel Region saw the largest year over year price growth — up 5.6 per cent across all categories with condos there increasing 11 per cent and detached homes up 4 per cent year over year in May. That compares to an overall 4.71 per cent price gain in the city of Toronto and a 1.09 per cent decline in York Region.
The seasonally adjusted 2.8 per cent price gain in May was the largest month over month increase since June 2018.
Rents have also continued to climb, according to TREB. This year to date one-bedroom condo rents rose 7.2 per cent to $2,161 a month on average compared to January through May last year. Two-bedroom units rented for 4.5 percent more — $2,837 on average — compared to the same period in 2018.
The real estate board continued to push housing as a priority issue in the upcoming federal election — encouraging all parties to provide positions on affordability, mortgage rules and amortization periods.
Tess Kalinowski is a Toronto-based reporter covering real estate. Follow her on Twitter: @tesskalinowski