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Canadian Real Estate Association December 2020 National Statistics

National Statistics Record December caps record year for Canadian home sales Ottawa, ON, January 15, 2021 – Statistics released today by the Canadian Real Estate Association (CREA) show national home sales set another all-time record in December 2020. SUMMARY: National home sales rose 7.2% on a month-over-month (m-o-m) basis in December. Actual (not seasonally adjusted) activity was up 47.2% year-over-year (y-o-y). The number of newly listed properties climbed 3.4% from November to December. The MLS® Home Price Index (HPI) rose 1.5% m-o-m and was up 13% y-o-y. The actual (not seasonally adjusted) national average sale price posted a 17.1% y-o-y gain in December. Home sales recorded over Canadian MLS® Systems jumped by 7.2% between November and December to set another new all-time record. (Chart A) Seasonally adjusted activity was running at an annualized pace of 714,516 units in December 2020 – the first time on record that monthly sales at seasonally …
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Population of Kitchener-Cambridge-Waterloo increased by 50,000 over past 5 years: StatCan (Global News)

Original Source:  GLOBAL NEWS The combined population of Kitchener, Cambridge and Waterloo is estimated to have grown by 50,000 people over the past five years, according to a report released by Statistics Canada on Thursday. It estimated the population of the tri-cities to be at 593,882 last July, more than 50,000 above the total of 542,034 it estimated for 2016. READ MORE: What Canada’s population will look like in 2036 The three cities grew at a rate of two per cent over that period, which tied them with Halifax for second-fastest in Canada. Oshawa was atop that list and like Kitchener-Cambridge-Waterloo, the CMA figures some of that growth has come from Toronto, where 50,000 people left between July 2019 and July 2020. “The desire to live outside the largest urban centres was also reflected in the rapidly increasing housing costs in neighbouring real estate markets, a trend that has continued in spite of the pandemic,” the report read. …
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Home sales up close to ten per cent in 2020

A fantastic local read from Kitchener Today.           December sales also set a record   Home sales in Waterloo Region finished strong to end 2020. Another record was set in December as 351 properties were sold through the Multiple Listing System, which is a 42 per cent increase compared to December 2019. When you break it down for the year, over 6,400 homes exchanged hands, an increase of nine per cent compared to figures from the previous year. “This marks the sixth consecutive month of record home sales in Kitchener-Waterloo and helps propel 2020’s annual number of transactions over the 6,000-unit threshold for only the third time in our history.” Nicole Pohl, President of the Kitchener-Waterloo Association of Realtors, explained in a news release.   Here’s a breakdown of sales in December:   204 detached homes (up over 46 per cent) 64 freehold townhouses (up 68.4 per cent) 63 …
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Bank of Canada Confirms Commitment To Low Interest Rates

Despite the good news on the vaccine front since the Governing Council’s last meeting in late October, the Bank of Canada reasserted its commitment to provide extraordinary monetary policy support for many months to come. The statement released today reiterated that the Bank will hold the policy interest rate at its effective lower bound of 0.25% “until economic slack is absorbed so that the 2% inflation target is sustainably achieved.”  Although inflation in October picked up, it was mainly because of higher prices for fresh fruits and vegetables. The Bank’s policy statement said that measures of core inflation are all below 2%, and “considerable economic slack is expected to continue to weigh on inflation for some time.”  The economy will continue to require this stimulus until 2023–as stated in the most recent (October) Monetary Policy Report (MPR).  The central bank will reassess the outlook when it meets again on January 20 …
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Fixed or variable? Revisiting the debate amid low rates

Courtesy of The Globe and Mail (Print Edition) For many consumers, the comfort of a fixed payment is worth the slightly higher interest costs, experts say Mortgage shoppers looking for the best rates this fall are also asking whether it’s best to go fixed or variable in the continued low interest-rate environment brought on by the economic fallout from the COVID-19 crisis. While rates that fluctuate with the market interest rate tend to win over those that are fixed for the duration of the mortgage term, experts say there’s no onesize-fits-all answer. “This topic is very personalized to each person’s own unique situation,” says Tracy Valko, principal mortgage broker and owner of Valko Financial Ltd. in Kitchener, Ont. “Mortgage products need to meet the needs of the client and what’s best suitedfor them.”     Ms. Valko, who is secretary of Mortgage Professionals Canada, an industry association of mortgage brokers, …
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CMHC Makes It Harder To Qualify For An Insured Mortgage

Once again, the Canadian Mortgage and Housing Corporation (CMHC) is tightening the criteria to get a mortgage with less than a 20% down payment. Any potential home buyer with less than a 20% down payment must purchase default insurance on their loan and have a minimum down payment of 5%. CMHC is a federal Crown Corporation that provides such default insurance. Its mandate is to help Canadians access affordable housing options. Providing mortgage insurance to home buyers is one of its main activities. Mortgage default insurance protects lenders in the event a borrower ever stopped making payments and defaulted on their mortgage loan–a very infrequent occurrence in Canada. There are private providers of default insurance as well–Genworth Financial Canada and Canada Guaranty. CMHC is the only insurer of mortgages for multi-unit residential properties, including large rental buildings, student housing and nursing and retirement homes. It is the largest provider of mortgage default insurance by far …
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Canada Emergency Commercial Rent Assistance (CECRA)

Federal Government Update Today, the Prime Minister announced that the federal government has reached an agreement in principle with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This program will lower rent by 75 per cent for small businesses that have been affected by COVID-19. The details that have been announced at this point are below. We will share more details about the CECRA as they become available. The CECRA program will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June. The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement, which will …
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5 Steps to Start Investing in Real Estate

From the desk of Matthew Shantz: When looking to start investing in Real Estate it is very easy to get caught up in the excitement. We read books, listen to podcasts, take courses, talk to friends, go to open houses, speak with realtors and spend hours browsing through MLS and listings. We ask everyone “how did you do it?” or “what are you investing in?” or worst still “how much money did you make?”. I get it, I have been there. We just want to do something, anything, because not doing something feels like we are wasting our time, missing out on the next big opportunity and have let another chance to ‘get rich’ slip through our fingers. Over the past 15 years I have attended more seminars, read more books, listened to more speakers, interviewed more experts and walked through more houses then I could count. I figured that …
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Home Sales Slip A Bit In January As Supply Tightens Pushing Up Prices

  Statistics released today by the Canadian Real Estate Association (CREA) show that national existing-home sales dipped between December and January owing to a dearth of new listings, especially in the GTA. As the CREA chart below shows, the pace of monthly home resales nevertheless remained strong.  Home sales recorded over Canadian MLS® Systems declined by 2.9% in January 2020, although they remain among the stronger monthly readings of the last few years.  Transactions were down in a little over half of all local markets in January, with the national result most impacted by a slowdown of more than 18% in the Lower Mainland of British Columbia. According to CREA, “While there were few notable gains in January, it should be noted that many of the weaker results have come alongside a shortage of new supply in markets where inventories are already very tight.” Actual (not seasonally adjusted) sales activity was …
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Canadian 5-year Yield Fell To Lowest Level Since October

Global investors are selling stocks and piling into the safety of bonds in response to fears that the Wuhan coronavirus could disrupt global economic activity. Gold prices, another haven, have also risen. The Government of Canada 5-year bond yield traded this morning at roughly 1.35%, well below its nearly 1.70% level one month ago. The 5-year yield leads fixed mortgage rates, so if this trend persists, we might see widely available fixed-5-year rates in the 2.50% range once again in February.    ____________________________________________ Bank of Canada Now Buying 10-year CMBs   The Bank of Canada announced yesterday that effective immediately, the Bank will expand the Canada Mortgage-Backed securities (CMBs, which are government-guaranteed) it can purchase in the primary market to include 10-year fixed-rate bond issues. In 2018, The Bank expanded the assets it acquires to 5-year fixed and floating CMBs. The Bank held $517 million of these 5-year CMBs as of …
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