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Home sales spike nationwide, development cost charges push prices up, Ottawa considers changes to its vacancy tax, national rents drop for the first time since the pandemic, and more news from across Canada.
Recap Team
November 08, 2024
Good morning!☀️ Ready to kickstart your day? Take 5 minutes to recap all the major news headlines from this week.
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⚡ Top Story
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National Rents Decline for the First Time Since 2021
Canadian rents dropped 1.2% year-over-year to $2,152 in October, marking the first decline since 2021. Vancouver remains the most expensive city, but rents fell over 9%. Apartment rents declined most for one-bedroom units in BC and two-bedroom units in Ontario. Saskatchewan led nationally with a 17.1% annual rent increase.
💭 Quote of the Day
“Done is better than perfect.”
Sheryl Sandberg
🗞️ BC News
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Metro Vancouver Sales Increased Over 30% in October
In October, Metro Vancouver real estate saw a sales surge, with Greater Vancouver and Fraser Valley sales up over 30% year-over-year. New listings grew 16.9% in Greater Vancouver, with benchmark prices down 1.9% annually. Fraser Valley listings also surged, and the benchmark price fell for the seventh straight month.
Metro Vancouver Property Taxes Will Rise Up to 41% in 2025
Metro Vancouver homeowners will see an average 25.3% increase in property taxes in 2025, raising the average bill from $698 to $875 to cover infrastructure costs, including the $4B North Shore Wastewater Plant. Due to the plant’s $2.8B cost overrun, North Shore residents face the highest increase of 41%.
Delta Approves Bylaw to Streamline Development Applications
Delta has approved a bylaw amendment to streamline development applications by eliminating the notification requirement for minor variances. This change aims to cut processing times. Between December 2023 and August 2024, staff issued 27 delegated permits. Further process improvements are planned for 2025.
Metro Vancouver DCCs Could Raise Housing Prices by 3%
Metro Vancouver’s proposed increase in Development Cost Charges (DCCs) could raise housing prices by 1-3%, according to a recent analysis. These charges aim to fund infrastructure amid population growth but may impact land values and developer profit margins. The phased hikes start in 2025.
😯 Random Fact of the Day
Did you know the inspiration for Airbnb came from air mattresses? The founders started by renting out air mattresses in their apartment to pay their rent. Today, the company is worth over $93 billion.
🗞️ Ontario News
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GTA Home Sales Jump 44% in October
Home sales in the GTA surged 44% year-over-year in October, driven by lower interest rates and steady home prices. TRREB reported 6,658 sales, with detached homes leading. Average home prices rose 1.1% to $1.14M. Inventory remains high but moderate price growth is expected through spring 2025.
Peel Residents Face 20-Year Waitlist for Affordable Housing
A new report shows affordable housing wait times in Mississauga, Brampton, and Caledon can reach up to 20 years, with over 32,000 households on the waiting list. Peel Region urges Ontario to boost social assistance by at least $150 monthly and increase food security and mental health services support.
Rate Cuts Boost Consumer Confidence in Ottawa Market
Ottawa’s housing market showed signs of recovery in October, with 1,179 homes sold—up from September but slightly below long-term averages. Sales were 9.4% higher year-to-date compared to the same period last year. Total dollar volume was $788.3 million, up 47.7% from October 2023. The average home price increased slightly.
Ottawa Looks to Improve Vacancy Unit Tax Program
Ottawa is considering changes to its Vacant Unit Tax, including a graduated tax rate, to increase revenue and discourage property vacancies. The current tax applies to homes vacant for over 184 days annually, generating $12.6 million in its first year. Proposed adjustments aim to enhance compliance and housing availability.
📅 Save These Dates
November 19, 2024, 5:30am | Inflation Rate
November 29, 2024, 5:30am | GDP Growth Rate
🗞️ National News
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85% of Mortgage Renewals in 2025 Will Be at a Higher Rate
Approximately 85% of Canadian mortgages renewing in 2025 will face higher rates than when they were last signed, with interest rates expected to be 1-2.25% above prior levels. Mortgage delinquencies have risen, and debt hit $2.2 trillion in 2024. Many borrowers are choosing shorter terms, anticipating future rate cuts.
You’re all caught up! Enjoy the rest of your day.✅