↪️ Did the market just rebound?

Sales are up across the board, plus more news from across Canada.

Author

Recap Team
December 06, 2024

Good morning!☀️ Ready to kickstart your day? Take 5 minutes to recap all the major news headlines from this week.

But first, fuel your mind: "The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails." - John C. Maxwell

⚡ Top Story

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Royal LePage Predicts Home Prices Will Rise 6% in 2025

Royal LePage’s 2025 housing market forecast predicts a stable return to long-term pricing trends, driven by factors like shifting interest rates and updated lending rules. The company predicts a 6% YoY rise in Canadian home prices in Q4 2025, reaching $856,692. Detached homes may hit $900,833 (+7%), while condos could reach $605,993 (+3.5%).

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🗞️ BC News

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Greater Vancouver and Fraser Valley Home Sales Surge 27%

Residential sales in Greater Vancouver and Fraser Valley rose over 27% compared to last year despite falling short of the 10-year averages and declining from October’s levels. Active listings also increased. Prices remained steady, but pent-up demand could change that. New mortgage guidelines may boost buyer confidence in 2025.

6-Tower, 2,000-Home Project Proposed in Port Coquitlam

Wesbild has proposed a six-tower, nearly 2,000-home redevelopment of Poco Place shopping centre in Port Coquitlam. The project includes condos, rentals, non-market housing, 80,000 sq ft of retail, childcare facilities, and 3.3 acres of outdoor space. Phased construction could start in 2027, pending approvals.

14-Building Burnaby Project Placed Under Creditor Protection

The massive Burnaby Lake Village project is under creditor protection, marking Metro Vancouver’s largest real estate insolvency in recent years. Disputes between partners Peterson Group and Create Properties stalled the development and led to loan default. The outstand debt was over $207 million as of November 21.

Vancouver Plans to Lift High-Rise Limits in Broadway Plan

Amendments to Vancouver’s Broadway Plan will lift high-rise limits in select areas, boosting tower heights and densities. This aims to support 41,500 new homes, 64,000 residents, and 45,000 jobs over 30 years. The plan aligns with transit-oriented policies, enhancing public spaces and encouraging hotel developments.

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🗞️ Ontario News

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GTA Home Sales See 40% Spike in Back-to-Back Months

GTA home sales rose 40.1% year-over-year in November, reaching 5,875 transactions, driven by lower borrowing costs. Single-detached homes saw the highest activity, accounting for almost half of the total sales. New listings grew by 6.6%. The average selling price rose but at a declining pace, up 2.6% to $1.1M.

New Condo Sales in Toronto are 91% Below the 10-Year Average

Demand for new homes in Toronto has significantly dropped despite decreasing prices. New homes sales in October were at a record low, with single-family home prices seeing a 32% drop from the peak in 2022. Condo apartment prices are also taking a hit, with sales falling 91% from the 10-year average.

Taxes Now Make Up 36% of New Build Costs in Ontario

In 2024, taxes accounted for nearly 36% of the cost of a new home in Ontario, rising from 31% in 2021, a Residential Construction Council of Ontario (RESCON) study reveals. High development charges and fees make up 70% of these taxes. RESCON calls for immediate tax and fee reform to boost housing supply and ease the affordability crisis.

Eastgate Square Transforming into a New Mixed-Use Urban Hub

Eastgate Square in Hamilton’s Stoney Creek is set for transformation into a mixed-use community with up to 20-storey residential towers above retail spaces. The transit-oriented redevelopment is connected to the new LRT B-Line and bus terminals. The project will be developed in four phases spanning a decade.

😯 Random Fact of the Day

Did you know that the Burj Khalifa in Dubai is so tall that the temperature at its highest point can be almost 15°C cooler than at ground level? The penthouses better come with heated floors and Snuggies!

🗞️ National News

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85% of Rental Developers Are Struggling to Finance Projects

The growing need for rental housing in Canada poses challenges for developers, with financing being a major obstacle. Major lenders prefer big developers, leaving smaller ones struggling. Interest rates, government regulations, and fees are key challenges. Developers increasingly consider government funding, such as CMHC programs, crucial for project viability.

New Homes Prices See Largest Drop Since 2009

New home prices in Canada fell by 0.4% in October 2024, marking the largest monthly decline since 2009 and continuing a 23-month downward trend. Developers face challenges from rising construction costs and stagnant sales, with industry experts warning of a future housing supply gap without immediate intervention.

📅 Save These Dates

December 11, 2024, 6:45am | BoC Interest Rate Decision

December 17, 2024, 5:30am | Inflation Rate

You’re all caught up! Enjoy the rest of your day.✅