This time around, developments in the rental market, growing risks, and home price gains in GTA satellite markets are visually represented, plus more.<\/p>\n
1. A century of Canadian house prices<\/a><\/h2>\n![\"century-home-prices-canada\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/century-home-prices-canada.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> In a landmark study, a team of German researchers indexed Canadian house prices back to 1921.<\/p>\nThe takeaway:<\/strong> Given home prices began to really increase after World War II, researchers suggest it\u2019s a sign of \u201cthe classic view,\u201d which argues land supplies decrease as economies grow, resulting in price gains.<\/p>\n2. How luxury rents compare around the world<\/a><\/h2>\n![\"knight-frank-rental-increase-1024x895\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/knight-frank-rental-increase-1024x895-1024x895.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> Analysts at Knight Frank, a real estate consultancy, looked at annual rent gains across the top 5 per cent of 17 different cities in the fourth quarter of 2016.<\/p>\nThe takeaway:<\/strong> Toronto rents for luxury homes saw the greatest year-over-year appreciation of any market examined. It beat out places including central London, Shanghai and New York.<\/p>\n3. A key difference between the US housing crash and where Canada is<\/a><\/h2>\n![\"us-canada\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/us-canada.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> This chart, care of CIBC\u2019s economics team, shows that before American home prices went south, the stateside mortgage delinquency rate started to rise. In Canada, the rate has been flat since at least the start of 2013.<\/p>\nThe takeaway:<\/strong> \u201cOne of the triggers for the US housing crisis, poor mortgage origination standards, looks to be less of an issue here,\u201d write CIBC economists Avery Shenfeld, Andrew Grantham and Nick Exarhos.<\/p>\n4. But one trend suggests Toronto\u2019s housing market may soon cool<\/a><\/h2>\n![\"home-prices-listings-toronto\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/home-prices-listings-toronto.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> The blue line in this Capital Economics chart represents the Teranet-National Bank House Price index for Toronto, and the black one traces the city\u2019s sales-to-new listings ratio (sales divided by new listings in a given month and expressed as a percentage, with anything over 60 per cent suggesting it\u2019s a seller\u2019s market).<\/p>\nThe takeaway:<\/strong> Since 2005, the sales-to-new listings ratio has been a bellwether of Toronto price gains \u2014 and declines. It has recently been trending lower. Draw your own conclusions.<\/p>\n5. Canadian versus US residential construction as a share of GDP<\/a><\/h2>\n![\"bmo-economics-gdp-construction\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/bmo-economics-gdp-construction.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> BMO Economics compares how much residential construction has contributed to the nominal GDPs in Canada and the US since the mid-\u201880s.<\/p>\nThe takeaway:<\/strong> What goes up, must come down. \u201cResidential construction goes through pretty clear multi-year-period cycles,\u201d explains BMO Senior Economist Robert Kavcic.<\/p>\n6. The most \u2014 and least \u2014 expensive new-construction GTA condo markets<\/a><\/h2>\n![\"buzzbuzzhome-condo-report\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/buzzbuzzhome-condo-report.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> BuzzBuzzHome\u2019s data team compiles the median price per square foot for condo units available each month in several GTA regions.<\/p>\nThe takeaway:<\/strong> First-time homebuyers on a budget may want to look towards Durham Region, which has been the most affordable GTA market for the past year.<\/p>\n7. How Canada\u2019s housing market risks evolved in 2 years<\/a><\/h2>\n![\"Q1-2017](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/canadian-housing-market-risk-chart-1024x439.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> Canada Mortgage and Housing Corporation (CMHC)\u2019s housing market overall evaluations \u2014 based on the evidence of overheating price acceleration, overvaluation and overbuilding \u2014 spread out over 9 quarters and 15 census metro areas.<\/p>\nThe takeaway:<\/strong> Since April 2015, the number of major Canadian housing markets CMHC flagged for strong \u201cevidence of problematic conditions\u201d has more than doubled, according to this chart specially updated for BuzzBuzzNews.<\/p>\n8. Ontarians mortgage payments as a percentage of income<\/a><\/h2>\n![\"ontario-mortgage-chart\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/ontario-mortgage-chart.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> BMO Economics charts how much of Ontarians\u2019 incomes have gone towards servicing mortgages since 1983.<\/p>\nThe takeaway:<\/strong> In one way, Ontario\u2019s housing market will soar to heights reached in the late-\u201880s, just before the province\u2019s last major housing crash, in about two years \u2014 \u201cassuming stable mortgage rates and continued income growth,\u201d BMO\u2019s Kavcic notes.<\/p>\n9. The future of the Toronto rental market?<\/a><\/h2>\n![\"cibc-rental-construction\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/cibc-rental-construction.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> CIBC Deputy Chief Economist Benjamin Tal provides a glimpse of future rental-housing construction in the GTA, looking at under-construction and proposed rental units.<\/p>\nThe takeaway:<\/strong> Due to the Greater Toronto Area\u2019s surging home prices, which have created more rental demand as would-be buyers get pushed out, the math on rental construction was beginning to make sense. In under two years, the number of units being built doubled. Unclear is whether or not Ontario\u2019s expanded rent control will interfere.<\/p>\n10. Are GTA home prices mostly just a supply issue?<\/a><\/h2>\n![\"outside-gta-home-prices\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/outside-gta-home-prices.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> Average home prices in markets relatively far outside the Greater Toronto Area, St. Catharines and Niagara Falls-Fort Erie, as charted by Sal Guatieri, a senior economist with BMO Economics.<\/p>\nThe takeaway:<\/strong> \u201cJust note that a lack of supply is probably not the main fuel for runaway prices,\u201d writes Sal Guatieri in a note with the chart. \u201cTo wit, there is no shortage of zoneable land in places like St. Catharines, Niagara Falls and Fort Erie, where the Toronto sparks have recently landed, causing prices to rise as fast, if not faster, than in the late-\u201880s inferno.\u201d<\/p>\n11. Canada\u2019s housing market is healthy. Well, sort of.<\/a><\/h2>\n![\"rbc-housing-affordability-1024x552\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/rbc-housing-affordability-1024x552-1024x552.jpg\")
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> Each quarter, RBC gives Canada\u2019s four biggest housing markets a checkup based on 10 criteria.<\/p>\nThe takeaway:<\/strong> By most standards, the Canadian housing market is \u201cwithin historical norms or not posing any immediate threat.\u201d The exceptions are affordability and rental-market balance, which are \u201cmodestly outside\u201d norms, and the number of multi-family dwellings under construction, which received a red flag.<\/p>\n12. The GTA\u2019s detached-home shortage summed up<\/a><\/h2>\n <\/p>\n
![\"detached-homes-gta\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/detached-homes-gta.jpg\")
<\/a><\/p>\nWhat\u2019s going on here:<\/strong> The number of single-family and multi-family condos that contractors have broken ground for from 1990 and on, charted according to seasonally adjusted annualized rates from CMHC.<\/p>\nThe takeaway:<\/strong> \u201cSupply composition has shifted since higher intensification policies were put in place back in 2006,\u201d writes BMO\u2019s Kavcic. Single-family home construction plummeted in the wake of Ontario\u2019s Places To Grow Act, which makes sense given it was meant, at least in part, to curb urban sprawl.<\/p>\n13. Move over Vancouver \u2014 Toronto\u2019s luxury market is tops in Canada<\/a><\/h2>\n
<\/a><\/p>\nWhat\u2019s going on here?<\/strong> In a landmark study, a team of German researchers indexed Canadian house prices back to 1921.<\/p>\n The takeaway:<\/strong> Given home prices began to really increase after World War II, researchers suggest it\u2019s a sign of \u201cthe classic view,\u201d which argues land supplies decrease as economies grow, resulting in price gains.<\/p>\n What\u2019s going on here?<\/strong> Analysts at Knight Frank, a real estate consultancy, looked at annual rent gains across the top 5 per cent of 17 different cities in the fourth quarter of 2016.<\/p>\n The takeaway:<\/strong> Toronto rents for luxury homes saw the greatest year-over-year appreciation of any market examined. It beat out places including central London, Shanghai and New York.<\/p>\n What\u2019s going on here?<\/strong> This chart, care of CIBC\u2019s economics team, shows that before American home prices went south, the stateside mortgage delinquency rate started to rise. In Canada, the rate has been flat since at least the start of 2013.<\/p>\n The takeaway:<\/strong> \u201cOne of the triggers for the US housing crisis, poor mortgage origination standards, looks to be less of an issue here,\u201d write CIBC economists Avery Shenfeld, Andrew Grantham and Nick Exarhos.<\/p>\n What\u2019s going on here?<\/strong> The blue line in this Capital Economics chart represents the Teranet-National Bank House Price index for Toronto, and the black one traces the city\u2019s sales-to-new listings ratio (sales divided by new listings in a given month and expressed as a percentage, with anything over 60 per cent suggesting it\u2019s a seller\u2019s market).<\/p>\n The takeaway:<\/strong> Since 2005, the sales-to-new listings ratio has been a bellwether of Toronto price gains \u2014 and declines. It has recently been trending lower. Draw your own conclusions.<\/p>\n What\u2019s going on here?<\/strong> BMO Economics compares how much residential construction has contributed to the nominal GDPs in Canada and the US since the mid-\u201880s.<\/p>\n The takeaway:<\/strong> What goes up, must come down. \u201cResidential construction goes through pretty clear multi-year-period cycles,\u201d explains BMO Senior Economist Robert Kavcic.<\/p>\n What\u2019s going on here?<\/strong> BuzzBuzzHome\u2019s data team compiles the median price per square foot for condo units available each month in several GTA regions.<\/p>\n The takeaway:<\/strong> First-time homebuyers on a budget may want to look towards Durham Region, which has been the most affordable GTA market for the past year.<\/p>\n What\u2019s going on here?<\/strong> Canada Mortgage and Housing Corporation (CMHC)\u2019s housing market overall evaluations \u2014 based on the evidence of overheating price acceleration, overvaluation and overbuilding \u2014 spread out over 9 quarters and 15 census metro areas.<\/p>\n The takeaway:<\/strong> Since April 2015, the number of major Canadian housing markets CMHC flagged for strong \u201cevidence of problematic conditions\u201d has more than doubled, according to this chart specially updated for BuzzBuzzNews.<\/p>\n What\u2019s going on here?<\/strong> BMO Economics charts how much of Ontarians\u2019 incomes have gone towards servicing mortgages since 1983.<\/p>\n The takeaway:<\/strong> In one way, Ontario\u2019s housing market will soar to heights reached in the late-\u201880s, just before the province\u2019s last major housing crash, in about two years \u2014 \u201cassuming stable mortgage rates and continued income growth,\u201d BMO\u2019s Kavcic notes.<\/p>\n What\u2019s going on here?<\/strong> CIBC Deputy Chief Economist Benjamin Tal provides a glimpse of future rental-housing construction in the GTA, looking at under-construction and proposed rental units.<\/p>\n The takeaway:<\/strong> Due to the Greater Toronto Area\u2019s surging home prices, which have created more rental demand as would-be buyers get pushed out, the math on rental construction was beginning to make sense. In under two years, the number of units being built doubled. Unclear is whether or not Ontario\u2019s expanded rent control will interfere.<\/p>\n What\u2019s going on here?<\/strong> Average home prices in markets relatively far outside the Greater Toronto Area, St. Catharines and Niagara Falls-Fort Erie, as charted by Sal Guatieri, a senior economist with BMO Economics.<\/p>\n The takeaway:<\/strong> \u201cJust note that a lack of supply is probably not the main fuel for runaway prices,\u201d writes Sal Guatieri in a note with the chart. \u201cTo wit, there is no shortage of zoneable land in places like St. Catharines, Niagara Falls and Fort Erie, where the Toronto sparks have recently landed, causing prices to rise as fast, if not faster, than in the late-\u201880s inferno.\u201d<\/p>\n What\u2019s going on here?<\/strong> Each quarter, RBC gives Canada\u2019s four biggest housing markets a checkup based on 10 criteria.<\/p>\n The takeaway:<\/strong> By most standards, the Canadian housing market is \u201cwithin historical norms or not posing any immediate threat.\u201d The exceptions are affordability and rental-market balance, which are \u201cmodestly outside\u201d norms, and the number of multi-family dwellings under construction, which received a red flag.<\/p>\n <\/p>\n What\u2019s going on here:<\/strong> The number of single-family and multi-family condos that contractors have broken ground for from 1990 and on, charted according to seasonally adjusted annualized rates from CMHC.<\/p>\n The takeaway:<\/strong> \u201cSupply composition has shifted since higher intensification policies were put in place back in 2006,\u201d writes BMO\u2019s Kavcic. Single-family home construction plummeted in the wake of Ontario\u2019s Places To Grow Act, which makes sense given it was meant, at least in part, to curb urban sprawl.<\/p>\n2. How luxury rents compare around the world<\/a><\/h2>\n
<\/a><\/p>\n3. A key difference between the US housing crash and where Canada is<\/a><\/h2>\n
<\/a><\/p>\n4. But one trend suggests Toronto\u2019s housing market may soon cool<\/a><\/h2>\n
<\/a><\/p>\n5. Canadian versus US residential construction as a share of GDP<\/a><\/h2>\n
<\/a><\/p>\n6. The most \u2014 and least \u2014 expensive new-construction GTA condo markets<\/a><\/h2>\n
<\/a><\/p>\n7. How Canada\u2019s housing market risks evolved in 2 years<\/a><\/h2>\n
<\/a><\/p>\n8. Ontarians mortgage payments as a percentage of income<\/a><\/h2>\n
<\/a><\/p>\n9. The future of the Toronto rental market?<\/a><\/h2>\n
<\/a><\/p>\n10. Are GTA home prices mostly just a supply issue?<\/a><\/h2>\n
<\/a><\/p>\n11. Canada\u2019s housing market is healthy. Well, sort of.<\/a><\/h2>\n
<\/a><\/p>\n12. The GTA\u2019s detached-home shortage summed up<\/a><\/h2>\n
<\/a><\/p>\n13. Move over Vancouver \u2014 Toronto\u2019s luxury market is tops in Canada<\/a><\/h2>\n
![\"knight-frank-piri-100-2016-2\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/05\/knight-frank-piri-100-2016-2.jpg\")
<\/a><\/p>\n