From the Desk of Faisal - Real Estate News for the period of Apr 24th - Apr 30th
Welcome to Properties Ontario’s weekly real estate update. Our team goes through numerous articles and summarize them for you! If you have any questions about buying, selling, or leasing residential or commercial space, we’re the team for you.
Toronto Coworking Space Cost
- The coworking sector is growing fast and largely due to technology firms growing as well
- On a per desk basis, San Francisco ranks as the most expensive at $1,050
- After San Francisco, the ranking is such: Stockholm at $1,000, Paris at $980, Boston at $970, Toronto at $960 and New York at $950
- Toronto is ranked 5th as the most expensive coworking space but it also ranks in the top 10 as one of the more tech savvy cities in the world
US Prices and Sales Report by FHFA
- The Federal Housing Finance Agency house price index rose 0.3% monthly in February
- For comparison, January house prices increased monthly by 0.6%
- Year over year price growth was 4.9% during the month of February
- Realtor.com updated its 2019 outlook with mortgage rates to end the year at 4.5%
- Also realtor.com expect a 2.9% increase in home prices during 2019
Zillow US Housing Report
- Median time on the market rose by 4 days in February compared to a year earlier
- This has resulted in a 1.2% increase in inventory as new listings fell 6.1%
- According to Zillow, the markets are cooling down in 33 out of 35 largest markets
- Across the markets, median price appreciation gained 6.6% annually in February
TREB Q1 2019 Condo Report
- GTA realtors reported 4,731 condo sales through the first quarter of 2019, down 6.1% from the same period of 2018
- Listings were 2.4% higher year over year as well, adding 8,222 to inventory
- Average price of a condo increased 4.5% from $533,520 to $557,377 during Q1 2019
- Toronto accounted for 69% of all condo transactions and had a price growth of 5.4% to $603,243 during Q1 2019 (compared to Q1 2018)
Avison Young GTA Industrial Report
- During Q1 2019, there were $817 million in sales of industrial property which is lower than Q4 2018 ($841 million) but is higher than Q1 2018 ($780 million)
- GTA cap rates of industrial property increased 10 basis points to 4.3% during Q1 2019
- GTA’s overall commercial sales fell 18% quarterly to settle at $2.7 billion
BILD New Home Sales in March
- BILD reported total new home sales were up 20% year over year to 2,314 of which 886 were single-family homes and 1,428 were condo unit sales
- Single-family homes were a lot higher annually but still 36% below the 10-year average
- Benchmark price of a single-family home was $1,116,640, down 12% annually
- Benchmark price of condo units $780,839, up 5.1% on an annual basis
Avison Young Multi-Residential Report
- GTA’s multiple-residential property had $236 million in sales during Q1 2019
- This represented 9% of the total market share of all commercial transactions
- The figure was also lower than Q1 2018 which was $288 million in transactions
- Overall all commercial investment for 2018 amounted to $15.6 billion
US Quarterly Residential and Homeownership Report
- Rate of vacant homes fell to 1.4% for the first quarter of 2019
- Vacant homes are ones that have sellers waiting to sell or new owners waiting to move in
- Homeownership rate was 64.2%, pretty much the same from the previous quarter
- Owners lived in 77.5 million homes and 43.5 million homes were occupied by renters
Bank of Canada Outstanding Mortgage Debt
- Balance of mortgage debt at Canadian institutional lenders stood at $1.552 trillion for March, up 0.12% from the month before and up 3.2% from March 2018
- The three-month annualized growth rate is 3.8% indicating we may see a short bump up