Each week, we are bringing you highlights from the weekly CP meeting. We present analysis of the Toronto and GTA markets from the perspective of Chestnut Park's CEO and Broker of Record, Chris Kapches, LLB and the CP Toronto office staff.
NO NEW TREB DATA
As we've yet to get TREB's weekly or mid-month stats for September there isn't much to discuss in terms of stats. Anecdotally however, last week saw both bully and multiple offer situations from at least a few realtors in the office. The National Bank of Canada seems to agree. It came out with a report said that The ratio of Toronto house listings compared with monthly sales has moved back into long-term balance, limiting the potential for significant further price corrections in the region. The report (published early September) goes on to indicate that the ratio of listings to sales were finally in balance and had been for some time, comapred to the April market highs which clearly favoured sellers. This report gives more credence to what CP agents seems to be experiencing. More information on that report here. Once the mid-month data comes in, we'll have a better indication of exactly where the market is. Chris feels we have enough data to indicate that we've hit the bottom of the market lows.
The Toronto Star reported that Mayor Tory and the Minister of Housing announced that it's moving forward on creating 2000 market-rent and affordable rental housing units. Based around surplus lands (in the West-Donlands) that the province intends to sell, developers anticipate paying less for these lands due to the developments being used for affordable housing and the city intends to waive the tax levies associated with the property, which would amount to just under $28M. Of the first phase of development (approx. 600 units), 30% will be allocated for affordable housing; renting at 80% or below the average rental price in the city (about $1,600). The reality however is that the current waiting list for affordable housing is around 181,000, and critics like Kenneth Hale, director of legal service with the Advocacy Centre for Tenants Ontario, said that most families may not even be able to afford those units. Chris feels this isn't money well spent. We'd be curious as to your thoughts!
RESIDENTIAL TENANCIES ACT CHANGES
New guidelines to the Residential Tenancies Act continue to roll out. Among them are changes to how landlords deal with termination notice to tenants and how that might affect buyers of these properties. For any existing landlord, or purchasor of a property with an existing tenant, temination of occupancy is required after 60 days of being served an N12 (Notice of Termination) form; where the termination date can't precede the last day of a fixed term tenancy. However, the guideline states, After being given the notice, the tenant is allowed to terminate the tenancy at an earlier date by giving give the landlord ten days written notice. Effectively, this means that a propsective buyer may forfeit their last month's rent if provisions in the agreement of purchase and sale have not provided for it's payment on closing day. Fortunately, we've drafted such a clause at CP so clients can feel better about those situations.
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