Hey Folks!
Happy Easter! Happy orthodox easter! Happy Hannukah! Happy Ramadan! whichever religion you choose! hope everyone had a good long weekend!
I’m sorry but haven’t posted in a while due to some personal reasons, but heck, better late than never! So much has happend since my last posting and I wanted to start with the latest number of construction activity in the GTA area. Toronto has more cranes in operation 238 cranes than the next 12 cities in the US combined! and more than double the second place Seattle!
Source: citynews
toronto.citynews.ca/2023/04/14/toronto-cranes-construction-north-americaWhat does this mean? Because they aren’t building these rises based on current today’s demands but on future demand of housing and it certainly looks very strong!
Even though according to March 2023 Marketwatch numbers with sales volume down 36.5% and prices down 14% year over year, this first quarter has certainly started with a bang! With the Bank of Canada (BOC) pausing rates, short-term overnight lending rates sitting at 4.5%, latest inflation numbers in Canada came in at 4.3% (met expectations) plus last numbers in Feb (5.2%) was better than expectations, PLUS a US banking crisis >>
There’s certainly more pressure on the BOC to hold rates longer and perhaps end of the year start cutting rates:
Source: globeandmail
theglobeandmail.com/investing/markets/inside-the-market/article-instant-reaction-to-canadian-inflation-data-markets-no-longer-pricingEXTRA PLUS!
The GTA housing market turned a corner approximately 3 weeks ago and BIDDING WARS are back in full effect! We just lost for a client on bidding for a 1+1 bedroom Condo in North York in the sweet spot range of $600-700,000 and were competing against 17 offers!
So if you’re looking to switch gears and perhaps put up your house or condo for sale, this is a Great time to list!
Let’s talk!
Have a great rest of your April and see you next month!
Cheers!
Mr. Marvellous
Marvellous Minute Vlog 
Great post! It’s really interesting to know that Toronto has more cranes in use than most U.S. cities combined. I wonder if this means there will be a lot of competition in the real estate market once all these constructions are completed?
Mr. W
primarytinting.net
hi Mr. W ! thanks for your interest! to answer your question, i’d like to bring it back to why there’s so much construction going on in GTA and then be able to answer it sufficiently, reason
#1 = immigration > forecast for canada is 465,000 this year, 485,000 next year 2024 and 500,000 in 2025 (two thirds will end up living in GTA)
#2 = increased density means infrastructure projects to support all these new people, such as metrolinx building cross town eglinton, ontario line etc..
#3 = due to employment in Tech, finance, and health industries that attracts jobs to the GTA
#4 = GGTA (greater golden Toronto Area) is home to the 4th largest city in North America
#5 = 4 professional sports teams > Raptors, Leafs, TFC and Blue Jays
#6 = will be one of the host 2026 World cup soccer matches
#7 = one of the provincial mandates in Ontario is to ADD 1.5 million more homes in 10 years and if you look at the number of new construction happening in the last 5 years (around 20-35,000 units) it’s not sufficient right now to meet that target
———–
So to answer your question, yes this will add much needed supply to the housing market and increase some competition, but will it reverse price increases? most likely not! because if you have looked at a Long-term pricing of housing in Toronto every 30 years the price of a home 10X’s since 1940!
Which actually drives the other question of the CAD dollar’s purchasing power in being massively depreciated every year by the Fed’s printing of dollars and continually adding to the money supply (M2).
But this leads to a discussion for my future podcast!
thanks for responding mr. W!
Have a great day!
Mr Marvellous