Tyler Tim Realtor

           Soon after Trump’s big presidential win Canadian immigration websites crashed and online campaigns created by Americans to move to Canadian surged. Many believed was simply a radical reaction that would never gain any real traction. Nevertheless, it seems as though some Americans might actually keep their promise. According to Royal LePage Realty since Trump’s inauguration, there has been an increase in real estate interest derived from just south of our borders. While the sudden bump in Canadian immigration may have been an isolated incident, interest in prime real estate in Canada continues to grow thanks to our American neighbors. Furthermore, according to a recent survey nearly 40 percent of market advisors predict this interest will continue to grow under the presidency of Donald Trump. Topping the list of most researched areas by Americans was Ontario and more specifically Toronto. Other areas of interest can be seen below. Whether this situation continues to pers

One of the toughest decisions when selling a home is deciding upon the optimal listing price. The Journal of Economic Psychology examines a study that was conducted to identify how different types of listing strategies affect house pricing negotiations. Previous studies conducted by other economists suggest while listing strategies may influence the selling process, it does not directly translate. This is because, unlike marketable consumer goods, the list price of a property generally acts as a starting point of negotiations. Therefore, the study discussed in the Journal of Economic Psychology is an extension on existing research, and goes on to investigate the effects and negotiated outcomes of listing strategies. The psychology behind real estate pricing is a vital factor for agents or regular home owners to be mindful of. For the purpose of the study three different types of pricing strategies were examined: rounded (where the thousands digit is either 0 or 5) , just below ( whe

There are several opinions on which direction the real estate market will go in 2017. Whether you are planning to buy or sell in the near future it is important to look at 5 forces that will affect the Canadian real estate industry in 2017.   1. U.S. Federal Reserve’s Interest Rates Although technically Canadian and American central banks set their interest rates autonomously from each other, changes in the U.S. rates generally has a huge impact on Canadian mortgages rates. U.S. Federal Reserve Chair Janet Yellen raised rates by a quarter of a percentage point at the end of 2016, and has implied three more rate hikes will occur in 2017. Although it is doubtfully Yellen will take action so quickly, Canadians should expect mortgage rates to increase throughout the year. 2. Canadian Economy By and large the Canadian economy will not nose-dive if interest rates increase and the demand for homes decrease. But rising interest rates accompanied with an already weakening economy c

It is no surprise where the real winners and losers of the Trudeau-lead government lie. Throughout his campaign he talked about two things: the middle class and people wearing white lab coats. Since Trudeau was voted into office, billions of dollars have been spent on funding research projects in educational facilities and laboratories. Nevertheless, the true losers of a Trudeau government will ironically be those who helped get him elected; that is Millennials looking to buy their first house. The Liberal government made a decision in October to add a mandatory “stress test” for buyers. In effect the policy applies an added interest rate that is above market rates for mortgages backed by Ottawa. Experts suggest that the housing market is being kept afloat by buyers who were already pre-approved under the old laws. However, this will eventually come to an end and the negative effects of the new policy will soon take over. An Ottawa based Canadian Real Estate Association expec

An Ontario court has ruled that condominium owners may ban tenants from renting their units on services such as Airbnb or Expedia. After listing several properties on short-term rental websites owners of an Ottawa condo unit have been found guilty of violating the “single family use” provision in the condo’s “declaration”. In accordance to this clause the “single family use” does not embrace the operation of hotel-like operation. This recent ruling was based on the interpretation of Ontario’s Condominium Act. Furthermore, condo owners are arguing that short-term rentals are a breach of a rule introduced in the spring of 2016, which prohibits owners from renting their units for terms less than four months. After setting precedence in Ottawa, this ruling could have wider implications in other common law jurisdictions. Yet, unit owners maintain that this rule should not be enforced retroactively, especially if they have carried out such business in the past. While this argument may

Canadian REITs are expected to see “high single digits and low double digit” returns in 2017. According to a report put of by Timbercreek Asset Management these REITs will realize a gain of between 8.5 and 10.5 per cent. They have dispelled concerns regarding vulnerability of REITs as interest rates begin to increase, citing that they historically perform well during a rising rate environment accompanied by economic growth. Therefore, investing in portfolios highly invested in major cities are a safe bet this year as they benefit from inelastic demand. Yet, it seems as though better real estate investments lie just south of the boarder. Corrado Russo, senior director of a Toronto-based investment firm feels bullish on the U.S real estate industry as the president-elect’s pro growth policies are assumed to encourage an economic bump. Consequently, Canadian REITs based on foreign assets may be the way to go during the next few years. Currently Canadian REITs benefit from high di

Donald Trump’s presidential win came as a surprise to the world, and with just weeks until he takes office Canadians are asking themselves what will this mean for the folks up north. Effect on Big Banks After Trump’s win Goldman Sachs’ stock shot up by 30 per cent. Although just a brief reminder Sachs was one of the key players in the 2008 U.S. housing market meltdown that dragged the world economy into the dark ages. To make matters slightly more interesting Sachs’ COO Gary Cohn will become the director of the White House National Economic Council. These factors are significant to Canada’s housing market as the purchasing power of the U.S. dollar affects us in innumerable ways. If the American dollar continues to strengthen, we could see an increase in buyers north of the boarder. Effect on Local Currency Since the election the U.S. dollar has hit an 11-month peak. This jump may be attributed to the possibility of a free handed spending spree by the president-elect. On th

Most economists predict that the Canadian housing market will continue to grow and prices will continue to climb. But what if they don’t? Substantial drops in home prices are not unheard of in Canada, for example Toronto average house prices decreased 36 percent from 1989 to 1996.In the event of major price declines the following is likely to occur: ·          Drop in the value of your home, obviously ·           Your investment portfolio would be struck hard if you own shares in Canadian REITs or Canadian Mortgage and Mortgage Insurer stocks ·          Your taxes will inevitably increase ·          If your employment status is relatively related to the real estate industry, such as mortgage broker, provider of title insurance, real estate agent and etc., you will also feel the strain on the market ·          Those who are real estate rich will no longer be. In Canada there is about $1.4 trillion of household credit directly linked to claims against a property. Major price dec

The growing trend of major housing markets in Canada is low supply driving prices further out of reach for new buyers and single families. Although demand remains high in urban settings, the new 15 per cent foreign-buyer tax and firmer mortgage rules being set by the government, along with a few other factors will cool off the market in 2017. A ripple effect of the foreign-buyer tax will impact the upper end of the GTA and Montreal markets as these areas often attract foreign investors. On the other end of the spectrum of cities like Toronto and Vancouver, regions including Regina, Montreal and Saint John are faced with high levels of inventory, inversely affecting prices. While the volume of purchases rose ever so slightly in Regina, residential sale price declined from $319,857 to $318,785. As affordability becomes a thing of the past, home ownership remains a top priority of Canadians; 47 per cent of the population has expressed an interest in purchasing a home within th

In 2016 Canadian real estate grew faster than it did in decades. According the Canadian Real Estate Association (CREA) on average properties across the country rose 14.4%. Toronto and Vancouver reached notably new heights, whereas areas like Calgary and Saskatoon dropped significantly. Due to the booming market property prices are now steadily above the half-million mark, averaging at $581,400 nationwide. However fear not, as there are still deals to be found if you do not have your heart set on living in Toronto or Vancouver. According the CREA small town Moncton (located in New Brunswick for those Millennials that cannot find it on a map) was deemed the most affordable place to purchase a property, coming in at around $163,400. In 2016 prices reached record highs and affordability has become a thing of the past. If such inclines increase new buyers will be decimated as the price of owning a house will simply be too high. Yet, if property prices decline in the near futur