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📉 GTA Home Prices Decline Nearly 5% in July

🤑 82% of Toronto's Homes Are Selling at a Discount

💰 US Company Invests $2B In Canadian Housing Projects

🏗️ Rental Housing Construction Surges in Canada

🏘 Top 5 Canadian Cities w/ Biggest Home Price Drops

🤔 WTF of The Week

Read Time: 4 minutes

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📉 GTA Home Prices Decline Nearly 5% in July

• GTA home sales in July 2024 rose by 3.3% compared to July 2023.
• New listings increased by 18.5% year-over-year, providing more choices for buyers.
• The average home price in the Greater Toronto Area (GTA) declined by nearly 5% in July to $1.106 million.
• Prices dropped for all property types, with townhomes and semi-detached seeing the greatest declines at 3.4% and 3.3% respectively.

Why This Matters: The number of homes for sale is the highest since the financial crisis in 2008-09. This means buyers have more options and can negotiate better prices. However, as more homes are sold, the market will become more competitive, and prices will likely start rising again.

🤑 82% of Toronto's Homes Are Selling at a Discount

• Only 14% of neighborhoods saw overbidding in July 2024, down from 27% in June
• 4% of neighborhoods had homes selling at asking price, while 82% saw underbidding
• Only 4% of neighborhoods had homes selling at asking price, while 82% saw underbidding

Why this Matters: The Greater Toronto Area real estate market is experiencing an oversupply of homes on the market. Overbidding has dropped to its lowest level since January, at just 4% of neighborhoods. This contrasts sharply with July 2023, when over one-third (38%) of neighborhoods were in overbidding territory.

💰 US Company Invests $2B In Canadian Housing Projects

• Due to Canada's housing shortage, Hines sees apartment building developments as a top investment
• The firm targets major cities like Toronto, Vancouver, Calgary, and Montreal for land acquisition.
• Hines prefers to develop large rental-only towers but will consider projects as small as 4-6 storeys.

Why This Matters: It signals a significant investment opportunity in the Canadian housing market. The emphasis on purpose-built rentals aligns with government initiatives and changing housing preferences, suggesting a strong future for this segment. Along with Blackstone's recent $3.5B investment in Tricon Residential, these moves underscore the growing attractiveness of the Canadian rental market to major international investors.
​(source)​

🏗️ Rental Housing Construction Surges in Canada

• Overall housing starts reached 240,000 units in 2023, a 36-year high.
• Rental construction is driving most of the homebuilding activity, while single-family home construction has decreased.
• The rental vacancy rate hit an all-time low of 1.5% in 2023
• Rent growth reached 8% in 2023, outpacing inflation (3.9%) and wage growth (2.8%).

🏘 Top 5 Canadian Cities w/ Biggest Home Price Drops

1. Lloydminster, SK: 41.4% decline
2. Fort McMurray, AB: 16.2% decline
3. Swiftcurrent, SK: 8.8% decline
4. Lloydminster, AB: 8.5% decline
5. Cornwall, ON: 6.3% decline
   ​(source)​

🤔 WTF of The Week

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