Brian White

Data indicating how much of Canada’s real estate is being snatched up by foreign buyers is scant, but the country’s national housing agency is working to change that.

Canada’s national housing agency will be taking the initiative to bolster data on foreign buyers of Canadian real estate, according to an internal memo obtained by The Canadian Press.

In a briefing note dated May 15, 2015, obtained by through an Access to Information request, Canada Mortgage and Housing Corp., says it will be hosting “bi-lateral meetings” and roundtables with industry stakeholders to fill a number of data gaps, including the share of new and existing homes owned by foreigners.

“Currently there is no perfect source of information on the level of foreign investment in the housing market,” chief economist Bob Dugan said in a statement.

“CMHC has undertaken steps to address this data gap. As a result, we know a lot more about it today than we did a year ago and are continuing our program of work to determine the level of foreign investment in Canadian residential real estate.”

The initiative will go beyond the limited data the agency currently gathers, including a survey of property managers indicating how many condo units are owned by people whose permanent residence is outside of Canada.

In the briefing note prepared for Pierre Poilievre, the minister responsible for CMHC, it is suggested that work is already underway at CMHC.

“For high priority data gaps that it cannot address on its own, CMHC has started to engage in discussions with other data providers and organizations,” the document reads.

Other gaps that CMHC intends to address include the total volume of mortgages issued and outstanding, and mortgage data broken out by lender type, characteristics of borrowers, property type and geographic location.

Are you looking to invest in property? If you like, I can get one of the mortgage experts I deal with to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage.

Chinese-only signage, including real estate, still prevalent in Richmond despite education blitz.

by John Tenpenny

Locals in Richmond, B.C., are pointing out the lack of municipal action the issue of Chinese-only signs in the community, many of which are real estate-related.

Community activist Karen Starchuck and business consultant Rupert Whiting, say the city is, once again, ignoring the issue.

“I’m frustrated at the lack of leadership from the city. It seems people are doing what they want within whatever bylaws exist, even if those bylaws are not fit for purpose,” Whiting told the Richmond News.

The pair took media to a construction site of a new home, which featured a Chinese-only sign, another example, Starchuk says of the city dragging its feet on education after Richmond city council chose not to implement a more stringent bylaw to make English mandatory on business signs.

“This (house) isn’t going to get sold to a non-Mainland Chinese person. They’re not even trying to sell it to a non-Mainland Chinese person. That, to me, is a problem,” said Whiting.

“They got off easy. They said they were going to address it, and get on it right away, but basically they’ve done nothing,” said Starchuk.

The city maintains that, using auxiliary staff, it spoke to 2,000 businesses to “encourage” English on all signs. It’s also reminding businesses as they apply for business licenses.

City spokesperson Ted Townsend said a new bylaw on clutter is in the works and the process of education is one that takes time.

Townsend said the clutter bylaw, expected to come to council in early 2016, is intended to clear up additional, unregulated signage on street fronts, regardless of language.

“How we will deal with it in the new bylaw is something we are studying as part of drafting the bylaw,” said Townsend. 

The rules around the income from rental units considered in home loan applications submitted to the CMHC are changing.

The agency announced Monday that, from September 28, it will allow 100 per cent of the rental income from a unit to be considered for new loan applications submitted to it for mortgage insurance.

That means that a secondary rentals suite’s income, minus costs including property taxes, will boost the size of the loan that buyers can secure.

Qualifying units must have sustainable income, proven by two years of rental rent payments. These payments will be averaged to assess the unit’s income. Applicants will also need a credit rating of at least 680.

Properties with more than a single rental unit will have slightly different rules and this change is most positive for homeowners with one rental unit. 

Vigorous Housing Demand Unabated in August

Vancouver, BC – September 11, 2015. TheBritish Columbia Real Estate Association (BCREA) reports that a total of 8,811 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in August, up 20 per cent from the same month last year. Total sales dollar volume was $5.5 billion, a 32.8 per cent increase in comparison to the previous year. The average MLS® residential price in the province rose to $619,881, up 10.6 per cent from August 2014.

“Housing demand continued at an elevated level in August,” said Cameron Muir, BCREA Chief Economist. “More homes were sold in BC during the first eight months of the year than in the entire 12 months of 2012.” A total of 67,637 residential transactions were recording in 2012, compared to 70,617 year-to-date in August.

“Many BC regions are now exhibiting sellers’ market conditions, with home prices rising well above the overall consumer price index,” added Muir. Eight of the 11 BC real estate boards recorded a higher average home price than a year ago.

The year-to-date, BC residential sales dollar volume increased 35.9 per cent to $44.3 billion, when compared with the same period in 2014. Residential unit sales climbed by 22.4 per cent to 70,617 units, while the average MLS® residential price was up 11.1 per cent to $627,008.

Bank of Canada Interest Rate Decision - September 9, 2015

The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 0.5 per cent. In the press release accompanying the decision, the Bank noted that inflation continues to evolve in-line with the Bank of Canada's forecast while economic activity continues to be underpinned by solid household spending and strong demand from the US economy. 

With the economy seemingly improving and core inflation still holding firm near the Bank's 2 per cent target, policymakers opted to stay the course and allow recent loosening of monetary policy to work its way through the system.  We expect that growth will pick-up in the second half of the year, helped out by an acceleration of the US economy and stable oil prices.  That should translate to no further action by the Bank of Canada in 2015, though recent volatility in global financial markets could prompt a shift in thinking.  That said, central banks prefer to avoid bringing interest rate close to the so-called zero lower bound. Therefore, in the absence of a major financial or economic shock, the Bank will likely hold rates constant until a healthy and sustainable rate of economic growth resumes.