Money Housing markets set for another summer of discontent — and mortgage rules are to blame

22:41  16 may  2018
22:41  16 may  2018 Source:

Bank of Canada's mortgage 'stress test' lending rate climbs higher

  Bank of Canada's mortgage 'stress test' lending rate climbs higher Obtaining a mortgage is getting more expensive for some Canadians as a rate used for borrower stress testing moved higher on Wednesday. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.recentquotesurl = "/en-ca/money/getrecentquotes"; config.

Rental Living. Home Ideas. Mortgages and Loans. I'm Moving. Customize Your Weather. Set Your Location: Enter City and State or Zip Code. As we move deeper into the third summer after Sandy, the crushing effects of the storm have been forgotten by people who don't live where wrecked homes

Consumer demand drove the housing bubble to all-time highs in the summer of 2005, which Most of the blame is on at the mortgage originators (lenders) for creating these problems. A trailing stop is a stop order that can be set at a defined percentage away from a security's current market price.

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Housing markets continue to struggle in Canada.

The April sales numbers are in and they are not pretty. Housing markets across Canada are still struggling to ward off the stresses induced by tightening regulations by federal and provincial authorities.

High-end home sales hit by news rules: report

  High-end home sales hit by news rules: report High-end home sales hit by news rules: reportIt shows that the median house price at the top end of the market has dropped only about $6,000 to $3.52 million year over year in the first quarter of 2018. But that’s about where it’s expected to stay through the first quarter of 2019.

The real estate group blamed recent mortgage rule changes for wreaking havoc on the market , creating feverish demand for starter homes, but making it much harder to move up. For that reason, the group said attention should focus on another number, the so-called MLS House Price Index

Financing Properties. When Will there be Another Housing Market Crash? Fast forward ten years and subprime originations make up only 5 percent of the mortgage market and add up to For a few years now, the reason for fast rising home prices have been blamed on tight inventory.

The spring thaw many had expected in housing markets didn’t realize. The sluggish trends observed in April suggest that when it comes to housing markets, it is likely to be another summer of our discontent.

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April usually marks the beginning of intense housing activity in Canada. As the temperatures climb and snow melts away, homebuyers emerge from the winter slumber in search of deals.

Another reason for the intense sales activity in April is because unlike other products, searching for a house takes much longer. Often, families spend two to five months searching for a home, arranging finances, and finalizing the move. Furthermore, families with children are further constrained as they would rather relocate when schools are closed for summer vacations.

It’s getting more confusing to shop for mortgages

  It’s getting more confusing to shop for mortgages Longer mortgages are rising, short-term posted rates are falling. What is the MQR, anyway?

The National Association of Realtors is already blaming rising mortgage rates. It might be this summer or 2020 or 2025. Don’t forget that all houses are owned by someone at any point in time and the over all prices in a market are set on the flow of new sales, not the stock of all existing homes.

As the housing downturn continues, the blame game is only getting started. Yesterday the National Association of Home Builders reported handing over just 774,000 sets of new house keys in 2007, a 26 percent drop from 2006, which is the biggest decrease in at least four decades.

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For families to relocate in July or August requires them to make a purchase in April or May giving them enough time to manage the logistics, which often includes the sale of the existing home.

Thus, housing markets are usually up in April and May, registering a greater share of sales and experiencing modest to high increases in housing prices.

However, housing market statistics reported by Canadian Real Estate Association (CREA) for last month are devoid of such exuberance. Across Canada, housing prices were down 11.3 per cent when compared with April 2017. At the same time, housing transactions were also down by 13.9 per cent.

TD discounts variable mortgage rate

  TD discounts variable mortgage rate TD discounts variable mortgage rateTORONTO - TD Bank is joining a rival bank in offering a highly discounted variable mortgage rate as competition among Canada's biggest lenders heats up.

1 for uninsured mortgages , and elevated five-year, fixed mortgage rates that were pushed up by the CIBC, RBC and TD banks last week. Luxury condo sales keep smashing records as rest of housing market cools. Of the three listings he let sit, one sold on Dec. 31 and another on Jan.

Read in another language. The phrase "Winter of Discontent " is from the opening line of William Shakespeare's Richard III: "Now is the winter of our discontent / Made glorious summer by this sun [or son] of York", and was first applied to the events of the winter by Robin Chater, a writer at Incomes

Even when one excludes housing market activity in the greater Toronto and Vancouver areas, where housing price fluctuations have been more extreme, housing markets in other parts of the country still reported a 4 per cent decline.

Some would argue that April 2017 may not be a good benchmark given the rapid escalation of housing prices in the greater Toronto area. Thus, a comparison with sales and prices in March  maybe more suitable. A month-over-month comparison also reveals that housing markets have been struggling across Canada as CREA reported a 3 per cent decline in sales from March to April of this year.

Where as aggregate housing prices experienced a decline, the same is not true for condominiums, which continued to register an increase in prices. CREA reported that apartments experienced a 14.7 per cent increase in prices while single-family housing experienced a decline.

The resilience observed in condominium prices might be surprising to those who had warned against an oversupply of high-rise dwellings, especially in Toronto and Vancouver. It appears that changes in mortgage regulations are benefiting condominium sales because households under new regulations could qualify for lower prices that are more commonly found for condominiums.

Mortgage rules hit Calgary housing market with 'collateral damage': CREA

  Mortgage rules hit Calgary housing market with 'collateral damage': CREA Housing sales in Canada were down significantly this year, and Calgary was one of the cities leading the drop, according to a new report from the Canadian Real Estate Association (CREA). "This year's new stress test has lowered sales activity and destabilized market balance for housing markets in Alberta, Saskatchewan and Newfoundland and Labrador," said Gregory Klump, CREA's chief economist, in a release Tuesday."This is exactly the type of collateral damage that CREA warned the government about.

As tougher mortgage rules slow housing market , critics call for a reversal. I think the impact of mortgage regulation is being blamed far too often these days in what is clearly just a natural cyclical slowdown in the market driven by overpriced homes.

housing was not provided, from one slum to another . 1. Baltimore's housing market was to retain most of these character-istics for the next 30 years. fused to do so. The unsavory blockbuster or the respectable conspira-. tors: Who is to blame ?

Industry insiders hold the stress test, which requires borrowers to qualify for a higher mortgage rate than the contractual rate, and provincial taxes to discourage foreign homebuyers, responsible for the uncertainty and decline in housing markets. The stress test became effective on Jan. 1 and was expanded to cover uninsured mortgages issued by lenders regulated by the Office of the Superintendent of Financial Institutions (OSFI).

Industry observers were of the view that some mortgage business might flow to lenders not regulated by OSFI, such as provincially regulated credit unions and alternative lenders including Home Capital. Initial response to the stress test suggests that not much lending has transferred to the others. The stock market performance and valuation of alternative lenders is indicative of a lack of heightened market activity.

Listings present another riddle in housing markets. While the sales have been down in almost 60 per cent of the local markets, so are the listings. Some argue that the homeowners are unwilling to list homes when prices are down from their historic highs. This might be true. But what is equally interesting is that listings were also low in 2016 and early 2017 when housing markets recorded steep price escalations.

It was then argued that homeowners were waiting for the market to peak and hence hesitated to list their homes. The constrained supply, as a result, in the resale market further fuelled housing price escalation. And when the markets peaked in April 2017, especially in the Greater Toronto Area, homeowners responded, albeit a little too late, a month later by listing homes in large numbers. It appears that when it comes to market timing, many owners are out of step with the markets.

Murtaza Haider is an associate professor at Ryerson University. Stephen Moranis is a real estate industry veteran. They can be reached at

Victoria has world's hottest luxury housing market: Christie's .
Victoria, B.C. has landed the top spot on Christie's global list of hottest luxury housing markets. The real estate arm of the famed auction company says strong year-over-year sales growth and high domestic demand for housing catapulted the Vancouver Island community to lead a list of cities around the world on the annual list.Trailing Victoria on last year's list are San Diego and Orange County, Calif., followed by Washington D.C. and Paris.

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