Time for your weekly summary of the top stories in real estate.
Real estate ask prices are softer than they were this time last year. In September 2016, the sold to ask ratio was 104%. This means on average, buyers paid 4% more than the seller was asking. This September so far, the average sold to ask ratio is 98.78%, meaning sellers are letting properties go for less than they’re asking. The average sold property is being sold for $13,600 under the ask price at the time of analysis.
Toronto detached home prices are coming down, after a scorching hot year. The average sale price for a detached was $1,191,052 in August 2017, down 1.2% from the year before. This is the first annual decline of average detached prices since 2009.
Rising minimum wages are expected to bring job losses to young adults according to the Financial Accountability Office (FAO). The FAO, a non-partisan government organization that advises the Legislature on potential budget issues, is modeling at least 50,000 jobs lost, after a minimum wage hike to $15.00/hr. More interesting, they explain that today’s 520,000 minimum wage workers will grow by over 300%, as a large portion of workers in the province fall into the lower tax bracket.
Statistics Canada released 2016 income numbers, giving some insight into the financial health of Toronto households. The median household income in 2015 grew to $94,132 in Toronto, an 11.79% increase from 2010. Inflation adjusted growth drops down to 2.57%. The more interesting data point hidden in this information was the number of households earning over $100k, which is now 812,085 – 24% more than 2010.
The ratio of foreign buyers in the Toronto region are showing a substantial decline according to the Ontario Ministry of Finance. From May 27, 2017 to August 18, 2017, the province said the ratio of foreign buyers in the city, and its suburbs, was just 3.2%. This is down from 4.7% in the prior period of measurement. There’s no annual numbers to compare it to, so it may not mean a lot, however this is a trend being observed globally.
Vancouver’s detached real estate, which became a prized target for speculators, is starting to see price growth decelerate – and fast. The benchmark price of a detached home is now $1,615,100, 0.16% higher than the month before. This is an annual increase of 2.4%, which still good, but dramatically lower than the 30% just a few months ago.
New Census numbers show that the median household income in Vancouver Census Metropolitan Area (CMA) was $72,662 in 2015, up 14.7% from 2010. Inflation adjusted, this works out to 5.2%. What’s of note here is the growth in the number of households earning over $100k, which added up to 332,745. This is 31.3% growth from 2010, a pretty massive increase of top earners in the city.
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