This week’s news: Toronto buyers drive up prices in Cambridge, Kitchener, Guelph

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Photo Credit AL.Eyad

Our weekly round-up of real estate news in Toronto, across Canada and the world for the week ending October 6, 2016.

TORONTO

Toronto Area Housing Prices, Sales Volume Soar in September: Real Estate Board (CTV News)

Housing sales in the Toronto area continued to soar last month, with the average price rising 20.4 per cent from September last year to $755,755, the Toronto Real Estate Board reported Wednesday.

Four Seasons Toronto Deal Sets New Hospitality Record (Commercial Property Executive)

The sale of the Four Seasons Hotel Toronto for C$225 million, or about US $171 million, has set a record for the highest single-asset price per room transaction in Canadian history. The hotel was purchased by Shahid Khan, who is expanding his international sports and business holdings to include hospitality, from Kingdom Holding Co.

Toronto Buyers Drive Up Prices in Cambridge, Kitchener, Guelph (CBC News)

Industry watchers predict Toronto buyers will continue to drive prices up in Waterloo Region’s already red-hot real estate market, even as “for sale” listings traditionally slow in the winter.

CANADA

 

Ontario Urged to Not Follow B.C. Lead to Tackle Housing Issues  (Globe & Mail)

The Ontario government needs to focus on the supply side of housing to tackle affordability issues in the Greater Toronto Area while steering clear of taxing foreign buyers, says Tim Hudak, the Ontario Real Estate Association’s incoming chief executive officer.

Real Estate Reform: What You Need to Know About Ottawas Overhaul (Globe & Mail)

The federal government is throwing some cold water on Canada’s overheated housing market, hoping to keep Canadians out of unaffordable debt and slow down foreign investment in Toronto and Vancouver’s real-estate markets. Here’s a guide on what has happened so far, what it means and what’s next.

Calgary Real Estate Market Snaps 21-Month Streak of Declines (Calgary Herald)

The number of homes sold in Calgary rose for the first time in nearly two years in September, according to the latest data from the Calgary Real Estate Board.

Home Sales in Vancouver Plunge in September (Toronto Star)

The graceful six-bedroom house in a Vancouver neighbourhood flanking one of Canada’s top universities and a massive park would usually have been met with a slew of offers above its $4.5 million asking price.

New Real Estate Rules to Dampen Home Sales Beyond Vancouver and Toronto, Banks Say (Global News)

New real estate rules announced by the federal government Monday should dampen home sales across Canada, according to two major banks.

Finance Minister Bill Morneau announced “three complementary measures designed to reinforce the Canadian housing finance system.”

Among the changes, the government will close a loophole that allowed foreign buyers who are not residing in Canada to purchase property here, then sell it at a profit—all the while escaping federal tax on whatever money they make in the flip.

USA

As Donald Trump Tax Return Shows, Tax Benefits Flow to Real Estate Investors (Wall Street Journal)

Racking up huge losses on a personal income-tax return, as Donald Trump apparently did in 1995, isn’t that tough if you reside at the highest levels of the real-estate world, thanks to the considerable benefits the U.S. tax code confers.

Defending Trumps Tax Losses: The Real Estate Professional Exemption is not a Loophole (Forbes)

Hey, have you heard about Donald Trump? You know, the guy who is accused of not paying his creditors, repeatedly making racist and sexist comments, and stealing Christmas from 1981 to 1985? On, and who also happens to be one of the last two applicants for the most important job in the world?

INTERNATIONAL

There are Four Cities in China That Show How the Country Has a Dangerous Property Bubble (Business Insider)

Real estate transaction volumes increased by more than 100 per cent in four Chinese cities year-on-year, according to a note from Citi. Tianjin, Foshan, Changzhou and Changsha all saw the volume of real estate being bought and sold, measured in square metres, more than double in September 2016 compared to 2015.

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