This week’s news: Millennials are ‘generation screwed’ on real estate

Millennials are ‘generation screwed’ on real estate
Millennials desire to be home owners but are they a “generation screwed” when it comes to getting a foot on the property ladder?

Our weekly round-up of real estate news in Toronto, across Canada and the world for the week ending February 24, 2017.

Toronto

Millennials are ‘generation screwed’ on real estate (Toronto Star)

Millennials want to be home owners. Eight in 10 consistently say that home ownership is important to them, real estate is a good investment, and owning a home gives them a sense of pride. But millennials also say that owning a home is more difficult now than it was for their parents. They have a point.

According to the Toronto Real Estate Board, the average price of a GTA home is expected to rise by double digits again this year, hitting a new average of $825,000. Prices keep rising because housing supply is not keeping up with population growth and demand.

Nobody’s cheering, except real estate agents: The ‘trapped wealth’ of Toronto’s unrelenting housing boom (Financial Post)

Toronto’s housing boom is unrelenting.

Prices in Canada’s largest city surged more than 20 per cent over the past year, the fastest pace in three decades, data released last week show. Some of the city’s neighbouring towns are posting even bigger gains.

Is Toronto real estate really in a bubble? (Breakfast Television Toronto)

If you live in Toronto you realize you’re in the center of the Canadian real estate universe these days. While the last few months have seen Vancouver housing sales decrease and prices stabilize, Toronto’s real estate market has been catching fire. And of course, economists and bond rating agencies have noticed, too.

Canada

First-time Canadian real estate buyers are making record down Payments (Better Dwelling)

Canadian real estate prices have been skyrocketing, leaving a number of questions about affordability. The common assumption is that first-time buyers are deteriorating, but a survey from Mortgage Pros Canada might indicate otherwise. The national mortgage industry association’s chief economist William Dunning prepared a report on the state of the residential mortgage market. It notes that first-time buyers have a record amount of equity in their homes, and apparently borrowing for a downpayment has always been normal in Canada.

Developer predicts another Alberta boom (Globe and Mail)

Brad Lamb has big plans for Calgary and Edmonton; predicting a land-value boom to rival Toronto, he says Lamb Development Corp. is planning “five or six more high-rises in Edmonton alone over the next 20 years.”

Furthermore, the Toronto-based developer claims the economic downturn in Alberta has been “irrelevant” to the delayed build of Edmonton’s Jasper House, a 38-storey luxury condo development in the downtown core.

Canadian pension funds embracing co-investments in real estate (Benefits Canada)

With many funds considering co-investments for real estate deals, Canadian pension plans have been particularly eager to embrace the option.

Globally, 19 per cent of public pension funds and 15 per cent of private plans make co-investments, according to a report published last year by London, England-based data and intelligence company Preqin Ltd. Those numbers rise to 44 per cent and 31 per cent, respectively, for Canadian funds.

USA

Landlord accused of killing tenant over unpaid rent (CTV News)

NEW YORK – A New York City landlord is accused of stabbing his tenant to death following an apparent dispute over unpaid rent.

Police responding to a 911 call of a person stabbed in front of a home in the Bronx Wednesday night found the tenant, 44-year-old Zakir Khan, with multiple stab wounds. Khan was taken to a hospital, where he was pronounced dead.

UK online realtor Purplebricks seeks funding for U.S. launch (Reuters)

British online real estate agent Purplebricks Group Plc said it intended to raise funds through a share issue to expand into the United States.

Purplebricks, backed by fund manager Neil Woodford, plans to raise up to 48.7 million pounds ($60.6 million) through the share sale at 220 pence apiece.

Dr. Ben Carson Buys A $1.22 Million Virginia Home (Forbes)

Forget the Department of Housing and Urban Development. This former POTUS wannabe is heading straight to suburbia! Dr. Ben Carson, the retired neurosurgeon and President Donald Trump’s pick to lead HUD, just dropped $1.22 million on a five-bed, five-bath home in Vienna, VA.

The big sale occurred last month, just one day after a Senate committee cleared his nomination, The Washington Post reported. And in true fiscally conservative form, Ben got the home for a discount: When it first hit the market last year, the house was priced at $1.399 million.

International

Debt risk in China’s real estate industry within control: Analysts (China Daily)

BEIJING – The looming debt risks in China’s real estate industry are generally within control, analysts said Monday, calling for more attention on businesses’ increasingly diversified financing channels.

At a seminar hosted by the Xinhua-owned China Economic Information Service (CEIS), Feng Jun, deputy head of China Real Estate Association, urged more focus on businesses using insurance and credit for leverage.

REVEALED: How living near a park could nearly DOUBLE the price of your home (Express)

A study found the typical price of a house located near a city’s green space is £393,000, compared to the UK average of £206,000.

It means property near to a park can cost up to 90 per cent more than other areas, the survey by online estate agents eMoov reveals.

UK house price growth at slowest rate in four years (The Guardian)

Asking prices in Britain’s housing market rose at the slowest annual rate in almost four years in February as buyers become wary about paying too much, according to the latest survey from Rightmove.

Annual price growth fell from 3.2% in January to 2.3%, the weakest since April 2013. On a monthly basis, average asking prices rose 2% t0 £306,213, the slowest rate of growth in the month of February in eight years.

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