Tag Archives: Breach
Housing starts top 200,000 units
Home construction rose 1.3% in April as Canada’s real estate market continued to show signs of recovery
Financial Post
Home construction rose 1.3% in April as Canada’s real estate market continued to show signs of recovery.
Canada Mortgage and Housing Corp. said Monday housing starts rose by a seasonally adjusted annual rate of 201,700 units last month, up from a revised 199,200 units in March. The March number was previously estimated at 197,300 units.
Economists had expected starts to increase by around 205,000 units in April.
“Higher multiple starts were nearly offset by a decline in single starts and rural area starts in April, said Bob Dugan, CMHC’s chief economist. “As a result, total housing starts edged higher in April.”
Urban starts increased by 5.1% to 182,500 units on a seasonally adjusted annual rate in April. Multiple-unit construction was up 27.2% to 98,600, while single units fell 12.7% to 83,900.
In British Columbia, urban construction rose 16.4% and the Prairie region posted a 6.7% gain. Ontario was up 4.5% and Quebec rose 1.1%, while Atlantic Canada declined 3.3%.
“This was only the second time that the pace of housing starts has breached the 200K-units barrier since November 2008,” said Millan Mulraine, senior strategist at TD Securities.
Rural housing starts totalled 19,200 units in April, down from 25,600 the previous month.
“On the whole, the report underscores the strong recovery in Canadian home building activity, and the Canadian housing market more generally, as favourable buying conditions continue to spur housing demand,” Mr. Mulraine said.
“However, in the coming months we expect the pace of activity to moderate as higher interest rates and home prices, and tighter mortgage rules temper demand.”
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Canada April housing starts edge up, condos strong
By Ka Yan Ng – Reuters
Canadian housing starts inched up 1.3% in April, offering further evidence that recovery in the housing sector is a major component of Canada’s economic recovery.
New home construction rose to a seasonally adjusted annualized rate of 201,700 units in the month from a revised 199,200 in March, Canada Mortgage and Housing Corp figures showed on Monday.
The April number, however, came in below the average forecast of analysts, who had called for 205,000 starts. The March number was revised up from an originally reported 197,300 units.
“This was only the second time that the pace of housing starts has breached the 200 K-units barrier since November 2008,” Millan Mulraine, a senior strategist at TD Securities, said in a note.
The Canadian dollar pulled back slightly after the data was released, but at C$1.0236 to the U.S. dollar, or 97.69 U.S. cents, it was still about 2% higher than Friday’s close, surging on the back of a European rescue deal.
The seasonally adjusted annual rate of urban starts rose 5.1% to 182,500 units as a big jump in the volatile multidwelling group offset a retreat in single-family homes.
The multidwelling group, which includes high-rise condos, climbed 27.2% to 98,600 units. Starts in the closely watched single-family component dropped 12.7% to 83,900, breaking an 11-month streak of gains.
Market players continue to forecast that home sales will slow in the second half of the year after a spring burst of activity due to higher interest rates, new mortgage rules and the introduction of harmonized sales tax (HST) regimes in Ontario and British Columbia.
“While we are looking for further improvement in home construction across Canada through the spring months, we are more uncertain about the late summer, early fall as demand starts to retrench in the new home market in reaction to the introduction of the HST and higher borrowing costs,” Scotia Capital economists Derek Holt and Karen Cordes Woods said in a commentary.
Housing starts went up in most parts of the country in April, led by British Columbia, up 16.4%. Starts were up 6.7% in the Prairie region, 4.5% in Ontario, and 1.1% in Quebec. Urban starts fell 3.3% in the Atlantic provinces.
Rural starts in April were estimated at an annual rate of 19,200.
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Changing your mind can be costly
Mark Weisleder – Yourhome.ca
Real estate home or condominium agreements may be the largest contractual obligation that a buyer and seller may ever sign. It is a serious obligation and both buyers and sellers must understand the consequences of changing their minds once the contract has been signed and accepted.
Most offers written in Ontario provide that the deposit is to be paid within 24 hours of acceptance of the offer by the seller. That means that if a seller accepts the offer at 4 p.m. on March 15, then the deposit must be paid to the seller’s listing brokerage no later than 4 p.m. on March 16. The only way to extend this deadline is if there is an agreement by the seller and the buyer in writing.
However, I have heard of many situations where buyers have had a “change of heart,” during this 24-hour period and decide that they will not pay their deposit and that will be the end of the matter. Not true. By not paying the deposit, the buyer has breached the agreement. The seller can then bring an action to sue them for any damages they may incur.
For example, let’s say a buyer puts in an offer today for $300,000, which the seller accepts. Then the buyer changes his or her mind and refuses to pay the deposit. Now the seller states that the buyer has breached the agreement. The market changes and the seller resells the property to a second buyer for $280,000. The seller can then sue the original buyer for the $20,000 loss. Sellers can conduct such a lawsuit by themselves in Small Claims Court, because the limit in Small Claims Court in Ontario was increased on Jan. 1 to $25,000. Nevertheless, sellers should always seek legal advice before embarking on any legal process.
Now let’s use the same example, an agreement to sell for $300,000, but it is the seller who has a change of heart and refuses to either accept the buyer’s deposit or just refuses to close the deal altogether. The buyer can now start legal proceedings to tie up the seller’s property and sue for specific performance of the agreement.
This means that the buyer is asking the court to force the seller to sell the property at the original agreed upon price of $300,000. This court case can take years to resolve and if the buyer wins, he or she will get the property for $300,000 as well as most legal fees paid. The seller will not be able to sell the property to anyone else during this time period.
What this demonstrates is that buyers and sellers need to be properly prepared and obtain the right advice before they even think of signing or accepting any agreement. Sellers must hire the right listing salesperson to make certain they know what their property is worth and ensure the property is marketed to reach the most potential buyers before considering any offer.
For buyers it means working with a buyer salesperson to make sure that they also know what the property is worth, not only so they don’t overpay, but also to make sure they are protected from any surprises about the property after closing, such as hidden defects.
By being properly prepared in advance, there will be no need to change your mind later.
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Contact the Jeffrey Team for more information - 416-388-1960
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