Tag Archives: job creation
Why our young may save the housing market from tumbling
Nicolas Johnson – Globe and Mail
Here’s one more factor buoying average home prices: young and middle-aged adults.
Canada stands out among the 34 countries in the Organization for Economic Co-operation and Development with one of the fastest growth rates in housing prices since 2007, note Stéfane Marion and Matthieu Arseneau, economists at National Bank Financial Inc.
Low interest rates and decent job creation have helped boost prices, the economists said in a report. But what distinguishes us from the rest of the OECD is the rate of increase of people aged 20 to 44, an important group for home buying and renting. That group is shrinking on average among OECD countries, but growing in Canada.
“The growth rate for the population group aged 20 to 44 is particularly important for the housing market since this is the age cohort generally associated with marginal demand for a residential asset,” the economists said.
“After a period of stagnation since the mid 1990s, population growth for people aged 20 to 44 has picked up very notably since 2007,” the economists said. “Importantly, even if the rate of growth is expected to crest in 2013, it will still remain positive over the next decade. This argues against precipitous fall in home prices.”
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Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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Hard hat nation
John Greenwood – Financial Post
Look out over most Canadian cities and you see construction cranes dotting the skyline, dozens of them and maybe more if you live in Vancouver or Toronto, the epicentre of a building boom that has been gaining steam for the better part of a decade.
Primarily the activity is around condos but there’s also hospitals, roads, sports stadiums and office towers — not to mention Alberta’s oil sands.
As the rest of the world grapples with the European financial crisis and sluggish growth in the United States, the cross-country construction boom has been Canada’s ace in the hole, providing the key economic building block that has been so lacking around the world: jobs.
While the savage housing collapse in the United States has left employment in the construction down 6.7-million from its 2008 peak, the number employed in Canada has soared to a record over the past two years. Even after a 20,100 give-back in October as the labour market softened overall, employment in the sector stood at 1.257-million, just above the previous November 2008 high.
The boom, supported by low interest rates, has helped spur a virtuous cycle of job creation and consumer spending that has allowed the domestic economy to push ahead despite international turmoil.
“The great thing about construction is that it’s so local,” said Helmut Pastrick, chief economist for Central Credit Union 1, the main trade association for credit unions in British Columbia and Ontario. Unlike sectors like, say, banking or shipping where operations are often spread across a large geographically area, construction is much more focused, so the economic benefits stay local as well.
That goes especially for labour, which can’t be outsourced and provides one of the few sources of well-paying jobs to unskilled or unqualified workers such as immigrants, a key factor to the health of communities given this country’s traditionally high immigration rate.
And unlike most other manual labour, it’s relatively well-paid. Due to labour shortages and high turnover, employers are willing to loosen the purse strings to keep valued workers. That means some take home $150,000 -plus a year.
For an immigrant from Guatamala or Somalia or Portugal, it’s a ticket to middle-class life and a future, as it was for successive waves of new Canadians going back more than a century.
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Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
———————————————————————————————————————
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First-Time Buyers Have Lots Of Options
Richard Silver – Toronto Sun
If you are considering the purchase of your first home you’re probably aware that like many of life’s milestones, there are many things you must consider.
Understanding conditions in the real estate market is a good first step. Current conditions in the Greater Toronto Area resale market remain quite favourable for people looking to take the first step onto the property ladder.
The housing market in the GTA continues to be supported by improving economic conditions which have led to sustained job creation, a lower unemployment rate and accelerating income growth. Financing remains affordable as well. The average interest rate for a five-year fixed rate mortgage is very low from a historic perspective.
The housing market in the GTA continues to be supported by improving economic conditions which have led to sustained job creation, a lower unemployment rate and accelerating income growth.
While it’s important to consider these fundamentals, it is also crucial to closely examine your individual circumstances, especially when determining what you can afford. Financial institutions will help you determine what you can afford by calculating your Gross Debt Service (GDS) ratio, an amount that includes monthly mortgage, tax, and utilities payments and a portion of condominium fees (if applicable).
Your GDS ratio normally should not exceed 32% of your gross monthly income. A lender will also look at your total debt picture by calculating your Total Debt Service (TDS) ratio, taking into account all obligations such as your monthly mortgage, car loan, line of credit and credit card obligations. As a rule of thumb, your TDS ratio should not exceed 40% of your gross monthly income. Be sure to explore of the financing options available through different financial institutions.
When determining a price range it’s important to realistically consider miscellaneous monthly expenses, and to account for costs associated with the transaction including home inspection, survey and legal fees.
Once you’re ready to begin your search, enlist a REALTOR® who will commit to representing your interests in writing using a Buyer Representation Agreement. More information on this important document can be found at www.BRAFirst.com.
To find a home suited to your lifestyle, be sure to explore a number of different housing types and neighbourhoods with your REALTOR® before narrowing your search. REALTORS® have access to information on market conditions in individual neighbourhoods, on future development plans and on a range of local amenities.
Your REALTOR® may also provide information on a number of available government programs to help make your purchase more affordable like the Five Percent Down Payment Program, the RRSP Homebuyers’ Plan, the First Time Home Buyers‘ Credit, Land Transfer Tax rebates and more.
Once you have found the right fit, your REALTOR® can use their expert negotiation skills to help you achieve a favourable agreement.
Specialized skills and knowledge make your REALTOR® an invaluable resource, buoying your efforts as you navigate through one of life’s most important decisions.
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Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
———————————————————————————————————————
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