Toronto’s 6-Figure Charity Cases, and Home Sales Flatten

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week.

July Canadian Home Sales Largely Consistent With June, Despite Rate Hike   

Canada’s housing market is in somewhat of a holding pattern this summer, even if the Bank of Canada isn’t. According to the Canadian Real Estate Association, July’s sales figures were almost identical to June’s, down just 0.7%, for a total of about 40,000. Also according to the data, sales dropped 5.5% in Ontario since June but increases in other provinces proved enough to make up the gap. Prices in the province rose 3.2% over the last year, and 6.3% country-wide. However, national prices remain 18% lower than the February 2022 peak. Check out Wahi’s five key facts about the latest home sales data to learn more.

Toronto’s 6-Figure Charity Cases

The cost of housing in the GTA has gotten so high that people earning six figures are tapping charities for assistance. Habitat for Humanity offers interest-free mortgages to Canadian families who can’t afford a place to live without using more than 30% of their combined incomes. In Toronto, that means families with household incomes over $100,000 are turning to the non-profit for assistance. The organization’s CEO recently told the Toronto Star that many families pulling in six figures can hardly maintain livable conditions in the GTA — even those in careers that once afforded them a comfortable lifestyle. 

Inflation Is Back up: Will Rates Follow?   

If you’re not a fan of paying more for everything, you probably weren’t too excited to see the country losing ground in its fight against inflation. According to Statistics Canada, consumer prices rose 3.3% in July, higher than the anticipated annual increase of 3% and marking a step in the wrong direction after June’s inflation reading of 2.8%. According to the data, the biggest contributor to inflation is mortgage costs. In fact, without the ballooning borrowing fees, inflation would have been a more tepid 2.4%. That is why economists remain hopeful that the bank will opt not to hike rates further in September.

Housing Relief Is Not on the Way  

Canada desperately needs more homes. Unfortunately, many aren’t going to be built any time soon. According to the Canada Mortgage and Housing Corporation, the pace of housing starts fell 10% last month compared to June, dropping 29% in the city of Toronto. (Housing starts represent when construction work begins on homes.) Another report from the Canadian Home Builder’s Association adds to that bleak picture, suggesting the construction industry “remains downbeat” in the face of higher interest rates. In fact, 22% of builders cancelled projects in the second quarter of 2023, while 67% say the slowdown in sales is causing them to build fewer units. Just what we needed.

Greenbelt Bombshell yet to Claim Victims   

Last week’s scathing 95-page report by Ontario’s auditor general — which outlined how the provincial government planned to dish out $8.3 billion worth of protected land to connected developers — has yet to result in any meaningful changes within the Ford government. In the face of accusations, Premier Doug Ford has remained adamant that developing the financially (and environmentally) significant Greenbelt land is the only way to solve the province’s housing crisis. Meanwhile his municipal affairs and housing minister has rejected calls to resign. With Greenbelt development largely moving forward as planned, however, some experts doubt this is the last we’ll hear of the scandal.