Wahi’s Weekly Roundup of Top Real Estate Stories

Housing supply, GTA home sales, new home construction, and more.

By  Jared Lindzon | 2 minute read

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

Redefining What It Means to Be a Foreign Buyer   

The Government of Canada introduced some new exceptions to its 2022 ban on foreign property buyers earlier this week in an effort to reduce some of the unintended consequences of the policy that might be hindering housing supply. The new exemptions make it easier for foreigners to purchase property in Canada for the purpose of development and expands the categorization of a foreign entity from developers with 3% or more non-Canadian ownership to 10%. The ban also no longer applies to unused land, or to buyers with a Canadian work permit.

The Loneliest Home Sale in Toronto    

The sale of new homes in the GTA plummeted 76% compared to last year, according to a new study conducted by the Building Industry and Land Development Association (BILD). According to the report, there were only 225 single family home sales this past February, representing a drop of 65%, and only 697 condo units, representing a 78% decline compared to February 2022. In fact, there was only one new single-family home sold in the city of Toronto that month! 

Fraud Prevention Month Ends on a Hopeful Note  

Fraud prevention month comes to a close this week, making it the perfect time to highlight just how bad mortgage fraud has gotten in Canada. According to a 2017 study by Equifax Canada, 13% of Canadians believe there’s no harm in fudging some data on a mortgage application, and a more recent study by BNN Bloomberg found half think mortgage fraud is common. This week the trend led the Financial Services Regulatory Authority of Ontario to propose changes to the guidance given to mortgage agents and brokers regarding how they verify documents and identities. 

Downsizing: Not Just for Empty Nesters Anymore   

Housing affordability challenges have got some young Canadians moving back in with mom and dad, downsizing, or delaying their home buying plans. According to a recent Statistics Canada survey more than a third are struggling to make ends meet, especially young people. One-third of those aged 15 to 24 and nearly half of 25 to 34-year-olds adjusted their living situation in response to rising housing costs, either by delaying home buying plans, moving out earlier, or downsizing. According to a recent Toronto Star investigation, some are even moving back in with their parents to help balance their household budget. 

Ontario on Track to Fall Short of New Home Targets    

Ontario is only getting further away from its home building targets for the next decade. According to projections in this year’s provincial budget, its goal of 1.5 million new homes over 10 years isn’t looking hopeful. Nearly 100,000 were built in 2022, but that number is predicted to stay below 80,000 the next few years. Some initiatives, like Toronto’s efforts to end exclusionary zoning, or Ontario’s Bill 23 — which lowers fees for developers — could help make up the gap. Still, many experts fear the province isn’t doing enough to reach the bar it set for itself on new home construction.