Canadian home sales jumped in November, as buyers rushed in to avoid new mortgage rules which come into effect in the new year.

According to the Canadian Real Estate Association (CREA), national home sales rose 3.9 per cent in November, a spike well above October’s 0.9 per cent increase.

“Some home buyers with more than a twenty per cent down payment may be fast-tracking their purchase decision in order to beat the tougher mortgage qualifications test coming effect next year,” writes CREA president Andrew Peck, in a statement.

Announced in October, the mortgage test will come into effect on January 1, and will require all uninsured mortgage borrowers to qualify against the Bank of Canada’s five-year benchmark rate, or at their contract mortgage rate plus an additional 2 per cent.

According to CREA chief economist Gregory Klump, it’s unclear what the test will mean for sales in 2018.

“It remains to be seen whether stronger momentum now will mean weaker activity early next year once new mortgage regulations take effect beginning on New Year’s day,” writes Klump, in a statement.

CREA is forecasting a home sales decline of 5.3 per cent in 2018, as the market adjusts to the new rules.

Here are 9 facts to help make sense of November’s sales surge:

1. National home sales rose 3.9 per cent in November, led by a whopping 16 per cent jump in sales in the GTA.

2. That puts sales activity a little over halfway between the peak reached in March, and the low recorded in July.

3. While this spike marks the fourth month-over-month sales increase, it is also the first year-over-year increase in months. Sales were up 2.6 per cent from November 2016, setting a new November record.

4. National new home listings were up 3.5 per cent, led by an increase in supply in the GTA.

5. The national sales-to-new-listings ratio was 56.4 per cent in November, a slight increase from October’s 56.2 per cent. A ratio of between 40 and 60 per cent is considered consistent with a balanced housing market, with ratios above and below indicating buyers’ and sellers’ markets, respectively.

6. The aggregate composite MLS housing price index rose by 9.3 per cent year-over-year in November. It’s a deceleration from record gains in March, and the smallest year-over-year increase since February 2016.

7. Apartment units had the largest price increase, at 19.4 per cent year-over-year, while single-family home prices increased just 6 per cent.

8. The actual national average price for homes in November was $504,000 up 2.9 per cent year-over-year. The average was boosted by Vancouver and the GTA — without them, it would fall to just $381,000.

9.The average Canadian home price is forecast to drop by 1.4 per cent in 2018, to $503,100, largely due to a cooler GTA market.

Source: BuzzBuzz News

Ontario passed the Building Better Communities and Conserving Watersheds Act 2017, which overhauls the province’s land use planning appeals system, giving communities a stronger voice and ensuring people have access to faster, fairer and more affordable hearings.

Giving Communities a Stronger Voice 

Once in force, the act will establish the Local Planning Appeal Tribunal to replace the Ontario Municipal Board. It will amend the Planning Act to eliminate “de novo” hearings for the majority of land use planning appeals. Instead, the tribunal will function more like a true appeal body for major land use planning decisions.

The act includes the following reforms aimed at giving communities a stronger voice in local land use planning decisions:

  • Under the new standard of review for land use planning appeals involving matters like official plans and zoning bylaws, the tribunal will only be able to overturn a matter if the tribunal determines that the municipal decision is inconsistent with, or does not conform to provincial policies and municipal plans.
  • The tribunal would then be required to return the matter to the municipality with written reasons when it overturns a decision.
  • The municipality will then have 90 days to make a new decision on an application under the new law.
  • The tribunal will retain the authority to make a final decision only when, on a second appeal, the municipality’s subsequent decision still fails to follow provincial policies or municipal plans.

Under this new model, the tribunal will be required to give greater weight to the decisions of local communities, while ensuring that development occurs in a way that is good for Ontario and its future.

Faster, Fairer and More Affordable Planning Appeals

The act will introduce major changes to the way land use planning appeals are conducted to reduce the length and cost of hearings and create a more level playing field for all participants. These reforms include:

  • Requiring the tribunal hold a case management conference for major land use planning appeals to identify and narrow the scope of the appeal and to explore opportunities for mediation and settlement, which could avoid the hearing process all together.
  • Establishing clear timelines for the hearing process to help ensure timely decisions.
  • Creating statutory rules regarding the conduct of hearings, including setting strict timelines for oral hearings and limiting evidence to written materials in major land use planning appeals.
  • Eliminating lengthy and often confrontational examinations and cross-examinations of witnesses by parties and their lawyers at the oral hearings of major land use planning appeals.
  • Empowering the tribunal to examine parties and other individuals who appear before the tribunal and providing the tribunal with modern adjudicative powers to promote active adjudication, provisions for alternative hearing formats and permitting the assignment of multi-member panels.

Free Planning and Legal Support

The act will establish the free Local Planning Appeal Support Centre, a new provincial agency, which will help Ontarians access information and advice about the appeal process. The centre will be modeled on the Human Rights Legal Support Centre and will deliver the following services to help people understand and more effectively participate in the appeal process by:

  • Providing general information about land use planning.
  • Offering guidance to citizens on the tribunal appeal and hearing process.
  • Providing legal and planning advice at different stages of the appeal process, which may include representation in some cases.

Sheltering Major Planning Decisions from Appeal

The act also includes measures to exempt a broader range of major municipal land use planning decisions from appeal, which will provide municipalities with greater certainty and timely implementation of major decisions. The following matters will no longer be appealable under the Building Better Communities and Conserving Watersheds Act 2017:

  • Provincial approvals of official plans and official plan updates, including approvals of conformity exercises to provincial plans.
  • Minister’s Zoning Orders.

The act will also restrict applications to amend new secondary (i.e. neighbourhood) plans for two years, unless permitted by municipal council, and limit the ability to appeal an interim control by-law when first passed for a period of up to one year. The legislation also protects municipal policies that support appropriate development around protected major transit station areas, such as GO Train stations and subway stops.

Local Appeal Bodies will also be given more authority. They will be able to hear appeals on site plans, in addition to their current scope of minor variances and consents.

Short-term Rentals

Proposed regulations for short-term rentals were approved by City Council. A short-term rental is defined as renting for less than 28 days.

Staff recommendations to limit the use of short-term rental providers (such as Airbnb) to a person’s ‘principal residence’ were adopted.

A limit of 180 days per year was also placed on the rental of an entire home, while a room or portion of a home was not limited.

For further information: http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2017.LS23.1