The Bank of Canada today increased its target for the overnight rate to 2½%, with the Bank Rate at 2¾% and the deposit rate at 2½%. The Bank is also continuing its policy of quantitative tightening (QT).

Inflation in Canada is higher and more persistent than the Bank expected in its April Monetary Policy Report (MPR), and will likely remain around 8% in the next few months. While global factors such as the war in Ukraine and ongoing supply disruptions have been the biggest drivers, domestic price pressures from excess demand are becoming more prominent. More than half of the components that make up the CPI are now rising by more than 5%. With this broadening of price pressures, the Bank’s core measures of inflation have moved up to between 3.9% and 5.4%. Also, surveys indicate more consumers and businesses are expecting inflation to be higher for longer, raising the risk that elevated inflation becomes entrenched in price- and wage-setting. If that occurs, the economic cost of restoring price stability will be higher.

Global inflation is higher, reflecting the impact of the Russian invasion of Ukraine, ongoing supply constraints, and strong demand. Many central banks are tightening monetary policy to combat inflation, and the resulting tighter financial conditions are moderating economic growth. In the United States, high inflation and rising interest rates are contributing to a slowdown in domestic demand. China’s economy is being held back by waves of restrictive measures to contain COVID-19 outbreaks. Oil prices remain high and volatile. The Bank now expects global economic growth to slow to about 3½% this year and 2% in 2023 before strengthening to 3% in 2024.

Further excess demand has built up in the Canadian economy. Labour markets are tight with a record low unemployment rate, widespread labour shortages, and increasing wage pressures. With strong demand, businesses are passing on higher input and labour costs by raising prices. Consumption is robust, led by a rebound in spending on hard-to-distance services. Business investment is solid and exports are being boosted by elevated commodity prices. The Bank estimates that GDP grew by about 4% in the second quarter. Growth is expected to slow to about 2% in the third quarter as consumption growth moderates and housing market activity pulls back following unsustainable strength during the pandemic.

The Bank expects Canada’s economy to grow by 3½% in 2022, 1¾% in 2023, and 2½% in 2024. Economic activity will slow as global growth moderates and tighter monetary policy works its way through the economy. This, combined with the resolution of supply disruptions, will bring demand and supply back into balance and alleviate inflationary pressures. Global energy prices are also projected to decline. The July outlook has inflation starting to come back down later this year, easing to about 3% by the end of next year and returning to the 2% target by the end of 2024.

With the economy clearly in excess demand, inflation high and broadening, and more businesses and consumers expecting high inflation to persist for longer, the Governing Council decided to front-load the path to higher interest rates by raising the policy rate by 100 basis points today. The Governing Council continues to judge that interest rates will need to rise further, and the pace of increases will be guided by the Bank’s ongoing assessment of the economy and inflation. Quantitative tightening continues and is complementing increases in the policy interest rate. The Governing Council is resolute in its commitment to price stability and will continue to take action as required to achieve the 2% inflation target.

Read full post

The June numbers are in and outlined in this months infographic, increased borrowing costs continue to impact home sales.

West GTA has seen housing prices continue to level between -4.8% to -7.8% month over month while Burlington sees a +1% increase in the same period.

CLICK HERE for full report.

If you or someone you know is looking for guidance on Selling property in this market, contact me today. I'm here to help cel 416-948-2883

Read full post

Ontario’s rent increase guideline for 2023 is 2.5 per cent, below current rates of inflation. The rent increase guideline is the maximum amount a landlord can increase rent during the year for most tenants without the approval of the Landlord and Tenant Board.

The guideline is based on Ontario’s Consumer Price Index, a measure of inflation calculated monthly by Statistics Canada using data that reflects economic conditions over the past year. Due to recent inflation, this would result in a 2023 guideline of 5.3 per cent, however the guideline is capped to help protect tenants from significant rent increases.

“As Ontario families face the rising cost of living, our government is providing stability and predictability to the vast majority of tenants by capping the rent increase guideline below inflation at 2.5 per cent,” said Steve Clark, Minister of Municipal Affairs and Housing. “We continue to look for ways to make homes more attainable for hardworking Ontarians, while making it easier to build more houses and rental units to address the ongoing supply crisis.”

The guideline applies to the vast majority – approximately 1.4 million – of rental households covered by the Residential Tenancies Act. It does not apply to rental units occupied for the first time after November 15, 2018, vacant residential units, community housing, long-term care homes or commercial properties.

Rent increases are not automatic or mandatory. Landlords may only raise rent if they gave tenants at least 90 days’ written notice using the correct form. In addition, at least 12 months must have passed since the first day of the tenancy or the last rent increase. If a tenant believes they have received an improper rent increase, they can apply to the Landlord and Tenant Board to request a correction.


Read full post

News Release    City of Toronto                                                                  July 5, 2022
 

The City of Toronto Garden Suites Bylaw is in full force after the Ontario Land Tribunal (OLT) dismissed an appeal yesterday. The Garden Suites Bylaw and Official Plan Amendment were adopted by Toronto City Council on February 2, but were appealed shortly after. On June 2, the OLT heard a motion from the City to dismiss the appeal.

Toronto is facing substantial housing needs across a variety of housing types, tenures, and levels of affordability. Allowing greater variety in the type and form of housing that can be built in the city’s neighbourhoods is one solution to increase housing choice and access for current and future Toronto residents.

Garden suites are a form of housing that is now permitted in Toronto. If a proposed garden suite meets various performance criteria, such as maximum building height and setbacks, as well as all applicable bylaw standards, only a building permit application is required.

Any garden suite proposal that does not meet the Zoning Bylaw requirements can seek a minor variance application at the Committee of Adjustment. Through that process, City Planning staff review the application to determine if the proposed variances are appropriate and meet the intent of the Official Plan policies and the Zoning Bylaw.

Garden suites and other forms of housing being considered as part of the City’s Expanding Housing Options in Neighbourhoods (EHON) program are a necessary adjustment to Toronto’s current growth strategy. They allow for the creation of a variety of housing forms that create a better, more equitable and more resilient city for current and future residents.

The City established the EHON program to review, consult on, and advance permissions to allow additional forms of housing in Toronto’s low-rise neighbourhoods. Increasing the type of housing supply provides more housing options for a range of household structures, for people at different ages, abilities, and incomes, for people to move within their current neighbourhood to support generational housing turnover, and for new residents to find a home.

Permits for the construction of garden suites can now be issued, provided the application complies with the Bylaw requirements and all other applicable law. More information on the Tribunal’s decision will be posted on the project website.

Quotes:

“This is good news and it will help get some more housing built. Garden suites are often a way to create homes for family members – parents, grandparents or adult children – or can be used as rental housing units. The Garden Suites regulations approved earlier this year represent a ‘Made In Toronto’ solution with sensible regulations to protect neighbours, trees/greenspace and gentle density. Allowing garden suites across Toronto is a key step forward in expanding housing choice within the City’s neighbourhoods and creating a more inclusive and resilient city for current and future residents.”
– Mayor John Tory

“Housing is essential to every resident in our city and is key to building sustainable and inclusive communities. I am proud to support work that results in inclusive neighbourhoods and provides for greater housing options for our residents. Garden suites and other initiatives to expand housing options in low-rise neighbourhoods are key to creating a diverse mix of housing choice that is affordable and accommodates people at all stages of life, household size and income level. The garden suites initiative will create gentle density increases where residents have access to parks, schools and main street businesses and restaurants.”
– Deputy Mayor Ana Bailão (Davenport), Chair of the Planning and Housing Committee

“The garden suites decision by the Ontario Land Tribunal acknowledges the extensive, professional work and consultation undertaken by City Planning staff and our colleagues at the City to develop a framework for a new type of housing in Toronto. Allowing garden suites across Toronto is a key step forward in expanding housing choice within the city’s neighbourhoods and creating a more inclusive and resilient city for current and future residents.”
– Gregg Lintern, Chief Planner and Executive Director, City Planning

Read full post
Categories:   Ancaster, Hamilton Real Estate | Appleby, Burlington Real Estate | Bay Street Corridor, Toronto C01 Real Estate | Bilbert, Hamilton Real Estate | Brampton Core North Peel, Brampton Real Estate | Brant, Burlington Real Estate | Caledon Real Estate | Carlisle, Hamilton Real Estate | Central Erin Mills, Mississauga Real Estate | Churchill Meadows, Mississauga Real Estate | City Centre, Mississauga Real Estate | Clarke, Milton Real Estate | Danforth Village-East York, Toronto E03 Real Estate | Eastlake, Oakville Real Estate | Erindale, Mississauga Real Estate | Fessenden, Hamilton Real Estate | Ford, Milton Real Estate | Grimsby Real Estate | Harrison, Milton Real Estate | Headon, Burlington Real Estate | Humberlea-Pelmo Park W4, Toronto W04 Real Estate | Hurontario, Mississauga Real Estate | Iroquois Ridge North, Oakville Real Estate | Islington-City Centre West, Toronto W08 Real Estate | Jerome, Hamilton Real Estate | Junction Area, Toronto W02 Real Estate | Long Branch, Toronto W06 Real Estate | Lorne Park, Mississauga Real Estate | Markland Wood, Toronto W08 Real Estate | Meadowvale, Mississauga Real Estate | Mimico, Toronto W06 Real Estate | Mississauga Real Estate | Mississauga Valleys, Mississauga Real Estate | Niagara Falls Real Estate | Old Oakville, Oakville Real Estate | River Oaks, Oakville Real Estate | Rose, Burlington Real Estate | Roseland, Burlington Real Estate | Scott, Milton Real Estate | Sheridan, Mississauga Real Estate | Snelgrove, Brampton Real Estate | South East, Oakville Real Estate | Stoney Creek, Hamilton Real Estate | Waterdown Real Estate | Waterdown, Hamilton Real Estate | West Humber-Clairville, Toronto W10 Real Estate | West Oak Trails, Oakville Real Estate | Woodbine Corridor, Toronto E02 Real Estate