Latest news with #newhomebuyers
Yahoo
09-07-2025
- Business
- Yahoo
Home buyer inquiries increase overall for first time this year
New home buyer inquiries rose overall in June – marking the first month to see an increase this year so far – according to surveyors. The Royal Institution of Chartered Surveyors (Rics), which released the report, said the figures point to a period of stabilisation rather than a strong recovery. Its report for the month of June found that a net balance of 3% of property professionals saw new buyer inquiries rise rather than fall. This was the first time since December 2024 that buyer demand has moved out of negative territory, the report said. It is also a noticeable improvement compared with May, when a balance of 22% of professionals reported a fall in new buyer inquiries, the report said. Despite the positive trend, surveyors expect sales momentum to remain subdued in the near-term, with a broadly flat outlook for sales volumes over the next 12 months. New instructions to sell have seen a slight decline, with a net balance of 3% of professionals seeing a rise in June, down from 7% in May. While this signals a slowdown in the flow of new listings, 16% of professionals reported an increase in market appraisals compared to the same period last year, indicating that supply levels remain relatively healthy. House prices continued to follow a flat or slightly negative trend in June, with a net balance of 7% of professionals seeing price falls rather than increases. The South East, East Anglia and London have seen a more pronounced decline in prices, while Northern Ireland, the North West, Scotland, and the East Midlands experienced clear growth, Rics said. Looking ahead, professionals expect the slightly negative trend at the UK-wide level to continue in the short-term. But when asked about the 12-month outlook, 24% of survey participants expect to see house price increases. Stamp duty changes from April caused some sales to be bunched up earlier in the year as buyers rushed to beat the deadline. Stamp duty applies in England and Northern Ireland. In the lettings market, tenant demand remained largely flat, with a net balance of 2% of professionals seeing a fall rather than an increase. Landlord instructions continued to decline, with a net balance of 24% of professionals seeing a fall. Tarrant Parsons, Rics head of market research and analysis, said: 'The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility. 'The earlier distortion caused by transactions being brought forward ahead of the stamp duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge. 'Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment. That said, confidence in the market remains somewhat delicate, with economic uncertainty at both the domestic and global level still seen as a potential headwind.' Tom Bill, head of UK residential research at Knight Frank said: 'Demand is recovering after the March stamp duty deadline meant transactions were pulled forward into the first quarter of the year. 'However, as buyers return, they have a lot of stock to choose from, which is putting downwards pressure on prices. Rate cut expectations have grown over the last six weeks due to weak UK economic data, which should support demand over the second half of the year and produce modest single-digit price growth in 2025. A re-run of last year's game of 'guess the tax rise' ahead of the Budget is the biggest risk for sentiment.' Sarah Coles, head of personal finance at Hargreaves Lansdown said: 'The number of renters looking for a home has remained stable, but landlords continue to pack up and leave the business, so there's still real competition for properties, rents continue to rise and they're expected to keep climbing. 'This is the last thing tenants want to hear, because their finances are already so stretched. The HL (Hargreaves Lansdown) savings and resilience barometer shows on average they only have enough savings to cover two-and-a-half months of essentials – falling short of the amount they need to withstand any nasty surprises. 'Meanwhile, those with a mortgage have enough for more than six months on average, so they have somewhere to turn when times are tough.'
The Independent
09-07-2025
- Business
- The Independent
Home buyer inquiries increase overall for first time this year
New home buyer inquiries rose overall in June – marking the first month to see an increase this year so far – according to surveyors. The Royal Institution of Chartered Surveyors (Rics), which released the report, said the figures point to a period of stabilisation rather than a strong recovery. Its report for the month of June found that a net balance of 3% of property professionals saw new buyer inquiries rise rather than fall. This was the first time since December 2024 that buyer demand has moved out of negative territory, the report said. It is also a noticeable improvement compared with May, when a balance of 22% of professionals reported a fall in new buyer inquiries, the report said. Despite the positive trend, surveyors expect sales momentum to remain subdued in the near-term, with a broadly flat outlook for sales volumes over the next 12 months. New instructions to sell have seen a slight decline, with a net balance of 3% of professionals seeing a rise in June, down from 7% in May. While this signals a slowdown in the flow of new listings, 16% of professionals reported an increase in market appraisals compared to the same period last year, indicating that supply levels remain relatively healthy. House prices continued to follow a flat or slightly negative trend in June, with a net balance of 7% of professionals seeing price falls rather than increases. The South East, East Anglia and London have seen a more pronounced decline in prices, while Northern Ireland, the North West, Scotland, and the East Midlands experienced clear growth, Rics said. Looking ahead, professionals expect the slightly negative trend at the UK-wide level to continue in the short-term. But when asked about the 12-month outlook, 24% of survey participants expect to see house price increases. Stamp duty changes from April caused some sales to be bunched up earlier in the year as buyers rushed to beat the deadline. Stamp duty applies in England and Northern Ireland. In the lettings market, tenant demand remained largely flat, with a net balance of 2% of professionals seeing a fall rather than an increase. Landlord instructions continued to decline, with a net balance of 24% of professionals seeing a fall. Tarrant Parsons, Rics head of market research and analysis, said: 'The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility. 'The earlier distortion caused by transactions being brought forward ahead of the stamp duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge. 'Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment. That said, confidence in the market remains somewhat delicate, with economic uncertainty at both the domestic and global level still seen as a potential headwind.' Tom Bill, head of UK residential research at Knight Frank said: 'Demand is recovering after the March stamp duty deadline meant transactions were pulled forward into the first quarter of the year. 'However, as buyers return, they have a lot of stock to choose from, which is putting downwards pressure on prices. Rate cut expectations have grown over the last six weeks due to weak UK economic data, which should support demand over the second half of the year and produce modest single-digit price growth in 2025. A re-run of last year's game of 'guess the tax rise' ahead of the Budget is the biggest risk for sentiment.' Sarah Coles, head of personal finance at Hargreaves Lansdown said: 'The number of renters looking for a home has remained stable, but landlords continue to pack up and leave the business, so there's still real competition for properties, rents continue to rise and they're expected to keep climbing. 'This is the last thing tenants want to hear, because their finances are already so stretched. The HL (Hargreaves Lansdown) savings and resilience barometer shows on average they only have enough savings to cover two-and-a-half months of essentials – falling short of the amount they need to withstand any nasty surprises. 'Meanwhile, those with a mortgage have enough for more than six months on average, so they have somewhere to turn when times are tough.'
The Standard
22-06-2025
- Business
- The Standard
Deep Water Pavilia reduces discounts on units
New homebuyers will miss out on discounts of up to 20pc previously offered for the project. SING TAO
National Post
11-06-2025
- Business
- National Post
The federal government's GST/HST legislation must meet the needs of the GTA housing market
A few weeks ago, the federal government tabled its proposed GST/HST reduction measures on new homes. Unfortunately, like many federal housing policies, the proposal to exempt first-time new home buyers from the GST for homes under $1 million and provide a declining exemption to homes for $1.5 million does not recognize the realities of the Greater Toronto Area (GTA) and will have little impact on housing supply and affordability in this region. Article content Article content The fact that the government is proposing even this limited measure is a tacit acknowledgement that the tax, along with the other myriad of government fees and taxes heaped onto new homes, is now one of the barriers to affordability. This is compounded by the failure to keep structural mechanisms, such as the GST/HST new housing rebate program current to market property values. That said, the current federal proposal is lacking in many ways. Article content Article content First, is the comparatively small number of new home buyers who are first-time buyers in the GTA. While the number may be higher in other jurisdictions, in the GTA, estimates of first-time buyers as buyers of new homes are between five and 10 per cent. Recognizing that resale homes do not attach GST/HST means that the total number of people who would benefit in the GTA ranges between 1,500 and 3,000 in an average year, and a paltry 500 to 1,000 people based on 2024 annual sales. In a metropolitan area that represents 20 per cent of the Canadian population — and is one of the fastest growing regions in North American — this is a symbolic drop in the bucket. Article content Second, the dollar figures used are geographically biased. While $1 million will buy a very well-heeled detached single-family home in almost every other part of Canada, except the GTA and the lower mainland of B.C., the average price for a new condominium in the GTA in April was $1,019,120 and $1,530,126 for a single-family home (including townhomes, semis and detached). So, while a purchaser in Ottawa can buy a fully detached single-family home in the mid-$800,000s and pay no GST, a comparable product in the GTA would cost in excess of $1.5 million and attract nearly $70,000 in GST. And before you say, 'but salaries in the GTA are higher,' the average annual household income in Ottawa is $125,700 and in the GTHA it is $129,000. By selecting dollar thresholds that are not reflective of high-property value jurisdictions, the federal government is basically ignoring the regions where the need is the greatest. Article content Last, when the GST was introduced, it had a corresponding rebate program that applied to 95 per cent of purchasers so that it would 'not pose a barrier to the affordability of new housing in Canada (page 21).' Now, with properly values effectively excluding anyone in the GTA from a GST rebate, and such a narrow federal proposal, effectively 90 to 95 per cent of homes are subject to the GST and receive zero rebate. This means less incentive to move up in new housing as families grow and expand, or down in new housing as seniors age and look to downsize, limiting mobility within existing housing stock and impeding the addition of appropriately sized new supply.
National Post
15-05-2025
- Business
- National Post
Who pays more for infrastructure and services in the GTA — the new home buyer or average ratepayer?
Throughout the federal election campaign — and as I have written about in previous columns, the negative impacts of sky-high development charges (DCs) on housing supply and affordability in the GTA featured prominently. In our region, these fees, which are rolled into the cost of new homes and passed on to new home buyers, are not just the highest in Canada, but in North America. Article content Article content Article content As municipalities grow, there is no denying the need for more infrastructure, however, it is well past time for a meaningful discussion on who pays for what and to find alternative ways to fund growth-related costs. Only so much can be borne by new home buyers and with the current DC rates in the GTA, they are shouldering a disproportionate amount. Article content The development charge system in Ontario has existed for more than 30 years. DCs are levied by municipalities on all types of development, including new homes, to offset the cost of roads, transit, emergency, water, sewer, and other services. What began as a small charge in the late 1990s has ballooned to more than $125,000 on a new single-family home in many GTA municipalities. DCs, by design, serve a useful purpose in establishing housing-supportive infrastructure, but now too much cost is being shifted to the new home buyer, thereby undermining affordability, and distorting the type and supply of new housing coming to market. Article content To illustrate who pays for what and how much, I would like to compare what an average tax ratepayer contributed to on an annual basis to what the buyer of a new, single-family home in the City of Toronto paid for based on the 2024 budget and current DC rates. Of note, once a new home is occupied, the new home buyer joins the ranks of the ratepayer and continues contributing through annual property taxes. Article content Article content One caveat: this is not intended to single out the City of Toronto, as similar patterns can be found in municipalities across the GTA. The city is referenced here solely for its accessible and transparent information, which deserves praise. Also of note is the City of Toronto's recent decision to forgo annual indexing (increasing) of its DCs, which is also a measure that is appreciated. Article content In the City of Toronto, based on the 2024 budget, property taxes on the average home were $3,904. Since the property average includes both houses and apartments, to allow for a more complete apples to apples comparison, we will also blend the DC rates. In Toronto, a new, single-family home draws $137,846 in DCs, a two-bedroom apartment: $80,690, and a one-bedroom and bachelor: $52,676. This yields an average DC based on a blended product type of $90,404. Article content In terms of public transportation, a new home buyer (based on the blended product type) paid $2,875 toward the Spadina subway extension — regardless of the home's proximity to the transit corridor and whether its owner used that line. Additionally, the average home buyer paid another $34,877 for public transit. Conversely, the average ratepayer paid $542 toward transit. The $34,877 is equivalent to what a typical ratepayer would pay in 64 years through taxes; equivalent to 10,411 Toronto Transit Commission fares of $3.35 or equal to riding the TTC once a day for 28.5 years.
