The Shore Report 23.06 // 

Shoreview Real Estate Team Powered by New Street

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Welcome to the latest edition of The Shore Report, your source for valuable insights into the dynamic world of housing in Canada and Ontario. In this newsletter, we'll delve into some hot topics that are reshaping the way we live. Watch the full video on Youtube here

1. Rising Construction Costs Impacting Housing Prices The increasing costs of construction materials and labor have a direct impact on housing prices. Recent data from Statistics Canada reveals that new home prices in Canada have risen for the first time since last summer. Although the increase in May was only 0.1%, it marks a significant shift after a period of decline. While some regions experienced price hikes, others saw stability or even slight decreases. For instance, Vancouver witnessed a 0.2% increase, while Toronto reported a marginal decline of 0.1%. Builders in certain areas blamed weak market conditions for price drops.

2. Bank of Canada's Interest Rate Hike Surprising many experts, the Bank of Canada recently raised interest rates for the ninth time. The decision was influenced by strong growth in the resale housing market, leading to increased overall inflation rates. Concerns over inflation remaining above the target of 2% prompted the interest rate hike. The Bank aims to balance supply and demand and stabilize inflation while meeting the demands of a strong economy.

3. Exploring Bill 97: Helping Homebuyers, Protecting Tenants Act Ontario's Bill 97, also known as the Helping Homebuyers, Protecting Tenants Act, has sparked considerable debate. The bill offers cities the authority to expand settlement areas, addressing the housing shortage by enabling more homes to be built in rural regions. Additionally, it introduces new tenant protections, such as allowing the installation of portable air conditioners. However, concerns have been raised regarding potential loss of rental units and the need for a balanced approach between development and protection.

These changes in the real estate market and housing industry indicate ongoing government efforts to improve housing affordability and stability. The Shoreview Real Estate Team encourages you to stay informed and reach out with any real estate-related questions you may have.

Thank you for joining us on this journey through the world of Canadian housing. We hope the information provided has been valuable. Remember, change brings opportunities, and we're here to help you navigate them.