Investors drive Toronto's condo market despite loosing money every month: CIBC's Tal
Canada’s housing market has been on fire and the luxury sector is no exception according to a new report by Sotheby’s. Sales of homes worth more than $4 million climbed more than 150 per cent in Toronto over the first two months of this year compared with 2020. Meanwhile, data from the Toronto regional real estate board for the same period showed sales across all price ranges rose 52 per cent.
CIBC: CONDO MARKET SEEING REVIVAL
Condo sales continue to rise in Canada’s largest city this year and CIBC Capital Markets deputy chief economist Benjamin Tal believes this trend will continue. He said buyers are taking advantage of low interest rates and buying condos since they are a more affordable real estate option than low-rise, detached housing. In an interview on Bloomberg Markets, Tal said what he finds most interesting is nearly 40 per cent of condo investors had a negative cashflow, but this wasn’t a concern for most as they were investing in the market for the long-term, expecting to profit later, and that makes sense to Tal. “If you think that Toronto is unaffordable now, you wait,” Tal said. “Toronto is becoming like Berlin, like London, like Manhattan. It’s becoming more and more unaffordable, and therefore we know that our kids will struggle.”
HEALTH OFFICIALS URGE HALT OF ASTRAZENECA VACCINE IN PEOPLE UNDER 55
The federal government’s vaccination rollout plan has hit a snag. Canada’s health officials are suspending the use of the AstraZeneca COVID-19 vaccine to people under 55 years of age due to concerns about a possible link between the shot and rare blood clots. The move comes as a new wave of the virus is accelerating in the country. A new briefing note from Ontario’s science advisory table shows the most populous province in Canada is at a tipping point with new daily infections coming in at the same number as at the height of the second wave. Meanwhile, British Columbia has reintroduced to new restrictions on indoor dining in restaurants, worship and fitness services.
OTHER NOTABLE STORIES
- Oil is trading lower this morning following two days of gains as traders assess the demand recovery ahead of a two-day OPEC+ meeting that kicks off tomorrow
- Bitcoin is on the rise after PayPal launched a new feature that allows its users to pay for goods and services with their cryptocurrency holdings
- Dialogue Health Technologies Inc. shares start trading on the TSX today (CEO is on The Open at 10:20AM ET)
- Notable earnings: Lululemon, BlackBerry, Galaxy Digital Holdings
- 9 a.m. ET: PBO report on “Assessing the Sustainability of the Canada Pension Plan”
- 11:30 a.m.: PM Trudeau to address Canadians on COVID-19 situation and hold a media availability
- 4:30 p.m: Lululemon Q4 conference call
- 5:30 p.m.: Blackberry Q4 conference call