New era in real estate business development: Amazon said it is funding homebuilding start up Plant Prefab. Mission - building prefabricated custom homes, designed with sustainable materials and quality features, including Alexa-powered smart home devices. Homes arrive 90% complete and are installed in days. This is future of affordable custom homebuilding and it is here.
Over the next 20 years almost 2.5 million new residents, or approximately 115,000 a year, will arrive in the GTA. Just to house them requires 55,000 new homes to be built every year plus roads and public transit to transport them, schools, stores and places to work. Now it takes 10 years to complete highrise project, and 11 years to complete lowrise project. As a consequence, the building industry was able to construct only 44,000 new homes in 2017, falling behind demand.
The "Great Bull" market that came after the financial crisis is dead due to slowing economic growth, rising interest rates and too much debt, according to a Bank of America Merrill Lynch analysis. The central bank has raised rates seven times since December 2015 and is on track for two more hikes before year's end.
In second quarter report TransUnion found that overall mortgage loans declined 3.4 per cent year-over-year, with mortgages taken by Generation Z (aged 18 to 23) and Millennials (aged 24 to 38) falling 22 per cent and 18 per cent, respectively. But what was the most alarming part of this report? Mortgage originations for the Pre-War and Silent Generation (aged 73 to 93) grew significantly at 63 per cent, year-over-year.
2018 trends in real estate? It’s the biggest test
(stress) and most significant challenge since 2008. Around 12% people will fail to be qualify for mortgages, 45% of those with mortgages will renew in 2018 with new rates. In demand low end and
high end properties, all in the middle stagnated. Builders slows to build. There’s almost 300,000 units overall that are approved and not yet built. The average price in downtown Toronto for a
new launch is $1,200 a square foot.
Trend nowadays is not to build bigger, but to build better. More houses come equipped with solar-ready features and electric car plug-ins... However, what will be in demand forever are great interiors. Personally, we love the world of Charles:
This one of a kind hand crafted “Liberty” was created in Art Deco style by a smith who is well-known in Canada and in US not only among rich and famous. Oleg is our client and friend
and we highly recommend his wrought iron art for our valued clients: click here
and view this famous smith’s wrought iron masterpieces, as featured on CNN.
Scott Dickson imagined Toronto skyline in near future. It is stunning. Using statistics digests, researching where the buildings belong their elevation and Photoshop, he created this amazing image of TO in a decade. His skyline hobby is about celebrating the best of Toronto. Click on image to view fine details.