BNN - Monday, May 27, 2024 - 11:00 a.m. (ET) - Segment #3

look at what's happening in the markets today. Quiet day north america tsx leading the charge here with an advance of 49.6 a leading the charge is really the only player in the game because the american markets are closed today. But we have seen a couple of standout sectors in toronto trading right now. We're looking at oil prices up more than one percent. So that's helped out some energy stocks and the most notable gainers have been in the gold sector. Because bullion itself is up close to one percent at this hour. Meantime on the currency front, the louisa marginally stronger against the greenback at 73 32 and on the cryptocurrency front, bitcoin is higher as is a theory of it's been riding a wave enthusiasm recently as people get ready for the possibility of some syrian spot etfs. Some of big point earlier this year. Of course, high prices and something that homeowners are dealing with or home shoppers. And there are some increasing signs that canadians, younger canadians in particular willing to move. Well beyond what was their home market to find better deals, job cells as president and a broker with the realty and joins us here in studio. Jon, good to see you. And your focus primarily on the toronto market that often if you've been hearing this in the conversation, I mean, quite a bit. It's interesting because, you know, we're on the ground, we hear from buyers every and for the past couple of years, that has been a common theme many buyers to sign into a pause. >> And consider actually moving out of province or even out of the country, because prices are so expensive in the toronto area. And people just don't want to be handcuffed to a very high mortgage for the next years. Yeah. So you're I'm talking to different clients that this comes up like maybe someone's thinking, alberta versus toronto as opposed to like this street versus that street. Yeah, absolutely. And we have clients who have just decided to move to alberta. Moves to the east coast or move down south again. Of course, most are staying here, but definitely it's a conversation we're having more of in a conversation and in how 5, 6 years ago. Yeah. And so when we think about the price of a home today, even after we've been grappling with higher interest I guess, how would you characterize what prices look like today versus even just a few years ago. I mean, today and the toronto area, you know, prices are roughly 10 times median income, which is unbelievably uffordable considering it only borrow 4 and a half times income in canada. So it's a difficult markets to get into. And I think it's one of the reasons why people are looking elsewhere. And I think covid was probably a big factor in all of this as well. I mean, more people working from home, not meeting to go into the office help accelerate this trend. Interesting and I guess at the end of the day, the supply-demand situation adds fuel to the fire or yeah, absolutely. And especially in markets like ontario. I mean, we're not building a lot of family size housing building a ton of condominiums. Most of those are small rentals were not building family sized homes and that's putting upward pressure on that type of housing, which is why so many people are leaving because it's tough to get into that market. And then does that bleed everywhere like for those who are curious about you know, maybe the part market, the condo market, they're looking for. Maybe less spaces. Sure this reality everywhere. Yeah, absolutely. And what what sort of happening for some people to started leaving toronto and going to smaller cities outside of the greater toronto area, you know, to london to kitchener to guelph to barrie. And then of course, during covid, those markets exploded. And now it's kind of extending further. And I guess for the amount of supply that's on the market now because we've heard about in this environment, there's a lot more for sale in the spring and maybe things are moving as quickly because everybody feels a little bit but the pricing itself is not changing dramatically to change the equation or get more properties moving. Exactly prices have been in the low-rise market. Sales are very low. Inventories pretty typical, but sales are, you know, 30% below where they normally are in the condo market listings are actually a pretty much an all-time high. Large the because we're seeing more investors x about market because the numbers don't work well to be a condo investor winter paying 5 plus percent on your mortgage. So I guess the so everyone's going to watch what happens with interest rates. That's one of the consider want one of the factors to consider. Yeah, absolutely, because the high rates now are making it tougher for buyers to actually get into the market at these prices. It's making it harder for investors to finance their units when they're paying 5%. So it's, it's impacting both sides of the market. So how does this on that out? I mean, especially with this more dramatic trend of people. I mean, you said not just moving

to a different from the most expensive cities, but moving at a country. Yeah, definitely starting to see that it will have to see how this plays out. I mean, the federal government's looking at decreasing non permanent so inferior population growth should go from 1.2 million people per year. Now to 300,000 a year from now. That will in theory take some pressure off of house price growth and ranked growth. And ideally, you know, keep people more on the province what else. What else is you'll be watching when it comes to the housing market, kind of for the rest of the spring selling season. What are some of the trends that are really catching your? I think the big once what's going on in the condo market. Again, we're seeing a lot of new listings that the market work and have a record number of completions. This is we've been seeing a decline in rents since august. That's likely to continue, which is going to make it even harder for investors to hold on to those units, especially ones who bought recently are this year. How happy is so it and how much of that market is. Influenced by investors as opposed to people who buying as slices significantly be as most new condo completions were bought as an investment. Most of those people are renting them out. And again, if you think about, you know, who's the purse first person to kind of pull the cord and starts on their properties when rates are high, it's usually ivestors single family homeowners are not going to sell their family home. So this is why we're seeing a big increase in the number of listings in the condo market right now. It's kind of interesting to have this conversation with you while simultaneously having a conversation with an economist earlier about a resilient canadian economy. The fact that people are still spending, that there should be some wiggle room for the bank of canada, not to lower interest rates. And yet we've got this elephant out there, which is a complicated one and it's not a today story only. It's a story over the next 5, 10 15 20 years, but it is a complicated, complicated story and one that impacts us as individuals that impacts the economy plaques. The political dynamics as well, especially women, especially if we start thinking about, you know, condo starts and completions and housing starts and completion is going to be trending down. That's going to be putting pressure on on jobs and of course, on the housing market. All right, jon, thanks for much for the breakdown. So it's good to get your take jump cells. Joining us here in studio. He's president of realosophy realty. When we come back, we're going to talk a little bit more about the tensions at td with that anti-money laundering probe story that's been hurting its stock price will talk a little bit more about enforcement efforts in this country as well. And what we're seeing on the ground and some possible new changes for the banking industry monitoring, that's next. Energy Fuels, a leading American uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. Energy Fuels. For over 25 years, Trez Capital has contributed to the financial success of our investors as leaders in North American commercial real estate investments with proven expertise, we uncover the best opportunities and invest in today to build a better tomorrow. In an ever changing market, invest in the essentials because there was always a need for multi residential, warehousing and logistics, essential retail, and renewable infrastructure assets. Build your client's portfolio with an investment strategy grounded in the needs of Canadians. Access tax efficient, institutional quality hard assets backed by a track record of steady performance and consistent distributions. Contact a Skyline Advisor today. The world of investments is growing, offering more alternatives than ever. ( ) Choose an alternative that invests, in what's here to stay. ( ) Things you can see and touch. ( ) Things that are part of our everyday lives. ( ) Avenue Living brings a different approach. ( ) One that's steeped in history, experience, and trust. ( ) Choose a proven alternative. Talk to your advisor about Avenue Living today. ( ) Get all the benefits of a bond and more in an exchange traded fund. Introducing the td Target Maturity Bond ETFs a new suite of fixed income investment solutions that are designed to act like individual bonds, providing income and final payout on specific maturity dates with the added benefit of liquidity, diversification and professional management from a leading asset manager in Canada. Td Target Maturity Bond ETFs. Closed captioning of this bnn Bloomberg Program is brought to you by Scotia iTRADE. Everything you need to direct invest. Scotia iTRADE. It's every investor's dream.

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