Is Canada’s housing market starting to cool?

zoocasa-crea-may-2017

By Gordon Powers, Zoocasa.com

Special to FindependenceDay.com

Canadians’ confidence in the housing market hit an all-time high less than a month ago, but the mood across the country seems to have shifted significantly in recent weeks.

Home sales across Canada fell by 6.2 per cent in May 2017, largely due to a sharp drop in Toronto, according to the most recent figures from the Canadian Real Estate Association. The month-over-month percentage decline was the largest since August 2012.

In nearly two-thirds of all local markets across Canada, sales were off. The decline was led by a 6.7 per cent drop in the GTA, where potential home buyers seem to be moving to the sidelines, delaying their purchase decisions in the hope of a drop in runaway home prices.

Prices beginning to shift slightly

The national average price for homes sold in May was $530,304, up 4.3 per cent from where it stood a year ago. While that number has been pulled sharply upward by transactions in the GTA and Vancouver – excluding these two markets trims more than $130,000 from the national average price of $398,546 – there’s no question that prices have dropped off in certain areas of the country

Prices in the GTA declined in May for the first time in years, according to recent figures from the Toronto Real Estate Board.

While home prices in and about Toronto rose 14.9 per cent year over year, they were actually 6.2 per cent cheaper between April and May, the first full month-long period following the implementation of the Ontario Fair Housing Plan rules.

The TREB May resale numbers reveal GTA sales dropped 20.3 per cent year over year with detached home sales leading the slide at 26.3 per cent, Toronto condo sales backing off 6.4 per cent, and Toronto townhouse sales declining at 18.1 per cent. Read more

5 steps to a Victorious Retirement

Step 1, 2, 3, 4 and 5 numbers on blocks or cubes to illustrate instructions, guidance or priorities to follow

Who doesn’t want a Victorious Retirement?

Just in time for the long weekend and Canada’s 150th birthday, MoneySense.ca has just published a 5-part series on retirement, going from deciding what you want to working longer, the Ages & Stages by decade, being a snowbird, and finally what to do once you finally reached the hallowed land of Retirement/Findependence/Victory Lap.

Here’s a summary of each piece, and links to the full articles:

1.) The first step: What do you really want?

Take a custom approach to retirement planning. There’s no point fretting too much about retirement and how much to save if you haven’t first determined what you want to DO once you’re retired. For starters, how are you going to fill those 2,000 hours a year you use to spend in the office and commuting? Click here for full article.

 

2.) We live longer. Why not work longer?

Ask questions about a retirement plan that’s right for you. Life expectancies are on the rise: more and more Baby Boomers can expect to become centenarians and that probably goes double for their children, the Millennials. Makes sense to consider working a little longer, if only part-time. Or if you really dislike your chosen profession, go back to school or retrain and find something you’d really enjoy doing in your golden years: preferably something that pays! Click here for full article.

3.) Snowbird? Learn the “substantial presence” test

Learn the tax pitfalls of retiring to the sun in the U.S. It all depends on how long you plan to stay down south each year: the formula isn’t simple. If you don’t relish the thought of paying tax to two countries, you may want to make sure you’re not considered to have a “substantial presence” in the U.S.  Click here for full article.

4.) Your retirement plan has a life cycle

Retirement planning strategies for every age. Every decade from your 20s to your 70s and beyond should take you a little further along the journey to financial independence/Retirement. Just like we all share the same fate in our human life cycle, so it is with the financial life cycle. Click here for full article.

 

5.) Retirement planning —after you retire

The plan doesn’t stop when you stop working.

My co-authored book Victory Lap Retirement features on its cover what appears to be a sprinter breaking through the finish line of a long marathon. But that doesn’t mean we’re saying Retirement is a literal finish line and with it the end of striving and purpose. In fact, we’re saying a “Victory Lap” really only begins when you reach the “finish line” of financial independence, or Findependence.

There will still be a big adjustment as you move from Wealth Accumulation to the De-accumulation or “Decumulation” phase: less earned income and more passive sources of income. And you’ll need to master the tax aspects because Tax may be one of the biggest expenses in Retirement. Click here for full article.