💡 Canada's September Inflation & Stable Interest Rates

• September CPI: Annual price increase dropped to 3.8% from 4% in August.

• A 3-month average of underlying prices fell to 3.67%, indicating slower inflation.

• Goods inflation decreased by 0.3% from the previous month, the first drop since December 2022.

• Economists anticipate the Bank of Canada to maintain a 5% interest rate in its upcoming October 25th meeting.

🏠 Luxury Home Sales in Toronto Soar Amidst Rising Interest Rates

• Toronto's luxury real estate market experienced a summer rally, with residential real estate transactions over $4 million increasing by 37% year-over-year from July to August.​

• Single-family homes were the driving force behind the surge in luxury real estate sales, while overall residential sales in Toronto only rose by 1.5% during the same period.

• This summer rally in the luxury real estate market contradicts the trend of potential homebuyers being hesitant due to rising interest rates.

• Despite the real estate market cooling off, luxury properties continue to attract buyers, highlighting their resilience in the face of economic changes.

💸 Banking Regulators Reevaluate Mortgage Rule Changes

• Canada's banking regulator (OSFI) is reconsidering proposed tightening of mortgage lending rules.

• OSFI floated the proposals in January in response to increased risk around loans and borrowing.

• The measures included new stress tests, such as limits on mortgages where the loan exceeds 4.5 times the borrower's income.

• OSFI's decision not to implement new restrictions is a positive development, as it would have scaled back lending and reduced the number of mortgages available

• The specific details of the reforms are yet to be finalized. We're closely watching for further developments.

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🏘 Master Plan for Beltline Yards

• Hullmark and BGO plan a transformative 7.3-acre project called Beltline Yards in Toronto’s Caledonia and Eglinton area.

• There will be 2,000 residential units, retail, park space, and light industrial areas.

• Full project approval and shovel-ready status for the initial phase are anticipated by 2026.

🏢 101 Spadina: Devron's New 39-Story Condo Venture

• Devron Developments approved for 39-story condo project at Spadina Ave. and Adelaide St. West in Toronto.

• The project replaces a commercial building and relocates the public parking lot underground.

• Sales are expected to start in Q1 2024, with construction taking around four years. (see the project teaser here)​