The Weekly 411:

Today we're covering

🏡 Spring 2024 Market Update

💸 Canada Increases Capital Gains Tax

🏗 Housing Construction Drops in Toronto and Rises in Vancouver

🌎 Investment Opportunities at the International Property Show This Month 

💰 Homes Under 400K in Atlantic Canada

📈 Toronto Home Prices Set to Outpace Vancouver

Read Time: 3 minutes

🏡 Spring 2024 Market Update

• Home sales and prices in March were relatively flat compared to February 2024.

• Home sales increased slightly (0.5%) from the prior month but remained below the 10-year average.

• Home prices dipped by 0.3%

• Inventory remained consistent at 3.8 months at the end of March.

💸 Canada Increases Capital Gains Tax

• The federal government increased capital gains tax for individuals and businesses earning above $250,000 in capital gains annually.

• The inclusion rate rises from 50% to 66% (two-thirds), effective June 25th, 2024.

• The new rules increase tax complexity, with the potential for three different inclusion rates depending on the situation.

Why It Matters: The change disproportionately impacts middle-income Canadians who may own cottages, inherited properties, or larger landholdings. Increased taxes upon inheritance could force families to sell these properties to cover the tax bill.

🏗 Housing Construction Drops in Toronto and Rises in Vancouver

• Canadian housing starts decreased by 7% in the last month.

• Toronto experienced the most significant decline at 26%, driven by a drop in multi-unit starts.

• Vancouver saw a 27% increase in housing starts, fueled by a rise in multi-unit construction.

• Urban centers saw declines in both multi-unit (8%) and single-detached (4%) starts.

Why It Matters: Fewer new homes being built means less choice for buyers. This could make it harder to find your perfect home. If fewer homes are available while demand persists, prices will increase dramatically. This is good news for investors who already own property.

🌎 Investment Opportunities at the International Property Show This Month 

Discover international real estate opportunities at the Canada International Property Show on April 27-28th in Toronto! Explore exclusive global investment opportunities, helping diversify your portfolio and expand your professional network. 

Why You Should Attend:

• Connect with 100+ international developers

• Get expert advice on investing, mortgages, and citizenship through investment programs

• Discover exclusive property deals and on-site incentives

• It's free to attend! Learn more and get your tickets​

💰 Homes Under 400K in Atlantic Canada

Atlantic Canada emerges as a hotspot for affordable real estate, offering buyers value and consistent growth potential. 

Here's where you should be looking at:

1. Greater Moncton, NB:

   • Greater Moncton remains a top choice for affordable Canadian real estate, maintaining its position for the third year in a row with a benchmark price of $328,383

   • The average home price has increased 98% in the past 5 years

2. Saint John, NB:

   • Extremely affordable with a 2023 benchmark price of $286,592.

   • Consistent price appreciation: 48% increase since 2020 and 60% increase since 2018.

3. Fredericton, NB:

   • The benchmark price of $282,700 dropped 1% in the past year. 

   • However prices have increased 43% in the past three years

4. St Johns, NL:

   • Prices increased 3% in the past year to a benchmark price of $327,942.

   • In the past three years, prices have appreciated by 18%

📈 Toronto Home Prices Set to Outpace Vancouver

• A new Royal LePage report forecasts that Toronto could surpass Vancouver as Canada's most expensive housing market by the end of the year.

• Home prices in Toronto are expected to rise the fastest (10% by late 2024), with Montreal close behind (8.5%).

• Vancouver's housing market is less active, but prices are still expected to grow (5.5% by late 2024).

• Toronto and Montreal are predicted to see more significant price increases than Calgary this year.

🖼 Image of The Week

They say a picture is worth a thousand words. So we've decided to share one image every week that describes how we feel about the news that week.