So, what the Liberal government of Ontario has done for electricity, they are now doing for housing:
Ontario’s Fair Housing Plan introduces a comprehensive package of measures to help more people find affordable homes, increase supply, protect buyers and renters and bring stability to the real estate market.
The roots of the housing price boom are:
- low interest rates
- an explosion of CMHC guarantees, and
- unsatisfactory stock market returns
I don’t see anything in the plan that addresses any of that.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4083 % | 2,147.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4083 % | 3,940.1 |
| Floater | 3.55 % | 3.65 % | 44,980 | 18.19 | 4 | -0.4083 % | 2,270.7 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1304 % | 3,023.7 |
| SplitShare | 4.94 % | 4.15 % | 54,223 | 0.62 | 6 | -0.1304 % | 3,610.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1304 % | 2,817.4 |
| Perpetual-Premium | 5.28 % | -6.10 % | 74,238 | 0.09 | 23 | 0.1816 % | 2,787.3 |
| Perpetual-Discount | 5.08 % | 5.07 % | 108,450 | 15.33 | 13 | -0.0032 % | 2,997.3 |
| FixedReset | 4.38 % | 3.96 % | 235,704 | 6.64 | 94 | 0.1465 % | 2,360.8 |
| Deemed-Retractible | 4.98 % | 4.49 % | 144,737 | 0.10 | 31 | 0.1426 % | 2,892.5 |
| FloatingReset | 2.55 % | 3.11 % | 56,094 | 4.51 | 9 | 0.2146 % | 2,540.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.T | FixedReset | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-20 Maturity Price : 22.76 Evaluated at bid price : 23.13 Bid-YTW : 3.75 % |
| MFC.PR.N | FixedReset | 1.29 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.01 Bid-YTW : 5.51 % |
| TRP.PR.F | FloatingReset | 1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-20 Maturity Price : 19.11 Evaluated at bid price : 19.11 Bid-YTW : 3.29 % |
| MFC.PR.M | FixedReset | 2.19 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.98 Bid-YTW : 5.60 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.C | FixedReset | 360,183 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.83 Bid-YTW : 3.91 % |
| TD.PF.D | FixedReset | 150,378 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-20 Maturity Price : 22.55 Evaluated at bid price : 23.24 Bid-YTW : 4.04 % |
| BAM.PR.X | FixedReset | 102,113 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-20 Maturity Price : 16.99 Evaluated at bid price : 16.99 Bid-YTW : 4.22 % |
| RY.PR.M | FixedReset | 62,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-20 Maturity Price : 22.42 Evaluated at bid price : 23.08 Bid-YTW : 3.96 % |
| IAG.PR.G | FixedReset | 56,850 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.05 Bid-YTW : 5.18 % |
| BAM.PR.T | FixedReset | 45,769 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-20 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 4.26 % |
| There were 40 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| EML.PR.A | FixedReset | Quote: 26.62 – 27.09 Spot Rate : 0.4700 Average : 0.3239 YTW SCENARIO |
| PWF.PR.T | FixedReset | Quote: 23.13 – 23.43 Spot Rate : 0.3000 Average : 0.1998 YTW SCENARIO |
| BNS.PR.Z | FixedReset | Quote: 22.12 – 22.45 Spot Rate : 0.3300 Average : 0.2339 YTW SCENARIO |
| TRP.PR.H | FloatingReset | Quote: 13.87 – 14.14 Spot Rate : 0.2700 Average : 0.1913 YTW SCENARIO |
| TRP.PR.J | FixedReset | Quote: 26.82 – 27.10 Spot Rate : 0.2800 Average : 0.2024 YTW SCENARIO |
| GWO.PR.N | FixedReset | Quote: 16.05 – 16.30 Spot Rate : 0.2500 Average : 0.1734 YTW SCENARIO |
Short, sweet and to the point. That’s why i love reading this blog.
To be honest none of the causes listed by James, which are correct, depend on provincial government. What is shocking looking at the “Growth in number of rental units, Toronto” graphic in this column (second graphic in this column) http://www.theglobeandmail.com/real-estate/toronto/ontario-housing-16-big-changes-explained-in-charts/article34757648/ is that no new apartment or row house have been built in almost 20 years though there are 100k immigrants coming every year in GTA.
Same problem in Vancouver. Lots of new arrivals and almost no new rentals.
Now that rents have soared, new rental apartments are being built. Although increased supply will help, the new apartments are too expensive for most people. One tower across from city hall was recently renovated. They are advertising new apartments (not really new but fully renovated). One bedrooms start at $2,800/month. These apartments are less than 450 sq. ft. From what I was told by a realtor they are able to get these rents, but no one I know could afford that.
To be honest none of the causes listed by James, which are correct, depend on provincial government.
Sure. Which is why any attempt to fix the problem – such as it is – with the Province’s tools is doomed to failure. I have no problem with them tinkering with related legislation to reflect changing circumstances, but basically they should leave well enough alone.
One thing they could do is lean on the municipalities to raise property taxes. This is a step that will have to happen eventually, but they’ll probably try a combination of “Foreigners’ taxes” and vacancy taxes until these measures, their special cases and exceptions start to collapse under their own weight.
What is shocking looking at the “Growth in number of rental units, Toronto” graphic in this column
Yes – that struck me forcibly enough that I highlighted it in the April 21 market report.
One bedrooms start at $2,800/month. These apartments are less than 450 sq. ft.
Holy Smokes, $2,800 for a bachelor’s? Time to move away … which, I understand, is exactly what a lot of people are doing.