Houses with real estate signs are pictured in Leslieville, Toronto, on Tuesday, October 12, 2021. (Christopher Katsarov/The Globe and Mail)
Christopher Katsarov/The Globe and Mail
The whole neighbourhood hears about it when real estate alchemy causes one house in the area to sell for an outrageously high price.
Some properties just seem to hit a sweet spot during a week when lots of buyers are out, says Scott Hanton, broker with The Weir Team Brokerage Inc. in Toronto.
Those deals are a fluke, Mr. Hanton says and the sale price should be looked as a one-off.
He sees the pitfalls first-hand when nearby homeowners incorrectly believe that their property should sell for the same amount or higher. When buyers give in to these egomaniacal and ridiculously lofty expectations, prices shoot up and kill affordability for everyone else, he says.
“It is insanity,” says Mr. Hanton, who has been involved in deals recently that he predicts will skew real estate values from downtown Toronto to Ajax, Ont. “It’s really hard to get sellers to come down from those heights and it makes it really hard for the buyers.”
Mr. Hanton says homeowners often believe their house is special but the determination to set a new high water mark every time is stronger than ever.
“This has been a dominant theme this year more than any other year I can recall in real estate,” he says.
In the Ajax deal, Mr. Hanton represented buyers who wanted to buy in a very specific quadrant. When a house arrived on the market with an asking price around $999,000, the clients decided it would suit them perfectly.
Mr. Hanton advised them to step up with a tempting bully offer right away, rather than wait for the offer date one week later.
The clients submitted a bid of $1.275-million.
“Although we offered well, well, well over the asking price, the seller came back and said, ‘I want an even more ridiculous amount.’”
The seller wouldn’t budge from $1.3-million, says Mr. Hanton, so his clients paid it.
“The problem with that is, his neighbours are going to think their house is worth that,” he says. “I feel sorry for all the other buyers.”
Mr. Hanton says the homes in the area are very typical suburban homes that were trading for $1-million at the end of last year, then jumped up to $1.2-million during the heated days of January, February and March.
“My buyers just paid 1.3. It really makes the market crazy.”
Mr. Hanton has seen a slew of deals recently where an appraiser determines that the sale price exceeds market value. In those cases, the lender typically requires a larger down payment to bridge the gap.
“There’s no bank in the world that’s going to appraise this house.”
His clients have the flexibility to come up with more cash but many buyers don’t.
“They can get in way over their heads.”
In East York, Leslieville and other popular Toronto neighbourhoods, house hunters seeing such eye-watering prices are feeling a lot of frustration and fatigue, Mr. Hanton says.
“I think a lot of the buyers are just mentally exhausted.”
He has worked with one couple who need to take a break after losing out in too many bidding contests.
“That was so emotionally draining that they’ll pack it in for the rest of the year.”
Others are thinking more seriously about leaving the city all together, he says.
But while the outlier sales and lack of supply send prices shooting up, Mr. Hanton cautions that the market has been very halting recently.
“The fall market really was slow for a lot of people,” he says. “I’ve been warning all of my sellers that it’s so unpredictable.”
National Bank of Canada economist Daren King notes that sales in the Greater Toronto Area edged up 0.7 per cent on a seasonally-adjusted based in September from August but supply melted.
Compared with September, 2020, sales dropped 18 per cent last month.
Seasonally adjusted listings dropped 5.3 per cent at the end of September from August. That marks the seventh consecutive monthly decrease and the lowest level since February, 2017, Mr. King says.
“The lack of supply, which certainly accounts for some of the market slowdown in recent months, will continue to have an upward effect on home prices in the months to come,” he says.
Mr. Hanton has been working with one seller recently who is suffering from the same syndrome of wanting a price based on what the neighbour’s house sold for.
In this case, the property near Don Mills Road and Sheppard Avenue has been on the market for about two months with an asking price around the $2-million mark.
“The seller feels he should just sit tight and maybe he’ll get his number – and maybe he will,” Mr. Hanton says. “It’s the classic, stubborn Toronto seller.”
A lot of sellers have great houses, Mr. Hanton says, but they are often very specific to that seller. The ones that spark intense competition appeal to a broad range of people.
“Once sellers get a number in their head, it’s very hard to get it out,” he says.
If sellers are holding out for $2-million and receive an offer for $1.8-million, for example, they believe they are giving up $200,000.
That’s a misguided perspective, Mr. Hanton explains, because they’re not losing anything.
“It’s hard to get them to overcome that – they never had $2-million on the table,” he says.
Mr. Hanton says more listings are coming after the long weekend for buyers who do have the fortitude to carry on.
He will be listing a semi-detached home in Georgetown, Ont., for $899,000, but he will let the market dictate the sale price.
The house is in the historic part of town and has been converted from a larger property.
“It’s a very unique one. We’ll see what $899,000 gets us.”
Mr. Hanton decided to have a public open house for a three-bedroom house listed with an asking price of $989,000 near Woodbine Avenue and Danforth Avenue over the Thanksgiving weekend. No one currently lives in the house, he says, so his team was hosting an open house for the first time since they’ve been allowed after pandemic measures closed them down.
“The year has been so unpredictable, we’re trying new things,” he says.
Elli Davis, a real estate agent with Sotheby’s International Realty Canada, says some agents prefer to launch new properties after Thanksgiving because they believe buyers will be out of town during the long weekend.
But Ms. Davis likes to make new listings available because lots of people stay in town and they have extra time, she says.
“Still people are not travelling as much as usual,” she adds.
Ms. Davis was also testing out the appetite of buyers for a return to open houses.
Ms. Davis says agents have been discouraged from holding open houses during the pandemic and serious buyers were more likely to make an appointment.
But she believes the tradition is making a comeback.
“I think the agents are really going to open up the public open houses.”
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MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
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