Real eState

The demand-supply conundrum in real estate

Published

1 year ago

September 8, 2023

Bellwoods House is a new 14-storey, 325-unit condo and townhouse development by Republic Developments now in preconstruction at 111 Strachan Ave. in Toronto.

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In addition to housing, we need the infrastructure necessary to provide the quality of life we enjoy for everyone

Recently, Prime Minister Trudeau spoke about the housing crisis in Canada. He mentioned the National Housing Strategy his government initiated in 2017 but added that housing is far from a primarily federal responsibility.

He stressed that provinces and municipalities must step up to help solve our demand-exceeding supply problem. And a problem, it is – and will continue to be as our population explodes.In June, we surpassed the 40 million milestone, and we could hit the 50-million mark in the next 10 years! It begs the question, where are these people going to live?

In the spring, I watched an interesting podcast addressing Canada’s population surge and the challenges it places on our real estate industry.

Last year, we welcomed more than a million newcomers into Canada, an all-time high in a single year.

Many of the immigrants who land in Canada head for our cities. Today in the GTA alone, nearly four of every five residents are first- or second-generation newcomers.Of course, immigration is important to our country to counteract our low birth rate and aging population and help to replenish our labour force as baby boomers retire.

Immigrants add dynamism to our economy and social cohesion for an increasingly diverse make-up. In addition to housing, we need the infrastructure necessary to provide the quality of life we enjoy for everyone.

We need more social and community services, parks, hospitals, schools and the like. The conundrum is that we need more skilled workers to build homes and infrastructure, but as we welcome hundreds of thousands more immigrants each year, we need even more homes and amenities.

Certainly, with our three levels of government responsible for varying aspects of our lives, we must rely on more coordination to ensure that housing needs are being met.Provinces and municipalities could help more by streamlining the paperwork and red tape that goes into obtaining approvals for new home builders.

Although municipalities and provinces must act, so, too must the federal government do more, especially to address affordability.

David Wilkes, President and CEO of the Building Industry and Land Development (BILD) Association, wrote that the federal government could help by adjusting price thresholds for the GST/HST new housing rebate program as promised, which would have an immediate positive effect.

In the interim, we may have to rely on alternative housing delivery models to satisfy the needs of renters and others who may not be able to afford market homes or condos.We also need more low-rise homes for seniors who want to age in place. The answer may be to bring in some public-private initiatives that have worked in the past.

With the influx of immigrants, our built environment had better expand in a hurry. Whatever happens, owning real estate in Toronto and the Greater Toronto Area is a solid investment, whether you live in it or rent it out.

Barbara Lawlor is CEO at Baker Real Estate Inc. Keep current with The Baker Blog at blog.bakerrealestate.com

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Real eState

National housing market in ‘holding pattern’ as buyers patient for lower rates: CREA

Published

19 hours ago

September 16, 2024

Anne Joseph

OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.

The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.

On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.

CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”

The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.

The number of newly listed properties was up 1.1 per cent month-over-month.

This report by The Canadian Press was first published Sept. 16, 2024.

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Real eState

Two Quebec real estate brokers suspended for using fake bids to drive up prices

Published

6 days ago

September 11, 2024

Anne Joseph

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.

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Real eState

Montreal home sales, prices rise in August: real estate board

Published

2 weeks ago

September 6, 2024

Anne Joseph

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.

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