22 Forest Ridge Dr., Toronto was recently sold by broker Andre Kutyan. The asking price was$5,499,000 and it sold for $5,618,018.The Print Market
If you ask realtors and economists, they’ll tell you the spring real estate market has been surprisingly robust compared to expectations. It’s only when you zoom in on submarkets that the more troubling trends appear.
For example, the Toronto Regional Real Estate Board (TRREB) reported just 647 detached home sales in the city of Toronto in March, 2024 – that’s the lowest number of detached home sales in any March in at least 25 years; lower than any March on TRREB’s publicly available MarketWatch archive, which only goes back to 1996.
Despite that, the prices of those homes hit an average of $1,708,437, up slightly from the year before (0.4 per cent) and there were more sales of all types in March than in February.
The overall picture has economists reaching for intangibles as a way to explain it. At least, that’s what TD Bank economist Rishi Sondhi appeared to do in his April 8, housing report that noted “favourable weather conditions” were among the factors for why the first quarter of 2024 has been stronger than the bank’s December forecast. Mr. Sondhi also said a release of pent-up demand helped explain why B.C. and Ontario saw sales increase so far in 2024 (the caveat that the overall transactions in the provinces are still 20 to 30 per cent below the long-term trend) even while prices fell or stayed flat in those regions.
“March was a weird month,” said Andre Kutyan, broker with Harvey Kalles Real Estate Ltd. He notes March break and then Easter late in the month ate into the number of days available for showings, though activity sprang back starting April 2. “In the last couple weeks, I listed 11 properties and sold eight, many in multiples, and for stuff listing from $675,000 up to $5.5-million, which was not set up for multiples.”
The return of bidding wars appears to have taken some buyers by surprise.
“Fundamentally, buyers do get frustrated when they have to compete,” said Cailey Heaps Estrin, broker of record for the Royal LePage Real Estate Services Heaps Estrin Team. She said it appears that sellers have realized they may have to let go of their hopes for a repeat of 2022′s out of control prices. At the same time, buyers are realizing they may have to make more than a rock-bottom offer. “Buyers really felt they were in the driver’s seat. Now, I’d say their mindsets are aligning a little more,” she said.
The return of bidding wars is spread all over the Greater Toronto Area (GTA), according to data released by real estate app Wahi.
In March, 43 per cent of the 400 neighbourhoods Wahi monitors in the GTA were in “overbidding” territory, up from 25 per cent in February. Wahi’s metrics are based on median prices (so outlier bidding wars don’t skew the numbers) and anything 1 per cent above asking is an “overbid” with vice versa for underbid. The amount in balance is in the single digits, so the remaining 51 per cent of Wahi neighbourhoods underbid.
“The price point where there is overbidding has moved upwards, in the last four or five months,” said Wahi CEO Benjy Katchen. “It was a common theme in the neighbourhoods that had the cheapest price points … it was right around a million and a million-five,” he said. In 2024, the overbid price began to move north of $2-million, with a lot of activity in the 905 suburbs of Toronto. “These are all detached home neighbourhoods in the suburbs – Markham and Richmond Hill – locating near excellent schools is the common theme.”
One category not in overbid territory is condos. Only 14 per cent of neighbourhoods saw condos achieve a median overbid.
That’s not surprising when the glut of inventory is taken into account. TRREB’s data shows 4,460 condo apartments and townhouses were actively listed for sale in March, (a thousand-plus more than in 2023) which is the highest level of resale inventory since 2015. That doesn’t even account for thousands of new-build condos coming to market as many are struggling to find buyers. The assignment segment – where investors buy preconstruction condos intending to sell them before the building is completed – is particularly fraught.
“There’s a pretty vast assignment market right now,” said Robert Van Rhijn, broker of record for Strata.ca. “Often the assignors are struggling on the profit end, some of them are even underwater. Our buyers are getting great deals, they are certainly buying at market per square foot, or below market.”
Mr. Van Rhijn isn’t an active agent any more, but his team of realtors tell him anecdotally there’s about a third of condo resale listings in a very similar position.
“About 30 per cent are consistently the same story: an investor that owns multiple units and they are cash flow negative on the rent. Each month bleeding $300 to $500 and they see the stock market is doing well, so they are losing interest,” he said. “They are not being terribly realistic on price, and the market is not responding with an offer, so a number of these sellers have pulled their listings.”
Where he sees condo bidding wars is in unique properties, loft spaces or other buildings that eschew the cookie cutter of newer-build high-rises.
The combination of these threads makes for a somewhat confused picture where some buyers are finding deals and some sellers are cashing out over asking, depending on what’s for sale and where.
“I think Toronto is a bunch of micro markets, they act all very differently,” said Mr. Kutyan.
If there is one unifying theme for buyers it’s a slight uptick in tolerance for higher mortgage rates, with house hunters plunging in with the expectation that better times surely have to be ahead.
“Some of our clients are going variable with the expectation rates will drop within a year,” said Ms. Heaps Estrin.
Indeed, TD’s Mr. Sondhi said “We think the Bank [of Canada] will begin cutting their policy rate in July,” but where he differs from the realtors is his expectations that prices will automatically begin to upward climb once that happens. While TD expects the Prairies, Quebec and the Atlantic provinces will see continued price growth “a brutal affordability backdrop should restrain price growth to the slowest in the country” in Ontario and B.C. That price condition does help explain the historic dearth of detached home sales in Toronto, given the average prices remain historically, perhaps brutally, high.
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.
