It is almost eerie to think about how much has changed within the past month as our lives, economy, and the way in which we interact has been so profoundly impacted by the coronavirus pandemic as it creeps its way across international borders. There is a great deal of uncertainty as we continue to learn more about how the virus spreads, and how long precautionary measure, like social distancing, will need to be maintained to ensure the safety of the population.
Many within the real estate industry in Canada have already shifted the way in which business is conducted, opting for 360-degree tours and video walk-throughs in place of open houses. Agents are making use of electronic tools and apps to sign paperwork, to help limit exposure for the safety of their clients. Despite these concessions, the national market will certainly take a hit, as a number of buyers and sellers will put their real estate plans on hold until the crisis subsides. This begs the questions: what will be the extent of this hit? Are we as a country, heading towards a real estate market crash? While there is no definitive answer during this time of uncertainty, taking a look at the present (and some past) national economic and real estate trends can help us form some predictions about what the future holds.
Learning from History
Before diving into the current climate and trends, let’s first pause for a quick look back at the impact of the 2003 SARS epidemic, which hit Toronto with considerable force. The death toll of the virus was significant, and there was an enormous cost associated with the resources deployed to contain the spread. While the protection measures may not have seemed as extreme as the country-wide social isolation that we’re adopting today, there were still strict protocols implemented by Heath Officials within the city, such as discouraging handshakes and discretionary travel. Despite the challenges experienced by Toronto to contain the virus, the Canadian economy did not take a hit, and in fact the Canadian GDP grew by $134 billion in 2003, and while the Toronto housing market was expected to slow down as a result of the epidemic, housing sales data from that year show no signs of suffering. In fact, sales volumes increased, as well as average sale price, staying on the same trajectory as what was initially expected for that year.
Coronavirus, to date, has exceeded the global death toll of SARS, and we can expect that the economic fall-out will be more pronounced. However, using the SARS impact on the Canadian housing market as a baseline, there is hope that any dips will be moderate, and not long term.
COVID-19’s Mark on the Stock Market
The COVID-19 pandemic has dealt a fierce blow to the global stock market, sending it into a record-breaking nosedive at the start of this month, and increasing its volatility as a result. Still, economists say that so far, the virus’s impact on the global economy has only been moderate. Up until this point, housing markets across Canada haven’t yet shown signs of following the same trajectory as the stock market. For younger Canadians who were counting on their investments to help pay for down payments, this will mean pressing pause on plans to enter the market.
However, for those who have the money, real estate has never looked more enticing. In light of these precarious stock markets, those looking for a more sound area to invest their money are now turning to Canadian real estate. As a result, over the course of March, the volume of top-tier real estate properties (residential sales over $1 million) sold across Montreal, Toronto and Vancouver has soared. Should this trend continue, it may help to prevent any significant cooling of the Spring market.
Household Debt: Our Dirty Little Secret
Canadians, unfortunately, carry a heavy household debt burden. Canadian households have the highest debt of all counties in the G7, and savings rates remain at a 60-year low. This means, in a time of sudden financial hardship, like the global pandemic looming over our heads, there are limited funds for Canadians to dip into to weather the storm. Unemployment rates are climbing as a result of virus-related business closures, and it is uncertain whether the Government assistance being provided to Canadians will be enough to help sustain Canadians through any economic shocks.
The Bank of Canada cut the overnight lending rate by more than 1 full percent this month, an initial reaction to the pandemic, to help soften any market impacts. While this has made it easier for Canadians to secure a variable rate mortgage or a line of credit, it will be interesting to see over the next month or so, whether these low interest rates will entice a population which is already deeply in debt, and face much economic uncertainty in the wake of this crisis.
If demand does begin to wane over the next few months, this may lead to downward pressure on housing prices in markets across the country.
A Cool-down for Sizzling Prices? Not Yet.
February’s market reports only prove that most urban centres country-wide were headed into another hot Spring market, with record prices from coast to coast. While open houses are being cancelled, and buyer levels dropping, these factors alone would lead one to believe that a decline in prices is soon to follow. Speculators are saying, however, that we shouldn’t hold our breaths. What is more likely to happen, as a result of this public health crisis, is more of a levelling off, rather than significant dips. The prices have been climbing at such a steep, unsustainable rate, that they were bound to be reined in at some point. However, with levels of housing inventory so low in so many of the country’s hottest markets, it’s unlikely that any price change will be jaw dropping, or even noteworthy.
So, Will the Housing Bubble Stay Afloat?
A real estate bubble is driven by high demand, skyrocketing prices, limited supply, and unsustainable spending. To burst, or for a real estate market collapse to take place, there would need to be a stagnant demand, with an influx of supply, leading to a sharp drop in prices.
While little remains certain about the months ahead, based on the market’s reactions in the past, and the factors currently at play, is that Canada will likely come out of the Covid-19 crisis with markets across the country remaining relatively strong. While demand is expected to decrease as a result of the outbreak, there aren’t enough signs indicating an increase in supply, or any significant impacts upon price. The odds of a bursting bubble are low, at least in the short term.
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.
