The two-bedroom penthouse condo at 138 Princess St., in Toronto was priced at $949,900, but ended up selling under asking for $915,000.Jordan Prussky Photography
The pace of the Toronto-area real estate market feels slightly more energetic in January as some aspiring buyers take tentative steps away from the sidelines.
“Showings are increasing – that’s a good sign,” says Christopher Bibby, broker with Re/Max Hallmark Bibby Group Realty. “I’m starting to see second and third showings. This is a sign of improvement.”
Prices softened over the fall, and sellers willing to price their house or condo realistically were able to strike deals during December and early January, he says.
“The sooner we come to terms with the fact prices have come down, the sooner we’ll see more transactions,” says Mr. Bibby.
In December, the average price in the Greater Toronto Area stood at $1,084,692 compared with $1,119,428 in September.
The average condo price in the central 416 area code dipped to $709,283 in December from $732,106 in September.
Mr. Bibby says some sellers became more willing to work with offers on the table as the fall wore on.
One set of buyers wrangled for several weeks to purchase a detached house at 78 Clonmore Dr. in Scarborough listed for 52 days with an asking price of $2.588-million.
Three days after Christmas, the buyers signed a deal for $2.275-million for the four-bedroom house.
“I think everyone was trying to establish where we were,” Mr. Bibby says of the lengthy negotiations.
With signs of renewed interest from buyers, Mr. Bibby listed two condo units for sale during the third week of January and sold both within seven days. He set asking prices that were in line with the market but slightly above the amount the seller was hoping to achieve.
“We were of the mindset we would need wiggle room.”
At 138 Princess St., Mr. Bibby set an asking price of $949,900 for a two-bedroom penthouse in the building’s south-west corner. The unit sold for $915,000.
“People are being budget-conscious in the market and don’t want to overpay,” Mr. Bibby says. “It’s very important for buyers to feel they’re getting just a little bit off.”
He adds that potential buyers who have been waiting on the sidelines are reading real estate forecasts predicting that prices will begin to rise again during 2024.
“A lot of buyers want to make a decision before the tipping point,” he says, adding that many potential buyers are taking note of optimistic outlooks based on the assumption that the Bank of Canada will cut its benchmark interest rate in the spring.
Jimmy Molly, real estate agent with Chestnut Park Real Estate Ltd., notes that last year the GTA tallied its worst year in sales since 2000.
The Toronto Regional Real Estate Board reported 65,982 sales through its Multiple Listing Service last year.
Mr. Molloy points out that the low number of transactions comes despite a surge in population growth in the past decade.
He believes there’s a large amount of pent-up demand that will be released once potential buyers feel more confident that the market has reached a floor on prices.
The decrease in prices in the GTA since the peak in February, 2022 follows a strong run-up during the early years of the COVID-19 pandemic.
“A lot of that COVID premium has been taken out of the market.”
Christopher Bibby, the listing agent for the Princess St. condo, pursued a pricing strategy with two condo listings that involved setting asking prices that were in line with the market but slightly above the amount the seller was hoping to achieve.Jordan Prussky Photography
But that dip also discourages homeowners who are thinking about listing, he adds.
“There are sellers for sure who think this is not the time to give away their property.”
As more listings arrive with the start of the spring market, buyers will become more engaged, he says.
“Inventory gets people’s attention.”
Farah Omran, senior economist with the Bank of Nova Scotia, warns that December’s surprise jump in sales does not necessarily indicate the beginning of a potential rebound in response to the Bank of Canada cuts that many industry players and consumers are anticipating.
Last year, sales across Canada came in 11.1 per cent below their 2022 level, listings dipped 7.7 per cent and the average price dipped 3.6 per cent in the same period.
Ms. Omran points out that speculation about the Bank of Canada’s moves – and not just the policy announcements themselves – had a large impact on the country’s housing market last year.
After the Bank of Canada paused its rate hiking campaign in December, 2022, financial markets began pricing in rate cuts in 2023, which translated into a reduction in fixed rates, she notes.
This enticed buyers who had been on the sidelines as rates increased and prices declined to return to the market. Those buyers had amassed larger down payments during the slowdown, she adds, and were therefore equipped to join the market once signs of the end of the correction emerged, encouraged by the widespread conviction that cuts were imminent.
A resurgence in activity led to a premature end to the correction, which posed challenges for the Bank of Canada and its efforts to slow down the economy and bring inflation back to its 2 per cent target, she explains.
“This in large part was behind the June and July hikes, following which, housing activity tapered off and began declining again.”
The cost of borrowing rose, Ms. Omran notes, but she believes the bigger driver of the downturn that followed was the uncertainty created by the central bank’s signalling that a pause is not a guarantee of an end.
Sales slowed as the lack of clarity about the future of rates, inflation and economic activity dawned on potential buyers, she adds.
In the second half of 2023, still-lofty prices, high borrowing rates and an unpredictable outlook for the economy pushed buyers to the sidelines.
Looking into the coming months of 2024, Ms. Omran expects the housing market to be buffeted by changing forces.
She notes that the pent-up demand amongst buyers may draw some out even before the Bank of Canada begins cutting rates as they try to snag a fixed-term mortgage with a lower rate – along with the lowest house price they can lock in before the next upswing.
But buyers may face headwinds in the form of a slowing economy and an uptick in unemployment.
A countering force could come from inflation and the Bank of Canada: “If the resulting return of activity occurs too fast and too strong for comfort, whereby upward pressure on prices reintroduces inflationary pressures, the Bank of Canada might consider hiking again.”
Mr. Bibby sees another possible dynamic: he wonders if supply will swell at the first sign of strength. Many homeowners who tried to sell their properties in the fall were unsuccessful, he points out, and some will list again when they see signs of a rebound.
At the same time, many homeowners who have been putting off listing so far are pondering a move, and the usual spring bump in listings may take place.
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.
