With the latest average sale price in London, Ont., sitting well above $500,000, it’s easy to see why buying a home may be a daunting task for those making their first venture into real estate.
On top of soaring prices, buyers are also contending with competitive bidding wars and everything that comes with the COVID-19 pandemic.
Kathleen Bunt was able to come out the other side with a place to call her own in the east end of town, but the 26-year-old first-time buyer says finding her home was far from easy.
With a budget in the range of $300,000, Bunt sought a starter home that wouldn’t require a lot of work. This led Bunt to viewing more than 10 houses before deciding on her home.
“This was my first time buying a house, so I’ve actually never seen what the real estate market looks like when COVID-19’s not around,” said Bunt.
The first-time buyer said pandemic-related health guidelines forced sellers to provide tight time blocks for showing their homes to potential buyers.
“If you were even five minutes late to your showing you would lose it,” said Bunt.
“When I was buying, there was like 30 people coming to see a house in one day and by the end of day there were already offers coming in on the house, so you literally had an hour to decide if you wanted to buy the house or not.”
On top of time constraints, Bunt says current trends with offers made bidding on a home a very serious matter.
“(Offers) have to be non-conditional on anything, so you have to have your financing ready to go, you have to make sure you’ve done some sort of home inspection because if you make it contingent on a home inspection, they’ll take another offer,” said Bunt, adding that of the more than 10 houses she viewed, she only made an offer on two.
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The home Bunt eventually settled on came into her hands after she outbid six other potential buyers all making offers on the same day.
“(My real estate agent) had a background in construction, so we felt comfortable forgoing the home inspection… We went kind of as high as we could go because we really didn’t want to lose this house,” said Bunt.
Even with the end in sight, Bunt still ran into issues that almost shut the door on her first home purchase.
“When it actually came down to the buying, I had a big issue with my mortgage lender and things got pushed to the end of the day,” said Bunt.
“We literally had 10 minutes to spare when I got my offer.”
Kathleen Bunt’s new home in east London.
Kathleen Bunt / Supplied
Bunt’s story is far from unique compared to what’s been seen in the London-area real estate market.
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Jeremy Odland is a sales representative with the Odland and Blair Real Estate Group, which operates under Royal LePage Triland Realty.
Odland says September marked one of the busiest months he’s seen and painted a dire picture for first-time buyers.
“We actually took offers for a property that is ideal for first-time buyers (on Monday) listed at $375,000. We ended up with 21 offers and it sold for $90,000 over asking,” said Odland. “Unfortunately, that leaves 20 first-time buyers who are now very disappointed and still out there looking for that perfect home.”
With first-time buyers forced to sift through so many houses, Odland worries it may lead to buyers settling on a less-than-favourable purchase.
“It’s kind of causing a little bit of panic for some buyers… The most that I’ve had one particular client lose out on was 17 offers before they finally got a home.”
A common tactic for those failing to secure a home in London is to make a purchase in surrounding towns and cities, where prices tend to be lower, but Odland says that strategy may not always work.
“When Toronto has a crazy market, it drives Toronto-buyers out of Toronto… Now that London is so hot, we’re seeing that same trickle-down effect here,” said Odland.
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“It used to be Ilderton or Kilworth was kind of where you could get a bang for your buck, but now they’re really as expensive as London, so people are kind of going further and further.”
3:54 Real Estate: how to compete in the housing market
Real Estate: how to compete in the housing market
On top of a competitive market, buyers also need to be more prepared than ever when it comes to seeking a mortgage.
That’s according to Michael Mullis, a local accredited mortgage professional with more than 10 years of experience in the industry.
“You can’t just take the mortgage company’s word for it any more it seems, you really need to educate yourself and know what is going to get you the mortgage and possibly what may hold you back from getting the mortgage,” said Mullis. “The less conditions, the better.”
Mullis warns buyers should also be aware that pre-approved mortgages are not a guarantee, adding that he had two clients as recently as Tuesday report having pre-approved mortgages denied last minute.
“Basically, look at this way: ‘Here’s what I want to do, is there anything that could stop me?’ Don’t paint a pretty picture, if anything, go through things that could go wrong.”
5:47 Homebuyers 101: Mortgage Pre-Approval
Homebuyers 101: Mortgage Pre-Approval
September brought in record numbers for the London and St. Thomas Association of Realtors (LSTAR).
With 960 homes exchanging hands, the month saw sales jump 25 per cent from the same time last year. It also marked the busiest September since LSTAR began tracking data in 1978.
LSTAR president Blair Campbell says the busy market stems from transactions that had to be put off early in the pandemic.
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“We’ve had the buyers that probably would’ve transacted during the April and May period just move the timing,” said Campbell. “Really, it’s just a shift in when that volume is taking place.”
The average sale price of homes for September 2020, according to the London and St. Thomas Association of Realtors.
London and St. Thomas Association of Realtors
The average price for homes in the region also shot up to nearly $522,000, which is nearly double the price seen at the same time five years ago.
Campbell says this is partly influenced by the pandemic, with stay-at-home orders emphasizing the importance of a home.
“We have a number of buyers that are looking for more space than what they currently have,” said Campbell.
Rural areas are also seeing a spike in prices, with Elgin County’s average sale price sitting just under $500,000 while Middlesex County’s average stands just over $575,000.
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“That’s a little bit of a pandemic-effect as well, where people are looking for less populous areas… either smaller towns or country properties where they’ve got more space, their neighbours are a little more spaced out,” said Campbell. “If you’re working from home, the commute’s no longer an issue.”
For those looking to make a purchase, Campbell says it’s important to be prepared for offers to fail and have a place to live in the meantime.
“If you’re not the person who gets that property, say, ‘well we’ll move onto the next one.’ That’s kind of the mindset you need to have in order to be successful,” said Campbell.
“It is a tough time, so I certainly sympathize with the first-time buyers right now.”
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.
