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Homes in Canada’s real estate market for under $600K

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After reaching its peak of $816,720 in February, the average price of a home in Canada has dropped by more than $170,000. According to the latest data from the Canadian Real Estate Association, the average price of a residential property in October was $644,643, not seasonally adjusted.

Despite the lower price tag, most online searches among Canadian homebuyers are for properties that cost well below the national average. This is according to a new study by Point2 Homes, an online real estate search portal.

Out of five million searches performed on Point2 Homes in 2022, more than 75 per cent targeted properties with a price of $600,000 or less.

“Canadian homebuyers are tightening their budgets in the post-pandemic landscape of increasing prices, inflation and mortgage rates,” the report states. “The lower budget ranges speak volumes to the buyer’s perception of affordability in today’s housing market.”

Additionally, the most popular price range searched for by Canadians in 2022 was between $200,000 and $300,000. This represents less than half the average price of a home in Canada.

CTVNews.ca has compiled a list of houses and apartments in major cities that are listed for less than $600,000, falling below the national average price of a home.

VANCOUVER

(iShot / Thomas Albrighton, Macdonald Realty Ltd.)

Type: Leasehold apartment

Price: $375,000

Year Built: 1970

Property Size: 48.5 sq. m

Lot Size: N/A

This leasehold apartment in Vancouver features a large combined living and dining space connected to the kitchen, which has updated appliances. In addition to one bedroom and one bathroom, the unit also has a private patio offering views of the English Bay. The building has upgraded windows as well as an outdoor swimming pool and shared laundry space.

KELOWNA

(Kyle Sanguin / Shannon Styles, Stilhavn Real Estate Services)

Type: Apartment

Price: $549,500

Year Built: 1991

Property Size: 120.12 sq. m

Lot Size: N/A

Along with two bedrooms and two bathrooms, this corner apartment unit in Kelowna has a refurbished kitchen with quartz countertops, stainless steel appliances and vinyl plank flooring. The office space doubles as a sunroom, with large windows throughout. The building is a short drive away from Hot Sands Beach, and numerous restaurants are close by.

CALGARY

(Zoon Media / Chris Zaharko, Royal LePage Benchmark)

Type: House

Price: $559,000

Year Built: 1931

Property Size: 101.41 sq. m

Lot Size: 411 sq. m

Originally built in the 1930s, this updated character home is located in Calgary’s Bankview neighbourhood. It features three bedrooms and a four-piece bathroom with white tiles and cabinetry. The bungalow also has a sunken living room with vaulted ceilings, and its original wood-burning fireplace. Throughout the home are planked wood ceilings and hardwood floors.

EDMONTON

(Justin Grimm Photography / Mary Bark, Re/Max River City)

Type: House

Price: $379,000

Year Built: 1921

Property Size: 129.97 sq. m

Lot Size: 395.55 sq. m

Located in Edmonton’s Westmount neighbourhood, this three-bedroom, two-bathroom home is more than 100 years old. On the main level, the living and dining rooms each have maple hardwood flooring, while ceramic tile floors complete the foyer. In the upgraded kitchen are stainless steel appliances, new cabinets and cork flooring. The corner lot also has a fully fenced backyard with a deck.

REGINA

(Josh Piett, Hatch Media / Peter Fourlas, Coldwell Banker Local Realty)

Type: House

Price: $599,900

Year Built: 2013

Property Size: 146.79 sq. m

Lot Size: 426.24 sq. m

Large windows along the back of this Regina home allow plenty of light to seep in. On the main floor is a custom kitchen with two-tone cabinets, granite countertops, a tile backsplash and a corner pantry. Also on the main floor is a living room with a 19-foot ceiling and gas fireplace. Filling the rest of the home are three bedrooms and four bathrooms. The walk-out basement is fully renovated and at the back of the home is a covered balcony.

SASKATOON

(Lee Kolenick / Ellen Nasser, Boyes Group Realty)

Type: House

Price: $529,900

Year Built: 1916

Property Size: 135.64 sq. m

Lot Size: 389.54

This two-storey home in Saskatoon features two bedrooms, two bathrooms and a finished basement. On the main floor are hardwood floors and custom cabinetry, along with a built-in coffee bar near the kitchen, and a copper gas fireplace in the living room. Located in the city’s Nutana neighbourhood, near South Saskatchewan River, this home is just a short drive from downtown Saskatoon.

WINNIPEG

(Wayne Landgraff / Dylan Sacramento, BySell Real Estate Inc.)

Type: House

Price: $574,900

Year Built: 1895

Property Size: 156.17 sq. m

Lot Size: 278.71 sq. m

This Winnipeg home features a modern design, with exposed glulam beams and hardwood flooring. On the upper level is the main bedroom, with a unique three-piece ensuite and a private balcony. Filling out the rest of the property are two more bedrooms and two additional bathrooms, as well as an open-concept kitchen, living and dining area.

TORONTO

(Imaginahome / Chris Bresolin, Core Assets Real Estate)

Type: Apartment

Price: $518,800

Year Built: 1973

Property Size: 79.9 sq. m

Lot Size: N/A

With one bedroom and one bathroom, this fully renovated unit has a back wall made completely of glass. The updated kitchen includes a large island that seats three people, as well as custom cabinets and stainless steel appliances. In the bathroom is a custom shower enclosure with a new vanity and toilet. Situated in the Annex, the apartment is a short walk from transit stations, parks and other amenities.

OTTAWA

(Maya Desrosiers, London House Photography / Diana Sneddon, Royal LePage Team Realty)

Type: Townhouse

Price: $599,000

Year Built: 2005

Property Size: 111.48 sq. m

Lot Size: N/A

Located in Ottawa, this property features an open-concept floor plan on the main level. The large kitchen, complete with stainless steel appliances and an eating bar, connects to both the living and dining areas. The main and upper floors each have a balcony, offering views of the playground nearby. Rounding out the townhome are three bedrooms and two bathrooms.

MONTREAL

(Sofia Pauline Balouk / Alexis Rubinfeld, Keller Williams Prestige)

Type: Apartment

Price: $545,000

Year Built: 1983

Property Size: 88.44 sq. m

Lot Size: N/A

Brand new wood floors run throughout this two-bedroom apartment unit in Montreal. In the living area is a stone fireplace and large windows. In addition to one bathroom, there is also a private balcony facing the courtyard. The unit is situated just steps away from a subway station and various restaurants and cafes.

ST. JOHN’S

(Amanda Ryan / Rob Moore, Re/Max Realty Specialists)

Type: Townhouse

Price: $333,000

Year Built: 1915

Property Size: 186.74 sq. m

Lot Size: under 0.2 hectares

This two-bedroom, three-bathroom townhome is within walking distance of downtown St. John’s. At the entrance of the home is the foyer, featuring its original staircase. Beyond that are large living and dining rooms, as well as a gourmet kitchen with a propane stove and exposed brick detailing. On the top level are both bedrooms and the main bathroom, a four-piece ensuite with a shower and corner tub.

HALIFAX

(Trevor Kennedy, Eye Capture Images / Andrew Perkins, Keller Williams Select Realty)

Type: Apartment

Price: $499,900

Year Built: 1987

Property Size: 111.67 sq. m

Lot Size: under 0.2 hectares

Located in downtown Halifax, this corner apartment unit spans approximately 112 square metres. It has two bedrooms and two bathrooms, along separate living and dining areas. The galley-style kitchen has been renovated and includes stainless steel appliances, while the main bedroom has a walk-in closet and two-piece ensuite. In the apartment building is a heated indoor pool, gym and sauna.

CHARLOTTETOWN

(Mike Thompson, Odyssey Virtual / Kris Fournier, Re/Max Charlottetown Realty)

Type: House

Price: $469,000

Year Built: 1974

Property Size: 227.43 sq. m

Lot Size: under 0.2 hectares

Built in 1974, this three-bedroom, two-bathroom home has seen a number of upgrades, including an updated eat-in kitchen. Next to the kitchen is the living room, complete with a large bay window. All three bedrooms are located on the main floor, while the lower level features a laundry room and full bathroom.

FREDERICTON

(Brent Urquhart / Dave Watt, The Right Choice Realty)

Type: House

Price: $469,900

Year Built: 1964

Property Size: 144.19 sq. m

Lot Size: 906 sq. m

A mudroom welcomes guests into this four-bedroom, two-bathroom home in Fredericton. Porcelain tile floors lead to a renovated kitchen with a tiled backsplash and soft-close cabinets. Hardwood floors run throughout the living and dining rooms, and a small bathroom rounds out the main floor. On the upper level are three bedrooms, the main bathroom and a covered balcony.

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Politics

B.C. Conservatives, NDP both announce plans to help ease B.C. housing crisis

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Both of the main candidates in British Columbia‘s election campaign pushed their own plans to solve parts of the housing crisis.

B.C. Conservative Leader John Rustad told a news conference in Surrey that his government would end the multi-year permit delays and would get homes built at the speed and scale needed to address the housing crisis.

NDP Leader David Eby went to Cumberland on Vancouver Island to promote his party’s plan to fast-track factory-built homes.

Eby said pre-built homes would cut waste, reduce emissions, and advances in the industry mean the homes are “beautiful and high-quality.”

He said the process was “more like Lego” than normal construction.

“The idea is pretty straightforward. In a controlled factory environment, you can build faster, you can build with less waste and the homes that are built are more consistent and more efficient and it’s cheaper.”

Rustad said the Conservative Party of B.C. would redesign the approval process for home building, setting a six-month limit for rezoning and development permit and three months for a building permit.

“This means that we will significantly be able to improve the time frame it takes to actually get construction happening in this province, and we’ll be working with city halls across the province to be able to meet these timelines,” Rustad said.

If a clear yes or no isn’t issued by a city within that limit, the province would issue the permit, said a B.C. Conservative news release announcing the platform.

Rustad said the party would remove NDP taxes on housing, support transit-oriented communities, reform development cost charges and make taxes fair for homeowners.

“We have so much regulation that has been put in place associated with housing that it makes it really difficult for anybody to be able to actually get through and build things, not to mention the cost,” he said. “So we’ll amend the Local Government Act to prevent any home killing red tape that has been introduced by this government.”

The party’s statement also outlined their zoning plan, adding that it would work with BC Assessment “to make sure that current homeowners don’t get hit with higher tax bills based on future potential.”

The party statement said, if elected, a Conservative government would build new towns, saying B.C. is blessed with an abundance of land, but the NDP refuses to use it to end the housing shortage.

“We will identify land outside the Agricultural Land Reserve that has the potential to support beautiful new communities.”

A statement issued by the NDP on Friday said it would work with industry, municipalities and First Nations to create a provincewide framework for prefabricated homes so builders know what’s required in every community.

It said there would be a pre-approved set of designs to reduce the permitting process, and it would work to develop skills training needed to support prefabricated home construction.

The statement said Scandinavian countries had embraced factory-built homes, which “offer an alternative to the much slower, more costly process of building on-site.”

“By growing B.C.’s own factory-built home construction industry, everyone from multi-generational families to municipalities will be able to quickly build single homes, duplexes and triplexes on land they already own,” Eby said.

The party said legislation passed by the NDP government last year was a “game changer” for the factory-built home construction industry in the province, where there are currently 10 certified manufacturing plants.

Muchalat Construction Ltd. is one of them, and owner Tania Formosa said pre-approved structures speed up the building process considerably.

She said her company’s projects currently take 12 to 13 months to complete, from startup design to getting the house on site.

“If everything was in place and fast-tracked at the beginning and we were able to just fly along, it would probably take three months off the full schedule,” she said.

She said a main issue for modular manufacturers is that work gets stalled if they run into roadblocks with jurisdictions or BC Housing in the approval process.

“There’s no option for the manufacturer to start another project,” she said. “Having our products approved prior to the process would be amazing.”

She acknowledged the potential drawback of pre-approved designs creating a cookie-cutter look for some neighbourhoods.

“Unfortunately (what) happens in your jurisdiction, in your city, is it ends up looking a lot the same, but what are your priorities?”

This report by The Canadian Press was first published Sept. 27, 2024.

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Real eState

Housing starts up in six largest cities but construction still not closing supply gap

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The Canada Mortgage and Housing Corp. says construction of new homes in Canada’s six largest cities rose four per cent year-over-year during the first half of 2024, but housing starts were still not enough to meet growing demand.

The agency says growth in housing starts was driven by significant gains in Calgary, Edmonton and Montreal.

A total of 68,639 units began construction, the second strongest figure since 1990, however the rate of housing starts per capita meant activity was around the historical average and not enough “to reduce the existing supply gap and improve affordability for Canadians.”

The report says new home construction trends varied significantly across the markets studied, as Toronto, Vancouver and Ottawa saw declines ranging from 10 to 20 per cent from the same period last year.

Apartment starts in the six regions increased slightly, driven by construction of new units for rent, as nearly half of the apartments started in the first half of 2024 were purpose-built rentals.

But condominium apartment starts fell in the first six months of the year in most cities, a trend which the agency predicts will continue amid soft demand as developers struggle to reach minimum pre-construction sales required.

This report by The Canadian Press was first published Sept. 26, 2024.

The Canadian Press. All rights reserved.

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Real eState

Mortgage rule changes will help spark demand, but supply is ‘core’ issue: economist

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TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.

The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.

The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.

CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.

However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.

Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.

This report by The Canadian Press was first published Sept. 17,2024.

The Canadian Press. All rights reserved.

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