Lots of buyers has made big dent in ‘for sale’ inventory
MANITOULIN – Manitoulin Island’s housing market has seen a record number of property sales in the past year, indicative of the number of people who wish to purchase a home, cottage or land on the Island that have brought the number of available listings down to levels not seen in living memory.
“I think I can safely say this is probably the first time we’ve ever broken 300 property sales in a year,” said Gore Bay’s Hugh McLaughlin, broker of record at McLaughlin Manitoulin Inc. Real Estate Brokerage.
Mr. McLaughlin began his real estate career in 1974 and said he has never seen the listings supply run as dry as it is now. He referenced a Multiple Listing Service (MLS) figure that 317 properties sold on Manitoulin in 2019. That number was 258 in 2018 and the 2017 sales totalled 273.
This newspaper has reflected the changing Island real estate market. The regular advertisements in the rear pages of this newspaper have shrunk considerably in recent editions, most visibly on the Bousquet advertisement on the outside rear cover. Last week marked the first time in nearly 20 years that the Bousquet advertisement only took up half of the back page.
Chris Bousquet, broker of record at Little Current-based J. James Bousquet Realty Inc., said the number of listed properties peaked in July 2015 at 517.
“This summer, we were still over 300 (available listings) and demand for the last few years has been quite strong,” said Mr. Bousquet.
January and February tend to be the months with the smallest number of active listings on Manitoulin Island. During the lowest month in 2015, which came in January with 351 listings, there were still more properties on offer than the peak month in 2019 (June, with just 326 listings).
Data for December 2019 shows 184 Island listings at that time—the only month that has dipped into the 100s since January 2015.
Rolston Real Estate Ltd. broker of record Steve Rolston said this reflects the cyclical nature of real estate on Manitoulin Island.
“These sorts of things take place every 10 to 15 years on Manitoulin, roughly speaking. We’re just going through another one of those cycles. Unfortunately, it’s tough on our clientele when we get into a market like this—either a strong buyer’s or seller’s market—because it can raise anxieties a bit,” said Mr. Rolston.
While the current market conditions may be anxiety-inducing for some, others find the present prospects positively promising.
“It’s the best market I’ve ever seen,” said Jordan Stephens of the Jordan Stephens Real Estate Team, a Royal LePage-affiliated brokerage.
He said homes are spending far fewer days on the market than ever before. Properties that would normally be tougher to sell, such as high-end waterfront homes, are now getting multiple offers and bidding wars.
“I’ve been working with one buyer for a year and a half now trying to find a suitable house in the $300,000 to $400,000 price range, and it’s almost impossible,” he said.
Mr. Stephens said the massive growth in the Toronto housing market has had trickle-up effects to the North and Manitoulin Island in particular. He said many of the people looking North are retirees.
Manitoulin’s appeal is aided by roadway improvements that make the journey from Toronto much easier than years past.
According to Mr. Rolston, however, Toronto has never been as connected to the Manitoulin market as are southwestern and central Ontario. He said Manitoulin’s popularity has been growing due to other cottage country areas.
“Some people in the Muskokas are saying it’s too busy there now, and we’re seeing some owners bail out for quieter, more peaceful locations like Manitoulin,” said Mr. Rolston.
He added that housing tends to follow a few years behind the global economy and the Canadian Mortgage and Housing Corporation predicts a continued upward pricing trend in the next year or two.
When comparing figures from 2015 to 2019, the changes are remarkable.
Manitoulin properties sold in 2015 totaled 192, a number that soared to 317 in 2019—a 65 percent increase.
Monthly active listings on Manitoulin, on an annual average, dropped from 441.8 in 2015 to 271.1 in 2019, or a 39 percent decrease.
The price of homes, however, shows a different perspective that reflects the laws of supply and demand. Selling prices in 2015 averaged $138,004, which rose to $187,416 in 2019. That’s an increase of 36 percent.
For perspective, a property worth $200,000 in 2015, if it were to follow the average increase in price, would have been worth $272,000 just five years later.
Even more of a change was within that five-year period, between 2018 and 2019, when home prices raised by 26 percent year-over-year.
Both Mr. Bousquet and Mr. McLaughlin agreed with Mr. Rolston that Manitoulin real estate tends to operate cyclically, with the pattern based on 10-to-15-year cycles.
“In the early ‘70s there was a push in prices. Fifteen years later in 1989 there was another push in prices, especially waterfront. Those tripled that summer,” said Mr. McLaughlin.
He said the last big push was from 2004 to 2006, and he has been calling for another rise in 2020-2021.
“Maybe this (listings) shortage is just the quiet before the storm. As realtors, we hope so,” said Mr. McLaughlin.
Mr. Bousquet said high demand and lower amounts of available properties are visible across Canada due to a lack of new housing inventory. Manitoulin, however, is unique in the many recreational and waterfront properties that have been driving demand.
“Lots of people are getting out of the cities and the stressful life, and are looking at more affordable areas where they can change their lifestyles a bit. The cottage and waterfront properties here are very affordable compared to down south,” said Mr. Bousquet.
The tight market makes things challenging for the 25 active real estate agents working on Manitoulin Island. Mr. McLaughlin said the market conditions tend to be the same in all communities from Gore Bay to South Baymouth. Western Manitoulin has always been—and continues to be—a different (and much slower) market altogether from the portion in Gore Bay and to the east.
Mr. Rolston said he had faith that his team would pull through the challenging market conditions.
“I’ve got a great crew here. I’m telling our salespeople to keep concentrating on getting what listings we can,” he said.
By all indications, property owners on Manitoulin who may be looking to move elsewhere are in the most advantaged position in the present market.
“If anybody is thinking about selling their place, now is the time. It’s a strong seller’s market,” said Mr. Stephens.
Although the current real estate market may seem overwhelming in some ways, Mr. Rolston said turning to professional realtors will make the process much easier to handle.
“If I can recommend anything, it’s to find a good salesperson, stick with them and hopefully things will work out without too much stress,” he said.
Mr. Bousquet added that Island-based realtors who live, work and play on Manitoulin and understand the lifestyle will be best prepared to handle the changing market.
As for the current listings lagging behind the strong demand, some choose to view it as an endorsement of all that Manitoulin has to offer.
“We live in the greatest place in the entire world; honestly, it’s surprising we haven’t seen this sooner,” said Mr. Rolston.
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.