Real eState

LACKIE: Real estate market stewing in anticipation of what's to come – Toronto Sun

Published

2 years ago

April 24, 2022

Harry Miller

Real estate sales in Toronto aren’t going down, despite the pandemic. Photo by Files /Submitted

To a casual observer, the real estate market punditry probably inspires whiplash.

And possibly fury.

For months upon months, years upon years, we have witnessed almost breathless coverage of the Toronto real estate market and its mind-bending run. Average sale prices climbing steadily, inventory levels getting tighter and tighter, and market conditions for first-time buyers going from inhospitable to almost entirely impenetrable.

Loads of coverage of how the escalating prices and record-level unaffordability is unsustainable. How historically low interest rates, even in stereo with the much-maligned “stress test,” are emboldening people to get in way over their heads and fueling rampant speculation. How eventually the party would end, it was only a matter of when. The why and the how were up for debate.

The almost universal conclusion: something’s gotta give.

Cut to the present when we are now having a moment. Interest rates are on the rise and the market is clearly responding. As buyers bow out and some of that upward pressure on prices and inventory dissipates, the holding pattern we have been in for much of the pandemic seems to be easing.

And here we now find ourselves, surrounded by uncertainty while deluged by sledgehammer analysis.

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Some of the same pundits who screeched supply, supply, supply as the only mechanism available to make a dent in the prices are now shifting to alarmist shrieks about interest rate hikes, inflation, and economic uncertainty signifying the end of days.

And while I get that it can feel that way, why, oh, why are we treating it like a forgone conclusion when so much of what’s to come remains squarely in the realm of hypothesis and conjecture?

In the last few weeks I have read countless articles dedicated to exploring how the rate hikes that have not yet been announced, in increments that have not yet been decided, will cripple the average Canadian homeowner. The ones that make me want to scream are the ones that lay it out as if it’s a universally applicable scientific equation. You know, if CanadianCottageGuy416 has a mortgage of x and that mortgage payment increases by y, his financial ruin will be complete in xy number of months.

Messaging like that isn’t helpful. Not because we should all be burying our heads in the sand, but because it’s not helping us understand the nuances of what’s at play right now.

Our market has been on a tear. Prices have risen higher than even imaginable two years ago. Canadians are divided into a few camps: those who own homes and are thrilled by the gains and those who don’t and now feel functionally blocked from ever owning anything. Of course, there’s a third group that got in while they could and did so by taking on more debt than they could ever feel good about during their 3 a.m. thinks.

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Is it hugely annoying and problematic that Tiff Macklem, governor of the Bank of Canada, essentially drove that bus when he declared that rates would stay low? Yes, yes it is.

“If you’ve got a mortgage or if you’re considering making a major purchase, or you’re a business and you’re considering making an investment, you can be confident rates will be low for a long time,” Macklem said back in July 2020.

But of course, “long time” is a subjective term. And in the face of rampant inflation, interest rates are an essential tool to keep our economy humming.

So now they are on the rise, as we knew they one day would be. Which is why we have a stress test in the first place. And, even though rates are still below pre-pandemic levels, we are seeing resultant uncertainty out there on the ground.

I know this because I am experiencing this with my clients.

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Yes, there are people now priced out of the market, which is brutal. But is that what’s causing the slowdown after a bump of just 50 basis points?

Or is it more likely that there are people who are now, in anticipation of what’s to come, taking stock of the situation and deciding now is not the time to make a move with so much up in the air.

We like to draw parallels to the 2008 and 2017 market crashes, but if you look to those moments, so much of what was behind them was buyer sentiment. People looked around and saw what was happening and what others were doing and decided that caution was prudent. Which is why the “recovery” in 2017 began with nothing much happening — the market just woke itself back up again.

So yes, the market is having a moment as it stews in anticipation of what’s to come. My suspicion is that we are on the cusp of a real transition with prices softening and a slow summer ahead as we all come to grips with higher borrowing costs.

Some markets will have a sharp correction and others will simply hover. And some people will feel it harder than others.

But has the sky fallen? No. Will it? Probably not. But freaking everyone out with conjecture masquerading as fact is clickbait pure and simple.

@brynnlackie

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Real eState

Two Quebec real estate brokers suspended for using fake bids to drive up prices

Published

1 day ago

September 11, 2024

Anne Joseph

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.

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Real eState

Montreal home sales, prices rise in August: real estate board

Published

6 days ago

September 6, 2024

Anne Joseph

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.

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Real eState

Canada’s Best Cities for Renters in 2024: A Comprehensive Analysis

Published

2 months ago

July 24, 2024

Harry Miller

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.