Real eState

LACKIE: Real estate market’s winding path humbling

Published

1 year ago

June 18, 2023

Some economists are predicting that we’re looking at rates ticking down no sooner than next spring. Now no one is even considering a reduction in 2023. Photo by iStock /GETTY IMAGES

Here we go again.

It’s been less than two weeks since the Bank of Canada’s 0.25% interest rate bump and depending on whom you feel like asking, we are either looking at much ado about nothing — after all, is a quarter of a basis point really such a biggie when we’ve ridden the interest rate tides this far? — or the beginning of the real undoing with economic calamity coming straight for us.

The opinions, as ever, are hot and forceful and while much of what I am hearing sounds not unreasonable even if completely contradictory, I can’t help but wonder how it is that some of us have learned nothing from the last 16 months, let alone the last three years.

For every Twitter thread or Instagram Reel composed by a self-appointed soothsayer who is, in their own mind at least, an expert on economics or real estate or consumer behaviour is a human being still resisting the biggest life lesson forced upon me since the early days of the pandemic: Few among us have a single clue what comes next, at best we are working with educated guesses so perhaps we could all stay humble.

The market was supposed to crash approximately five times since the first lockdown. The various rallies that we have seen in the months and years since were, according to some, myself included in some cases, never supposed to happen. Consumers were supposed to be scared, hiding at home, drowning in indebtedness and insecurity. They were purportedly re-evaluating all of the things, moving out of town, starting small businesses, giving up small businesses. It’s over, it’s really over this time. Except not.

To the real estate bulls, Toronto real estate is a force to be reckoned with, propped up by chronic insufficiency thanks to municipalities choking development all while financialized real estate and record immigration keeps demand strong. Toronto is a beast; can’t stop, won’t stop.

To the real estate bears, the end is nigh. The market is on its ninth life having spent far too long on shaky ground with an economy propped up by government tinkering. The time of reckoning may have been delayed but it’s coming and it will bring pain.

What we actually know at this point:

Fixed rates are up. Five-year offerings are now hovering around 6% when just weeks ago some banks were offering five-year fixed with a 4 out front. Those blue skies that seem to have fuelled the spring market got awfully dark awfully quickly.

Showings and offer registrations reacted almost immediately to June rate hike and dropped off precipitously. There were a number of failed offer nights last week, even on great houses that had strong interest. Buyers are clearly nervous.

Sentiment reigns supreme. Structural aspects endure. The two sides of the coin.

“Higher for longer” is the new refrain. Rates as high as they are and sitting there will bring pain, particularly for the overleveraged. There are many who have been hanging on for dear life, waiting for the rates to come down, who are now wondering how they will make it.

Some economists are predicting that we’re looking at rates ticking down no sooner than next spring. Now no one is even considering a reduction in 2023.

Extended amortizations have absorbed a huge amount of the turbulence and have given the appearance of market strength and resilience, but renewals and unemployment will be the curveballs.

My feeling, based on the conversations I am having with clients and colleagues, is that even if prices dip again the move-up buyers who tend to drive the market will be ok, they will just be impatiently wondering where the inventory went. They will come back.

Downsizers sitting on a ton of equity will be equally buffered.

The first-time home buyers will have to sit tight or expand into a bigger, more expensive rental that will eat away at more of their savings for down payment but if and when prices ever soften, they may find their moment.

It is the overleveraged and the speculators who will be in the toughest spot in the near term. Needing to sell but needing the market to get more favourable to find an off ramp to cash out and walk away with some actual cash.

The one thing I would bet the proverbial house on is that we are heading into what will prove to be a very quiet summer. What sits on the other side is anyone’s guess.

Source link

Real eState

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

Published

2 days 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.

Source link

Real eState

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

Published

7 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.

Source link

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.