This four-bedroom house in Lawrence Park was listed in the week after Labour Day with an asking price slightly less than $6-million. It had more than 10 appointments booked within the first three days, the agent says.McCann Realty Group
Buyers lamenting a shortage of inventory in the Toronto-area real estate market will have a rush of fresh listings to sort through this month.
But the added supply is coming into an unsettled market where agents say some retro practices are making a comeback and new tactics are emerging.
Sales in the Greater Toronto Area dropped 5.2 per cent in August compared with the same month last year, according to the Toronto Regional Real Estate Board.
New listings, meanwhile, jumped 16.2 per cent in August compared with August, 2022 while the average price of $1,082,496 last month was nearly flat.
In an uncertain market, Rochelle DeClute, broker with DeClute Union Realty, is seeing an increasing number of home and condo owners decide to sell their existing property before they buy a new one. That’s a shift in the trend of recent years.
She adds that sales last month varied within different pockets of the GTA.
The Beaches neighbourhood, where Ms. DeClute does much of her business, saw a stronger August than last year. In that area, 38 properties changed hands last month compared with 26 sales in August, 2022.
Ms. DeClute believes buyers were willing to make a move because competition for properties was less intense than in the spring. In many years, August is the month when buyers try to find a deal on a property that has been sitting on the market.
“There are typically fewer houses on the market but better deals,” she says.
The average price in the Beaches dipped to $1.4-million at the end of August from $1.5-million one year earlier, she says.
Increasingly, sellers are wrapping their minds around the current landscape, she says.
“We’re seeing the price change happen in a couple of weeks,” she says of the more pragmatic sellers.
In an added twist, sellers are sometimes chasing buyers these days.
“Strategically, if a buyer is interested, there’s no reason the seller can’t write an offer to the buyer,” Ms. DeClute says.
Her office launched such a bid recently just as interest rates were on the rise.
A house with an asking price around the $2.5-million mark was listed with a plan for the sellers to review offers on a scheduled date.
The first prospective buyers to look at the property quickly moved to pre-empt the bidding process with an offer of $2.68-million. The buyers made clear they would not return on the scheduled offer night if their “bully” offer wasn’t accepted.
The sellers wanted to give more people the opportunity to see the property so they turned down the offer.
On offer night, the bullies stayed away and no buyers came to the table.
The sellers then revived negotiations by writing an offer to the first bidders at $30,000 less than their original bid.
They accepted and both sides were very satisfied with the final price of $2.65-million, Ms. DeClute says.
Agents need to be creative and ensure that both sides feel they ended with a win, she adds.
Ms. DeClute says the current environment remains a sellers’ market but she is also seeing an increase in motivated sellers.
Many homeowners are shocked, for example, when the time comes to renew a mortgage and they see payments double. Some are deciding to step out of home ownership as a result.
In her experience in the east end, the number of days between signing an agreement and closing the deal has also lengthened, she says.
Ms. DeClute says buyers with an existing property want to ensure they have the time to sell it before the closing on a new one.
Legal text known as a “flexible closing clause” is making a return, she says, as buyers ask for the option to extend or advance the closing date by a specified amount of time.
Ms. DeClute has also seen cases where buyers do not have any flexibility written into their sales agreement but they ask to move up the closing date so that they can take advantage of a favourable interest rate for a pre-approved mortgage. Sellers sometimes refuse because they have made their own plans around the agreed-upon closing date.
The buyers may choose to accept the closing without vacant possession so that the funds are transferred while the sellers still live in the house. Lawyers often balk at the arrangement, Ms. DeClute says, but the compromise has saved many interest rate holds for buyers.
Cheri McCann, broker with McCann Realty Group, says some properties are moving quickly in the early days of the fall market but competition is less intense than it was earlier this year.
In the core, houses in neighbourhoods such as the Junction and Leslieville were still drawing multiple offers in the quieter summer months, Ms. McCann says, but she has noticed a drop-off in activity in areas north of Highway 401.
Above the $3-million level, sales are slower, she adds, but buyers with deep pockets are still booking showings.
In the week after Labour Day, she listed a four-bedroom house in Lawrence Park with an asking price slightly less than $6-million. The house at 79 Dawlish Ave. had more than 10 appointments booked within the first three days, she says.
The combination of high interest rates, prices and taxes is weighing on many potential buyers, she says.
In midtown Toronto, properties that were changing hands for $2.1-million or $2.2-million are now more likely to fetch $1.9-million or $1.95-million.
Victor Tran, mortgage specialist with rates.ca., says 90 per cent of the calls he received in July and August were from existing homeowners and investors who were looking for advice on renewing or renegotiating an existing mortgage.
Many first-time and move-up buyers appear to be waiting for rates to come down, he says.
“Purchase transactions have been down the drain.”
The Bank of Canada’s decision to hold its trend-setting interest rate steady in September came as a relief for many homeowners with a variable rate mortgage or a line of credit, he adds.
Most of the people he sees struggling are holding investment properties, Mr. Tran says, adding that he has not yet had clients who are giving up a principal residence.
Mr. Tran predicts an uptick in inventory in the coming weeks as sellers enter the traditional fall market. But he adds that some owners are also buckling under the financial pressure and feel they have no choice but to sell.
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.
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