The average single-family home in the greater Edmonton area costs $493,543 as of February.The Globe and Mail
The year is shaping up to be a busy one for real estate transactions in Edmonton, with a near 11-per-cent jump in the average price of a single-family home between January and February, alone.
This kind of monthly percentage increase might not make people living in other parts of the country bat an eye. But it’s a big deal in Alberta – a land of relative affordability when it comes to Canadian housing.
Theaverage single-family home in the greater Edmonton area costs $493,543 as of February, the highest price the real estate board has on record. But that’s still a steal compared with buying in Vancouver, Toronto, or Guelph or Chilliwack. Prices in Alberta’s capital still match up with many people’s salaries, their ability to assemble a reasonable down payment and to secure a mortgage.
One month of ballooning house prices doesn’t make a year-long trend. But this year’s already sharp increases in Edmonton, one of the last big Canadian cities where the average price of a detached home is under half a million dollars, is a sign the issue of Canadian housing affordability hasn’t been addressed in a meaningful way. Runaway increases in Canadian home prices remain a political liability for the Liberals.
And right now in Alberta, there are increasing signs deal-hungry investors, flush from cashing out in higher-priced markets in other parts of the country, are coming to buy.
Calgary prices are already higher than Edmonton’s, but were up another 6.5 per cent for detached homes just between January and February. The Calgary Real Estate Board said, anecdotally, it’s hearing of many investors from other parts of Canada buying property in the citythis year. And Tom Shearer, the former chair of the Realtors Association of Edmonton, said the sharp rise of prices in his city so far in 2022 is directly related to “the liberation of equity from other properties in Canada.”
Even with the increase in prices, “it’s still very affordable compared with almost anywhere other than Saskatchewan and Manitoba,” Mr. Shearer said. “People are seeing that we’re at the beginning of our cycle, whereas maybe some other regions are at the end of their cycle.”
Certainly, this is good and bad news for Alberta. Less than two years ago, homeowners in the province wondered whether prices would ever substantially increase here, and many would have welcomed investors.
But then came low, low interest rates to keep the economy from toppling, and work-from-home demand for bigger, better properties. Those low interest rates also spurred real estate investors. And in 2022, Albertans might actually have to worry about prices going too high – a problem the province really hasn’t had since the boom years of 2006 and 2007.
Investment dollars aren’t solely responsibly for the situation, of course. As of this year, some new buyers are scrambling to get into the market before further interest rate hikes. Supply is an issue. Immigration levels are increasing. And relative affordability, and increasing economic activity in Alberta, are factors adding to the ranks of those who will want to live and work in the province. (And it’s not like Albertans aren’t used to some volatility. If you’re not worried about the up-and-down nature of real estate, linked to global oil and gas pricing, you haven’t been around long enough.)
But still, by this point, there should be much more substance to the Liberal plans to cool “excess price growth” across the country. A promise originally made in the 2019 election campaign, to introduce legislation to add a 1-per-cent vacant-home tax for foreign owners on housing, is only now making its way through the House of Commons. In the 2021 election campaign, the Liberals promised a temporary ban on purchases by foreign buyers, an anti-flipping tax on home buyers who sell a property within 12 months of purchasing it and a review of down-payment requirements for investors.
Admittedly, the federal government has been beset by one urgent issue after another these past two years. And 2021 campaign promises (an election the Liberals still managed to squeeze in) could still come to pass. Finance Minister Chrystia Freeland’s press secretary said this week that “housing affordability remains a priority for the federal government and … we will take further action in the upcoming budget.”
But on rising housing costs across the country, it feels almost too late. The Bank of Canada has identified investors as a major source of demand. A report from the central bank in January said the share of purchases by first-time home buyers has been declining since 2015 and “increased presence of investors in the housing market has contributed to strong demand.”
That same report pointed out that investors often rent out their properties, easing some of the housing crunch. But with competition from investors at least contributing to the out-of-control housing market, it’s surprising federal Housing Minister Ahmed Hussen made the remark last month that his government does not want to implement any policies that would harm “mom and pop” real estate investors.
“They provide rental stock to Canadian families and individuals. And so we don’t want to negatively affect them.”
It is a political dilemma to tame a market and still appeal to voters who already own, and don’t want their own properties to become affordable any time soon. The Canadian economy is also heavily weighted to real estate. But a focus on the circumstances of landlords is the wrong take when prices continue to soar out of sight for so many – never mind future generations.
Populist Pierre Poilievre, the first to declare his interest in the upcoming Conservative leadership race, will have a difficult time attracting mainstream voters with many of his policy positions, including his emphasis on the loaded “freedom” phrase. But the MP from Carleton has showed himself in touch by emphasizing a key concern for many Canadians with his hammering of the Liberals on the “housing-inflation crisis.”
With the average home price in Canada up nearly 50 per cent in the past two years, that housing-inflation will be a key theme for whoever becomes the next Conservative leader.
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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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