HUNTSVILLE, ONT. —
If you need evidence that the rich are getting richer, look no further than Sotheby’s luxury real estate report highlights for 2021 so far.
By way of reference, luxury real estate is typically a home that is valued within the top 10 per cent of a given market, which varies across the country. They range from detached homes to condos, located in key markets, finished with top of the line materials, and are often in close proximity to high-end amenities.
Real estate in general has been on fire so far this year, and luxury real estate is no exception.
To illustrate how hot the high-end market is, take the Greater Toronto Area (GTA) for example. Over the first two months of 2021, the GTA witnessed residential real estate sales spiking 157 per cent year over year, and of those, five ultra-luxury properties sold over $10 million compared to the same period a year ago. While luxury sales of condos priced at $4 million and above showed a decline from six to two units year over year, early signs show resiliency as the GTA’s $1 million-plus market shows growth of 110 per cent year-over -year in March.
Vancouver is also seeing signs of pent-up demand with sales of luxury attached homes priced between $1-2 million and $2-4 million up year-over-year, with 169 and 15 homes sold respectively in the first two months of the year. Calgary and Montreal were not left behind with impressive gains.
WHAT IS HAPPENING?
It has been year since COVID-19 hit, driving a dramatic real estate rebound. According to Sotheby’s, demand continues across multiple generations of homeowners and buyers, with a significant build up of cash accumulation, easy access to borrowing in a rock bottom interest rate environment, and pent-up local and international demand, all breathing new life into the market as a whole.
“The scenario that we are seeing with price gains and housing affordability are due to the fact that demand and supply are critically out of balance,” CEO and President of Sotheby’s International Realty Canada, Don Kottick, said.
“We are facing unprecedented levels of consumer demand brought on by the pandemic and population growth, encouraged by low interest rates and pent-up cash savings. We have been in an acute shortage of housing for years in cities like Toronto and Vancouver.”
With travel restrictions still in place, low rates and continued savings, there is every reason to believe this will continue into the spring.
But buyer beware.
Real estate has been a clear winner over the past year and is starting to raise serious concerns of overvaluation.
A recent poll by Nano Research indicated that 63 per cent of respondents believe the value of real estate in their neighbourhood will continue to rise. The Canada Housing and Mortgage Corporation has been ringing the alarm bells, suggesting signs of overheating at a national leveller happening. In fact, Deputy Prime Minister and Finance Minister Chrystia Freeland also recently weighed in, saying the affordability issues plaguing Canada’s housing market are on the government’s radar.
With the Federal Budget set to be unveiled April 19, there are whispers that we could see changes in an effort to slow things down, such as changes to the principal residence tax exemption, increased requirements for down payments, or even changes to refinancing levels.
“It’s absolutely imperative that all levels of government address the supply side of this equation, and bring new housing across the spectrum – rental, vertical, low-density– to market as quickly as possible. Trying to tackle the demand side through taxation is not getting to the root of the issue and will bring about unintended consequences,” Kottick said.
“It puts the financial plans and the financial security of millions of Canadians at risk, and it also risks reducing housing supply even further, if people are discouraged from selling their homes.”
One thing is certain; in many pockets across the country there is a disconnect between income and property levels, and some Bay Street economists, like David Rosenberg, fear that the Canadian housing market is in the midst of “one of the biggest bubbles of all time.”
Others, like former Bank of Canada Governor Stephen Poloz, acknowledged on BNN Bloomberg that yes indeed, there’s some heat, and we could see signs of speculation, “but we have to accept that because otherwise we’d have a really, really bad recession.”
The question is where do you stand? And that response could differ depending on whether you are a buyer or seller.
Correction:
This story has been corrected to reflect the federal budget date of April 19, 2021.
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.
