For the Toronto-area real estate industry, the beginning of 2020 was shaping up to be a record-setting year.
And then the pandemic happened.
According to the Toronto Regional Real Estate Board’s new Real Estate Market Economic Recovery Initiatives document, which will be released next week, real estate sales in the Greater Toronto Area (GTA) dropped 67.1% in April this year compared to the same time last year and was down by 53.7% this May compared to May 2019, but prices have remained relatively stable because the number of listings has dropped in unison with the number of buyers.
The average selling price for a Toronto detached home in April this year was $1,249,730 — a 7.9% drop since April 2019.
Also, month-over-month sales figures suggest improving conditions, with May 2020 sales up 55.2% over April 2020 sales and June sales following a similar trajectory, said TRREB. (The guide will be updated with June numbers next week.)
“While COVID-19 has temporarily impacted home sales and listings in the GTA, home buying intentions have remained quite stable, suggesting that many people will be looking to satisfy pent-up demand for ownership housing once the recovery starts to take home,” according to the document.
“The supply of listings, which was a concern before the pandemic shut-downs began, will continue to be an issue as the economy and housing market recovers.”
The real estate board expects consumer confidence will improve as people gradually go back to work. A growing number of people will look to take advantage of current very low borrowing costs to buy a home, it said.
But this is all based on uncertain factors such as continued success in containing the spread of COVID-19 and generally improving economic conditions and unemployment. But if, for instance, a second wave came along, “a more aggressive approach to government stimulus may be needed.”
TRREB is recommending that policy-makers need to address the lack of a diverse housing supply in the GTA to ensure affordability and “it should once again be top-of-mind once the recovery takes hold.”
TRREB MEMBERS! REGISTER NOW! GTA Residential Market Update: Weathering the Crisis and Looking Ahead Members are invited to join an exclusive, live webinar on Wednesday, July 8, 2020, at 10:00 a.m. with TRREB and Altus Group. Visit Stratus headlines for Registration Details! pic.twitter.com/FXkzmeEEke
— Toronto Regional Real Estate Board (@TheReal_TRREB) June 30, 2020
For the city, this could mean a deferral of the municipal land transfer tax or property taxes and streamlining zoning approvals.
At the provincial level, also consider a land transfer tax deferral and adjust first-time buyer rebate to reflect current average prices and adjustments of tax rate brackets so that higher rates are not imposed on below average-priced properties.
The board also suggests the province expedite hearings to help optimize the supply of rental housing.
The federal government could consider adjusting the mortgage stress test to allow for greater flexibility and allow 30-year amortizations for insured mortgages.
The feds could also consider various options for flexibility for the RRSP Home Buyers’ Plan, including increasing withdrawal limits, expanding first-time home buyer eligibility and allowing cross-generation use, such as parents using RRSP funds to help their kids with a home purchase.
Meanwhile, Ontario Real Estate Association president Sean Morrison says open houses still remain prohibited at this time and the association is recommending realtors stay with stage one protocols for re-opening, which is physical distancing, wearing personal protective equipment during all showings, limiting numbers at showings and sanitizing between showings and have COVID-19 questionnaires ready to make sure no one in contact has travelled outside the province.
“There were a lot of digital tools we used sporadically that we became dependent on,” said Morrison.
“Things like video conferencing with clients, sign documents by an electronic means and email offers back and forth. That became the norm over the past three months. The key piece for us will be the re-opening of sales offices.”
Commercial real estate landlords will face some drastic changes during recovery
Saad Rafi, the head of Toronto’s Recovery and Rebuild strategy said despite the vast majority still working from home — and that may not change any time soon — a number of commercial landlords are looking to rent more space.
That’s because for those who cannot do their job remotely and need to go into the office, those companies will require more space to allow their employees to physically-distance.
That’s just one change the commercial real estate will see as we enter Phase Two and beyond.
“A 6 x 6 cubicle isn’t going to to do it in an era of sensitivity to contagion,” explains Benjamin Shinewald, the president and CEO of the Building Owners and Managers Association (BOMA) of Canada, which has also released a guide to re-opening to its members.
More people will be working from home, but those who will return to the office will likely need more space in order to keep social distancing, said Benjamin Shinewald, the president and CEO of the Building Owners and Managers Association (BOMA) of Canada. (Toronto Sun/Ernest Doroszuk)
“The vast majority of tenants are fixed in the space they have. There’s always tenants adding and shedding space. Very sadly, there will be some tenants that will be disappearing because of the recession. But I don’t see a huge change in the horizon (in the next three to six months.)”
Even though the remote workers will balance out the in-office workers who require more space, Shinewald said fewer people returning to work will mean changes to the way buildings operate and changes to their environment — everything from the number of times toilets flush to shopkeepers who have malls attached to office towers, who will have less foot traffic.
“But there are those who say efficiency of retail will increase, because people will not be browsing and loitering in stores the way they used to,” he said.
“They buy what they want and go out.”
Workers in these office towers may also expect changes with elevator usage. Gone are the days when you would cram as many into the confined space. Shinewald said he wouldn’t doubt it if there are quadrants blocked off with a maximum of up to four. Perhaps people will be facing the corners to prevent spread if someone coughs or sneezes.
“The challenges around re-entry are real,” he said.
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.
