adplus-dvertising
Connect with us

Real eState

Real estate deals timed to mortgage rate moves

Published

 on

Open this photo in gallery:

The house at 291 Glengrove Ave W., Toronto, sold for $1.025-million above the asking price when 19 bidders vied for the property in late June.The Print Market

Scrutinizing the pronouncements of the Bank of Canada has become a popular summer pastime in the Toronto-area real estate market.

Buyers who need a mortgage often try to speed up a purchase if they believe a hike in the central bank’s benchmark interest rate is looming.

These days potential sellers are also trying to read the tea leaves to decide whether they should sell, and when. Some are timing their listings around the dates the Bank’s governing council gets together to decide the direction of rates.

Andre Kutyan, broker at Harvey Kalles Real Estate, predicts sales in August will be sluggish as people vacation – and brace for the Bank of Canada announcement scheduled for Sept. 6.

“Listings are pretty dry right now.”

Mr. Kutyan has been advising his own clients who are thinking about listing in August to wait until after Labour Day.

And some homeowners who have already listed but haven’t landed a deal so far are considering taking properties off the market and relisting after the Bank of Canada sheds some light in September, he adds.

Others who haven’t put up a “for sale” sign yet are considering going to market immediately after the update if it seems that rates will stay where they are or move higher. Others will be watching for signals from the Bank that they could begin cutting rates by the end of the year, which would make early 2024 a better time to list, in the eyes of some homeowners.

At Capital Economics, assistant economist Olivia Cross expects the Bank of Canada to leave interest rates on hold at its September meeting. She points to recent data showing an easing in core inflation, adding that another rate hike would require an upside surprise to the central bank’s forecasts.

Derek Holt, head of capital markets economics at Bank of Nova Scotia, sees underlying resilience in Canada’s economy. He believes transitory shocks such as strikes and forest fires have masked some of that strength, and the central bank will stay focused on the details.

In Mr. Holt’s opinion, the Bank of Canada will maintain a bias toward further tightening that will be informed by data.

Part of the reason for the preoccupation in the real estate market is that even slight shifts in the central bank’s stance have appeared to have an outsized impact on the market in recent month.

Governor Tiff Macklem and his team’s decision to hit pause early in 2023 appeared to give buyers more confidence, which in turn led to a rebound in sales and prices between January and May.

An increase of 25 basis points in June unnerved some buyers but sales continued, if a little more hesitantly.

An additional 25 basis points was tacked on in July, bringing the policy rate to a 22-year-high of five per cent.

That’s when activity cooled noticeably, says Mr. Kutyan, who still saw strong sales into early July.

He points to the example of a four-bedroom house in Toronto’s Lytton Park neighbourhood, which sold for $1.025-million above the asking price when 19 bidders vied for the property in late June.

Mr. Kutyan expected to receive multiple offers when he set an asking price of $2.195-million and an offer date for the house at 291 Glengrove Ave. W., but he was surprised at the number of bidders.

In early July, he listed an opulent five-bedroom house at 12 Gordon Rd. in the Bayview and York Mills area in Toronto that sold for the full asking price of $4.498-million after two days on the market.

But after the rate hike on July 12, showings and sales slowed down.

“I think it definitely did pump the brakes on the summer.”

Open this photo in gallery:
Open this photo in gallery:

The Glengrove property attracted a broad spectrum of buyers, but properties that appeal to a smaller pool of buyers are not receiving the attention they likely would have drawn in the spring.The Print Market

Interest rates are only one factor, Mr. Kutyan adds, explaining that location and type of house contribute to the fervour.

The Glengrove property, for example, attracted a broad spectrum of buyers: the highly ranked school district made it appealing to families and a relatively small interior compared with other homes in the neighbourhood drew downsizers.

But properties that appeal to a smaller pool of buyers are not receiving the attention they likely would have drawn in the spring.

“Some of my listings are crickets chirping.”

Munira Ravji, real estate agent with Royal LePage Signature Realty, says she typically sees “a bit of hustle and bustle” before interest rate announcements as buyers with pre-approved mortgage agreements look to sign a deal.

Lately that attention has intensified.

“Buyers are seeing affordability erode with every increase,” she says.

Recently, she has seen investors listing their rental properties for sale as they are increasingly squeezed by higher interest rates. Tenants who moved in with discounted rental rates during the pandemic are paying less than the owner would fetch if the property were listed today.

“The rental rates are not covering their carrying costs,”Ms. Ravji says.

Sellers are become increasingly flexible about the price they’re willing to accept if the offer is firm, she adds, because higher rates are prompting many buyers today to make their offers conditional on financing.

Sellers feel the urgency to find a buyer before the next central bank meeting in September, she says, because another rate hike may be on the table.

Single-family homes are still selling fairly quickly, she says, and condo units that are priced well will find buyers.

In the condo segment, many buyers are trying to snag a deal. If a unit seems overpriced, most buyers will pass by without making an offer.

Meanwhile, all eyes are on the Bank of Canada, she says.

Many investors are not waiting to see what happens on Sept. 6.

“They’re saying, ‘let’s get it on the market right away before the announcement’. Everyone’s very tuned into that.”

 

728x90x4

Source link

Continue Reading

Real eState

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

Published

 on

 

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.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Real eState

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

Published

 on

 

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.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Real eState

Canada’s Best Cities for Renters in 2024: A Comprehensive Analysis

Published

 on

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.

Continue Reading

Trending