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Roommates, multi-generational homes rising amid increasing costs, immigration: census

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TORONTO — When Gina Athanasiou’s father died in 2016, she realized her mother, who bounced between Canada and Greece for most of her life, didn’t have a pension large enough to cover the soaring costs of a Toronto home.

The solution? Athanasiou, a real estate agent, invited her mother to move into the East York home she lived in with her husband and children.

“There is no way that my mother could have financially existed on her own in Toronto, if she didn’t have us to live with,” Athanasiou said.

The living arrangement that placed three generations of Athanasiou’s family under one roof is becoming increasingly common, Statistics Canada’s latest tranche of census data revealed Wednesday.

While the figures show more people are living alone than ever before, the proportion of households where roommates live together or multiple generations of a family share a home is rapidly rising.

The number of homes being shared by multiple generations of a family, two or more families living together or one family living with people they may or may not be related to grew by 45 per cent over the last 20 years.

These households amounted to almost one million in 2021, making up seven per cent of Canada’s homes.

Close to one in 10 children up to age 14 were living in the same household as at least one of their grandparents in 2021, up seven per cent from 2001.

Among the 553,855 children living with grandparents last year, 93 per cent lived with at least one parent and at least one grandparent.

“If we zero in and look at the provinces and territories, in Nunavut, among very young children aged less than five, close to one in three are living with one of their grandparents, and that’s the highest within Canada,” said Statistics Canada senior analyst Nora Galbraith.

“The lowest is in Quebec. It’s five per cent, so that’s reflecting different cultural preferences, as well as different housing and economic situations.”

Economists and demographers have attributed such trends to wages not keeping up with the soaring costs of living, along with immigration and elevated home prices.

The average home sold for $711,316 in May, a drop from $687,595 during the same month the year before but still well above what people paid for a home years ago, said the Canadian Real Estate Association.

Rentals.ca data shows the average Canadian rent hit $1,885 per month in June, a 9.5 per cent increase from the same month last year.

To cope, many are living with roommates or family — often for far longer than their parents did.

Aaron Ottho, for example, never imagined he’d still be renting a condo with a roommate by the time he hit 40 years old, but months after celebrating his fourth decade, that’s exactly the situation he found himself in.

In April, the Vancouver marketing specialist moved into his fourth rental unit — the most expensive yet — since university and like many of his friends, is still far from his dream of home ownership.

“People are taking longer to get married and settle down because they do not feel secure in their lives or their careers, when they’re paying that much in rent,” said Ottho.

“Almost everyone I know is renting.”

The census shows the number of homes shared by roommates increased by 54 per cent between 2001 and 2021, the fastest growth of any household type.

Sharing homes with roommates was more common in downtown regions of large urban centres, especially in cities where large post-secondary institutions were located.

Some of the most interesting shifts Mike Moffatt, senior director of policy and innovation at the Smart Prosperity Institute, has seen between this census period and the last have impacted people in their 20s and 30s, who are prone to living with roommates in small condos or apartments.

The 2021 census showed 39 per cent of Canadians between the ages of 20 and 34 lived without their parents but with a spouse, partner or child, down from almost 50 per cent in 2001.

The number of people in this age group living with at least one parent, roommates or alone simultaneously grew from 51 per cent in 2001 to 61 per cent in 2021.

Immigration is fuelling some of the trend, Moffatt and Athanasiou said.

They found first-generation Canadians with foreign heritage sometimes don’t form and live with the nuclear families others do because it’s more traditional or accepted for kids to live with their parents in their cultures.

“In my culture — I’m Greek — it’s totally fine for kids to stay home until they’re married,” Athanasiou said.

The combination of different housing structures and high prices mean many Canadians are getting married and having kids later in life.

“Nobody wants to raise children living in their parents’ basement,” Moffatt said.

“We’re seeing life milestones get extended for 20- to 30-somethings.”

When people do have kids, Athanasiou notices they don’t want to be far from home. Many of her clients in their 30s rent or purchase properties near their parents, who assist with child care.

“For the millennial generation, it’s more like a dependence on the parents, whereas for my generation, it’s us taking care of the parents.”

Prime Minister Justin Trudeau said such observations are part of why his government restored the long-form census after it was cut by the Conservatives in 2011.

“As we make historic investments in housing … we’re doing it from a foundation of knowledge and information,” he said at a news conference in Kingston, Ont. “Building policy based on data and facts is something Canadians are understanding is essential and the way forward.”

This report by The Canadian Press was first published July 13, 2022.

 

Tara Deschamps, The Canadian Press

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GTA real estate prices could continue to fall amid large housing correction, RBC says – CP24

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A housing correction which has already led to four consecutive months of price declines in the previously overheated Greater Toronto Area market could end up becoming “one of the deepest of the past half a century,” a new report from RBC warns.

New data released by the Toronto Regional Real Estate Board (TRREB) last week revealed that the average benchmark price for a home in the GTA fell six per cent month-over-month in July to $1,074,754.

Sales were also down a staggering 47 per cent from July, 2021.

In a report published on Aug. 4, RBC Senior Economist Robert Hogue said recent data from real estate boards underlines that higher interest rates are beginning to take a “huge toll” on the market.

Hogue said that with further hikes to come, prices will likely continue to slide in the coming months.

That prediction, it should be noted, goes against a report from Royal LePage last month which painted a rosier forecast for sellers in which values would more or less holding for the rest of the year following some declines in the second quarter.

“Our expectations for further hikes by the Bank of Canada—another 75 basis points to go in the overnight rate by the fall— will keep chilling the market in the months ahead,” Hogue said. “We expect the downturn to intensify and spread further as buyers take a wait-and-see approach while ascertaining the impact of higher lending rates. Canada’s least affordable markets Vancouver and Toronto, and their surrounding regions, are most at risk in light of their excessively stretched affordability and outsized price gains during the pandemic.”

The Bank of Canada has hiked the overnight lending rate by 225 basis points since March and has warned that further hikes will be necessary given that inflation remains at a near 40-year high.

In his report, Hogue pointed out that the housing correction “now runs far and wide across Canada” but he said that it is particularly pronounced in the costlier markets of Toronto and Vancouver.

In fact, Hogue said that housing resale activity in Toronto is at its slowest pace in 13 years, outside of the early days of the COVID-19 pandemic.

The stockpile of available homes is also up 58 per cent from a year ago, he noted.

“With more options to choose from and higher interest rates shrinking their purchasing budgets, buyers are able to extract meaningful price concessions from sellers,” he said, pointing out that the average price of a home in the GTA is down 13 per cent from March. “We expect buyers to remain on the defensive in the months ahead as they deal with rising interest rates and poor affordability.”

While Hogue did say that condos in the City of Toronto are likely to remain “relatively more resilient” he said that prices elsewhere will continue to fall for the time being, especially in the 905 belt “where property values soared during the pandemic.”

The July data from TRREB suggested that the average price of a home in the GTA was still up one per cent from July, 2021.

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'The craziness is over': Ottawa's real estate market inches toward stability, but home prices still increasing – Ottawa Citizen

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Thursday, the Ottawa Real Estate Board released its analysis of July listings and sales and declared a “profound slowdown” in the local home resale market.

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Realtor Yvan Rhéaume says Ottawa is still a hot real estate market, but buyers have a better chance of competing for homes now compared with last winter.

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“The craziness is over,” Rhéaume said on Sunday, but that doesn’t mean it’s less expensive to buy a home in the nation’s capital.

“What you see on the news is the prices are dropping and sellers are panicking. That may be the thing in other places across the country, but in Ottawa, we still see a price increase between 2021 and 2022,” Rhéaume said.

Thursday, the Ottawa Real Estate Board released its analysis of July listings and sales and declared a “profound slowdown” in the local home resale market.

“July’s numbers reveal that buyers are indeed putting on the brakes more heavily than what is typically expected during the mid-summer sales dip,” board president Penny Torontow said in releasing the latest statistics.

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According to the board, its member realtors sold 1,100 residential properties in July 2022, compared with 1,718 in July 2021. The stats come from listings on the Multiple Listing Service (MLS).

The July 2022 sales were well below July’s five-year monthly average of 1,691.

Prices are still increasing, but just not at the same steep trajectory seen earlier in the pandemic.

According to the board’s figures, the average sale price for a residential property was $716,354 in July, an increase of five per cent from a year ago. For condos, the average sale price went up one per cent to $425,694 in July 2022, compared to the same month in 2021.

When it comes to year-to-date average sale prices as of July, the board has the first seven months of 2022 at $805,238 for residential properties, which is an 11-per-cent increase over the same period in 2021, while condos were at $461,557, a nine-per-cent increase.

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Rhéaume said the return of one not-long-ago standard shows a change in the market: conditions are once again being put on offers.

He had one buyer recently purchase a townhouse with conditions on financing and a home inspection. “That was the first time in probably three years, at least,” Rhéaume said of the conditions. On top of that, he was able to negotiate the price.

Wendy Bell, the broker of record in an office of 250 agents, said news about higher interest rates and inflation had an impact on the market starting in the spring.

“That kind of put the brakes on things,” Bell said, opining that another interest rate increase would be “devastating.”

Broker Wendy Bell said the months ahead will provide better indicators for the local real estate market.
Broker Wendy Bell said the months ahead will provide better indicators for the local real estate market. Photo by Ashley Fraser /Postmedia

Bell said she finds herself trying to educate buyers and sellers about what’s happening in the local market.

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Sellers have watched properties go for sums well beyond asking prices during the pandemic, while buyers recently have been reading about the market quickly returning to normal conditions. Both scenarios aren’t necessarily playing out in Ottawa.

Bell said homes didn’t have to be staged at the height of the buying frenzy over the pandemic, but now she’s urging sellers to make sure their homes are in order — like painting and removing clutter — to attract prospective buyers.

Bell said the months ahead will provide better indicators for the local real estate market as people come back from their summer vacations.

“Things will come back to normal in a more balanced market in the fall,” Bell predicted.

Broker Dawna Erskine said some sellers have been confused about why their homes aren’t attracting the same large offers that some neighbours received just months ago.

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“That’s how drastic things have changed,” Erskine said, and she believes “we are going back to the pre-COVID days” when it comes to home prices.

Erskine said the pandemic has been a “nightmare” while trying to evaluate true values of properties for her eager buyer clients and trying to bid on homes against others willing to pay sky-high prices.

“I can’t tell you how often I’ve worked to guide buyers (and advised) not to buy this,” Erskine said.

“Is the winner really the winner? Or are you the loser?”

Erskine’s optimistic stability will return to the real estate market in the coming months.

“It’s going to become more balanced and I’m really looking forward to it.”

jwilling@postmedia.com

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Turf war heats up between real estate disruptor and industry establishment – CBC.ca

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An Ottawa entrepreneur who pleaded guilty to fraud charges over fudged car loans in 2009 is back in court — this time as a plaintiff accusing three trade associations of trying to damage the reputation of his latest venture and exile the self-styled disruptor from the real estate industry’s established turf.

Michael Ryan O’Connor, who’d previously run into legal trouble as the owner of a chain of used car dealerships in Ontario and Quebec, is currently the founder and CEO of Unreserved, an online real estate auction platform that allows people to buy and sell homes like an outsized eBay. 

In a civil suit filed mid-July, O’Connor’s company alleges the Ottawa Real Estate Board (OREB), Ontario Real Estate Association (OREA) and Canadian Real Estate Association (CREA) made defamatory statements about Unreserved in an attempt to scare consumers away from the outfit’s novel approach to selling homes.

It also alleges the three organizations — which together represent and oversee every registered real estate agent and broker in the nation’s capital and run the exclusive central listing network for properties known as the Multiple Listing Service (MLS) — unfairly lobbied regulators to close a decades-old legal exemption essential to Unreserved’s operations.

OREB, OREA, and CREA have all stated they believe Unreserved’s claim is without merit. 

None of the allegations have been proven in court.

Real estate for sale signs are shown in Oakville, Ont., in 2018. Together, CREA, OREA and OREB represent all real estate agents and brokers, operate the Multiple Listing Service (MLS) and maintain an effective monopoly over the real estate industry. (Richard Buchan/Canadian Press)

Meanwhile, CBC has uncovered court documents dating back more than a decade, detailing how the province once revoked O’Connor’s licence as a motor vehicle salesperson, after he pleaded guilty to two counts of fraud related to inflating buyers’ incomes to help them qualify for used car loans they couldn’t afford. The RCMP raided one of O’Connor’s Find-A-Car dealerships and built a case against him after hundreds of customers complained about unmanageable debt in 2007. 

“I paid the price. I lost everything,” said O’Connor, who performed community service and served six months’ house arrest as part of his conditional sentence. 

O’Connor said he believes he has since rebuilt his credibility — first by pivoting to an online dealer-to-dealer vehicle auction platform, and now a similar model for real estate. 

As the new legal battle brews, real estate law experts say the current case reveals several competing interests — consumers’ desire for greater price transparency in an era of sky-high home prices and blind bidding; the billions of dollars of commissions and fees at stake for real estate agents; and the limits of regulation when it comes to protecting consumers and enforcing a code of ethics within the industry.

As a result, observers say the legal fight could be pricey and protracted.

Unreserved, an Ottawa-based tech startup, purports to offer greater transparency to home buyers through transparent bidding, but operates outside the laws and code of ethics that govern traditional brokers. (Alexander Behne/CBC)

Online real estate bidding draws industry ire

Founded in 2021, Unreserved bills itself as a disruptor in the real estate industry.

The tech startup raked in nearly $34 million in venture capital in early 2022, and has purportedly auctioned more than 250 properties in Ottawa and a handful of other cities in Ontario using an unconventional method that has sparked a backlash from the traditional real estate establishment.   

On the company’s website, listings ranging from $250,000 condos to million-dollar detached homes are bid on and bought in real-time auctions “with the click of a mouse,” O’Connor explained.

Prospective buyers can register bids in increments as low as $2,500, after submitting a mortgage pre-approval from a bank.

A home listed for auction by Unreserved. The company says it has sold over 250 properties in Ottawa and other cities in Ontario in its first year of operation. (Alexander Behne/CBC)

While traditional realtors are prohibited by law from sharing the contents of competing bids for a home, Unreserved allows participants to see the entire bid history.

The site is able to do this by exploiting an exemption in Ontario’s Real Estate and Business Brokers Act (REBBA) that allows auctioneers to buy and sell real estate outside of typical regulations for brokers. 

The broad exemption dates back to the 1950s and was originally intended to be used to auction family farms.

OREA, one of the largest lobby groups in Canada with more than 90,000 members across dozens of real estate boards, called the auctioneers’ exemption “a loophole with frightening implications for unsuspecting consumers trying to buy a home” on its website in June.

OREA also commissioned a survey, citing “70 per cent of Ontarians support the regulation of auctioneers who would sell homes in an open bidding process.”

The association declined to grant an interview to CBC, but CEO Tim Hudak said in a statement that auctioneers trading in real estate has “serious negative consequences” for consumers.

“OREA won’t be intimidated from standing up to protect Ontario home buyers and sellers,” the statement read. 

Tim Hudak, left, CEO of the Ontario Real Estate Association, appears at a televised news conference in 2018. Hudak wrote that a provincial exemption for real estate auctioneers has ‘frightening implications’ for consumers. (CBC)

The other two groups named in Unreserved’s lawsuit — OREB and CREA — have also warned consumers about using an online auction platform to buy and sell homes.

“We feel it was a collaborative effort on all fronts to pressure the government to get rid of [this exemption],” said O’Connor.

“They’re doing it all in the name of consumer protection … and when you peel the layers back, it’s just false.”

In a video posted on Unreserved’s official social media accounts, O’Connor drives a farm tractor pulling a fertilizer spreader. The video intercuts clips of O’Connor accusing the Ottawa Real Estate Board (OREB) of ‘spreading propaganda’ that has ‘a really bad smell’ about Unreserved’s stance on consumer protection with a video featuring OREB president Penny Torontow. (Instagram/Unreserved)

The civil claim alleges that OREB, OREA, and CREA contacted the Real Estate Council of Ontario (RECO), the province’s real estate regulator, and later the minister of government and consumer services to lobby for Unreserved’s business to be shut down.

OREB and CREA both declined an interview with CBC.

Billions of dollars at stake

Mark Morris, a real estate lawyer and a former instructor at the Ontario Real Estate College who is uninvolved in the case, said a court battle over the auctioneers’ exemption is inevitable because “there’s money in it.” 

“If this starts disrupting the tens of billions of dollars that is real estate,” said Morris, “people will try every avenue because the cost of attempting this pales in comparison to the pot of gold at the end of the rainbow.”

Real estate educator Mark Morris says that with billions in profits at stake, the legal fight over the right to buy and sell real estate could be protracted and pricey. (Submitted/Mark Morris)

Morris added that real estate associations are naturally protective of their control on the industry like any other regulated profession, such as law and medicine.

“In fact that’s kind of their job,” he said. “They are representing a bunch of people who derive great benefit through exclusivity.”

Founder charged with fraud

This latest lawsuit is not O’Connor’s first run-in with consumer protection laws.

In the early 2000s, he ran a small chain of used car dealerships registered under the name Find-A-Car Auto Sales & Brokering Inc.

In 2007, the RCMP obtained a search warrant for the Kingston location of Find-A-Car and seized items from the premises.

O’Connor was later charged with 11 counts of fraud over $5,000, forging documents and global fraud over $5,000 following complaints from hundreds of customers who alleged they faced financial ruin after signing car loans with Find-A-Car.

With billions of dollars at stake, the battle over whether or not to allow auction platforms like Unreserved to challenge the traditional real estate establishment will likely be long and costly, according to one real estate law expert. (Graeme Roy/The Canadian Press)

The charges stated that O’Connor’s business had “knowingly [obtained] credit for people who would not qualify nor be able to repay their liability, using false statements in writing to financial institutions.”

In December 2009, O’Connor pleaded guilty to two counts of fraud over $5,000. He received a conditional sentence of two years less a day, the first six months of which were served under house arrest.

Find-A-Car ceased operations and O’Connor testified that he liquidated his inventory to pay down bank loans related to the business.

In 2011, the License Appeal Tribunal of the Ontario Motor Vehicle Industry Council (OMVIC), which regulates all motor vehicle sales in the province, revoked O’Connor’s registration, effectively stripping him of the right to sell cars.

“His past conduct gives reasonable grounds to believe he will not carry on business in accordance with law and with integrity and honesty,” wrote the tribunal in its decision.

O’Connor now says he “took full ownership of everything that happened in that business.”

“Twenty years ago I made some mistakes,” he said. “I surrounded myself with some of the wrong people.”

In 2016, O’Connor founded EBlock, an online dealer-to-dealer vehicle auction platform, and has since re-registered to sell cars.

“I was able to get a second chance and … pivot towards tech,” he said.

Wholesale auctions are exempt from the Motor Vehicle Dealers Act and do not need to be registered.

The business saw rapid growth and its parent company, E Automotive Inc., launched an initial public offering on the Toronto Stock Exchange in 2021 valued at more than $1 billion.

O’Connor said he sold most of his position in the company and has resigned from its board.

He would not share how much he made from EBlock, but called the profits “life changing.”

His latest business venture, Unreserved, applies a similar online auction philosophy to real estate.

WATCH | Lawsuit puts real estate auctions in the spotlight

Lawsuit puts real estate auctions in the spotlight

1 hour ago

Duration 1:41

Ryan O’Connor, founder of real estate auction company Unreserved, has filed a lawsuit against the Ottawa Real Estate Board, the Ontario Real Estate Association and the Canadian Real Estate Association, alleging they made defamatory statements and unfairly lobbied to close the exemption that allows real estate auctions. All three organizations say the claims are without merit.

Consumer protection core issue for industry

At the centre of the legal fight as disruptors like Unreserved attempt to take a share of the real estate market is consumer protection, observed another industry legal expert.

The Real Estate and Business Brokers Act — which auctioneers can bypass — is fundamentally a consumer protection law, explained David Carter, who teaches at York University’s Osgoode Hall Law School.

Operating as a broker comes with licensing, insurance and training requirements.

“The real purpose here is to make sure anyone purporting to help the public buy and sell real estate knows what they’re doing,” said Carter, “and there’s accountability when they don’t.”

Similar to OMVIC’s role in the world of auto sales, the Real Estate Council of Ontario has the power to levy severe penalties on realtors or brokers that violate its code of ethics or break the law. This can include fines of up to $50,000 and jail time up to two years less a day.

Carter adds that the auctioneer loophole is a “very broad, carte-blanche exemption.”

“So if you can fall under that global exemption, you can almost do whatever you want.”

Unreserved bills itself as a disruptor offering home buyers greater transparency, but the fine print on their website makes it clear ‘they don’t want to be tied into any representations’ about the properties they sell, says one real estate law expert. (Alexander Behne/CBC)

‘At your own risk’

The legal section of Unreserved’s website includes numerous disclaimers.

“Your use of the website is at your own risk,” states the site’s terms and conditions.

Unreserved’s purchase agreement states that properties are sold “as-is” and “with all faults.” The buyer is responsible for verifying property boundaries and for retaining their own lawyer if they are not represented by a real estate agent.

Unreserved advertises its homes as being inspected prior to the auction and includes a brief inspection report as part of each listing on its website. 

In traditional home sales, buyers often include an inspection clause in their purchase offer and pay for an independent inspection themselves. Unreserved’s terms state that buyers must accept any so-called patent defects which would have been discoverable by the buyer during an inspection of the home.

“They don’t want to be tied into any representations, any warranties … anything that they can get sued on in a transaction,” said Carter.

Unreserved offers a one-year, $100,000 limited warranty for the properties sold on its site.

Unreserved’s office space on Baseline Road in Ottawa. O’Connor said the company has scaled to over 100 employees. The business secured nearly $34 million in venture capital in early 2022 to fund its growth. (Alexander Behne/CBC)

When asked about the consumer protection measures Unreserved has in place, O’Connor said that deposits from winning bidders are stored in the trust account of a co-operating brokerage. 

After that, he said, the risk is low because “the lawyers are the ones that do all the work.”

“When that hammer drops, everyone washes our hands and the paperwork’s gone to the lawyers.… The lawyers are the ones that are really protecting the buyer, protecting the seller, making sure the transaction goes smoothly,” O’Connor said.

A townhome listed for sale by Unreserved. Buyers not represented by a realtor must retain their own lawyer to complete a purchase, and the auction site’s terms require they accept the property ‘as-is’ and ‘with all faults’ at the time the winning bid is placed. (Alexander Behne/CBC)

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