A sold sign posted on a real estate sign outside a home in the East end of Toronto near Woodbine and Danforth Avenue on Jan. 23, 2020.
Deborah Baic/The Globe and Mail
With a severe contraction in the number of houses for sale in Toronto and surrounding cities, anxious buyers have been lobbing money at the few properties that do arrive on the market.
In Oshawa, Ont., and other parts of Durham Region, Shawn Lackie, a real estate agent with Coldwell Banker R.M.R. Real Estate, says buyers have been paying eye-popping premiums even for modest houses.
“These places that are selling are little shacks,” he says.
Mr. Lackie sees worrying signs in the bedroom communities east of Toronto: Even during the frothy days of 2016, buyers typically only entered competition for the most desirable houses, he points out.
“They were bidding on properties that were worthy of insanity,” Mr. Lackie says. Now, “it’s right across all areas and all sizes. We’re back to full-on madness.”
He points to one recent example on Olive Street in Oshawa where a 1,100-square-foot house was listed with an asking price of $650,000 and sold for $802,000 after five bullies submitted bids ahead of the date scheduled for reviewing offers.
Mr. Lackie notes the house last changed hands in 2018 for $200,000.
Another bungalow of about the same size was listed with an asking price of $499,000 and sold for $713,000 in Oshawa.
In the small town of Orono a little farther east, a house listed with an asking price of $499,000 sold for $731,000.
In Mr. Lackie’s opinion, the growth in prices is not sustainable.
When he works with buyers, Mr. Lackie advises them to think about their exit strategy before they purchase a property. Buyers need to think about how long they want to live in the property and whether the amount they’re paying represents good value if they sell after a number of years.
He fears that people who are paying amounts far above recent sales in the area are getting way ahead of the market.
“If you’re paying $800,000, how long do you have to live there until the market comes up to the home? People are throwing money around like drunken sailors. I’m not really a fan of this.”
Mr. Lackie says the combination of a lack of supply and rock-bottom interest rates is driving the run-up.
He adds that some of the purchasers appear to be first-time buyers who want to get into the market at any cost. Others are homeowners from Toronto who are flush with cash from selling a property in the city.
If homeowners sell their house in Willowdale for $1.6-million, for example, they don’t have a problem offering $800,000 or $900,000 in a small town because they still have $700,000 left over.
The inflation is leading to mounting frustration for local people who have been saving up for a house over time, he adds.
“They’re getting blown out of the water,” he says. “They can’t compete with that.”
Mr. Lackie worked with one young Toronto couple who were renting a 740-square-foot townhouse in Liberty Village, he says, and wanted a backyard for themselves and their large dog.
Mr. Lackie says the couple looked at townhouses in Whitby and other parts of Durham, but they found the properties that fit within their budget small and uninspiring.
When they extended their search north and east to Port Perry, they found a vacant bungalow listed with an asking price of $750,000. They first submitted an offer of $695,000 and, after some back-and-forth, signed a deal for $715,000.
The couple was nervous at the time, Mr. Lackie says, but other bungalows nearby have since sold for $775,000 and $760,000.
Looking ahead, Mr. Lackie expects the runaway price growth to slow at some point.
“This is accelerated. They’ve got their foot on the gas pedal and I don’t know how long this can go.”
The Canadian Real Estate Association reports that the number of listings across Canada stood at fewer than 100,000 on New Year’s Day, which marks the lowest tally recorded in data going back three decades.
Sales were up by more than new supply in December, CREA senior economist Shaun Cathcart says. The national sales-to-new-listing ratio tightened to 77.4 per cent – among the highest levels on record for the measure. The long-term average for the national sales-to-new-listings ratio is 54.2 per cent, Mr. Cathcart says.
Elise Stern, a broker with Harvey Kalles Real Estate Ltd., says buyers in Toronto grappling with the low supply are using tactics such as bully offers to get ahead of the competition.
Her clients recently tried to submit a bully offer for a four-bedroom house in Thornhill Woods with an asking price of $1.699-million. The sellers declined to look at the offer, so Ms. Stern’s clients showed up on the scheduled night with a bid of $1.761-million, which the homeowners accepted.
The house on a quiet cul-de-sac was previously listed in December, 2019, with an asking price of $1.588-million, but at that time it failed to find a buyer after 50 days on the market.
Ms. Stern says one reason for the low supply in the city is that some sellers prefer to sell quietly without launching their home on the Multiple Listing Service of the Toronto Regional Real Estate Board. The homeowners are reluctant to have numerous people through the property and they also don’t want to undertake the decluttering, painting and staging that helps to make a home appealing to a wider pool of buyers.
Ms. Stern has recently sold two properties on an exclusive basis.
In such deals, sellers are saying “this is the number that I’d be prepared to sell it at today,” and Ms. Stern puts the word out to fellow agents and her own list of buyers to see if there are any takers.
“The exclusive network is up-and-running.”
Ms. Stern expects the intense bidding to continue because buyers have preapproved mortgages with low rates lined up, and they become anxious when they miss out on properties that sell to competing buyers. If they sit on the sidelines, they see prices rapidly escalate.
“If a house sells for a lot of money, that becomes the new benchmark,” she says.
Ms. Stern advises clients to visit a mortgage broker and become educated about the market action in advance so that they can feel confident when the time comes to make an offer.
“I try to keep them level-headed,” she says. “I don’t ever want them to overextend themselves financially.”
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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