Sellers are finding creative ways to attract potential buyers. The homeowner of 124 Gilbert Ave. in Toronto is a designer who is offering a consultation to the buyers of her $1.334-million semi.Harvey Kalles Real Estate Ltd.
The real estate market in the Greater Toronto Area has turned a corner, gauges John Pasalis, president of Realosophy Realty.
New listings have been outpacing sales in recent weeks and inventory is gradually increasing.
“These are the first signs when the momentum is changing in the market,” he says. “I expect it’s going to trend up this week.”
Mr. Pasalis tracks “months of inventory” on a weekly basis. The measure is an estimate of how long it would take to sell all listed properties at the current pace of sales.
In the third week of June, that figure stood at about 1.7 months for low-rise and a little over two months for condo apartments.
Supply remains low but the trend line has bent upwards after declining steadily since the start of the year.
The market remains busy – just not as busy as it was about six weeks ago. As for sales, they are unpredictable at the moment.
“It’s a roller coaster,” he says.
Just as he saw signs the market was slowing, Mr. Pasalis was shocked recently to see a buyer pay $1.86-million for a 43-foot lot in East York.
Mr. Pasalis expects the 1940s-ear bungalow to be torn down, which makes the price quite rich, in his opinion.
In June, the market seems to be buffeted by a 25 basis point increase in the Bank of Canada’s key interest rate, a slight swell in listings and the usual summer distractions.
The first floor of 124 Gilbert Ave. is open concept.Harvey Kalles Real Estate Ltd.
Sellers who set a deadline for reviewing offers may spur intense competition or they may end up without bids.
“The nicest homes are still getting 10 offers,” he says. “What we’re seeing on the flip side is offer nights that are failing.”
Mr. Pasalis adds that changes in interest rates don’t fully explain the trajectory of the market. When rates were at rock-bottom, many market watchers claimed the run-up in prices was fuelled by the low cost of borrowing, he explains.
Since the spring of 2022, the Bank of Canada has raised its benchmark interest rate nine times. The policy rate now stands at 4.75 per cent.
Money isn’t as cheap in 2023 but the median price in the Greater Toronto Area has risen 15 per cent since the start of the year, Mr. Pasalis points out.
He adds that the market typically slows down in the summer months.
“Buyers are pulling back a little bit,” he says. “Anyone who’s been actively bidding for five months gets burned out.”
Mr. Pasalis says the central bank’s small hike in June has less impact after a string of increases, but he senses a psychological shift amongst buyers.
The dining room and living room of 124 Gilbert Ave.Harvey Kalles Real Estate Ltd.
At the beginning of the year, buyers were rushing to get into the market before prices climbed. Then they saw the average price begin to edge up, and they figured the rise would accelerate if the Bank of Canada decreased rates later in the year.
Economists say rate cuts this year are likely off the table.
Meanwhile, the average GTA price has risen about $150,000 so far this year.
“That fear has disappeared.”
Also, seeing a few more “for sale” signs popping up on lawns helps to quell “fear of missing out” on a given offer night.
“Already our clients are more patient,” he says. “They see more listings coming up and they feel they don’t have to bid as aggressively.”
One reason for the increase in inventory, he says, is that some homeowners are calculating that they should sell before buying another property. Some are nervous to buy first and risk selling in the fall when the market may not be as strong.
Mr. Pasalis is predicting that the market will be reasonably balanced in the fall.
“I don’t think we’re going to see a lot of downward pressure on prices,” he says.
Elise Stern, broker with Harvey Kalles Real Estate Ltd., has noticed a slight blip in the market in June as buyers seem less attentive, but she puts that down more to a seasonal summer shift than the Bank of Canada’s move.
“It seems odd to me that one-quarter of a per cent would have that much impact.”
She notes that the past couple of months have seen intense action in the market, which is often followed by a pause as buyers pause to refresh.
“I’m feeling this might be that week of fatigue.”
Ms. Stern says some buyers feel the need to take a break when properties are listed with asking prices far below the amount the seller would accept.
“It’s obnoxious how low it is,” she says of some cases where the tactic is used to spur competition.
Such prices are meant to attract eyeballs and they can confound potential buyers, she says.
If the strategy fails and the seller doesn’t accept any bid on the offer date, many house hunters feel irked if the house is relisted at a higher price.
The kitchen at 124 Gilbert Ave.Harvey Kalles Real Estate Ltd.
Ms. Stern says many families also have their attention pulled away from real estate at this time of year by school graduations, preparing for camp and other activities, and students returning from university for the summer.
With fewer buyers booking showings, she adds, some sellers are finding creative ways to attract the focus of potential buyers.
In one case, a homeowner is a designer who is offering to provide a consultation to the buyers of her semi-detached house with an asking price of $1.334-million.
Ms. Stern says the house at 124 Gilbert Ave. is renovated, but the owner is offering five hours of design services to a buyer who might want help choosing furniture or arranging the pieces they have in the three-bedroom house.
Vendor take-back mortgages (VTB), which become a more common tool during periods when interest rates are on the rise, are regularly offered these days, she says.
“New agents who came into the business five years ago have never even witnessed it,” Ms. Stern says.
The strategy is sometimes used by homeowners who have a solid amount of equity in the property they are selling or who are sufficiently well-off that they can delay receiving a cash infusion from the buyer.
Robert Hogue, assistant chief economist at Bank of Montreal, says the recovery to date in Canada’s housing market is stronger than expected.
The central bank’s mildly surprising rate hike in June and the prospects for further tightening are likely to temper the pace of the rebound, in his opinion.
Mr. Hogue says recent spurts of new listings across the country have eased the imbalance between supply and demand but not enough to tip the scale in favour of buyers.
His forecast for another 25 basis-point rise by the Bank of Canada could cool demand by a few degrees, he says, which could moderate the price of pace increases but not trigger outright declines, in his opinion.
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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