After spending just under 80 days on the market, one detached home has seen a reduction of over 15 per cent. (Zealty)
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As real estate analysts downgrade year-end forecasts due to nervousness over more interest rate increases and cost of living pressures, the B.C. real estate market seems to be softening across the board.
But as one insider explains, that softening isn’t just being seen in average home sales. Would-be purchasers of Greater Vancouver “luxury” homes are also reluctant to sign on the dotted line, and those who already have a portfolio are looking to offload.
Dane Eitel, founder and lead analyst at Eitel Insights, tells CityNews that for properties over $6 million, the region saw 346 listings at the end of January. Now, that number sits at 409.
“The inventory certainly is starting to come up to the higher levels. If we look back at where we were in the peak of 2022, [there] was 449 active listings in June of ’22. So, we’re very near the historical high for $6 million and above, active, detached properties.”
According to Zealty, as of Thursday, just the West Side of Vancouver alone — neighbourhoods west of Ontario Street — has 270 active listings.
Active listings of $5 million and over in Vancouver. (Zealty)
Eitel says that even during the peak of active listings last year, the region averaged 15 to 19 sales of over $6 million per month. This September, that number fell by almost 50 per cent to just eight sales with that price tag.
“[It’s] on the lower side, given our recent history here, especially since the turn of 2020, when we entered into the COVID market and the frenzy really started to boil up to frothy levels.
“We’re definitely starting to fall back on that,” he added. “On an average market basis, if we take all of the market into account, the average selling price in August was $2,345,000, [last month] we actually subtracted $164,000 month-over-month and come back down to $2,180,000.”
Eitel explains that the luxury market works a bit differently from the overall housing market, noting cases of forced sales when people fall behind on mortgage payments are not as common. However, with the dramatic rise in interest rates, he says the luxury market is seeing ramifications — including the need for sellers to reconsider and drop their prices.
A house in Vancouver’s West Side has seen a price reduction of over 15 per cent after being on the market for more than 80 days (Zealty.com)
“And some builders that over-developed, and can’t necessarily get their profits that they were expecting at the onset of the project a couple of years ago,” he said.
Eitel expects this trend to continue.
“Lower sales environment, higher inventory, which has certainly been something that the market has been desperately searching for, is likely going to come to pass as we continue to move forward for the remainder of 2023. And even in the beginning of 2024.”
Luxury listings in Vancouver seeing price drops
A home in Vancouver’s exclusive West Point Grey neighbourhood has been on the market for over 12 months. The property along Drummond Drive, which sits on over an acre of land just south of Spanish Banks, was originally listed in 2022 for $21 million dollars. Now? It could be yours for $18.8 million.
Meanwhile, in Shaughnessy, after spending just under 80 days on the market, one detached home has seen a reduction of over 15 per cent. The house, on Balfour Avenue, underwent a $3 million renovation a decade ago, according to the Realtor. Now the home’s original price of $15,330,000 has been reduced by almost that exact amount — now listed for $12,980,000.
detached home has been on the market for over three months. The two-storey, six-bedroom home along West 26th Avenue was originally listed in July at over $8.2 million, and is now on the market for $7.9 million. (Realtor)
Another Shaughnessy detached home has been on the market for over three months. The two-storey, six-bedroom home along West 26th Avenue was originally listed in July at over $8.2 million, and is now on the market for $7.9 million.
Eitel, who is also a managing broker at Royal LePage West, says at his own brokerage, pressure is mounting on sellers — especially those who are on variable mortgages.
“They are getting pushed to points where they are potentially having to sell. If interest rates continue to creep higher, another 50 basis points would be obviously detrimental to their affordability.”
But Eitel explains the region won’t see the true impact of higher interest rates until around 2025, as five-year mortgages come up for renewal after the buying frenzy seen in the early stages of the pandemic.
“During 2020 and 2021, because of the rapid increase, just the torrid pace of sales that were occurring, we probably front-loaded a lot of that five-year average sales during those two years. … However, when we look at the five-year term of a mortgage, those will be up in 2025, 2026. So, the real potential fear for the market is a swath of inventory coming during those years,” he noted.
“If the economic factors don’t start to settle down, inflation doesn’t ease, and interest rates don’t have the ability to come down, that’s when you would see that swath of inventory come to the market that we haven’t seen in many, many years.”
Meanwhile, the BC Real Estate Association released its September numbers, suggesting hesitation is being felt right across the province.
“Home sales in B.C. have clearly been impacted by the Bank of Canada’s recent tightening of interest rates, along with the resulting surge in mortgage rates,” said BCREA Chief Economist Brendon Ogmundson. “Home sales are once again trending at below average levels as potential buyers struggle with a high cost of borrowing.”
In September, the Bank of Canada held its key overnight rate steady at 5.0 per cent after two hikes through the summer.
The next interest rate announcement from the central bank is scheduled for Oct. 25.
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.
