Real eState
Where does it cost the most, and the least, to own a home in Canada?
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As average home prices begin to stabilize in Canada, a new report is showing where Canadians are paying some of the lowest homeownership costs.
As part of its study, Point2 Homes calculated the first-year cost of owning a home in 50 Canadian cities based on MLS benchmark home prices from January. This includes upfront costs, such as a 20-per-cent down payment and closing fees, along with annual recurring costs, such as property taxes and mortgage payments. Calculations were made using a five-year, fixed-rate mortgage with an interest rate of 5.86 per cent.
The three Canadian cities with the most affordable first year of homeownership are all found in Quebec, according to the report. In the city of Saguenay, for example, new homeowners will accumulate $74,342 in home payments during the first year. This is based on a benchmark home price of $254,500.
However, cities in Ontario and British Columbia reported much higher costs associated with the first year of homeownership. Throughout the first 365 days of owning a home in Richmond Hill, Ont., for example, new buyers will pay about $400,733. In other cities, such as Vancouver and Toronto, the first-year cost of owning a home amounts to more than $315,000.
This is attributed to higher benchmark home prices in these cities, which also lead to higher mortgage and down payments on new purchases. According to Point2 Homes’ report, the benchmark price of a home in Vancouver was $1,167,800 in January. In Toronto, the benchmark price of a home was $1,067,000 in the same month.
“Despite financial aid programs and dwindling competition for already-scarce inventory, the costs of homeownership weigh on any potential buyer,” reads the report’s press release, issued Feb. 27.
According to data released by the Canadian Real Estate Association on Wednesday, the national average price of a home was $662,437 in February, not seasonally adjusted. While this represents a drop of 18.9 per cent compared to this time last year, it is about $50,000 higher than the average price reported last month.
Concerns around home affordability continue to be top of mind for Canadians. A new survey released by Mortgage Professionals Canada shows a record number of Canadians who do not currently own a home think they will never be able to afford one. Additionally, recent census data shows the homeownership rate among Canadians is on the decline.
Following the Bank of Canada’s decision to hold its key interest rate at 4.5 per cent on March 8, the next few months will offer “a clearer picture in terms of how today’s buyers are absorbing the higher interest rate environment,” said Penelope Graham, director of content at Ratehub.ca, in a statement to CTVNews.ca on Wednesday.
Below are major cities with some of the cheapest and most expensive first-year costs of homeownership in Canada. Scroll down for a list of homes that are currently on the market in these municipalities.
SAGUENAY, QUE.
(Julie Taché / Josée-Ann Jomphe, Groupe Sutton-Nouvelle Demeure)
Type: House
Price: $289,500
Year Built: 1958
Property Size: 117.57 sq. m
Lot Size: 774 sq. m
Cost of First Year: $74,342
This bungalow in Saguenay, Que. features six bedrooms and two bathrooms, in addition to an open-concept living, dining and kitchen area. Outside, the backyard is completely fenced and includes an above-ground swimming pool. The home is located near public transportation and is a short drive from the downtown core.
REGINA
(Hatch Media / Will Amichand, Platinum Realty Specialists)
Type: House
Price: $299,900
Year Built: 1950
Property Size: 78.22 sq. m
Lot Size: 351.27 sq. m
Cost of First Year: $88,704
At the entrance of this Regina home is a custom front door leading to a combined living and dining area with hardwood floors and a brick fireplace. In the kitchen is slate tile flooring and new stainless steel appliances. The basement has been fully renovated, and includes a bedroom, a three-piece bathroom and a second kitchen with custom countertops and a breakfast bar.
ST. JOHN’S, N.L.
(Amanda’s Camera Real Estate Photography / Andrew Winsor, Royal LePage Vision Realty)
Type: Townhouse
Price: $309,900
Year Built: 1930
Property Size: 145.11 sq. m
Lot Size: 150.50 sq. m
Cost of First Year: $88,956
This semi-detached townhouse in St. John’s, N.L. spans 145 square metres. In addition to four bedrooms and one bathroom is an open-concept living and dining area, which has two fireplaces. The kitchen, which features a walk-in pantry, also offers access to the deck in the backyard. The home is located near several parks and restaurants.
WINNIPEG
(Scott Zielke, SZ Media / Walter Mota, Dreamhaven Realty)
Type: House
Price: $334,900
Year Built: 1905
Property Size: 110 sq. m
Lot Size: 324.79 sq. m
Cost of First Year: $95,125
Built in 1905, this Winnipeg home includes a number of upgrades throughout. On the main level, vinyl plank floors run throughout the living and dining rooms as well as the kitchen, which also has modern-style cabinets and quartz countertops. On the upper floor are all three bedrooms and a four-piece bathroom.
EDMONTON
(Nik Jankovic, Müve Team, Royal LePage ArTeam Realty)
Type: Apartment
Price: $368,900
Year Built: 2019
Property Size: 51.02 sq. m
Lot Size: N/A
Cost of First Year: $100,078
This one-bedroom, one-bathroom unit is situated in Edmonton’s Ice District. It features engineered hardwood floors throughout, and the open-concept living area offers access to a balcony with west-facing views. The apartment building is located near Rogers Place and on-site amenities include a patio, pool and fitness centre.
SASKATOON
(Amy Thorp Photography / Josh Epp, Realty Executives Saskatoon)
Type: House
Price: $384,900
Year Built: 2022
Property Size: 119.94 sq. m
Lot Size: 355.26 sq. m
Cost of First Year: $102,992
Located in Saskatoon’s Caswell Hill neighbourhood, this newly-built home comes with three bedrooms and three bathrooms. On the main level are separate living and dining areas, along with a kitchen complete with granite countertops. On the upper level are all three bedrooms and an en suite bathroom. Near the home are various amenities such as restaurants, elementary schools and parks.
GREATER SUDBURY, ONT.
(Incapture / Marcel Gladu, Re/Max Crown Realty 1989)
Type: House
Price: $449,900
Year Built: 1971
Property Size: 124.49 sq. m
Lot Size: 698.63 sq. m
Cost of First Year: $119,472
With three bedrooms and two bathrooms, this house in Greater Sudbury, Ont. features tile and vinyl plank flooring throughout. The recently upgraded kitchen comes with two-tone cabinets and new appliances. On the lower level is a family room with a gas fireplace, along with a laundry room, and the home is within walking distance of Moonlight Beach.
CALGARY
(Ryan Hagel, Calgary Real Estate Photos / Frank Simonfi, Royal LePage Benchmark)
Type: House
Price: $524,900
Year Built: 1929
Property Size: 82.03 sq. m
Lot Size: 418.06 sq. m
Cost of First Year: $142,388
Recent updates to this home in Calgary’s Mount Pleasant neighbourhood include new floors and roofing. In addition to an open-concept living and dining area, this bungalow also has two bedrooms and a bathroom. The kitchen overlooks a south-facing backyard that is fully fenced, and the basement is fully finished. Also on the lot is a heated garage.
HALIFAX
(Ludmila Oleynik / Janna Fertsman, Re/Max Nova)
Type: Townhouse
Price: $550,000
Year Built: 1999
Property Size: 173.08 sq. m
Lot Size: 0.2 to 0.4 hectares
Cost of First Year: $143,292
This 173-square-metre townhouse in Halifax has three bedrooms and three bathrooms. On the main floor are the combined living and dining spaces, which feature updated trims. On the upper floor, the main bedroom has an ensuite complete with a Jacuzzi. The home also has a single-car garage with cabinets for storage, and is situated near schools and public transportation.
MONTREAL
(Lucas Servant, Agence Immobilière Canora)
Type: Apartment
Price: $599,000
Year Built: 1890
Property Size: 100.15 sq. m
Lot Size: N/A
Cost of First Year: $150,738
Situated in Old Montreal, this loft spans more than 100 square metres and includes one bathroom and one bedroom. With three-metre-high ceilings, the apartment also features exposed brick walls and floor-to-ceiling windows. Amenities include a common terrace on the rooftop.
ABBOTSFORD, B.C.
(All The Rage Creative / Clark Barry, Clark Barry Real Estate Group, eXp Realty)
Type: Townhouse
Price: $684,900
Year Built: 2018
Property Size: 110.10 sq. m
Lot Size: N/A
Cost of First Year: $210,534
This end-unit townhouse in Abbotsford, B.C. has an open-concept floorplan on the main level, which includes a gourmet kitchen complete with stainless steel appliances and quartz countertops. In addition to two bedrooms on the upper floor is a den in the basement, which can serve as a home office or an extra bedroom.
VANCOUVER
(ONIKON Creative Inc. / Imran Ali, The Ali Group, eXp Realty)
Type: Apartment
Price: $1,169,000
Year Built: 1989
Property Size: 107.77 sq. m
Lot Size: N/A
Cost of First Year: $331,638
Recently renovated, this Vancouver apartment unit features several upgrades including the addition of engineered oak flooring in the combined living and dining areas, as well as both bedrooms. The unit’s two bathrooms also include new Italian tiling and heated floors. In the kitchen are updated quartz countertops, new stainless steel appliances and a wet bar, while floor-to-ceiling windows let in plenty of natural light.
RICHMOND HILL, ONT.
(Winsold / Roland Kogan and Danial Zolfaghari, Alan Newton Real Estate Ltd.)
Type: House
Price: $1,360,000
Year Built: 1942
Property Size: 204.39 sq. m
Lot Size: 715.44 sq. m
Cost of First Year: $400,733
Originally built in 1942, this two-storey home in Richmond Hill, Ont. has been fully renovated in recent years. This includes upgrades to the kitchen, as well as a remodeled dining and living area. The home also has three bedrooms, two bathrooms and a solarium. In the finished basement are two more bedrooms, as well as another kitchen. The basement also has its own entrance to the home.
Western Investor is famous for the breadth of its commercial real estate listings. It is perhaps the only publication in Canada where investors can find a high-rise office tower, a remote waterfront lodge, a golf course, an industrial warehouse or a small-town bowling alley for sale within its pages.
We often have unique listings and there are three this month that stood out.
First is an entire city block for sale in downtown Calgary.
The 2.83-acre site borders the popular East Village, and the land is rezoned for a high-density mixed-use project with a generous floor-ratio-area (FAR) of 20.
Flexible commercial zoning allows for residential rentals, condos or hotel and a variety of commercial uses. Current visions include four high-rise towers, but all options are on the table. It is listed by Goodman Commercial, Vancouver, and NAI Commercial, Calgary, at an asking price of $32.4 million.
Second is a rare listing in B.C.’s Central Okanagan.
The property is the 11.3-acre Vibrant Wine vineyard estates in east Kelowna. The property includes a luxury 9,000-square-foot Italian-style villa. The eight-acre vineyard was named the No.1 winery on Trip Advisor and its product was ranked the Best White Wine in the World in 2013. A proven venture that can be expanded, the entire property and equipment is co-listed by HM Commercial and Jane Hoffman Realty, Kelowna, at $13.5 million.
Third of the unique listings is a productive gold mine.
With a private residence and a two-title acreage in the Cariboo, the property covers 3.2 acres near the original Gold Rush town of Likely, B.C.
The land includes an updated three-bedroom house, but the attraction is the operating gold mine. A two person operation on a five-year renewable permit that covers a 100-acre bench, only nine acres have been worked so far, but there has been a consistent average return of 1 ounce of gold per 100 yards mined, with the highest return of 8 ounces in under 100 yards. Note: the price of gold now is around US$1,980 per ounce. The entire operation, including all the mining machinery, is listed by 3A Group, Re/Max Nyda Realty in Agassiz, B.C., at $1.45 million.
Real estate experts paint a cautiously optimistic outlook after a year of downward market trends across the country.
Trends in Simcoe County show an increase in viewings and buyers re-entering the market after key interest rate hikes from the Bank of Canada warded off many last year.
Lance Chilton, the broker of record at Re/Max Hallmark Chilton Realty, calls the local market “more or less balanced.”
“Inventory conditions are the same as they once were in 2018,” he noted.” From 2020 to 2022, prices rose to about 43 per cent, which was rather rapid.”
Chilton said key interest rate hikes eventually bottomed out the local market by about September – that’s when home prices that peaked at around $1 million dropped to about $730,000.
“Since then, it’s recovered by about five per cent,” Chilton said. “In fact, we actually saw showings increase for the first time in about six months.”
The Barrie and District Association of Realtors (BDAR) confirms that showings have picked up again, with people getting that “spring fever.”
However, the one key issue that remains is low inventory.
“We saw prices dip because of interest rates and people pulling out of the market, but we never saw that supply come back online,” said Luc Woolsey, BDAR president, adding the situation creates multi-offer bids.
“So there’s still a lot of people having to come in firm, waiving conditions and inspections because they’re having to compete.”
Real eState
‘Million Dollar Listing’ star warns CA mansion tax will deliver ‘hardest hit’ to market since 2007 – Fox Business
‘Million Dollar Listing’ star and agent Josh Altman discusses the impact of California’s housing policy and homeless crisis on the state’s real estate market.
Though it’s home to some of the most luxurious and expensive real estate listings in America, California is readying to pass a housing bill that one “Million Dollar Listing” agent warned could create the “hardest hit” to the market since the 2007-08 crash.
“In about ten days or so, there’s a measure called the ULA measure that’s going to go into effect, which is going to be probably the hardest hit to the real estate market that we’ve seen since 2007,” broker and television personality Josh Altman said on “Varney & Co.” Monday.
Altman’s comments come in response to the recently-passed “United to House L.A.” (ULA) measure in California, which adopts a so-called “mansion tax” on property sales or transfers over a certain value to pay for affordable housing.
Properties sold above $5 million but below $10 million are subject to a 4% sales or transfer tax, while properties that sold for more than $10 million will face a 5.5% tax, according to the city clerk’s voter information pamphlet.
At least 92% of taxpayers’ money would “fund affordable housing under the Affordable Housing Program and tenant assistance programs under the Homeless Prevention Program,” the pamphlet also clarified.
California’s “United to House L.A.” measure will create “the hardest hit to the real estate market” since 2007, “Million Dollar Listing” star Josh Altman said on “Varney & Co.” Monday. (Getty Images)
“The way that this ULA measure was passed is just mind-boggling to me,” Altman added, “and I think it’s one of the most ridiculous bills that I have ever seen in my entire 20-year career.”
The Los Angeles city administrative officer estimated the proposed tax could generate $600 million to $1.1 billion in revenue each year. However, he noted it would “fluctuate” based on how many property transactions with values within the scope of the tax actually occur.
While those who support the measure argue it could help solve L.A.’s housing affordability and homeless crisis, others like Altman caution the tax policy would lead to higher home prices and bureaucracy.
Managing partner of 8VC Joe Lonsdale joined ‘Fox & Friends’ to discuss how the tax would affect America’s most wealthy and why the state is a ‘total mess.’
“Think about these people that bought houses three years ago for $5 million and they want to sell now,” Altman hypothesized. “The market’s down, rates are up, that happens. But now they got to cut a check for $200,000 out of their own pocket because there’s no profit on that. So it’s really going to rock the real estate market that we’re in here in Los Angeles.”
California’s real estate market, the “Million Dollar Listing” star further argued, is on “a race to the bottom” over the next 10 days as buyers try to close deals before the mansion tax is enacted.
Josh Altman of “Million Dollar Listing” warns California’s “mansion tax” will “trickle down” to working and middle-class households. (Getty Images)
“I’m seeing deals get done that should never have gotten done,” the L.A. agent said. “I’ve even done as much as, on a $28 million listing that I have, we have offered a $1,000,000 bonus for anybody who buys and closes before April 1.”
The “main issue” with the ULA measure remains its “trickle down” effect — not on mansion or luxury homeowners, but on working and middle-class California families.
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Josh Altman spoke to FOX Business about the luxury real estate market and the impact of the new “mansion tax” in Los Angeles.
“People who voted who said, ‘Oh, I don’t have a $5 million house,’ which by the way, is not a mansion in L.A., we’re talking about a four-bedroom, 4,000 square-foot house in L.A. is $5 million, so this isn’t a mansion tax,” Altman said.
“This isn’t a $30, $40, $50 million house tax – these are regular people that work bill to bill, that have to pay their mortgage just like everybody else, and now they’re being penalized here.”
FOX Business’ Aislinn Murphy contributed to this report.
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