The aftermath of the coronavirus pandemic has altered our lifestyles, the economy and even the housing sector. A new normal has spawned in the wake of the public health crisis. It might take time to adjust, especially if the virus outbreak lingers as many health experts forecast. This means that face masks, social distancing and working remotely will inevitably be a major part of our lives for quite a while.
As a result, certain trends are beginning to form, including within real estate. Whether it is because office policies have changed or because families think it would be best to steer clear of hyper-dense locations, a lot of households are packing up and moving to rural areas. One of these top destinations is the Kawarthas, with homeowners drawn to the area’s more than 250 lakes and rivers, fresh air and incredible natural sights.
Also known as the City of Kawartha Lakes, the Kawartha real estate market is recovering at a record pace after experiencing a modest decline in March and April. Since then, sales activity, listings and prices have been soaring upwards.
According to the Kawartha Lakes Real Estate Association, residential home sales surged 39.5 per cent in July from the same time a year ago. This also happened to be a new record for July. The median price rose 12.4 per cent to $495,000, up from $488,482 in July 2019. But how could this rural region be skyrocketing amid an economic downturn and in the middle of a public health crisis? Let’s explore.
Why Is the Kawarthas Real Estate Market So Strong Right Now?
A new trend is the growing number of city dwellers escaping the urban centres for the quiet life in suburban locations. This is what is occurring across the Kawarthas, as well as within a plethora of other small towns across Ontario.
“We definitely see the influence of people from the GTA moving here,” said Chiarina Payne, president of Peterborough and the Kawarthas Association of Realtor, in an interview with MyKawartha.com.
Some industry experts were expecting these trends to unfold, given that so many companies have instituted work-from-home policies, allowing many professionals the freedom to work anywhere they want without having to reside close to the city. Plus, with plenty of jurisdictions improving their public transit systems, homebuyers planting roots outside the Greater Toronto Area can still easily commute to the downtown core when they need to.
With demand going through the roof, prices are expected to surge even higher in the coming months within the local Kawarthas housing market. The number of new residential listings is down 18.9 per cent from last year, while the supply of available homes slumped 49.4 per cent. Until new supply comes to market, prices are unlikely to ease.
The other element that is affecting the overall Canadian real estate market is borrowing costs. Earlier this year, the Bank of Canada (BoC) reduced the benchmark interest rate to 0.25 per cent, and the central bank recently cut the five-year mortgage rate to below five per cent. This injection of cheap credit is making borrowing cheap, giving homebuyers more choices and opportunities.
Real estate experts had been warning since the spring that pent-up demand would play a significant role in the industry’s post-coronavirus recovery, whether it is the condominium market in Toronto or a detached house in Kawartha. And sure enough, these forecasted trends have been playing out in real time, with pent-up activity skyrocketing in late spring and well into the summer. But could this continue into the fall season?
Payne is already assuring buyers and sellers that real estate agents will be ready if the second wave of COVID-19 strikes. At the height of the pandemic, realtors kept the sector afloat by embracing digital tools and technology, and employing the necessary public health measures to keep buyers and sellers safe.
Will Kawartha Remain a Top Destination?
The Kawartha Lakes region is more than just a vacation getaway for families in big cities. The Kawarthas affords its residents the chance to trade hectic and fast-paced city living for a slower and quieter lifestyle. Typically, cottage-goers think fondly of the fishing, swimming, kayaking and hiking. But Kawartha also has plenty to offer its year-round residents, including tight-knit communities, little to no traffic congestion, and history dating back to 19th century pioneer days. As the area grows, boutique shops and gastro-pubs have sprouted up along the small-town streets, boosting the local economy.
Industry experts have their eyes glued to the sizzling rural markets, eager to see if this heightened real estate activity will continue into the colder months of 2020.
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.
