Real eState

WILD: 2021 went out with a real estate bang – Toronto Sun

Published

3 years ago

January 7, 2022

Harry Miller

Probably the biggest sales trend that stood out was the resurgence in demand for homes within the City of Toronto

Author of the article:

Penelope Wild

A real estate sign that reads “For Sale” and “Sold Above Asking” in Vaughan. Photo by Mark Blinch /REUTERS

Last year saw real estate records smashed in Toronto and the GTA.

As we begin the New Year, the final market stats for 2021 reinforced fundamental trends we saw over the past 12 months — a chronic scarcity of active listings, rising and persistent demand from buyers, and the inevitable upward pressure on prices.

Those trends continued until the final hours of 2021 as the Toronto Regional Real Estate Board (TRREB) reported a record 121,712 sales — up nearly 28% compared to 2020 — but just 6.2% growth in new listings.

The combination of tight market conditions and an all-time high average selling price of $1,095,475 — up nearly 18% over December 2020 — also continued to sideline many would-be and first-time buyers.

While a number of industry experts expected house prices would have moderated, at least a little, by this time it’s difficult to see many signs of flattening, which is reflected in TRREB’s most recent numbers.

“Despite continuing waves of COVID-19, demand for ownership housing sustained a record pace in 2021,” TRREB president Kevin Crigger said in a release.

“Growth in many sectors of the economy supported job creation, especially in positions supporting above-average earnings. Added to this was the fact that borrowing costs remained extremely low. These factors supported not only a continuation in demand for ground-oriented homes, but also a resurgence in the condo segment as well,” Crigger said.

Probably the biggest sales trend that stood out in 2021 compared to 2020 was the resurgence in demand for homes within the City of Toronto as COVID-19 restrictions loosened and many companies offered staff a hybrid work-from-home model.

Overall sales in The Six increased by a substantially greater annual rate (nearly 37%) compared to sales growth for the surrounding suburbs combined (nearly 24%). Not surprisingly, the recovery was fuelled by the condominium apartment segment, which continues to be a key driver of growth.

“Tight market conditions prevailed throughout the GTA and broader Greater Golden Horseshoe in 2021, with a lack of inventory noted across all home types. The result was intense competition between buyers, pushing selling prices up by double digits year-over-year,” said TRREB chief market analyst Jason Mercer.

“Looking forward, the only sustainable way to moderate price growth will be to bring on more supply. History has shown that demand-side policies, such as additional taxation on principal residences, foreign buyers, and small-scale investors, have not been sustainable long-term solutions to housing affordability or supply constraints,” Mercer said.

In December 2021, 6,031 sales were reported — down by more than 1,000 transactions compared to the record of 7,154 set in December 2020. Over the same period, new listings were down nearly 12% to 5,174.

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TRREB plans to release in early February its Market Outlook and Year in Review report, which will include survey results and research, designed to provide context on the real estate market in 2022 and beyond.

CEO John Di Michele said the findings will highlight the latest consumer polling on home buying intentions, joint research with the Toronto Region Board of Trade on the future of employment and work, plus an outlook for home sales, listings and pricing over the next year.

Looking into the crystal ball for 2022, look for those projections and indications from the provincial and federal government on measures to address supply and the chronic red tape that’s delaying new construction.

— Penelope Wild is the former Homes editor of the Toronto Sun and a realtor with Keller Williams Real Estate Associates.

penelopewild@kw.com

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Real eState

Mortgage rule changes will help spark demand, but supply is ‘core’ issue: economist

Published

2 days ago

September 17, 2024

Anne Joseph

TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.

The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.

The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.

CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.

However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.

Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.

This report by The Canadian Press was first published Sept. 17,2024.

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Real eState

National housing market in ‘holding pattern’ as buyers patient for lower rates: CREA

Published

4 days ago

September 16, 2024

Anne Joseph

OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.

The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.

On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.

CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”

The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.

The number of newly listed properties was up 1.1 per cent month-over-month.

This report by The Canadian Press was first published Sept. 16, 2024.

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Two Quebec real estate brokers suspended for using fake bids to drive up prices

Published

1 week ago

September 11, 2024

Anne Joseph

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.

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