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Year in Review: Kawartha Lakes Real Estate – ThePeterboroughExaminer.com

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The Kitchener-Waterloo Association of Realtors saw a record number of sales for the month of November.

As 2021 comes to a close, the story of the year in real estate in Kawartha Lakes remains high prices and low inventory in a hot market.

“Sales number have probably been an all-time high and obviously prices as well” for the year, says Eugene McDonald, president of the Kawartha Lakes Real Estate Association, although he adds that the past month has seen a slight plateau, consistent with the time of year.

“It would seem that anything coming on the market that is reasonably priced and in reasonable condition is sold within a week.”

According to the most recent data available through the Canadian Real Estate Association, 1,460 homes have been sold in Kawartha Lakes in the first 11 months of the year, an increase of more than 13 per cent over the same period last year.

The MLS Home Price Index composite/single-family benchmark price for Kawartha Lakes homes in November sat at $658,700, up almost 34 per cent from the same month in 2020.

The total dollar value of homes sold set a record in November at $69.9 million, up more than 15 per cent from November 2020.

Meanwhile, the number of active residential listings in Kawartha Lakes plummeted to just 67 units by the end of November, the lowest for the month in more than three decades and down more than 42 per cent from November 2020 and more than 65 and 76 per cent below five- and ten-year averages respectively.

Months of inventory, or the time it would take to sell current inventory given market conditions, ended the month at just 0.7, compared to the long-run average of 3.5 at this time of year.

The competitive market continues to drive many potential buyers to submit offers with no conditions and still go up against multiple offers on most properties. McDonald says that many agents continue to hold offers for between four to seven days as a competitive strategy.

“It’s safe to say that a lot of them are going for $100,000 over asking,” says McDonald, adding that one farm property in the Oakwood/Little Britain area recently went for $1 million more than the asking price.

Out-of-town buyers are often coming in looking for a secondary getaway home for a few weeks a year, says McDonald, and using the property as an investment through short-term rentals for the rest of the year, especially waterfront properties because it is a very profitable business.

“They are coming in with cash offers and more money,” he says, noting that the scales have tipped toward seeing more buyers from outside the marketplace than from within it.

“It’s almost impossible for a first-time homebuyer unless they have $700,000 or $800,000, to come into the market.”

McDonald estimates that about 60 per cent of buyers in the current market do not live in Kawartha Lakes.

Another concern with the fast-paced local market, according to McDonald, is that he is seeing two to four properties bounce back onto the market every week or two because the winning buyer ultimately was unable to secure financing.

“The banks aren’t appraising them at the value they are offering,” he says, meaning that when buyers get carried away in a bidding war and end up offering much more on a house than the bank appraisal of the property, it becomes difficult to obtain financing, as the lender wants the difference covered to bridge the value gap.

Ultimately, given the extreme competitiveness of the current market, with conditions being thrown out the window, McDonald says having a good local real estate agent who knows the area on your side through the process is key, on both sides of the sale.

“As a seller, you want somebody that will protect your home and enforce the (COVID) protocols, and as a buyer, you want someone who will notice if something is wrong because they have that experience.”

Looking forward to 2022, McDonald says the market may be more of the same for a while.

“What we’ll probably see within the first six months is a similar market to what we have, and we’ll probably see it slow down for the rest of the year.”

McDonald notes that there are some international indications that interest rates may be going up in the coming year, causing some mortgages to move out of affordable range for some and financial institutions to be pickier when it comes to lending. If inflation doesn’t flatten out, McDonald predicts seeing higher interest rates kick in by April.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

The Canadian Press. All rights reserved.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

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

The Canadian Press. All rights reserved.

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