Canada’s housing market showed signs of recovery in October, with the national pace of housing starts rising by eight per cent compared to September. According to the latest data from the Canada Mortgage and Housing Corporation (CMHC), the seasonally adjusted annual rate (SAAR) of housing starts reached 240,761 units in October, up from 223,391 in the previous month.

Urban Housing: A Mixed Picture

The increase in housing starts was driven largely by urban areas, which saw a six per cent rise in the annual pace of construction, reaching 223,111 units. The bulk of this growth came from multi-unit housing starts, such as condominiums, townhouses, and apartment buildings, which rose by seven per cent to 175,705 units. On the other hand, single-detached urban housing starts showed a more modest increase of just one per cent, totalling 47,406 units.

Rural housing starts, though a smaller portion of the overall market, were estimated to have reached 17,650 units.

Regional Variations: The Prairies and Atlantic Provinces See Gains

CMHC’s report highlighted regional variations in housing activity. The Prairies, Quebec, and Atlantic provinces have experienced higher levels of construction in 2024, contributing to the overall uptick in national housing starts. Meanwhile, Ontario and British Columbia have seen declines, with Ontario in particular facing challenges.

In fact, year-to-date housing starts in major cities like Toronto and Vancouver reflect these regional disparities. Toronto has seen a significant drop of 21 per cent in housing starts compared to the same period in 2023. Vancouver, after a record-breaking 2023, is down by 18 per cent year-to-date. However, Montreal has bucked the trend with a 12 per cent increase in housing starts over the same period.

Housing Affordability: Still a Major Concern

While the increase in housing starts is a positive sign for the Canadian economy, CMHC’s chief economist Bob Dugan cautioned that the pace of construction is still far below what is needed to address the ongoing affordability crisis in Canada’s urban centres. This remains a key challenge as high housing demand continues to outstrip supply, particularly in major metropolitan areas.

Despite the growth in construction activity, affordability issues remain pressing. CMHC's latest data underscores the fact that Canada is not building enough homes to meet the needs of its growing population, particularly in cities like Toronto, Vancouver, and Montreal.

Looking Ahead: A Soft Outlook for Housing Starts

While October’s strong performance may suggest a positive outlook, economists warn that the national housing market could face challenges moving forward. TD economist Rishi Sondhi pointed out that although the pace of starts in October was healthy, the overall outlook for housing starts in 2025 is expected to soften, largely due to ongoing weakness in Ontario's housing market.

Pre-sales activity in the Greater Toronto Area (GTA) remains sluggish, and with fewer homes being sold before construction begins, Sondhi predicts that starts will decline next year. Ontario, which has been a major driver of Canada’s housing market in recent years, has seen a significant slowdown, with starts in the province dropping to levels not seen since 2020.

Nevertheless, Sondhi suggests that homebuilding will likely remain strong in other parts of Canada, especially in regions where demand is still robust.

Conclusion: Progress, but Challenges Ahead

In summary, the October 2024 housing start numbers from CMHC reveal a mixed yet somewhat optimistic picture for the Canadian housing market. While growth in urban housing starts is a positive development, regional disparities and the ongoing affordability crisis are critical factors that could dampen future growth. The outlook for housing starts remains uncertain, with Ontario and British Columbia facing continued challenges, while other regions like Quebec and the Prairies show promise.

As Canada continues to grapple with housing affordability, it’s clear that more needs to be done to ensure that construction levels meet the demand in key urban centres. The increase in housing starts is a step in the right direction, but the country still faces an uphill battle to make housing more accessible for all Canadians.

Selling a home is a big financial and personal decision. A successful sale requires preparation, understanding market conditions, and careful planning. Here are the top ten things you should know before selling your home, particularly in the Canadian real estate market.

1. Understand Your Market Conditions

The Canadian real estate market varies by region, with prices influenced by factors like season, economic outlook, and interest rates. Research your local market trends, whether it’s a buyer’s or seller’s market, and recent sale prices in your neighborhood to help set realistic expectations.

2. Set the Right Price

Pricing your home accurately is essential. Overpricing can lead to a longer time on the market, while underpricing could mean missed profit. Consult with real estate professionals who understand your area and review comparable properties (often called “comps”) to price your home competitively.

3. Choose a Reliable Real Estate Agent

A skilled agent can make a big difference. Look for an agent with local market expertise, a solid marketing strategy, and a track record of success. Interview potential agents and ask about their experience in your neighborhood, their selling approach, and any fees involved.

4. Declutter and Stage Your Home

Presentation is key. A clean, decluttered space appeals to buyers, helping them envision themselves in the home. Consider staging your property with neutral décor and good lighting to make rooms feel open and welcoming. Small touches, like fresh flowers and minor repairs, can boost your home’s appeal.

5. Prepare for Showings and Open Houses

Flexibility is crucial for attracting buyers. Be prepared for frequent showings and keep your home in top shape for open houses. It’s wise to accommodate potential buyers’ schedules, as convenient viewing times can encourage more interest and competitive offers.

6. Know Your Closing Costs

In Canada, home sellers should be prepared for closing costs, which may include legal fees, real estate commissions, discharge fees for mortgages, and moving expenses. Having an understanding of these costs upfront helps you manage your budget and expectations.

7. Be Aware of Capital Gains Tax

In Canada, if the property you’re selling is not your primary residence, you may be subject to capital gains tax on the sale profit. Knowing how this tax applies to you can prevent surprises at tax time. Consulting with a tax professional for guidance is a wise step.

8. Disclose Property Issues

Honesty builds buyer trust. In Canada, sellers are required to disclose known issues with their property. Transparency about past repairs, renovations, or any damage history is crucial, as failing to disclose issues could lead to legal complications post-sale.

9. Understand the Offer Process

In a competitive market, multiple offers can create bidding wars, potentially increasing your sale price. Familiarize yourself with offer terms, and work with your agent to determine the best strategy when considering or countering offers. Conditional offers, which may depend on inspections or financing, are common in Canada.

10. Time the Market, If Possible

Timing can impact your final sale price. Spring and early fall tend to be peak times for home sales in Canada, while winter months are slower. If you’re not in a rush, try listing during a period when buyers are more active to improve your chances of a quicker, higher-priced sale.

Selling a home is a journey, but with these tips, you’ll be better equipped to navigate the process and achieve a successful outcome.

For the first time in over three years, asking rents across Canada have seen a year-over-year decline. According to a report from Rentals.ca and Urbanation, average asking rents dropped by 1.2% in October 2024, reaching $2,152 per month. This marks the first national decrease in rents since July 2021, signalling a shift in the Canadian rental market.

Why Are Rents Dropping?

The decline in rental prices is primarily concentrated in Canada's major urban centres, such as Toronto, Vancouver, Calgary, and Montreal. As rental demand begins to soften, the factors that previously fuelled rent growth—strong economic conditions, rapid population growth, and a lack of affordable housing—are starting to reverse.

Shaun Hildebrand, president of Urbanation, explained that this shift is largely due to a slowing economy, stabilising population growth, and decreasing homeownership affordability. Furthermore, apartment completions are at record highs, with more new rental units entering the market and providing renters with additional options.

As a result, rental prices in many cities across the country are beginning to trend downward, a rare occurrence after years of consistent increases.

Provincial Breakdown: Where Are the Biggest Changes?

The national rent decline has been particularly noticeable in British Columbia (B.C.) and Ontario, where average asking rents for apartments have dropped by 3.4% and 5.7%, respectively.

• B.C.: The average asking rent for an apartment in B.C. decreased to $2,549, down 3.4% from the previous year.

• Ontario: In Ontario, rents fell to an average of $2,350, marking a 5.7% drop.

While these provinces have seen significant decreases, other parts of Canada are experiencing the opposite. Saskatchewan, for example, saw rents rise dramatically, with asking rents up 17.1% in October. This marked the fastest growth in the country, following a 23.5% jump in September.

Rent Declines by City

Several major cities also saw notable declines in asking rents, particularly in the rental prices for apartments.

• Toronto: Rents in Toronto dropped by 9.2%, with the average asking rent falling to $2,642.

• Vancouver: Vancouver saw an 8.4% decrease, with average rents dropping to $2,945.

• Calgary: In Calgary, apartment rents decreased by 4.7%, bringing the average to $1,995.

• Montreal: Montreal recorded a 2.9% decrease, with the average rent falling to $1,987.

Interestingly, Ottawa experienced a slight uptick in rents, with a modest 0.4% increase, bringing the average rent to $2,207.

Edmonton Sees Rent Growth

While most of Canada's major cities saw rent declines, Edmonton bucked the trend. The city experienced an 8.4% increase in apartment rents, with the average rent rising to $1,584. This was the highest annual growth among Canada's largest cities, highlighting a growing demand for rental properties in the area.

A Glimpse at Rental Prices for Different Unit Types

Looking at specific types of rental units, the report showed the following trends for October 2024:

• One-bedroom units: The average asking rent for a one-bedroom apartment across Canada was $1,923, down 0.8% compared to the previous year.

• Two-bedroom units: The average asking rent for a two-bedroom unit was $2,308, slightly down by 0.2% year-over-year.

For purpose-built rental apartments, rents rose by 1.7%, reaching an average of $2,100 per month. Meanwhile, condominium rents saw a larger decline, falling 3.8% to an average of $2,265.

What Does This Mean for Renters and Landlords?

For renters, this is a welcome development, especially after years of rising rents in major Canadian cities. A decrease in rental prices—albeit modest—offers a glimmer of relief to those struggling to keep up with escalating housing costs. The increased availability of new rental units, coupled with softer demand, could further help renters in their search for affordable housing.

For landlords, the trend of decreasing rents may signal the need to adjust expectations and be more flexible in their pricing strategies. As the market stabilises, landlords may face increased competition for tenants, and pricing will likely become more sensitive to shifts in supply and demand.

Looking Ahead

As the rental market continues to adjust to shifting economic and demographic trends, it remains to be seen whether these declines will continue in the near future. With more apartments being built and a potential slowdown in population growth, it’s possible that rents will continue to ease in many parts of Canada.

Overall, this marks a pivotal moment in the Canadian rental market, as landlords and tenants alike navigate a landscape that’s been transformed by record-high rent prices over the past several years. If these trends persist, the Canadian rental market may become a little more tenant-friendly in the coming months, offering more affordable options in the country's largest cities.

For the first time in over three years, asking rents across Canada have experienced a year-over-year decline. According to a new report from Rentals.ca and Urbanation, the average asking rent in Canada dropped 1.2% in October 2024, bringing the national average to $2,152. This marks the first time since July 2021 that national rents have fallen, offering some relief for tenants after years of rapid increases.

Key Takeaways: National Rent Decline and Provincial Trends

While the national decrease may seem modest, the drop is concentrated in Canada’s major urban centres—cities like Toronto, Vancouver, Calgary, and Montreal have all seen significant reductions in average rents.

• Ontario and British Columbia saw the largest provincial declines. In B.C., the average asking rent for an apartment fell by 3.4%, reaching $2,549, while in Ontario, rents dropped 5.7%, bringing the average to $2,350.

• Cities with some of the largest rent decreases include:

  • Toronto: Average rent decreased by 9.2%, landing at $2,642.

  • Vancouver: A drop of 8.4%, bringing rents down to $2,945.

  • Calgary: Rent prices fell 4.7% to $1,995.

  • Montreal: Average rents dropped 2.9%, to $1,987.

However, not all markets are seeing a downward trend. Edmonton experienced the largest increase among major cities, with apartment rents rising by 8.4% to $1,584.

Why Are Rents Declining?

According to Shaun Hildebrand, president of Urbanation, several factors have contributed to the cooling of Canada’s rental market. The key drivers of rent growth in recent years—such as a strengthening economy, rapid population growth, and affordability issues in the housing market—are beginning to reverse.

• Rising Population: A significant increase in population, particularly from immigration, has created more demand for rental units, driving rents higher. However, this demand is now beginning to stabilize.

• Homeownership Affordability: Rising home prices and mortgage rates made homeownership less attainable, causing more people to rent. As affordability challenges in the housing market shift, fewer people are being pushed into the rental market.

• New Construction: The increase in new apartment completions at record highs is helping to meet demand, reducing upward pressure on rents.

Rent Breakdown: One-Bedroom vs. Two-Bedroom

In October 2024, the average asking rent for a one-bedroom apartment across Canada was $1,923, which is down 0.8% from the previous year. Meanwhile, rents for two-bedroom units averaged $2,308, a slight decline of 0.2%.

Interestingly, there was a larger discrepancy between different types of rental units:

• Purpose-built rental apartments saw an average rent increase of 1.7%, reaching $2,100.

• Condominium apartments experienced a 3.8% decline, with an average rent of $2,265.

Regional Rent Trends: A Closer Look

While the national average may have dropped, the regional dynamics show a more complex picture:

• Saskatchewan stands out as the fastest-growing province, with rents soaring by 17.1% year-over-year, though this represents a slight slowdown from September’s 23.5% growth.

• Ottawa was one of the few cities where rents remained largely stable, with a 0.4% increase bringing average rents to $2,207.

What This Means for Tenants and Landlords

The slight national decrease in asking rents offers some much-needed relief for tenants, particularly those in major markets where rent has been skyrocketing for the past several years. However, these trends vary widely depending on location, with some provinces and cities still experiencing significant rent growth.

For landlords, the market is evolving. While some areas are seeing declines, the ongoing rise in purpose-built apartment completions and a stabilizing rental market could signal that rent growth may slow in the near future.

Tenants in cities with decreasing rents may benefit from lower rental costs, but those in markets with rising rents, like Edmonton, could continue facing higher rental prices. In general, renters should expect more stable rent growth over the coming months, especially as new housing supply enters the market.

Conclusion

The recent dip in asking rents marks an important shift in Canada's rental landscape. While national rents may be falling, the dynamics are complex and vary significantly by province and city. The trend of rising rents could be slowing down, thanks to new construction and changing economic factors. Whether you're a tenant looking for better deals or a landlord navigating these shifts, understanding these regional trends can help you make more informed decisions in the months ahead.

October brought a surprising rebound for Toronto’s housing market, with home sales jumping 44.4% year-over-year in the Greater Toronto Area (GTA). This surge in activity has many industry experts pointing to recent interest rate cuts from the Bank of Canada as a key factor helping buyers return to the market.

Strong Sales Growth

According to data from the Toronto Regional Real Estate Board (TRREB), 6,658 homes were sold in October 2024, a significant increase compared to the same month in 2023. This surge was seen across all property types, including detached homes, semi-detached homes, townhomes, and condominiums.

TRREB President Jennifer Pearce attributed the uptick in sales to improving affordability, which is largely due to lower borrowing costs from the Bank of Canada’s interest rate cuts. Pearce noted that these rate reductions are encouraging buyers to step off the sidelines and re-enter the market, drawn by the more favorable financing conditions.

“We are still in the early stages of the Bank of Canada’s rate-cutting cycle, but it seems that more buyers are feeling confident and moving back into the marketplace,” Pearce said. She added that the combination of lower rates and relatively stable home prices is creating a “positive affordability picture” for buyers.

Home Prices Drop, But Market Conditions Tighten

Despite the surge in sales, the benchmark home price in the GTA did experience a decline. The average home price fell 3.3% year-over-year, reaching $1,060,300 in October. This price drop, however, hasn’t discouraged buyers from re-entering the market—suggesting that the lower rates have helped offset the impact of the price dip.

While the lower borrowing costs are bringing more buyers to the table, the inventory of homes available for sale has not kept up with the pace of the sales increase. New listings were up 4.3% year-over-year, but this growth in supply has not been enough to fully meet demand. As a result, market conditions are tightening, which could potentially put upward pressure on prices if this trend continues.

What Does This Mean for Buyers and Sellers?

For prospective buyers, the current market offers an opportunity to take advantage of lower borrowing costs, though finding the right property may be challenging given the relatively low inventory. The tighter market conditions mean that competition for homes may increase in the coming months, particularly for desirable properties.

On the other hand, sellers may find this to be an ideal time to list their homes, as the surge in sales suggests a strong buyer appetite. However, with inventory still somewhat limited, sellers may face pressure to price their homes competitively to attract buyers.

Looking Ahead

Although the market is showing signs of recovery, it's important to remember that the housing market remains dynamic and can shift quickly. As the Bank of Canada continues to adjust its interest rate policy, it will be interesting to see how these changes affect buyer sentiment and market activity in the coming months.

For now, it appears that the combination of lower borrowing costs and stable home prices has reignited interest in the GTA housing market, making it one to watch as we head into the final months of 2024.

Whether you're a first-time buyer, an investor, or a homeowner looking to sell, staying informed about market trends will be crucial as this recovery unfolds.

In a significant shift in Canadian immigration policy, the federal government has announced plans to reduce the country's population growth over the next few years, primarily by reducing the number of temporary residents (TRs) coming to Canada. This change is expected to have varying impacts across the country, with British Columbia (BC) and Ontario—two provinces that rely heavily on temporary residents—likely to experience the most noticeable effects. BMO Capital Markets has outlined how these changes will impact the real estate markets in these regions, offering key insights for homebuyers, renters, and investors alike.

The Impact of Immigration Changes on BC & Ontario Real Estate

In the third quarter of 2024, BC and Ontario had some of the highest shares of temporary residents relative to their overall populations—9.3% and 8.5%, respectively. These regions are set to bear the brunt of the federal government's new immigration targets, which aim to reduce the number of TRs, including international students and temporary foreign workers (TFWs).

BMO Senior Economist Robert Kavcic explains that provinces with the largest inflow of TRs are the ones most likely to see the biggest impact. “Immigration target changes are likely to weigh heavier in British Columbia and Ontario over the coming three years,” Kavcic notes, emphasizing that both provinces exceed the national target for TRs, which is set at 5%.

In particular, BC has the highest share of TFWs—temporary foreign workers who play a significant role in the economy, particularly in industries like agriculture, hospitality, and construction. However, recent policy changes will tighten the issuance of TFW permits, with a specific focus on low-wage workers. This means that BC, which currently hosts 4.8% of all temporary foreign workers in the country, could see a slowdown in population growth tied to this group. Ontario, too, is expected to feel the effects, though not as heavily as BC.

Shelter Costs in BC & Ontario Likely to Moderate

So, what does this mean for shelter costs in these provinces? According to Kavcic, we can expect to see downward pressure on housing prices, particularly in BC and Ontario, where the combination of high demand from temporary residents and supply shortages has driven up prices in recent years.

“Rental markets in Ontario and B.C., which have a pipeline of supply coming to market, will also likely see their demand curves impacted most,” Kavcic points out. As a result, rental prices in major cities like Vancouver and Toronto could see a decrease in the short term, with lower rents potentially becoming a reality as the influx of temporary residents slows. This trend may also contribute to cooling housing starts, which have been at historically high levels in these provinces.

The slowdown in immigration could help to ease the intense demand pressure that has pushed shelter costs to unsustainable heights in cities like Vancouver and Toronto. With a smaller pool of renters and potential buyers, both home prices and rental rates in these markets may stabilize or even decline, offering a much-needed relief for those struggling to enter the market or find affordable rental options.

A Buffer for Other Provinces: Atlantic Canada & Alberta

Not every part of Canada will feel the brunt of the immigration changes equally. Provinces like Alberta and Atlantic Canada, which have a lower proportion of temporary residents, are expected to experience a more muted impact. These regions are also benefiting from strong interprovincial migration, with young adults moving away from expensive housing markets like BC and Ontario in search of more affordable options.

As a result, Alberta and Atlantic Canada could see continued population growth and rising demand for housing, albeit at a slower pace compared to BC and Ontario. In fact, some cities in these regions have already seen considerable price increases as more Canadians from higher-cost provinces like Ontario and BC make the move west or east in search of more affordable housing.

The Bigger Picture: Interprovincial Migration and Buyer Psychology

In addition to the reduction in temporary residents, the broader trend of interprovincial migration is also shaping Canada’s real estate market. Young adults, particularly those in their 20s and 30s, have been fleeing expensive provinces like BC and Ontario for cities in Alberta and Atlantic Canada, where home prices are more reasonable and job opportunities are growing.

As the gap between the high-cost cities and their more affordable counterparts narrows, the incentive for interprovincial migration could diminish. This could shift buyer psychology, making it less likely that Canadians will continue to flee expensive cities if the cost of living in those cities becomes more manageable.

In BC and Ontario, the cooling of demand for both rental and owned homes may help bring prices down, providing some relief for those who have been priced out of the market in recent years. On the flip side, regions experiencing a rise in demand—like Alberta and Atlantic Canada—could see a continuation of the affordability pressures that have been building over the past few years.

Conclusion: What This Means for Homebuyers and Renters

The Canadian government’s decision to reduce the number of temporary residents coming into the country is likely to have a significant impact on the real estate markets in BC and Ontario. For renters and homebuyers in these provinces, the immediate future could bring some relief as slower population growth puts downward pressure on both rental rates and home prices.

For those in regions with lower concentrations of temporary residents—like Alberta and Atlantic Canada—housing markets could remain relatively resilient, though interprovincial migration trends will still play a key role in shaping demand.

As always, it’s important for prospective buyers and renters to stay informed about changing policies and shifting market conditions. For those currently in BC or Ontario, it might be a good time to keep a close eye on rental and housing trends, as the next few years could offer new opportunities to enter the market at a more affordable price point.

The evolving dynamics of Canadian immigration and the real estate market underscore the importance of understanding the broader economic forces at play, especially when it comes to one of the most fundamental aspects of life—finding a home.

A recent report from Statistics Canada reveals that younger Canadians are significantly increasing their net worth, largely driven by a surge in homeownership. Between 2019 and 2023, the median net worth for families with a highest earner under 35 years old soared from $56,400 to $159,100—an impressive 180% increase.

The Rise of Young Homeowners

One of the most striking findings is the increase in homeownership among Canadians under 35, which rose from 35.8% to 44.4%. This age group saw the largest percentage increase compared to others, highlighting a growing trend of young people entering the housing market. John Nicoletta, chief of Statistics Canada’s Centre for Income and Socio-Economic Well-Being Statistics, noted, “We definitely have a lot more younger homeowners,” in an interview with Yahoo Finance Canada.

These statistics contrast with other recent surveys indicating a decline in homeownership among younger age groups. However, the larger sample size of this particular survey—40,000 participants, double that of previous cycles—provides a more comprehensive view of the housing landscape.

Factors Behind the Growth

The significant rise in homeownership is primarily attributed to escalating home values and a renewed emphasis on owning property. Homeownership has become a high priority for younger Canadians, impacting their overall financial health and net worth. Nicoletta pointed out that home values have been a major contributor to this trend, reflecting the central role of homeownership in wealth accumulation.

The overall median net worth of Canadians also saw a substantial increase, rising from $381,100 in 2019 to $519,700 in 2023—a 36% boost. Adjusted for inflation, these numbers reveal a notable enhancement in financial stability for many households.

Wealth Disparities Among Homeowners

The survey highlights stark differences in net worth between homeowners and non-homeowners. For those aged 55 to 64 with homes and employer-sponsored pensions, the median net worth reached a staggering $1.4 million, while those without either stood at only about $12,000. This disparity underscores the critical importance of homeownership in building wealth in Canada.

However, some experts, like Dan Skilleter from Social Capital Partners, warn against an over-reliance on real estate as a pathway to financial security, describing the current fixation on homeownership as “dysfunctional.”

Debt and Financial Strategies

Interestingly, while the under-35 cohort has seen dramatic growth in net worth, their financial situation remains in line with what’s expected at the beginning of their careers. The median net worth for those aged 35 to 44 was approximately $409,000—almost triple that of the younger group. Additionally, younger Canadians are taking on more debt, with mortgages in the under-35 category rising from 31.2% in 2019 to 36.4% in 2023.

Notably, a growing number of younger Canadians are also accumulating wealth without homeownership. In 2023, 15% of renters under 35 had a net worth exceeding $150,000, up from just 5% in 2019. These individuals typically hold assets like real estate outside of their primary residence, Registered Retirement Savings Plans (RRSPs), and Tax-Free Savings Accounts (TFSAs).

Conclusion

The data from Statistics Canada paints a dynamic picture of younger Canadians and their increasing net worth, driven largely by rising homeownership rates. While the gains are significant, they also highlight underlying challenges in the housing market and the broader implications for financial security in Canada. As homeownership continues to play a vital role in wealth accumulation, understanding these trends will be essential for policymakers and financial advisors alike.

On October 30, 2024, the Toronto Regional Real Estate Board (TRREB) expressed strong support for the Ontario government's recent initiatives aimed at creating a fairer property tax system and increasing housing supply across the province. Announced in the 2024 Fall Economic Statement, these measures are a significant step towards addressing the pressing housing needs in Ontario.

Fairness in Property Taxation

TRREB has long championed the cause of tax fairness for homeowners in Ontario. The government’s ongoing review of the property assessment and taxation system promises to prioritize fairness, affordability, and competitiveness for businesses. This aligns perfectly with TRREB’s mission to advocate for a more equitable tax environment for residents. To contribute further to this dialogue, TRREB is currently developing new research to support the government's consultations.

Focusing on Housing Supply

The issue of housing supply remains a top priority for TRREB, and the board is eager for the province to continue its focus in this area. A diverse range of residential units—including student housing, long-term care facilities, and retirement homes—is essential to meet the needs of Ontario’s expanding population. TRREB is committed to public policy solutions that not only boost housing supply but also enhance affordability for home buyers. The ambitious target of 1.5 million new homes by 2031 is one that TRREB is excited to help achieve in collaboration with Minister Calandra and Premier Ford.

Combating Financial Crimes in Real Estate

Another significant measure welcomed by TRREB is the government's consideration of a beneficial ownership registry. This registry would require private corporations to disclose information about their beneficial owners, acting as a crucial tool in the fight against financial crimes such as money laundering and tax evasion in the real estate sector. By empowering law enforcement with the information needed to detect and prevent illegal activities, this initiative aims to protect Ontario’s real estate market and safeguard consumers.

Conclusion

As Canada’s largest real estate board, with over 75,000 residential and commercial professionals, TRREB is committed to connecting people, property, and communities. The recent measures from the Ontario government represent a positive step towards achieving a fairer and more sustainable housing market in the province. TRREB looks forward to collaborating with government officials to ensure these initiatives lead to meaningful improvements for all Ontarians.

The Ontario Real Estate Association (OREA) is taking significant steps to modernize real estate regulations in the province. In a recent whitepaper, titled Continuing to Raise the Bar for Real Estate in Ontario, OREA has outlined nine key policy recommendations aimed at enhancing consumer protections, improving professional standards, and closing loopholes in the current legislation. As Ontario’s real estate landscape evolves, these proposed changes are crucial for fostering a more transparent and trustworthy market.

Addressing the Auctioneer Exemption Loophole

One of the most pressing issues highlighted by OREA is the so-called "auctioneer exemption loophole." Currently, auctioneers can facilitate real estate sales without adhering to the same regulations that govern licensed agents, creating a disparity in consumer protection. OREA is advocating for these auctioneers to fall under the oversight of the Real Estate Council of Ontario (RECO), ensuring that all real estate transactions are held to the same ethical standards. Rick Kedzior, OREA's 2024 president, emphasized the need to eliminate this two-tiered system, stating, “We need to ensure all real estate transactions adhere to the same standards and oversight.”

Mandatory Disclosure for Hidden Defects

Another pivotal recommendation involves mandatory disclosure of latent defects—hidden issues like foundation cracks that can lead to costly repairs for unsuspecting buyers. By requiring sellers to disclose these details, OREA aims to promote transparency and help buyers make informed decisions, similar to practices already in place in New York and Quebec.

Clarity in Guaranteed Sales Programs

To further protect consumers, OREA is proposing clearer disclosure rules for guaranteed sales programs. These programs can be beneficial, but they often come with complex terms that may catch sellers off guard. Enhanced transparency would ensure that sellers fully understand the implications of these agreements, safeguarding them from unexpected fees or conditions.

Strengthening Agent Training and Specialization

OREA is also focused on enhancing the quality of real estate education. The association suggests implementing a two-year mentorship and articling requirement for new agents, allowing them to gain hands-on experience and better prepare for the challenges of the industry. A recent survey revealed that two-thirds of Ontario REALTORS® feel that existing training lacks practical components, making this recommendation vital for the future of the profession.

Additionally, OREA is pushing for specialty certifications, allowing agents to market themselves as experts in niche areas such as commercial or agricultural properties. This initiative would align Ontario with other provinces that recognize specialization, fostering consumer confidence in the expertise of agents.

Enforcing Stronger Penalties for Ethical Breaches

To reinforce ethical practices within the industry, OREA is advocating for a system of administrative penalties for minor infractions. This approach would enable RECO to allocate more resources to serious cases by streamlining the disciplinary process for less severe violations. Furthermore, OREA proposes a “disgorgement” policy, requiring agents found guilty of unethical practices to return profits gained from such activities to affected consumers.

A Call for Change

The proposed measures reflect a comprehensive strategy to elevate professional standards and protect consumers in Ontario’s real estate market. OREA's call for an extended cooling-off period for agents whose registrations have been revoked due to serious breaches highlights the commitment to accountability within the industry.

As Ontario navigates the complexities of its real estate landscape, implementing OREA's recommendations could pave the way for a more transparent, ethical, and consumer-friendly market. By embracing these changes, the Ontario government has a unique opportunity to strengthen real estate for generations to come.

For those interested in staying informed on these developments and the latest in Canada's mortgage and housing markets, signing up for a daily newsletter could be invaluable. Together, we can foster a real estate environment that prioritizes integrity and transparency, ensuring a brighter future for buyers, sellers, and agents alike.

In recent years, the Canadian housing landscape has undergone significant changes, particularly for younger generations. A new report from Scotiabank reveals that while the percentage of young Canadians owning homes has sharply declined, there remains a strong desire among them to enter the housing market in the near future.

According to the poll, the rate of home ownership among Canadians aged 18 to 34 has fallen dramatically from 47% in 2021 to just 26% today. This shift reflects the growing challenges faced by millennials and Gen Z in securing their own homes, with many finding it increasingly difficult to navigate a competitive and costly real estate environment.

Interestingly, the survey also highlights a notable increase in the number of young adults living with their parents or family. Currently, around 29% of those aged 18 to 34 are in this situation, up from roughly 20% three years ago. This trend underscores the financial pressures that many young Canadians are facing, prompting a reconsideration of traditional milestones like home ownership.

Despite these hurdles, the desire to buy remains strong. The report indicates that 58% of non-homeowners aged 18 to 43 are planning to purchase a home within the next five years. This determination suggests that while the path to home ownership may be fraught with challenges, many young Canadians are still optimistic about their prospects.

One significant finding from the survey is the “confidence gap” in the homebuying process. Many young Canadians express a need for clearer information and support from financial institutions. Specifically, 63% of Gen Z respondents and 54% of millennials indicated that they would benefit from more guidance when it comes to understanding the complexities of buying a home.

As the housing market continues to evolve, it is crucial for financial institutions and policymakers to recognize these concerns. By providing accessible information and tailored support, they can help bridge the confidence gap and empower young Canadians to achieve their homeownership dreams.

In conclusion, while fewer young Canadians currently own homes, their aspirations remain strong. As we move forward, it will be vital to address the barriers they face and equip them with the tools needed to navigate the challenging housing market. With the right support, the dream of home ownership can still become a reality for many young Canadians in the years to come.

The Greater Toronto and Hamilton Area (GTHA) is witnessing a significant downturn in its condo market, with new sales hitting a near-30-year low. A recent report by Urbanation Inc. reveals that only 567 new condos were sold in the third quarter of 2024, reflecting an astonishing 81% decline compared to the same period last year. This trend marks a dramatic shift for a sector that has long been a cornerstone of Toronto's real estate landscape.

A Deepening Decline

The numbers speak volumes: in the first nine months of 2024, condo sales plummeted by 63% from the previous year and are 84% lower than in 2021. This downturn is not just a temporary dip; it suggests that 2024 could be the slowest year for condo sales since 1996. The driving force behind this decline is primarily the exit of investors from the market, which traditionally has fueled condo sales in the region.

High Costs and Investor Retreat

Davelle Morrison, a broker at Bosley Real Estate Ltd., highlights high interest rates as a major barrier for builders trying to finance new projects. Currently, there are nearly 89,000 condos under construction, but this number is the lowest in over three years. Coupled with soaring costs for new constructions—where preconstruction condos are priced between $1,300 to $1,600 per square foot—many buyers are opting for more affordable resale options priced between $900 to $1,100 per square foot.

Morrison poses a critical question: why pay more for a preconstruction unit when you can purchase a resale condo and see exactly what you're getting? This consumer mindset is further fueling the slowdown in new condo sales.

Inventory Challenges

The recent market shift saw a slight decrease in unsold new condos, dropping from a record high of 25,018 units to 23,918 units—a decline of 4.4%. However, the overall inventory remains concerning, with unsold units up by 16% compared to last year. This oversupply not only diminishes demand but may also prompt potential buyers to postpone their purchases, creating a vicious cycle of stagnation.

The limited new project launches further exacerbate this situation. Only one new project with 177 units was introduced in the third quarter, leaving buyers with fewer options. Moreover, many unsold condos require significant deposits (often at least 20%), which can deter interested buyers.

Economic Pressures and Project Delays

The current economic climate poses additional challenges. High interest rates, rising construction costs, and sluggish sales have created a perfect storm for builders and investors alike. Some developers have even shifted previously planned projects to rental properties or have paused developments entirely. In the third quarter, three projects with a total of 1,111 units were converted to rentals, and another 2,231 units faced delays or cancellations.

Looking Ahead

Despite the bleak outlook, there are signs that conditions may gradually improve. Analysts anticipate that as developers reduce supply and interest rates begin to decline, the market could stabilize. However, the path to recovery will depend heavily on broader economic factors and the willingness of buyers to re-enter the market.

In summary, the Toronto condo sector is navigating a challenging landscape characterized by high costs, dwindling investor interest, and an oversupply of unsold units. While the future remains uncertain, stakeholders will be watching closely for any signs of recovery in this vital segment of the real estate market.

On October 23, 2024, the Bank of Canada made headlines by cutting its key policy rate by 50 basis points to 3.75%. This significant move is the fourth consecutive cut since June and reflects a shift in focus from reducing inflation to maintaining a target inflation rate of 2%. But what does this mean for the real estate market?

A Potential Boost for Homebuyers

Experts believe that this rate cut could ignite activity in the sluggish Canadian housing market. Phil Soper, president and CEO of Royal LePage, noted that elevated borrowing costs have kept many potential buyers on the sidelines. However, this aggressive cut could change that quickly. “With every cut to the overnight lending rate, more homebuyers are expected to come off of the sidelines,” he said, predicting a rise in demand that could drive home prices up.

Timing Is Everything

Victor Tran from RATESDOTCA highlighted a key concern: many buyers may wait for the final rate decision of the year before making a move. Buyers are hesitant to jump in until they feel the market has stabilized. “While this will likely encourage some buyers to enter the market, it’s likely that many will wait,” he explained, underscoring the uncertainty surrounding market timing.

Favorable Conditions for Buyers

Leah Zlatkin, a licensed mortgage broker, expressed optimism about the current market conditions. She pointed out that the combination of a rate cut and upcoming mortgage rule changes in December presents an excellent opportunity for buyers. “With an abundance of properties available, the current market conditions are exceptionally favorable for potential homebuyers,” she said. However, she cautioned that those waiting for further rate cuts may find themselves facing a hotter market soon.

Gradual Recovery Expected

While the recent cut is a step in the right direction, some experts, like Clay Jarvis from NerdWallet Canada, suggest that we may not see a dramatic resurgence in home sales right away. Many buyers still face challenges due to stress tests and may need more time before they can qualify for mortgages. If buyers in larger markets delay their purchases until the new insured mortgage rules take effect, the market may not see a significant uptick until later this year.

Looking Ahead

As we look forward, Alana Riley from IG Wealth Management anticipates further cuts in 2024 and 2025, which could help ease the burden of higher renewal rates for homeowners. She pointed out that shelter price inflation, largely driven by rent and mortgage costs, continues to be a significant factor in personal budgets.

A Shift in Buyer Psychology

The overall sentiment in the market could shift quickly if there’s a noticeable uptick in sales or prices. Tran suggests that such a shift may lead to a bustling winter and spring season. “Once the market begins to move, it’s likely to heat up quickly,” he warned.

Positive News for Homeowners

For homeowners facing mortgage renewals in the near future, the rate cut is welcome news. While renewal rates may still be higher than current rates, they’re expected to be more manageable than they would have been at the beginning of the easing cycle. This reduction in borrowing costs means that homeowners with variable-rate mortgages will see either lower monthly payments or a larger portion of their payments going toward the principal.

Conclusion

The Bank of Canada’s recent rate cut signals a potential turning point for the real estate market. While some buyers may hesitate, the combination of favorable conditions and upcoming rule changes could create an exciting opportunity for those ready to enter the market. As always, staying informed and understanding market dynamics will be key for prospective buyers in the months ahead.