Ontario real estate market aerial view

In the aftermath of the coronavirus pandemic, homeowners in the Ontario real estate market witnessed incredible gains. After a modest slowdown in the first two months of the global health crisis, many aspects of the Ontario housing sector – particularly detached and semi-detached homes – soared and recorded all-time highs, from sales activity to price growth.

But has an adjustment phase commenced? In fact, the provincial housing sector is already in one.

The Ontario housing industry has been witnessing a slowdown, despite an environment of tight inventory, sky-high prices, and changes to the mortgage stress test. Conditions peaked at the end of 2021 and have been facing a downward trend ever since, with average prices falling from roughly $1.1…

18 Views, 0 Comments

Interest rate announcement Bank of Canada

Bank of Canada Puts Pause on Interest Rate Hikes After 8 In a Row

As was widely anticipated, the Bank of Canada has announced that it is holding its trend-setting interest rate at 4.5 per cent. This undoubtedly comes as welcome news to homebuyers and those who have a variable-rate mortgage. It is the first time in more than a year that the Bank has maintained its rate, following an aggressive series of eight consecutive increases in an effort to tamp down sky-high inflation. The inflation rate hit a high point of 8.1 per cent in June, but has since eased back to 5.9 per cent in January, due to lower prices for energy, durable goods and some services. However, the rising cost of food and shelter remain prohibitive for many Canadians, the Bank noted.…

104 Views, 0 Comments

2023 Market Outlook & 2022 Year in Review

Executive Summary


2023 Market outlook

Higher immigration levels and increased borrowing costs are two forces that will impact the housing market in 2023. TRREB is forecasting:
• A total of 70,000 sales. This is below the 2022 result, but we will see marked improvement in the second half of 2023.
• The average selling price will reach $1,140,000 for all home types combined. This is up compared to the average price in the second half of 2022, but down by 4% when compared to 2022 as a whole.

2022 Year in Review

The housing market started off strong in 2022, but GTA home sales trended lower in the spring and summer. In 2022, the GTA housing market had:
• 75,140 home sales.
• 152,873 new listings.
•…

103 Views, 0 Comments


Selling prices for condominium apartments bucked the overall downward trend in the housing market during the fourth quarter of 2022. The average selling price in Q4 2022 stayed in line with the average in Q4 2021.

"While condo market conditions have become more balanced over the past year, there has been enough demand relative to supply to support selling prices. On average, the condo market segment is the most affordable. Therefore, it makes sense that we didn't see the same type of price adjustment, in the face of higher borrowing costs, compared to other more expensive segments like detached homes," said Toronto Regional Real Estate Board (TRREB) President Paul Baron.

Total condo apartment sales amounted to 3,582 in Q4 2022 3 down…

85 Views, 0 Comments

Average condominium apartment rents continued to increase by double-digit annual rates in the fourth quarter of 2022. However, while market conditions remained tight enough to support very strong rent growth, there was more balance in the rental marketplace compared to the same period a year earlier in 2021.


   

The number of condominium apartment rental transactions reported through the Toronto Regional Real Estate Board9s (TRREB) MLS® System was down on a year-over-year basis by 19.9 per cent in the fourth quarter of 2022. The number of rental listings was also down over the same period, but by a lesser annual rate of 11.8 per cent. The fact that the number of units leased was down by more than the number of units listed suggests that…

172 Views, 0 Comments

 

More Homes, Built Faster Ontario 

The Ontario government announced housing changes this month that will override municipal zoning laws in some situations and allow for the construction of up to three units on each residential lot. The government tabled a bill Tuesday--called the More Homes, Built Faster Act--including a number of legislative changes and proposals they say will help “build housing faster and bring costs down,” allowing the Progressive Conservatives to meet their goal of building 1.5 million homes in 10 years. 

Under the legislation, up to three units will be allowed on a single residential lot without any bylaw amendments or municipal permissions. An example provided by the government shows a basement apartment and garden or…

136 Views, 0 Comments

Ontario Non-Resident Speculation Tax rate rises to 25 per cent

As of October 25, 2022, the Non Resident Speculation Tax rate (NRST) will be increased from 20% to 25% and continues to apply to all regions of the province. The NRST applies to the transfer of “designated land,” which is considered land that contains at least one and no more than six single family residences.

The provincial rationale behind the new increase to 25% is to deter foreign speculation in the housing market.

How the NRST is applied 

The NRST will continue to apply to individuals who are not Canadian citizens or permanent residents of Canada or by foreign corporations or taxable trustees.

Note: The NRST applies if any one of the transferees is a foreign entity or taxable…

286 Views, 0 Comments

It's called the More Homes Built Faster Act

YES, it will allow a third living unit in every "single family home" across the province.


On October 25th, the Ford Government introduced the More Homes Built Faster Act, 2022 ("MHBFA”) - their third housing supply bill in the last 5 years.

OREA has led the charge in support of new measures to boost housing supply in Ontario and the MHBFA is a bold step towards getting more attainable homes built in communities right across the Province.

This is the second major pro-housing announcement of 2022 under Premier Doug Ford, and Ontario is on-track to becoming one of the most pro-housing jurisdictions in Canada.

The MHBFA includes five major REALTOR® recommendations including:
  

  • Enabling and expediting…

169 Views, 0 Comments

First-Time Home Buyer Incentive
Over the last two years, a new trend has formed in many parts of the Canadian real estate market: investors accounting for a considerable portion of the broader housing sector.

Indeed, with many investors purchasing single-family homes, acquiring townhomes and scooping up condominium suites, a chance at home ownership has become a challenge for many first-time homebuyers. Moreover, in an environment with little supply, the competition for residential properties was exacerbated by individuals or corporations adding to their vast inventory of homes.

Public policymakers have tried to intervene, but industry experts maintain that the only real solution is to build more housing. Until then, it seems that the Bank of Canada’s (BoC) interest rate…

212 Views, 0 Comments

Housing affordability in Canada

Relocation, relocation, relocation: Canadians love their neighbourhoods, but will move to achieve housing affordability

  • For 64 per cent of Canadians, relocation is among the top sacrifice they’d be willing to make in order to achieve housing affordability; however, half (50 per cent) agree that the farthest they would go would be less than 100 kilometres
    • 56 per cent say that moving to a different neighbourhood/community would be one of the top three sacrifices they would make
    • 38 per cent would make the sacrifice of moving to a different city/province/region regardless of distance
  • 38 per cent of Canadians define housing affordability as a home they can afford that meets their basic needs, and includes some liveability…

164 Views, 0 Comments