Royal LePage: National home prices rise sharply in second quarter as housing supply struggles to keep up with surge in demand
Balance expected to return to market in second half of the year
- Two-storey house prices outpace condos as home-bound Canadians place premium on space
- Ontario posts Canada’s highest home price increases, with Mississauga in top spot at 13.5% year-over-year
- Royal LePage revises Canadian home price forecast upwards to 2.3% by year end 2020, as low rates and pent-up demand face limited housing supply
TORONTO, July 9, 2020 –According to the Royal LePage House Price Survey and Market Survey Forecast released today, the aggregate price of a home in Canada increased 6.8 per cent year-over-year to $673,072, in the second quarter. Once provinces allowed regular real estate activity to resume, demand surged in many markets. Inventory levels, already constrained pre-pandemic, have failed to keep pace.
“Home prices shot up in the second quarter as a crush of buyers entered the market, attracted by extremely low interest rates and the perception of bargains to-be-had,” said Phil Soper, president and CEO of Royal LePage. “Across Ontario and Quebec in particular, the demand for housing outpaced the growth in supply, especially in the early weeks post-lockdown. The surge in the number of first-time buyers was felt acutely, as these housing consumers soaked up supply without contributing to it.”
Soper continued, “We are now seeing sellers return to the market in key supply-constrained regions in numbers sufficient to meet demand. Home buyers should enjoy more reasonable conditions with stable prices and improved selection in the second half of the year.”
The Royal LePage National House Price Composite is compiled from proprietary property data in 64 of the nation’s largest real estate markets. When broken out by housing type, the median price of a standard two-storey home rose 8.0 per cent year-over-year to $794,392, while the median price of a bungalow increased 3.9 per cent to $550,289. The median price of a condominium increased 5.3 per cent year-over-year to $503,983.
“COVID-19 shaped the real estate market during the second quarter in every possible way,” said Soper. “As consumers and Realtors® complied with April’s shelter-at-home directives and only urgent housing needs were serviced, sales volumes plummeted to one-third of normal in our largest cities. As the reality of extended and potentially permanent work-from-home employment sunk in, people pondered both the location and size of their homes. Simply put, larger homes in smaller communities have become more fashionable. As competition for these properties heats up, bidding wars are more common in what were our quieter cities and towns.”
Across Canada, the 11 regions to post the highest year-over-year gains in median home price were in Ontario. In order, Mississauga (13.5%), Windsor (12.2%), Markham (11.9%), Ottawa (11.7%), Niagara/St.Catharines (11.3%), London (10.5%), Brampton (10.4%), Toronto (10.2%)/Greater Toronto Area (10.0%), Guelph (9.9%), Kitchener/Waterloo/Cambridge (9.8%), and Milton (9.7%).
Immigration has been disrupted by pandemic travel restrictions, with the impact to real estate markets varying across regions and housing segments. Royal LePage’s 2019 Newcomer study showed that upon arriving in Canada, only 15 per cent of newcomers purchase their first home. The average time period after which newcomers will purchase a property is three years after arriving in Canada.
“Our research shows that many of the newcomers to our nation who intended to buy a home this year have already been living in Canada for three or more years,” said Soper. “A short-term drop in the number of new immigrants and international students will not directly impact home sales in the current year, as most newcomers will rent their first home. We may feel the impact of fewer new Canadians in our residential investment market with less demand for rental units. Mitigating the impact of this trend is a surge in first-time buyer interest. Some landlords may choose to sell to eager millennial families if rental demand softens.”
Lengthy Economic Recovery and Revised Royal LePage Forecast
As home sellers return to the market, inventory levels are expected to rise, relieving the acute upward pressure on home prices that characterized the supply-constrained second quarter of 2020. Uncertainty clouds Canada’s real estate outlook as a lengthy recovery for the Canadian and world economies is expected. The negative impact on home prices should be muted by the balanced nature of Canadian housing, as chronic housing supply shortages offset dampened medium-term demand.
Royal LePage has revised its forecast slightly upward, with the national aggregate price expected to end 2020 up 2.3 per cent to $663,000 in the fourth quarter compared the same period in 2019.
Greater Toronto Area
Pent-up demand coupled with a lack of supply in the Greater Toronto Area (GTA) resulted in significant price appreciation in the second quarter. The aggregate price of a home in the GTA increased 10.0 per cent year-over-year to $899,001 in the second quarter of 2020. When broken down by housing type, the median price of a standard two-storey home increased 10.7 per cent year-over-year to $1,050,323 and the price of a bungalow rose 6.4 per cent year-over-year to $852,260. During the same period, condominiums in the region continued to see strong price appreciation, with the median price rising 9.3 per cent year-over-year to $599,235.
“Prior to the market disruption caused by the pandemic, the GTA was on track for double-digit price growth in 2020. While the first half of the second quarter saw market activity severely curtained, as soon as the market woke up in late May, sales quickly accelerated,” said Kevin Somers, chief operating officer, Royal LePage Real Estate Services Limited. “However, with listings not keeping pace and buyer competition high, we are again seeing double-digit price appreciation in the region.”
Royal LePage is forecasting that the aggregate price of a home in the Greater Toronto Area will increase 4.0 per cent to $882,000 in the fourth quarter of 2020 compared to the same quarter last year.
“While buyer demand outstripping inventory has been typical of the Toronto market, the return of buyers before sellers in the second half of the quarter amplified price growth,” said Somers. “Sellers are now returning and while buyers should not expect bargains, they may find the second half of the year more reasonable for inventory and price appreciation.”
Greater Montreal Area
The Greater Montreal Area aggregate home price rose 7.7 per cent year-over-year to $449,996, in the second quarter of 2020.
With the resumption of real estate brokerage activities on May 11, after being shut down for more than a month, all property categories in the region saw significant price appreciation. The jump in appreciation was largely due to substantial pent-up demand from buyers who had to put their activity on hold during the shut down.
Looking at prices by property type, the median price of a standard two-storey home in the Greater Montreal Area saw a strong increase of 8.7 per cent this quarter, compared to the second quarter of 2019, reaching $566,874. The median price of a bungalow rose 7.2 per cent year-over-year to $351,015, during the same period. Despite an increase of new listings in June, the median price of a condominium increased by 5.6 per cent year-over-year to $351,889.
“While we were experiencing unprecedented demand for real estate prior to the pandemic, the suspension of transactions during the lockdown has widened the gap between supply and demand,” said Dominic St-Pierre, vice president and general manager, Royal LePage for the Quebec region. “In my 18-year career, I have never seen such a tight ratio between the number of active listings and sales, reaching a new high in this sellers market, despite the fact that the Montreal region has been hit the hardest by the pandemic and lockdown in Canada.”
As a result, Royal LePage is forecasting the aggregate price of a home in the Greater Montreal Area will increase 3.5 per cent to $452,000 in the fourth quarter of 2020 compared to the same quarter last year.
The aggregate price of a home in Greater Vancouver increased 1.9 per cent year-over-year to $1,109,069 in the second quarter of 2020. Broken out by housing type, the median price of a standard two-storey home in Greater Vancouver increased 3.7 per cent year-over-year to $1,455,027 in the second quarter. During the same period, the median price of a condominium in the region remained relatively flat, decreasing 0.4 per cent year-over-year to $638,242, while the median price of a bungalow decreased 1.1 per cent to $1,189,692.
“The Greater Vancouver real estate market is continuing its recovery that began in 2019. While the pandemic caused a significant disruption in early spring sales, continued low inventory has maintained prices,” said Randy Ryalls, general manager, Royal LePage Sterling Realty.
Real estate in the city of Vancouver posted healthy year-over-year gains in the second quarter. The median price of a two-story home rose 7.6 per cent to $2,088,932 compared to the same period in the previous year. During the second quarter, the median price of a bungalow rose 2.6 per cent year-over-year to $1,434,738, while the median price of a condominium decreased 2.0 per cent to $738,128.
“Stronger price appreciation for two-storey homes compared to condominiums reflects buyers’ preference for larger properties and less shared areas, a trend that has evolved as a result of the pandemic,” said Ryalls. “This has opened up excellent opportunities for those seeking city-centre condos.”
Royal LePage is forecasting that the aggregate price of a home in Greater Vancouver will increase modestly by 0.5 per cent to $1,087,000 in the fourth quarter of 2020 compared to the same quarter last year.
Ottawa’s aggregate home price rose significantly during the second quarter, rising 11.7 per cent year-over-year to $527,290. The median price of a standard two-storey home increased 10.6 per cent year-over-year to $552,429, while the median price of a bungalow saw a strong 14.4 per cent year-over-year increase to $538,409. During the same period, the median price of a condominium saw an increase of 14.5 per cent year-over-year to $370,425.
“Buyers have returned more quickly to the market than sellers resulting in fewer listings, increased competition and double-digit price gains over last year,” said Jason Ralph, managing partner, Royal LePage Team Realty. “The good news is that the number of listings is starting to grow and buyers can expect to have more selection in the second half of the year. However, Ottawa is expected to remain a seller’s market.”
Ralph added that Ottawa remains an attractive city to first-time buyers, especially those from the Greater Toronto Area. The city-centre remains the most popular choice, but towns within a reasonable drive to Ottawa such as Carp and even as far as Arnprior are attracting more interest.
Royal LePage is forecasting that the aggregate price of a home in Ottawa will increase 4.0 per cent in the fourth quarter of 2020 to $514,000 compared to the same quarter last year.
The aggregate price of a home in Calgary remained relatively flat year-over-year, decreasing 0.2 per cent to $465,273 in the second quarter of 2020. Broken out by housing type, the median price of a standard two-storey home increased 1.1 per cent year-over-year to $509,918, while the median price of a bungalow remained relatively flat, decreasing 0.1 per cent year-over-year to $488,838. Due to high inventory in the condominium segment, the median price of a condominium decreased 9.7 per cent year-over-year to $252,308.
“While sales are down year-to-date, activity in June was comparable with last year. Buyers have returned to the market more quickly than sellers; inventory has not kept pace,” said Corinne Lyall, broker and owner, Royal LePage Benchmark. “With the exception of the condominium market, Calgary real estate continues to shift towards a balanced market.”
Lyall added that first-time home buyers are driving sales in the region, which has increased competition and depleted inventory for listings within the $300,000 to $500,000 price range.
Royal LePage is forecasting that the aggregate price of a home in Calgary will decrease 1.5 per cent to $463,000 in the fourth quarter of 2020 compared to the same quarter last year.
The aggregate price of a home in Edmonton remained relatively flat, decreasing 0.6 per cent year-over-year to $371,902 in the second quarter of 2020. Broken out by housing type, the median price of a standard two-storey home increased 2.8 per cent year-over-year to $436,221 and the median price of a bungalow decreased 5.4 per cent to $349,676. In the same period, the median price of a condominium decreased 7.7 per cent year-over-year to $205,005.
“Overall, Edmonton’s house prices have held their value despite the pandemic’s economic shock and resulting decline in sales,” said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate. “Growing inventory of resale and new build condos has resulted in softened prices and excellent selection. Buyers are finding exactly what they are looking for.”
Shearer added that the market is being driven by young families. Houses priced under $450,000 in neighbourhoods popular with families are selling quickly.
Royal LePage is forecasting that the aggregate price of a home in Edmonton will decrease 1.0 per cent to $371,000 in the fourth quarter of 2020 compared to the same quarter last year.
The aggregate price of a home in Halifax increased 2.2 per cent year-over-year to $333,954 in the second quarter. Broken out by housing type, the median price of a standard two-storey home increased 3.8 per cent year-over-year to $359,185. The median price of a bungalow was flat, decreasing 0.3 per cent year-over-year to $272,625, while the median price of a condominium saw a decrease of 8.3 per cent year-over-year to $296,738.
“Buyer competition is exceptionally high in downtown Halifax. Inventory is low and a good listing may last only a day or two on the market while drawing multiple offers,” said Matt Honsberger, broker and owner, Royal LePage Atlantic. “There has also been an increase in the number of exclusive transactions where the listing is sold before even making it to the market.”
Honsberger added that Nova Scotia’s rural and recreational real estate market has been very active.
“A common trend we are seeing is that buyers, after spending a lot of time home-bound and saving money, are deciding they want more from their home. They want more space. For some that means moving out of the city while others are staying in the city and upgrading,” said Honsberger.
Royal LePage is forecasting that the aggregate price of a home in Halifax will remain flat at $317,000 in the fourth quarter of 2020 compared to the same quarter last year.
The aggregate price of a home in Winnipeg decreased 1.4 per cent year-over-year to $302,399 in the second quarter of 2020. During the same period, the median price of a bungalow decreased 0.8 per cent year-over-year to $287,715 and the median price of a condominium decreased 4.1 per cent year-over-year to $231,036. The median price of a standard two-storey home decreased 1.5 per cent year-over-year to $330,995.
“Winnipeg’s real estate market has proven to be extremely resilient and we are seeing signs of a ‘U’ shape recovery. While COVID-19 certainly pulled the market downwards for the first half of the second quarter, June sales are higher than last year. The market is energized and consumer confidence is back,” said Michael Froese, managing partner, Royal LePage Prime Real Estate.
Froese added that year-over-year sales activity in Winnipeg’s surrounding area is outperforming the city-centre.
“Communities outside of the city are growing in popularity, leading to price appreciation gains in those areas,” said Froese. “For many, remote work started as a necessity this spring but it is growing in popularity and employer acceptance. Buyers are now looking for larger properties with home offices. With less commuting, moving away from the city-centre to more affordable properties is appealing.”
Royal LePage is forecasting that the aggregate price of a home in Winnipeg will remain flat at $311,000 in the fourth quarter of 2020 compared to the same quarter last year.
The aggregate home price in Regina remained relatively flat in the second quarter, increasing 0.1 per cent year-over-year to $321,389. Broken out by housing type, the median price of a standard two-storey home increased 6.2 per cent year-over-year, rising to $402,716, while the median price of a bungalow decreased 3.3 per cent to $289,307. During the same period, the median price of a condominium decreased 13.0 per cent year-over-year to $194,936.
“From entry-level homes to the luxury segment, Regina’s real estate market awakened in June and is very active,” said Mike Duggleby, managing partner, Royal LePage Regina Realty. “We are seeing multiple offers and appropriately priced homes can sell within a week.”
Duggleby noted that sellers are returning to the market, which is expected to improve inventory over the summer.
“Sellers who had pulled their listing off the market and those who were not marketing their listing properly were watching the parade go by,” added Duggleby. “Seeing buyer demand grow over the quarter has encouraged sellers to come back.”
Royal LePage is forecasting that the aggregate price of a home in Regina will increase 1.0 per cent to $321,000 in the fourth quarter of 2020 compared to the same quarter last year.
Royal LePage Home Price Data and Forecasts:
- Royal LePage House Price Survey Chart (Canada’s largest 64 housing markets): rlp.ca/Q2-2020-house-prices
- Royal LePage Market Survey Forecast Chart: rlp.ca/Q2-2020-market-forecast
Keeping you informed and up to date with the real estate market trends. Here is the summary of the GTA Real Estate Market in June 2020.
Tronto Regional Real Estate Board President Lisa Patel announced that Greater Toronto Area REALTORS® reported 8,701 sales through TRREB’s MLS® System in June 2020. This result represented a very substantial increase over the May 2020 sales result, both on an actual (+89 per cent) and seasonally adjusted basis (+84 per cent), and was only down by 1.4 per cent compared to June 2019.
Average and benchmark selling prices were up year-over-year for all major home types. The strongest average annual rates of price growth were experienced in the detached and semi-detached market segments in the City of Toronto at 14.3 per cent and 22 per cent respectively. This, coupled with the fact that average selling price growth outstripped growth in the MLS® HPI benchmarks, points to a resurgence in the higher-end market segments.
Following the broader movement to reopen the economy in June, we experienced a very positive result in terms of home sales and selling prices. Before the onset of COVID-19, there was a great deal of pent-up demand in the market. This pent-up demand arguably increased further over the past three months. We are still in the early days of recovery, but barring any setbacks, we should continue to see stronger market conditions in the second half of 2020 as households look to satisfy their ownership housing needs.
A gradually improving labour market and historically low mortgage rates are expected to support a recovery in home sales in the second half of 2020 along with sustained year-over-year price growth. Given that home sales result in substantial spin-off expenditure in the regional economy, the housing market will be an important driver of overall economic recovery this year and into 2021.
It's great to know the overall stats for the GTA, however, I suggest you take a look at your specific neighbourhood and see how the market performs in your area.
Just send me the list of neighbourhoods you would like to get monthly/quarterly updates on and I will be glad to provide you with such reports.
As always, stay healthy, stay safe and stay informed
PS: Rental and Commercial Reports are available at your request as well.
With mortgage rates bottomed out, it's time for homeowners to take advantage
For most people, their home is by far their largest expense. So when the coronavirus pandemic arrived, that’s where Canadians needed the most help.
To soften the financial blow, the Bank of Canada slashed its key policy rate three times in March. It’s held steady at this “effective lower bound” ever since.
The current predictions that rates will stay this favourable for up to two years, based on Bank of Canada trends.
At the same time, she says, there’s no reason to wait around for a better deal: “I would be surprised if they lowered much more than a quarter point.”
If there’s ever been a time for homeowners to refinance, it’s now.
What is the point of refinancing?
Whether you’re looking to save on interest over the coming years or reduce your payments now, refinancing can help.
When you refinance, you open a new, better loan and use it to pay off your existing mortgage. You’ll have to pay a penalty for breaking your old agreement, but this single financial move can make a huge difference if you’re struggling to pay your bills.
Refinancing is not a free-for-all where you tap into your equity and live large, he says; it’s more about creating a new financial plan that will help you save and succeed.
How do I know if I should refinance?
If your mortgage rate is higher than 3 per cent — or 0.75 per cent higher than the rates you can get now — you’ll definitely want to calculate your potential savings.
Let’s imagine you have a $500,000 mortgage with a 4 per cent fixed rate and an amortization of 20 years. The total interest you’d pay over a five-year term would be $90,634.
The interest for that same mortgage at 2.69 per cent would be $60,374. So by refinancing, you’d save $329 per month, $6,392 per year and $31,960 over the full length of your five-year term.
That extra financial wiggle room can free up cash for an emergency fund or help you afford the essentials while the economy — and maybe even your own job security — remains uncertain.
Unfortunately, anyone who has lost their job due to the coronavirus lockdown will struggle to qualify for refinancing. Since you’re opening a totally new loan, you have to provide evidence that you can make regular payments.
If you’re denied, you’ll need to look elsewhere for support. Lenders are allowing homeowners to defer their mortgage payments during this trying time, but it’s not a perfect solution. In most cases, those loans will continue to generate interest while on pause.
When is refinancing a bad idea?
Penalties can cost up to 4 per cent of a fixed-rate mortgage or three months of interest payments in a variable contract, but you’ll have to check with your lender about your particular case.
And remember that if you want a great deal, you’ll probably need a credit score of at least 660. You can check your credit score for free online; if your score is low, it’s a good idea to try to boost your numbers before you lock in a new rate.
How do I choose the best option?
When buying a home or refinancing, you need to think about both your income and your financial comfort zone.
Conservative personalities will prefer a fixed rate and pay a bit more for peace of mind and a predictable monthly budget. If the prime rate rises during your term, you won’t pay a penny more.
If you want the best bargain possible, a variable rate tends to be the better choice.
From a purely math perspective, variable is the way to go right now and has generally been the product that wins the tug-of-war” when you look at trends over time.
If you’re flirting with a variable rate, remember that you can ask about converting to a fixed rate in the future. If interest rates start to increase during your term, you can make the switch without penalties or extra costs.
Major banks are offering variable rates as low as 2.25 per cent right now, while fixed-rate mortgages start at 2.54 per cent. Other lenders are going even lower.
To find the best money-saving option, be sure to compare rates from multiple lenders.
Genworth Canada, largest private mortgage insurance corporation, has done the study on Homeownership and Financial Fitness for Canadians.
Given the unusual economic and financial circumstances we’re in, this data provides a comprehensive look at Canadians view on homeownership and their own financial readiness.
The study takes into account both pre-COVID-19 and mid COVID-19 data and provides you with a balanced outlook on future homebuying trends.
For full report click on the link below:
Hello, just wanted to share an update on mortgage rates, changes to CHMC application and what options are available to you to secure the right deal.
Your thoughts and comments are always welcome.
Stay healthy, stay safe, stay informed!
May Real Estate stats for GTA released by TREB.
As we all know real estate was almost in a frozen state in the month of April and we have seen an improvement in May for the # of transactions as well as # of new listings. While it's still down compared to May 2019 it shows that Toronto's real estate market is resilient and overall selling prices were up 3% vs a year ago.
Please contact me to get the stats for YOUR neighbourhood.
Stay healthy, stay safe, stay informed
GTA REALTORS® Release May 2020 Stats
Toronto Regional Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 4,606 sales through TRREB’s MLS® System in May 2020. This result was down by 53.7 per cent compared to May 2019. While the number of sales was down substantially on a year-over-year basis due to the continued impact of COVID-19, the decline was less than the 67.1 per cent year-over-year decline reported for April 2020.
On a month-over-month basis, actual and seasonally adjusted May sales were up substantially compared to April. Actual May 2020 sales increased by 55.2 per cent compared to April 2020. After accounting for the regular seasonal increase that is experienced each year between April and May, seasonally adjusted sales were up by 53.2 per cent month-over-month.
The number of new listings entered into TRREB’s MLS® System in May was down by a similar annual rate to that of sales, dipping by 53.1 per cent to 9,104. On a month-over-month basis, actual new listings were up by 47.5 per cent.
The MLS® Home Price Index Composite Benchmark price was virtually unchanged in May 2020 compared to April 2020. On a year-over-year basis, the composite benchmark was up by 9.4 per cent. The average selling price for all home types combined was up by three per cent compared to May 2019 to $863,599. On a seasonally adjusted basis, the average selling price was up by 4.6 per cent month-over-month compared April 2020.
The difference in year-over-year growth between the MLS® HPI Composite Benchmark and the average selling price was related to the fact that home sales in the City of Toronto, particularly in the detached segment, were down by a greater annual rate than overall sales in the GTA. This resulted in a compositional impact on the overall average selling price.
Schedule a virtual coffee chat to get your home evaluation report:
Wondering how the real estate market is doing? Check out this video that explains in detail the buyer's and sellers' intentions as well as the real estate outlook for the next 12-18 months.
Share you thoughts and comments, your opinion matters!
TRREB RELEASES CONSUMER HOME BUYING & SELLING INTENTIONS SURVEY TORONTO, ONTARIO, May 20, 2020 – Toronto Regional Real Estate Board President Michael Collins announced that TRREB contracted Ipsos Public Affairs to provide up-to-date information on consumer sentiment related to the housing market and the specific impact of the COVID-19 pandemic. The Ipsos online survey captured home buying and selling intentions along with consumer opinions on preferred government policy directions related to the housing market. This release specifically covers the Ipsos survey conducted between April 24 and 27, 2020.1 Ipsos will be conducting another survey for TRREB at the end of May, after which TRREB will release more detailed comparative results. Summary results from the first survey wave are as follows: Home Buying Intentions • GTA-wide, 27 per cent of survey respondents said they were likely (very likely or somewhat likely) to purchase a home in the next 12 months. While buying intentions were down compared to spring 2019 (31 per cent likely), they remained relatively inline with the five-year trend, especially after taking into account survey credibility intervals. Home purchasing intentions were above the GTA average in the City of Toronto (34 per cent), for younger people aged 18 to 34 (45 per cent) and households with children (37 per cent). • Similar to previous surveys, the most common reason for not intending to purchase a home over the next 12 months was that they liked their current home (62 per cent). General affordability issues were also a common response. COVID-19-related issues influenced 16 per cent of respondents who indicated that they were unlikely to purchase a home. “While COVID-19 has temporarily impacted home sales and listings in the GTA, the Ipsos survey results that show home buying intentions have remained quite stable certainly suggest that many people will be looking to satisfy pent-up demand for ownership housing once recovery starts to take hold. As people gradually return to work, consumer confidence will improve, and a growing number of people will look to take advantage of very low borrowing costs to purchase a home. Home purchases will continue to be aided by the use of technology available to REALTORS®, including live-stream open houses,” said Mr. Collins. Home Selling Intentions • Existing homeowners were asked how likely they are to list their home for sale over the next 12 months. At 17 per cent, listing intentions of homeowners were down markedly compared to spring 2019, when 32 per cent of survey respondents said they were likely to list. • A very large proportion (80 per cent) of respondents who indicated that they were unlikely to list their home for sale simply liked the home in which they are currently living.2 COVID-19-related issues influenced 22 per cent of respondents who indicated they were unlikely to list. “The supply of listings was an issue before the onset of COVID-19, with market conditions tightening and price growth accelerating throughout the first quarter of 2020. The Ipsos survey results suggest that the supply of listings will continue to be an issue as the economy and housing market recovers. Policy makers have acknowledged that there is a lack of a diverse housing supply in the GTA. While the supply issue has understandably taken a back seat to COVID-related issues in the short term, it should once again be top-ofmind once recovery takes hold,” said Jason Mercer, TRREB’s Chief Market Analyst. 1 The Ipsos online survey was conducted among residents aged 18 years and older in the Greater Toronto Area (GTA). The sample consisted of 802 respondents. Online interviews were carried out from April 24 to 27, 2020. Data is weighted according to Statistics Canada census data by gender, age, and region to make certain that the data accurately reflects the actual distribution of adults living in the GTA. The accuracy of Ipsos online polls is measured using a credibility interval. In this case, the results are considered accurate to within -/+ 3.9 percentage points of what the results would have been had every adult resident in the GTA been polled. 2 Survey respondents could provide more than one reason for being unlikely to list their home for sale. Opinions on Housing Market-Related Public Policy • With consumers still concerned about affordability, the survey results also showed that public support for government assistance for home buyers hasn’t changed since the pre-COVID-19 period: o 82% support increased and more flexible access to Registered Retirement Savings Plans through the Home Buyers’ Plan; o 75% support relief from municipal and/or provincial land transfer taxes; o 73% support relief from municipal property taxes; o 71% support relaxation of federal mortgage insurance rules to allow home buyers the option of qualifying for a mortgage with smaller down payments; and o 65% support relaxation of the federal mortgage “stress test.” “Home ownership affordability is, and will continue to be, a top concern as the economy recovers from the impact of the COVID-19 pandemic. With this in mind, it is not surprising that there is public support for government assistance in this regard. There is a definite role for governments to play in addressing affordability concerns, but policy makers at all levels should proceed with caution and assess the impact of pent-up demand and the potential lack of listing inventory during the initial recovery period,” said TRREB CEO John DiMichele.
Please contact me to know the details on your specif neighbourhood and keep informed about real estate market
416 402 3255
Although average rents in Canada were unchanged in April over March, rental prices for apartments and condo apartments listed on Rentals.ca were down 3.2% and 4.6% respectively month over month. Also, average monthly rents for all property types were down in April over March in some major cities including Toronto, Vancouver, Calgary and Ottawa. Read this article for additional detailed information.
Stay safe, stay connected, stay informed!