The Canadian real estate market has been experiencing a significant cooling down in recent months. This trend is characterized by a slump in home sales, a decrease in benchmark prices, and an increase in new listings, particularly in Ontario and Toronto[1][2].
The Slump in Home Sales
The Canadian Real Estate Association (CREA) reported a decline in home sales for three consecutive months, with sales volume inching lower every month since June 2023[1]. This trend is also evident in Toronto, where home sales plummeted by 12% from August and 7.1% year over year[4].
Decrease in Benchmark Prices
The CREA’s national price index slipped by 0.3% during September 2023, marking its first decline since March of the same year[1]. This decrease is primarily due to a sharp slowdown in Ontario, while in most other provinces, prices are still inching higher, albeit at a slower pace[1].
Increase in New Listings
An increase in new listings is another significant trend in the cooling Canadian real estate market. In Toronto, there were 16,258 new listings in September 2023, a 32% increase from August and 44.1% higher than a year ago[4].
The Role of Interest Rates
The rapid escalation in interest rates has been a key factor in the slowing sales trend[1]. Economists agree that the housing market is in for a bumpy ride as long as interest rates remain at their current level[1]. Lower interest rates might be the only thing that could revive Canada’s housing market as supply outpaces demand[4].
The Impact on Sellers and Buyers
The cooling market has led to a vast disconnect between sellers, who are stubbornly trying to get high prices, and buyers looking for a bargain[1]. This disconnect is causing a surge of listings with price changes, indicating that sellers aren’t getting offers at their asking price and are trying to adjust on the fly to attract buyers[1].
The Future of the Canadian Real Estate Market
Despite the current cooling trend, the long-term outlook for the Canadian real estate market is positive[3]. However, the market is expected to remain on the slower side until next year, as buyers seem content to stick to the sidelines until there’s more evidence that interest rates are indeed finally at the top[1].
In conclusion, the Canadian real estate market is currently experiencing a cooling down phase, characterized by a slump in home sales, a decrease in benchmark prices, and an increase in new listings. This trend is largely due to the rapid escalation in interest rates, causing a disconnect between sellers and buyers. However, the long-term outlook for the market remains positive, with the expectation that the market will pick up pace once there’s more evidence that interest rates have peaked.
Ontario is in the grips of a severe housing supply and affordability crisis that requires urgent action. Demand for homes far outpaces what is being built, leading to skyrocketing home prices and rents that are pricing many residents out of the market. This not only impacts homebuyers but also poses a major threat to economic prosperity if workers and families are forced to leave major cities due to unaffordability.
While all levels of government now acknowledge the scale of the problem, bold steps must be taken to boost housing supply rapidly. The construction industry believes it has the capacity to build substantially more new homes to meet targets, but systemic barriers are preventing them from doing so. Excessive regulations, delays in approvals, and uncompetitive tax burdens are some of the major hurdles.
According to estimates, Ontario likely needs between 1.5 to 1.85 million new homes built over the next decade to address the shortfall. However, only 96,000 homes were constructed in 2022, far below what is required. To put this in perspective, the annual pace of housing construction needs to essentially double from the historical average of 75,000 per year if supply is to catch up with demand.
With strong political will, a clear strategy, and willingness to make tough reforms, it is possible to resolve Ontario’s housing crisis. But time is running out. The situation will only worsen if urgent action is not taken now to enable the construction industry to build the hundreds of thousands of homes the province desperately needs.
Removing Barriers to Home Building
A major barrier standing in the way of substantially increasing housing construction is the extensive regulations and red tape surrounding development approvals. By some estimates, there are up to 45 different government bodies and agencies involved in approving new housing projects in Ontario. From municipal planning departments to conservation authorities and school boards, layers of bureaucracy slow down approvals to a crawl. It takes years for shovel-ready projects to get the green light, if they even do. Compared to global leaders like Singapore, which relies on only 12 bodies for approvals, Ontario’s process is outdated and inefficient. To meet bold housing targets, the whole approvals procedure needs an overhaul to remove duplication, inconsistencies, and outdated planning policies. The industry has the capacity to build, but first government must help by modernizing the system and clearing the path.
How Ontario Can Accelerate Home Building
Speeding up the Approvals Process
To significantly increase the pace of housing construction, the development approvals process desperately needs modernization. With up to 45 government entities involved in approvals, getting projects off the ground takes far too long.
Ontario should follow the lead of jurisdictions like Singapore that rely on just 12 bodies to grant approvals, using online systems and clear guidelines to speed up decisions. Digitizing and consolidating the approvals process would help eliminate duplication and inconsistencies. Provincial and municipal governments also need to review outdated planning policies and zoning rules that restrict housing density and supply.
Establishing firm timelines and service standards for approvals along with “deeming provisions” if delays occur, would help quicken the pace. With today’s technology, there is no reason the approvals process can’t be far more efficient. But it will take political courage from leaders to push through the necessary reforms.
The Risks of Inaction
If significant action is not taken soon to remedy the housing supply shortage, Ontario risks losing talent and economic competitiveness. With home prices and rents Spiraling out of control, young professionals and working families are already leaving major urban Centers for more affordable cities out west and east. Ontario could face a dangerous brain drain if Unaffordability persists.
Businesses will also struggle to attract labor if workers cannot secure housing they can reasonably afford near job centers. Furthermore, the lack of supply is preventing natural population growth from immigration, costing the economy in missed opportunities.
While all levels of government now recognize these risks, acknowledgment must be paired with swift, bold reforms before the situation deteriorates further. The consequences of failing to act decisively on removing barriers to construction and boosting housing supply will be far-reaching. The time for urgent action is now.
Conclusion
Ontario finds itself at a critical juncture when it comes to resolving its housing crisis. The construction industry has signaled it can deliver the hundreds of thousands of new homes required over the next decade through embracing innovation and new building techniques.
But government must also play its part by clearing away systemic barriers like excessive regulations, tax burdens, and broken approvals processes currently restricting supply and driving up costs. With strong leadership and a willingness for systemic reform, it is possible to ensure Ontario remains a place where workers, families, and businesses can thrive.
But action must be taken now before the window of opportunity closes. By working collaboratively, government and industry can ensure the province builds the homes it needs to support economic growth and prosperity for all its residents.
The solutions are within reach – what is needed is urgent implementation driven by political courage.
Halloween, celebrated on the 31st of October every year, is a festivity marked by eerie decorations, costumes, and a jovial spirit that brings communities together. In Mississauga, the occasion is embraced with a blend of traditional and modern festivities, reflecting the city’s diverse cultural fabric. Streets and homes come alive with spooky decorations, while children and adults alike revel in trick-or-treating and costume parties.
The celebration of Halloween also presents a unique marketing window for real estate agents. During this time, the community is engaged, and people are out and about, providing a perfect backdrop for real estate agents to showcase their listings in a fun and festive manner. Halloween-themed open houses, for instance, offer an inventive way to attract potential buyers and create a memorable experience that could set a listing apart in a competitive market. Additionally, it provides an avenue to interact with the community, build lasting relationships, and foster a positive image for a real estate agency.
Moreover, utilizing Halloween in real estate marketing can go beyond just themed open houses. Creative social media campaigns, community contests, and Halloween events can also be part of an overarching strategy to captivate potential clients and generate buzz around listings. The spooky ambiance of Halloween coupled with innovative marketing strategies can create a distinctive and engaging platform to highlight the unique features of properties on sale, all while ingraining a real estate agency’s name in the minds of the Mississauga community.
In the subsequent sections, we will delve into the various strategies that real estate agents can employ to harness the Halloween spirit in marketing their listings, engaging with the community, and ultimately driving sales during this spooky season.
Themed Open Houses
Halloween-themed open houses are a creative twist on the conventional open house concept, where real estate agents leverage the festive spirit of Halloween to showcase their listings in a more engaging and entertaining manner. This involves decorating the property with Halloween-inspired elements such as pumpkins, cobwebs, and other spooky decor, which in turn provides a fun, themed atmosphere for potential buyers to explore the property. In some more elaborate setups, agents or homeowners may even dress up in costumes, and sometimes, local Halloween events could be incorporated, such as hosting a haunted house tour.
The allure of a Halloween-themed open house lies in its ability to attract a larger audience. The festive decorations and unique experience pique the curiosity of potential buyers, encouraging more foot traffic through the property. Moreover, the relaxed and fun atmosphere often associated with Halloween helps to break the ice, making interactions between real estate agents and visitors more natural and enjoyable. This festive setup allows for a memorable experience, which could make a lasting impression on potential buyers.
Additionally, Halloween-themed open houses cater to families and community members looking for festive activities during the Halloween season, thus attracting a wider demographic. It becomes an event that not only adults but also children can enjoy, making it a family-friendly option for potential buyers with families.
Furthermore, real estate agents can also use this opportunity to engage with visitors in a more personable manner. For instance, handing out themed treats or goodies with the agent’s contact information can serve as a memorable takeaway for visitors, fostering a positive association with the agent and the property.
The fun and communal spirit of Halloween-themed open houses go beyond just the aesthetic appeal; they create a lively and interactive environment that facilitates better engagement with potential buyers. Through these themed open houses, real estate agents can showcase the property in a distinctive light, making the house-hunting process an enjoyable experience while standing out in a bustling real estate market.
Halloween Home Staging
Staging homes with Halloween decorations is a creative and festive marketing strategy that real estate agents can employ during the Halloween season. By adorning the interiors and exteriors of the property with themed decor such as pumpkins, fall foliage, spooky silhouettes, and other Halloween-centric adornments, agents can transform a typical home viewing into an engaging and memorable experience. The goal is to evoke the fun and whimsical spirit of Halloween, making the property feel warm, inviting, and family-friendly.
Creating a festive atmosphere through Halloween home staging can significantly enhance the appeal of the property. The decorations often evoke a sense of celebration and community, which could resonate with potential buyers, especially those with families. It also provides an opportunity for buyers to envision the home in a festive setting, making the property feel more homely and appealing.
The impact of Halloween home staging extends beyond the physical viewing experience. In today’s digital age, online presence is paramount in real estate marketing. Therefore, capturing professional photographs of the staged homes is crucial. High-quality, visually appealing images of the festively decorated property can be a captivating feature on online listings, enticing more potential buyers to explore the property. Moreover, these photographs can be shared across various social media platforms, further extending the reach and engagement with potential buyers. The vibrant and festive imagery can stand out in the crowded digital real estate space, drawing more attention to the listing.
Additionally, professional photographs serve as a testament to the effort and attention to detail invested in presenting the property, which can instill a sense of confidence and professionalism in potential buyers towards the real estate agent. They also provide a visual narrative that can evoke emotional connections with buyers, making the property more memorable amidst the myriad of listings available.
In conclusion, Halloween home staging, coupled with professional photography, creates a comprehensive marketing strategy that not only enhances the physical viewing experience but also extends the marketing reach through online platforms, making the listing more attractive and memorable in the competitive real estate market.
Community Engagement
Engaging with the local community is a cornerstone of successful real estate marketing. It fosters a sense of trust and familiarity between real estate agents and potential clients, and creates a supportive environment for business growth. When the community is involved and engaged, word of mouth and local referrals can significantly enhance a real estate agent’s reputation and client base.
Halloween presents a unique opportunity for community engagement through fun and festive activities. Organizing Halloween-related contests is a fantastic way to foster interaction and create a buzz within the community. For instance, a pumpkin carving contest could invite local families to showcase their artistic skills, all while interacting with real estate agents in a casual and enjoyable setting. Similarly, a house decorating contest could encourage homeowners to festively adorn their homes, fostering a sense of community spirit and friendly competition.
Such contests not only promote community interaction but also provide a platform for real estate agents to showcase their commitment to the local community. They can also be used as a platform to softly market listings or the real estate agency’s services in a way that resonates with the festive spirit of Halloween.
Social Media Campaigns
Social media is a powerful tool for real estate marketing, offering a platform to showcase listings, share content, and engage with potential buyers. Halloween-themed social media posts can add a creative twist to the usual real estate content, capturing attention with visually appealing, festive imagery.
Platforms like Instagram and Pinterest are particularly suited for Halloween-themed real estate content due to their visual-centric nature. High-quality images and videos of Halloween-decorated properties, themed open houses, or community Halloween events can be shared to entice and engage followers. Creatively designed posts showcasing homes adorned with spooky decor, or sharing snippets from Halloween-themed open house events, can generate engagement and interest in the listed properties.
The benefits of leveraging visual platforms include increased visibility and engagement with a broader audience, showcasing the property in a unique and appealing manner, and creating a memorable brand image. Moreover, sharing Halloween-themed content reflects a real estate agency’s involvement in the community’s festive celebrations, portraying a friendly and relatable image.
Moreover, real estate agents can also use social media platforms to promote Halloween-related contests or events, encouraging more community participation and interaction. For example, sharing photographs of the pumpkin carving or house decorating contests, and encouraging followers to vote for their favorites, can create a buzz and foster interaction both online and offline.
In conclusion, utilizing Halloween-themed social media campaigns and engaging in community activities during Halloween are innovative strategies that can enhance a real estate agency’s rapport with the local community, foster engagement, and ultimately contribute to a successful real estate marketing strategy during the spooky season.
Halloween Events
Halloween is a time of festivity and community bonding, and hosting or participating in local Halloween events can significantly enhance a real estate agency’s visibility and engagement with the community. Hosting a Halloween office party, for instance, is a fantastic way to invite the community into your professional space, letting them interact with your team in a fun and relaxed atmosphere. It’s also a platform to showcase your agency’s community spirit and friendly culture.
Participating in local Halloween events, on the other hand, shows your agency’s commitment to being part of the community. It provides a natural setting to interact with potential clients and understand the local culture better, which is crucial in building trust and rapport.
Sponsoring Halloween events such as costume parades or dog parades is another brilliant strategy. It not only increases brand visibility but also provides an opportunity to connect with potential clients in a non-salesy, enjoyable environment. Sponsorship can take various forms, from financial support to providing space or even organizing the events. Your agency’s name on banners, flyers, and social media posts related to the event will enhance brand recognition and portray your agency as a community-centric business.
Charity Initiatives
Charity initiatives are more than just a way to give back to the community; they are a long-term investment in building a positive brand image and fostering meaningful relationships with locals. Organizing Halloween charity events, such as a costume drive for underprivileged children or a charity haunted house, can significantly impact the community in a positive manner.
These charity events provide a platform to interact with the community on a personal level, showcasing the humane and caring side of your agency. They also offer an opportunity to collaborate with local businesses and organizations, further embedding your agency within the community network.
The positive publicity from charity initiatives can also be leveraged in marketing campaigns. Sharing the events and their impact on social media, local newspapers, and community blogs will portray your agency in a positive light, promoting your brand as one that values and contributes to the community it operates in.
Moreover, the goodwill generated through charity initiatives often translates into positive word-of-mouth referrals, which are invaluable in the real estate industry. Over time, this goodwill and positive brand image can translate to a more favorable perception, increased referrals, and ultimately, more business for your real estate agency.
In summary, Halloween events and charity initiatives are not only an expression of community spirit but strategic avenues to promote brand visibility, foster community relations, and build a solid foundation for a positive brand image and customer loyalty in the long run.
Conclusion
Halloween, with its vibrant community engagement and festive atmosphere, provides a rich canvas for real estate agents to paint their marketing strategies with a touch of creativity and community spirit. The avenues are diverse and plentiful, ranging from Halloween-themed open houses and home staging, to engaging social media campaigns, spirited community contests, local event participation, and heartwarming charity initiatives. Each of these strategies not only adds a festive flavor to the real estate marketing playbook but significantly enhances the interaction and rapport between real estate agents and the community they serve.
In Mississauga, where the community cherishes the Halloween festivities, integrating these seasonal marketing strategies can bring a breath of fresh, autumn air into the conventional real estate marketing narrative. It’s an invitation for real estate agents to step beyond the formal boundaries of traditional marketing, into a realm where community engagement and marketing endeavors meld seamlessly amidst the backdrop of spooky fun and laughter.
Real estate agents in Mississauga are thus encouraged to embrace the spooky season wholeheartedly. By intertwining Halloween themes with marketing efforts, agents can create memorable experiences, foster deeper community connections, and carve a distinctive brand identity. The sweet treat at the end of this spooky venture is the enhanced brand recognition, stronger community relations, and a potential boost in real estate sales.
So as the leaves turn orange and the pumpkins come to life, it’s the perfect time for real estate agents in Mississauga to spruce up their marketing strategies, engage with the community in a celebratory spirit, and explore the myriad opportunities that Halloween unfurls for making a lasting impression in the real estate market. The spooky season, with its blend of fun and community engagement, is indeed a fertile ground for planting the seeds of innovative marketing strategies and nurturing enduring relationships with the Mississauga community.
The Canadian Real Estate Association (CREA) reported that national home sales fell 1.9% between August and September 2023, marking the third straight monthly decline.
The drop was smaller than August’s decrease, with losses in Vancouver and Toronto partly offset by gains in Montreal, Edmonton, and Kitchener-Waterloo. However, sales activity remains down overall since the spring rebound.
On an actual basis, September transactions were still 1.9% above September 2022 levels. New listings jumped 6.3% month-over-month, bringing inventory to 3.7 months nationally, up from recent lows but below historical averages.
The MLS Home Price Index edged down 0.3% monthly in September but was still up 1.1% annually. The national average sale price rose 2.5% year-over-year to $655,507.
CREA’s chair said the slowdown presents opportunity for buyers, though many still seem content to wait for more evidence of peak rates. The economist added that with low inventory, the market will likely stay quiet into winter as eyes fix on the Bank of Canada.
Overall, data continues to reflect cooling momentum after the pandemic boom. Moderation in sales and new supply additions suggest more balance returning, though prices remain supported on low historical inventory. Affordability issues persist with elevated rates.
Are you a young professional looking for exciting and trendy activities to do in Toronto?
Look no further! Toronto is a vibrant city with a plethora of attractions and hidden gems that cater to the adventurous spirit of young adults. Whether you’re a foodie, an art enthusiast, or a nightlife lover, Toronto has something for everyone. In this blog post, we will explore the top attractions, hidden gems, and best nightlife spots in Toronto that are perfect for young adults.
Top Attractions in Toronto
Toronto is home to several iconic attractions that are a must-visit for young adults. Here are some of the top attractions you should check out:
1. CN Tower
The CN Tower is an iconic landmark in Toronto and offers breathtaking views of the city. Here are some things you can do at the CN Tower:
Enjoy breathtaking views from the CN Tower: Take the elevator to the observation deck and marvel at the stunning panoramic views of Toronto’s skyline.
Indulge in fine dining at the CN Tower: Experience a unique dining experience at the revolving restaurant, where you can enjoy delicious cuisine while taking in the incredible views.
Experience the thrill of the EdgeWalk at the CN Tower: For the adventurous souls, the EdgeWalk allows you to walk around the outside of the CN Tower’s main pod, suspended 1168 feet above the ground.
2. Kensington Market
Kensington Market is a vibrant and diverse neighborhood in Toronto that is perfect for young adults looking to immerse themselves in the city’s cultural diversity. Here are some things you can do at Kensington Market:
Explore the diverse food scene: Kensington Market is a foodie paradise with a wide range of international cuisines to choose from. Indulge in delicious street food, try unique fusion dishes, and discover hidden gems.
Immerse yourself in the vibrant street art: The streets of Kensington Market are adorned with colorful and captivating street art. Take a stroll and admire the creativity and talent of local artists.
Discover unique shops and boutiques: Kensington Market is known for its independent shops and boutiques. Explore the eclectic mix of vintage clothing stores, record shops, and quirky boutiques.
3. Toronto Islands
Escape the hustle and bustle of the city and spend a day at the Toronto Islands. Here are some things you can do at the Toronto Islands:
Relax on the sandy beaches: The Toronto Islands are home to several beautiful beaches where you can soak up the sun, swim in the lake, and enjoy a picnic with friends.
Explore the lush greenery: The islands are also home to several parks and green spaces. Take a leisurely walk or rent a bike and explore the scenic trails.
Enjoy outdoor activities and water sports: From kayaking and paddleboarding to volleyball and frisbee golf, there are plenty of outdoor activities to keep you entertained on the Toronto Islands.
Hidden Gems in the City
In addition to the top attractions, Toronto is also home to several hidden gems that are worth exploring. Here are a few hidden gems that young adults will love:
Graffiti Alley: Located in the Fashion District, Graffiti Alley is a vibrant and ever-changing outdoor art gallery. Take a stroll through the alley and admire the colorful murals created by local artists.
The Rec Room: The Rec Room is a unique entertainment venue that offers a variety of activities, including arcade games, virtual reality experiences, and live performances. It’s the perfect place to unleash your inner child and have a blast with friends.
The Bentway: The Bentway is a public space located under the Gardiner Expressway. It hosts a variety of events and activities throughout the year, including outdoor concerts, art installations, and winter skating.
Best Nightlife Spots for Young Adults
Toronto has a vibrant nightlife scene with plenty of bars, clubs, and live music venues. Here are some of the best nightlife spots that young adults should check out:
Queen Street West: Queen Street West is known for its trendy bars, clubs, and live music venues. Explore the vibrant nightlife scene and dance the night away to the beats of local DJs and bands.
The Entertainment District: The Entertainment District is home to some of the city’s most popular nightclubs and bars. Whether you’re into electronic music, hip-hop, or live performances, you’ll find something to suit your taste.
The Drake Hotel: The Drake Hotel is a cultural hub that offers a unique nightlife experience. Enjoy live music, art exhibitions, and delicious cocktails at this trendy hotspot.
Conclusion
Toronto is a city that never fails to impress young adults with its exciting and trendy offerings. From exploring vibrant neighborhoods and iconic attractions to discovering hidden gems and enjoying the vibrant nightlife, there is no shortage of things to do in Toronto for young professionals. So, what are you waiting for? Start planning your adventure in Toronto and create memories that will last a lifetime.
FAQs
What are some top attractions in Toronto for young adults?
Some top attractions in Toronto for young adults include the CN Tower, Kensington Market, and the Toronto Islands.
What can I do at the CN Tower?
At the CN Tower, you can enjoy breathtaking views, indulge in fine dining, and experience the thrill of the EdgeWalk.
What can I do at Kensington Market?
At Kensington Market, you can explore the diverse food scene, immerse yourself in vibrant street art, and discover unique shops and boutiques.
What can I do at the Toronto Islands?
At the Toronto Islands, you can relax on the sandy beaches, explore the lush greenery, and enjoy outdoor activities and water sports.
What are some hidden gems in Toronto?
Some hidden gems in Toronto include Graffiti Alley, The Rec Room, and The Bentway.
What are some best nightlife spots for young adults in Toronto?
Some best nightlife spots for young adults in Toronto include Queen Street West, The Entertainment District, and The Drake Hotel.
Recent data from the Bank of Canada shows that investors accounted for 30% of home purchases in Canada in the first quarter of 2023, up from 28% a year earlier[1]. This highlights the growing role of investors in Canada’s housing market.
Key Facts About Investor Activity
Investors are defined by the central bank as buyers who take out a mortgage to purchase a property while still carrying a mortgage on another property. This signals they are purchasing the additional property as an investment rather than a primary residence[1].
The share of first-time home buyers shrank to 43% in early 2023, down from 48% in early 2020, indicating investors are displacing some first-time buyers[1].
Investors tend to prefer condominiums. They made up 41.9% of condo buyers in Ontario in early 2023[3].
Overall, investors own 20% of homes in Canada and 40% of condos[3]. Their share is even higher in some provinces like Nova Scotia (31.5%) [7].
What’s Driving Investor Activity?
Several factors have motivated investors to buy more properties in Canada:
Strong home price appreciation during the pandemic, with prices in cities like Toronto rising over 40% from early 2020 to early 2022[6]. This attracted investors hoping to profit from further gains.
Low interest rates made mortgages very affordable, enabling investors to leverage their buying power[23].
Limited housing supply, especially in major cities like Toronto and Vancouver, presented investors with a scarce asset with high demand.
Strong rental demand, especially for condos, provided investors with potential income streams.
Concerns Around Growing Investor Activity
While investors provide needed rental housing supply, experts warn their growing presence in Canada’s market is problematic:
Investors tend to amplify house price cycles, overheating markets further during boom periods[7].
They compete directly with first-time home buyers, making affordability worse[1][7].
Heavy investor ownership can lead to issues like vacant homes if purchased strictly as investments[20].
It can shift housing from a social good towards an investment asset[15].
Policy Responses
Canadian policymakers have introduced some measures to cool investor activity:
The federal government banned foreign buyers from purchasing homes for two years starting in 2023[11].
British Columbia and Ontario have imposed special taxes on foreign buyers[20].
Economists argue rising interest rates may be the most effective curb on investors by eroding affordability[23].
The growing investor role has added complexity to Canada’s housing situation. While they provide needed rental housing, policymakers are concerned investors are displacing first-time home buyers and amplifying price volatility. Their impact merits ongoing monitoring and potential policy responses.
Sources
[1] Globe & Mail
[2] Norada Real Estate[3] Financial Post[4] Santander Trade
[5] RedFlagDeals[6] WOWA[7] Statistics Canada
[8] Bennett Jones
[9] Reddit[10] CREA[11] Statistics Canada[12] CNN[13] Ground News[14] PwC Canada[15] CBC[16] Le Monde[17] Knowledia
[18] Remax
[19] Nesto[20] Al Jazeera[21] BNN Bloomberg[22] RBC
[23] Bloomberg[24] RBC[25] Fortune
The saying when it comes to the temperature across Canada is “if you don’t like the weather, just wait five minutes.” This old cliché accurately represents some of our largest cities where things can move from pouring rain to bright sunshine almost in the blink of an eye. The same is often true of the real estate market across the country, where it often feels like things can change just as quickly.
While the days are warm and the sun is shining bright now, fall is inevitably around the corner. For buyers and sellers in Mississauga waiting for the right time to make their next move with Arora Realty, a new season can bring new market conditions and new opportunities. Yet in real estate, it’s nearly impossible to predict anything with 100% accuracy.
We spoke with Ryan Biln, an economist with the Canadian Real Estate Association (CREA), to get his thoughts on what’s to come in the last quarter of 2023 that may impact the Mississauga market.
Interest Rates Keep Surprising Us
According to Biln, the market is stronger than what economists might have expected given the frequent hikes in interest rates since spring 2022. At the start of the year, the Bank of Canada had signaled a freeze in rate hikes, which led buyers to take advantage of potentially great deals. However, with two more hikes since that time, the Mississauga market was cooler in the summer than it might have been otherwise.
However, Biln noted the cooler temperatures on the market may not be over just yet. “With uncertainty about whether we’ll see another hike at the September [Bank of Canada] meeting, we may see this slowdown continuing into the second half of the year,” noted Biln.
CREA has already adjusted its forecast for the rest of 2023 to account for what may ultimately be a cool down. The CREA Housing Market Report released on August 15, 2023, showed the Aggregate Composite MLS® Home Price Index (HPI) is just 1.5% below what it was a calendar year ago. This is the smallest decline the Canadian market has seen since October 2022, which could indicate year-over-year comparisons could return to positive territory as we close out 2023.
Who Ultimately Benefits – Buyers or Sellers?
So who’s coming out ahead in Mississauga’s confused market—buyers or sellers? In short, both sides are working to navigate a complicated landscape.
However, Biln notes CREA’s economists have seen some degree of balance restored in the market. In March, for example, listings were at a 20-year low. This summer though, in line with that ‘wait five minutes’ analogy, the number of new listings has returned to normal for this time of year, and that could mean more selection for eager Mississauga buyers ready to jump into the market with Arora Realty.
Where Are the Hot Markets?
It’s predictable to talk about the overheated real estate markets in Toronto and Vancouver as being unaffordable, with sky-high prices that well exceed the budgets of most hopeful residents. These frenzied clusters have kept expanding population circles further outside the urban centres, with new communities like Mississauga continuing to grow and expand as residents clamour for access to the downtown core, especially with many hybrid workplaces here to stay.
So what’s coming down the pipeline for fall of 2023 in Mississauga? Just like watching the weather change, local buyers and sellers may have to wait those few extra minutes. Economists across the country are paying close attention to whatever announcement comes from the Bank of Canada in September, and forecasts will be written accordingly leading into 2024. No matter what happens though, the team at Arora Realty will be ready to help you make your next move in the Mississauga market.
We at Team Arora Realty read with interest this report on detached home sales from RE/MAX. As a leading real estate agency in Canada, we like to stay on top of market trends across the country.
I. Second Quarter Rebound Cut Short By Rate Hikes
The RE/MAX report found that housing markets in major Canadian cities like Toronto and Vancouver saw an initial rebound in buyer activity in the second quarter of 2022 after declines in the first part of the year.
Buyer demand surged, with sales of detached homes more than doubling from Q1 to Q2 in many neighborhoods. This indicates resilient demand is still present among buyers.
However, the increased activity was not enough to fully make up for the declines in the first quarter. On an annual basis, average detached home prices still dropped in 93% of Toronto and Vancouver neighborhoods.
The report cites low inventory as a major factor that constrained sales activity and prevented more meaningful price recovery. The supply of homes for sale remains extremely tight.
Tip for buyers: The surge in Q2 buyer activity shows there are still motivated buyers out there ready to move quickly when the right property comes up for sale. Be prepared to act decisively when you find a home you want.
Tip for sellers: There is strong demand from qualified buyers looking to purchase as soon as possible. Price competitively and prepare your home to take advantage of this demand.
The temporary rebound highlights the fundamental resilience of buyer demand in the market. But ongoing supply shortages prevented sales from fully bouncing back. Low inventory remains a hurdle for overall market activity.
II. Value-Driven Buyers Targeting Detached Housing
The report found affordability has become a major factor influencing buyer behavior, leading more move-up buyers to target the detached housing market.
With prices down from last year, move-up buyers saw an opportunity to upgrade to a detached home. Detached housing market share increased in Toronto and Vancouver.
Suburban regions like York Region with significantly lower prices than Toronto saw strong demand. Detached homes there are cheaper without Toronto’s municipal land transfer tax.
Buyers focused on finding the best value have been willing to look farther from city centers to find more affordable detached homes.
Tip for buyers: Take time to explore suburban regions just outside major city centers to find relatively affordable detached housing options.
Tip for sellers: Highlight value if selling a suburban detached home. Note proximity to city amenities but emphasize lower prices and taxes.
Affordability has become the top priority for many buyers. This is driving increased demand for reasonably priced detached homes, especially in suburban areas where buyers can find deals compared to the city.
III. Sales Outperform in Select Neighborhoods
While the overall trend was downward, the report highlights some neighborhoods that bucked the price decline:
Tight inventory conditions and sales at the luxury end boosted prices in some areas like parts of Toronto’s central core and West Vancouver.
Even in top-performing neighborhoods, buyers still focused on finding good value. Areas perceived as undervalued or offering larger lots and homes saw strong demand.
Affordable lifestyle markets like the Gulf Islands also saw price gains, driven by remote work trends. Limited supply placed upward pressure on pricing.
Tip for buyers: Consider looking just outside the most in-demand central luxury neighborhoods to find relatively better value.
Tip for sellers: In high-demand low-supply areas, be prepared for bidding wars and sales above asking. Price competitively but not too conservatively.
Isolated areas continue to see price gains thanks to tight inventory and luxury demand. But value remains key even in these neighborhoods, guiding buyers just outside core luxury districts.
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IV. Affordability Remains Key Market Driver
The report emphasizes affordability is still the primary factor driving buyer behavior and demand trends:
Buyers are focused on finding properties and communities that provide good value or help offset costs.
Home features like rental units that provide rental income are popular given their ability to subsidize mortgage payments.
Demand has increased in more affordable regions surrounding major metro areas as buyers get priced out of central cities.
Tip for buyers: Prioritize affordability and look for ways a home can save money through rental income potential or future renovation value.
Tip for sellers: Highlight any features that deliver cost savings or rental income. Also note potential value from renovations or redevelopment.
With affordability top of mind, buyers are laser-focused on finding the best deals and homes that can reduce expenses. Features that enable cost savings or rental income are highly desirable.
V. Outlook Depends on Rates and Inventory
The report concludes the outlook for housing markets depends heavily on two key factors:
Further interest rate hikes could restrain buyer demand for the foreseeable future if implemented as expected. Higher rates reduce purchasing power.
But if rates stabilize and affordability improves, buyer activity could pick up again as markets return to equilibrium.
Low inventory will put a floor under prices in the interim. Short supply prevents more significant declines.
Tip for buyers: Lock in low rates now if buying soon, but don’t overextend your budget in case rates rise further.
Tip for sellers: Low inventory will support pricing. But price appropriately for current high rates and buyer budgets.
The path forward relies on interest rates and inventory levels. Higher rates will constrain demand, but current limited supply will prevent large price declines. Stability could bring buyer activity back. But the timing remains uncertain.
Hello, GTA! Team Arora, your trusted real estate partner, is here with some exciting news about a transformative development project in our beloved city. A quiet residential street in Toronto’s Mount Dennis neighbourhood is set to undergo a significant transformation, promising to redefine the local skyline and bring a fresh wave of urban living.
KingSett Capital, a leading private equity real estate investment business, has proposed a project that will replace an entire block of single-family homes on Denarda Street with a new two-tower condominium complex.
This ambitious project will introduce 509 condominium units, including a mix of studios, one-bedroom, two-bedroom, and three-bedroom suites, catering to a diverse range of residents.
The development is not just about high-rise buildings; it’s about creating a community. The towers will offer over 2,000 square meters of amenities per building, including green roofs, children’s play areas, and pet-friendly features. Plus, the complex will provide ample parking spaces for both vehicles and bicycles, ensuring residents’ transportation needs are met.
But the transformation doesn’t stop at the buildings. The project aims to enhance the public realm along Denarda Street, creating an inviting and attractive streetscape with widened sidewalks and lush landscaping. A new public parkland will also be established, serving both future residents and the broader community.
One of the most exciting aspects of this development is its strategic location. With the planned Eglinton Crosstown West Extension and several existing TTC bus routes within walking distance, and the Weston GO Station just an 11-minute bus ride away, residents will have easy access to the best of what the GTA has to offer.
At Team Arora, we believe that this development represents a significant step forward in urban living, bringing together modern housing, community amenities, and excellent transit connectivity. As the number one real estate agency in the GTA, we’re excited to help you navigate these changes and find your perfect home in this evolving cityscape.
Stay tuned to our blog for more updates on this development and other real estate news in the GTA. Remember, whether you’re buying or selling, Team Arora is here to guide you every step of the way.
