Canada Real Estate Archives - Page 2 of 2

Unleashing Business Success: Legal, Valuation, and Negotiation Insights

06/27/23 1:03 AM

Before making a significant investment as a prospective buyer of a business in the Greater Toronto Area (GTA), it is crucial to consider various aspects. It is essential to thoroughly understand the financial, legal, and market implications associated with purchasing any business. Without conducting proper due diligence and research, uninformed decisions can lead to costly mistakes. In this blog post, we will explore the key factors to consider when evaluating businesses for sale in the GTA, including industry knowledge, financial assessment, market analysis, legal considerations, and business valuation. By being well-informed, potential buyers can make confident and informed decisions when purchasing businesses in the region.

Legal Considerations – understanding applicable laws and regulations

It’s important to understand the legal considerations surrounding your business. Laws and regulations can vary depending on your industry and location, which is why it’s crucial to be informed. Not only can this knowledge save you from legal consequences, but it can also help you make more informed decisions for your business. Compliance with applicable laws and regulations can also build trust with your employees, customers, and stakeholders. As a responsible business owner, you have a duty to comply with the law and protect your business as well. Taking the time to understand legal considerations may require extra effort initially, but it’s a necessary investment that can pay off in the long run.

Business Valuation – how to value a business accurately

When it comes to valuing a business, it’s important to take a comprehensive approach. Simply looking at a company’s financial records or market trends isn’t enough. Instead, a holistic evaluation is necessary to get an accurate understanding of what a business is truly worth. By considering factors like industry benchmarks, competitive landscape, and company culture, you can delve beyond the surface level of financial performance and truly understand the assets a business brings to the table. Whether you’re looking to sell a business or want to ensure that you’re getting a fair value when making an acquisition, it’s crucial to employ a thorough, diligent approach to business valuation.

Negotiation Strategies – tips for successful negotiations

Negotiation can be both an art and a science – a balance of strategy, communication and interpersonal skills. With the right tactics, you can have a successful negotiation every time. Firstly, be clear on your objectives and prepare for the meeting. Think about potential objections that may arise and prepare responses. Listening is critical to understanding the other party’s position, so be attentive and show interest. Don’t be afraid to ask questions – it demonstrates that you are engaged, and it can also help to uncover common ground. While it’s essential to be assertive, avoid being aggressive or confrontational. Try to maintain a respectful tone throughout the negotiation. Finally, remember that the goal of a successful negotiation is to find mutual success. Be open-minded and willing to find a middle ground that benefits everyone. Learning and applying these tips are necessary to ace any negotiations skillfully.

Overall, purchasing a business is likely to be the biggest financial decision you make in life. If done carefully and with thought, it can be one of the most rewarding and fulfilling investments you ever make. With proper research, financial assessment, market analysis, legal considerations, industry knowledge and negotiation strategies prior to committing to buying a business, potential owners will have a much better chance of choosing long-run beneficial decisions. This process will prove difficult at times but worth the energy given its potential rewards. Investment in business ownership requires commitment and dedication; however, with the right advice and expertise from experienced professionals, investors can realize their dreams of owning a successful business.

Team Arora provides competitive prices, with a stress-free process

05/26/23 10:26 AM

As a part of the global RE/MAX network, the team has access to the best tools, technology and resources in the industry, which they have leveraged to achieve remarkable results. The ranking as the 3rd top-performing team in Ontario Province is a clear indication of their ability to utilize these resources and deliver outstanding outcomes.

The ever-changing world of real estate can be a challenging place to navigate, especially when it comes to commercial properties. That’s where Team Arora comes in, offering expert guidance and assistance for those looking to buy or sell commercial properties in the Canadian market. In this blog post, we will discuss the importance of understanding the factors that influence the real estate market and why now is a fantastic time to invest. Plus, learn about our commitment to providing an exceptional experience for all our clients with the help of our professional staff and a nationwide network of top Realtors.

Today’s World Without Real Estate

Real estate is an essential component of our everyday lives and the global economy. From residential homes to commercial buildings and vacant land, these properties serve as the backbone for businesses, facilitate job creation, and boost economic growth. In fact, the Canadian commercial real estate market alone was valued at over $352.4 billion in 2020, according to the Urban Land Institute.

The demand for commercial properties is driven by factors such as population growth, urbanization, and economic development. In recent years, we have seen steady growth in the Canadian commercial real estate market, making it an attractive option for investors looking for stable, long-term returns.

Why Now Is the Best Time to Invest

Currently, the Canadian real estate market is presenting a unique opportunity for investors due to attractive interest rates. The Bank of Canada has held its key interest rate at a historically low 0.25% since March 2020, and it is expected to remain low in the foreseeable future. These low-interest rates offer lower financing costs for investors, making it an ideal time to invest in real estate.

Another factor making commercial properties even more attractive is the rise in demand for office spaces and retail establishments, as businesses gradually return to normal operations post-COVID-19.

Elevate Your Real Estate Experience with Team Arora

At Team Arora, our goal is to provide an unparalleled real estate experience for those looking to buy, sell or lease commercial, residential, or pre-construction properties in Canada. Our extensive services range from land development to all aspects of commercial real estate.

Our Nationwide Network

Our network of top Realtors across other Canadian provinces allows us to assist clients in relocating their businesses and families to other regions seamlessly. Having a knowledgeable and reliable partner when investing in real estate, no matter the province can lead to a successful and stress-free experience.

Professional Staff, here to Help

Whether you’re seeking a new business space or residential property, our professional staff is readily available to help you find your desired property. Our team is experienced in dealing with diverse clients, from business owners to families to investors, making sure to cater to each client’s unique needs and preferences.

Take Action Today: Invest in Canadian Real Estate with Team Arora

Now is the perfect time to make your move and invest in the Canadian real estate market! Team Arora is here to guide you through the entire process, ensuring the best price and stress-free experience. Don’t miss out on this incredible opportunity – contact us today to discover your next commercial property or dream home. And if you found this post helpful, please share it with others who may also benefit from our expertise.

Contact Team Arora Today

The ranking is a testament to the team’s unwavering commitment to excellence, hard work, and dedication to delivering exceptional real estate services to their clients. It is an honour to be recognized as one of the top-performing teams in the highly competitive real estate industry in Canada, and the achievement showcases the team’s unparalleled expertise and knowledge in the field.

Ability To Manage Diverse Needs

Real Estate Centre Team Arora Realty is known for its exceptional customer service and ability to meet the diverse needs of its clients. Our team has a deep understanding of the local real estate market, and team dedication to providing personalized solutions has undoubtedly contributed to their success.

Team Arora: Your Trusted Real Estate Partner in Canada

05/12/23 9:52 AM

In the world of real estate, finding the right property dealer can make all the difference in ensuring a smooth and successful transaction. When it comes to buying or selling a home, condos, pre-construction properties, or land, Team Arora is a name you can trust. With a proven track record of excellence and a commitment to providing exceptional service, Team Arora has earned its place as one of the best real estate property dealers in Canada. In this blog, we will explore why Team Arora stands out from the rest and how they can help you achieve your real estate goals.

Unparalleled Expertise

As experienced real estate agents, the team at Team Arora possesses extensive knowledge of the Canadian real estate market. Whether you are a buyer or a seller, they understand the intricacies of the industry and can guide you through the entire process. Their expertise covers a wide range of property types, including residential homes, condos, pre-construction properties, and land sales.

Accolades and Recognition

Team Arora’s commitment to excellence has not gone unnoticed. In 2018, we were awarded the prestigious title of #1 Remax Team in Canada, a testament to their outstanding performance and exceptional service. These accolades serve as a testament to their dedication to their clients and their ability to deliver results.

Getting the Best Prices

When it comes to selling your property, Team Arora is known for their skill in negotiating the best and higher prices. They understand the local market trends, assess the value of your property accurately, and utilize their extensive network to attract potential buyers. Their expertise and experience allow them to maximize the selling price of your property, ensuring you get the most out of your investment.

Finding the Right Property

On the other hand, if you’re in the market to buy a home, condos, pre-construction properties, or land, Team Arora is there to help you find the perfect match. They take the time to understand your needs, preferences, and budget to identify properties that align with your requirements. With their extensive network and access to a wide range of listings, they can provide you with a diverse selection of options to choose from.

Exceptional Customer Service

One of the key factors that set Team Arora apart is their dedication to providing exceptional customer service. They understand that buying or selling a property can be a complex and emotional process, and they strive to make it as seamless as possible for their clients. Their team of professionals is always available to answer your questions, address your concerns, and provide guidance throughout the entire real estate journey.

When it comes to buying or selling real estate in Canada, Team Arora is the name to trust. Their proven track record, industry expertise, and commitment to exceptional service make them the best real estate property dealers in Canada, but in some cities like GTA, Mississauga and Kitchener are our priorities. Whether you’re looking to sell your property at the best price or find your dream home, condos, pre-construction property, or land, Team Arora has the knowledge and experience to guide you every step of the way. Contact Team Arora today and experience the difference of working with a top-tier real estate team.

KWC Are The Top 3 Areas To Invest In The GTA! Now What Is KWC!

05/4/23 9:43 AM

GTA is one of the most sought-after cities for real estate investment. Kitchener, Waterloo, and Cambridge are the top three cities in the GTA that provide an excellent opportunity for investors.

Kitchener With Potential Investors

Kitchener has been making headlines lately with its United Taxi initiative that offers to drive dialysis patients to Grand River Hospital free of charge when they can’t get there any other way. This demonstrates how this city takes care of its citizens and could be an attractive option for potential investors.

Meanwhile, Waterloo small businesses have adapted their payment system technology to keep up with modern trends, making it a great choice for entrepreneurs looking to start their businesses or existing companies wanting to expand.

Cambridge Best Investment Along With Neighbour

Cambridge takes it a step further by expanding its program that provides $500 a month to low-income families. This helps support the local economy and gives an additional incentive for investors who are looking for potential returns while helping the community at the same time.

Overall, Kitchener, Waterloo, and Cambridge have a lot of potentials when it comes to real estate investments. With their various initiatives and news updates, these cities are growing each day and offer great opportunities for anyone looking to invest in the GTA. Investing in any of these three cities could be a wise decision for any prospective investor. to expand.

Cambridge stands out because of its program that provides low-income families with $500 a month. This shows the city’s dedication to helping those in need and could be an attractive option for investors who are looking to make a positive impact on the community while making money.

With these great initiatives and the cities’ continued growth, Kitchener, Waterloo, and Cambridge remain excellent choices for real estate investment in the GTA. Investing in any one of these regions could be highly lucrative, so be sure to look into them as soon as possible!

Right Now Investment

Investing in any one of these regions could be highly lucrative, so be sure to look into them as soon as possible! These cities are continuously growing and offer great potential for real estate investors. With their various initiatives and news updates, Kitchener, Waterloo, and Cambridge remain excellent choices for anyone looking to invest in the GTA. Don’t miss out on this amazing opportunity – invest now and reap the benefits of your wise decision!

Eager to start investing in the GTA? Kitchener, Waterloo, and Cambridge are three of the best cities in the GTA that offer excellent opportunities for real estate investors. With their various initiatives and news updates showing consistent growth, these cities remain some of the top choices when it comes to real estate investments. Kitchener’s United Taxi initiative is just one example of how this city takes care of its citizens and could be an attractive option for potential investors. Meanwhile, small businesses in Waterloo have adapted their payment system technology to keep up with modern trends, making it a great choice for entrepreneurs. Cambridge’s initiative to provide $500 a month to low-income families not only helps the city’s economy but could also be an additional incentive for investors. Investing in any of these three cities could be highly lucrative – don’t miss out on this amazing opportunity! Start investing now and reap the benefits of your wise decision!

Thanks for reading! We hope you found this information helpful and make sure to stay tuned for more real estate investment tips. Good luck!

Top 3 Towns to Invest Based on The Latest Average Price Analysis

05/1/23 8:27 AM

The Canadian real estate market is a diverse landscape full of potential investment opportunities. In this blog post, we will examine the top three towns for investing in property based on the latest national average price analysis. Our top contenders are Windsor, Kingston, and Simcoe, each boasting impressive growth rates over the past three years. Let’s dive in and explore these towns and the reasons behind their success in the real estate market.

Windsor: The Diamond in the Rough with a 73% Growth in the Last Three Years

Why Windsor is the Best Town to Invest

Windsor has experienced a staggering growth of 73% in the past three years, making it the top town for property investment in this analysis. This impressive growth can be attributed to several factors:

Affordability: Windsor’s property prices are $174,000 less than the national average, making it an attractive option for investors and homebuyers alike.
Strategic Location: Windsor’s proximity to the United States and major highways provides excellent opportunities for commerce and economic growth, drawing in businesses and families alike.
Diverse Economy: Boasting a strong manufacturing sector and a growing tech industry, Windsor offers a diverse and flourishing economic landscape that attracts both residents and investors.

Windsor’s Heart: A Perfect Balance of Cultural and Commercial Living

Windsor is a city that offers the perfect balance between cultural and commercial living, which adds to its real estate appeal. The heart of Windsor, defined by its downtown area, is divided into five distinct neighborhoods: Ouellette Avenue, Pitt Street, University Avenue, and Chatham Street. Each of these neighborhoods is family-friendly and offers a variety of housing options to suit all budgets and preferences.

Furthermore, the downtown area borders the Detroit River to the North, Giles Boulevard to the south, Janette Avenue to the west, and Glengarry Avenue to the east, offering beautiful views of the river and ample green spaces like parks and trails.

Residents and tourists alike can enjoy a plethora of attractions, including vibrant art galleries, exciting events, and an abundance of shopping, dining, and entertainment options.

Kingston: The Rising Star with a 64% Growth in Three Years

Kingston comes in second place in our analysis, with an impressive growth rate of 64% in the past three years. With a minimum property price of $200,000 less than the national average, Kingston is also an affordable option for investors.

The city is known for its rich history, beautiful architecture, and bustling cultural scene. It’s also an important hub for education and healthcare, which adds to the attractiveness of the real estate market. With strong job opportunities and relatively lower living costs, it’s no surprise that Kingston has experienced such rapid growth in recent years.

Simcoe: An Emerging Town with 70% Growth in the Last Three Years

• Simcoe is a vibrant area with centuries of rich history and beautiful waterfront views.

• The local community is full of culture, with activities to keep everyone entertained, from camping and fishing to shopping in boutiques and attending shows.

• Nightlife options include wineries and restaurants for indulging in delicious meals with friends.

• Year-round, visitors can experience the charm of Norfolk parishes and create unforgettable memories.

Though not as well-known as Windsor and Kingston, Simcoe is an up-and-coming town that has seen a 70% growth in the past three years, making it the third-best town to invest in. With property prices $174,000 below the national average, it’s an attractive option for those looking to invest in an emerging market.

Simcoe is the largest community within Norfolk County and has vibrant agriculture and manufacturing industries. With a small-town charm, beautiful scenery, and an affordable housing market, there

What’s Driving Toronto’s Real Estate Market Growth

04/9/23 1:02 AM

The Toronto real estate market has been on a steady rise over the past decade, attracting homebuyers and investors from all over the world. The city’s real estate market has been one of the hottest in Canada, with prices continuing to climb and demand outstripping supply. Several factors account for the growth of the Toronto real estate market, as we will discuss in this blog post.

Population Growth

There has been considerable growth in the population of Toronto, which is a major factor driving the real estate market. The population has grown steadily over the past decade, and with more people living in the city, there is greater demand for housing and higher prices. In conformity with Canadian Statistics, the Greater Toronto Area population will be expected to be more than 2 million by 2041. This rapid population growth has created a strong demand for housing, particularly in the downtown core, where many people want to live and work.

Low-Interest Rates

Another factor contributing to the rise of the Toronto real estate market is low-interest rates. The Bank of Canada has maintained low-interest rates for several years, making it easier for people to qualify for mortgages and afford higher-priced homes. The rise in demand for housing, especially from people who are buying a house for the first time, has increased.

Limited Supply

While the demand for housing in Toronto is high, the supply of homes is limited. Behind this there are many reasons like regulation and low availability of land. In many parts of the city, particularly in the downtown core, there is a limited amount of land available for development. All these things make an impact on the bidding wars, leading to competition in the market, and many offers remain the same.

Foreign Investment

Toronto’s real estate market has attracted a significant amount of foreign investment, particularly from China and the Middle East. These kinds of investments increase the price along with the demand for commercial and housing properties. Many foreign buyers see Toronto as a haven for their money, and they are willing to pay top dollar for properties in the city.

Strong Economy

Toronto has a strong and diverse economy, with a low unemployment rate and a high level of immigration. This has made the city an attractive place to live and invest in real estate. The city’s economic growth has also led to an increase in high-paying jobs, which has driven up demand for housing in the city.

In addition to these factors, there are several other reasons why the Toronto real estate market has been on the rise. For instance, the area has a high quality of life, which includes top-class restaurants and excellent culture. It is also a safe city with low crime rates, making it an attractive place to live for families and young professionals.

While the rise of the Toronto real estate market has been a boon for home sellers and investors, it has also created some challenges for homebuyers. In the expensive lifestyle of the city, only some people can afford a home to buy. This has led to an increase in rental demand, which has driven up rental prices in the city. Many renters are struggling to find affordable housing, particularly in the downtown core.

Housing Bubble

The rise of the Toronto real estate market has also led to concerns about a potential housing bubble. Some experts have warned that the market may be overvalued and that a correction may be on the horizon. While it is impossible to predict the future of the real estate market with certainty, home buyers and investors need to be aware of the risks associated with investing in a rapidly rising market.

In conclusion, the Toronto real estate market has been on a steady rise in recent years, driven by population growth, low-interest rates, limited supply, foreign investment, and a strong economy. While this trend may continue in the short term, it is important for home buyers and investors to approach the market with caution and to be aware of the risks associated with investing in a rapidly rising market.

Recent Reviews Prove Our Commitment to Excellence in Real Estate Services

03/27/23 7:32 AM

At our core, we are a team of experienced professionals who understand the complexities of the real estate market. Whether you’re looking to buy or sell a home, invest in pre-construction projects, lease commercial space, or develop land, we have the expertise to guide you through the process.

In the residential real estate sector, we understand that buying or selling a home is one of the most significant transactions you will make in your lifetime. That’s why we take a personalized approach to every client we work with, ensuring that we fully understand your needs and preferences. From there, we use our extensive knowledge of the local market and our relationships with other industry professionals to help you find your dream home or sell your property quickly and efficiently.

When it comes to pre-construction, we have a proven track record of helping investors identify and secure high-quality, high-potential projects before they hit the market. Our team has the expertise to evaluate pre-construction projects and determine their potential for growth and profitability, ensuring that our clients are making informed investment decisions.

“Real People, Real Reviews”

Our Google Review Proves Our Dedication to Exceptional Real Estate Services. Don’t Just Take Our Word For It!”

At our company, we understand the importance of authenticity and trust when it comes to choosing a real estate provider. That’s why we take great pride in the reviews and feedback we receive from our clients. Our recent Google review serves as a testament to our commitment to providing exceptional service and expertise to every client. We believe in the power of human connections and personalised service, and it’s reflected in every aspect of our business. So, whether you’re buying or selling a home, investing in pre-construction projects, or developing land, you can trust us to deliver the best results, as confirmed by our valued clients.

Results Confirmed By Our Valued Clients

At Team Arora, our dedication to excellence in the real estate industry is reflected in the positive feedback we receive from our clients, including this recent review from a fellow Realtor. We understand that buying or selling a property can be a stressful and overwhelming experience, and that’s why we strive to make the process as smooth and seamless as possible. Our team of experienced professionals is committed to providing personalized service, effective communication, and flawless execution of every transaction.

Our recent collaboration with Sam Dhilon from our team is just one example of how we deliver on our commitment to excellence. The transaction went flawlessly, and we were able to achieve the expected results for our client. We also take pride in our accessibility and open communication with our clients. As mentioned in the review, Parveen Arora, our team leader, was readily available to discuss potential transactions, ensuring that our clients feel supported and informed throughout the entire process.

Understand What Important In Real Estate

We believe that maintaining a high standard of service is crucial in the real estate industry, and we are proud to be recognized for our efforts. Our team works tirelessly to stay up-to-date on the latest market trends and industry developments, ensuring that our clients receive the most comprehensive and effective service possible. So if you’re looking for a real estate team that puts your needs first, delivers exceptional service, and achieves outstanding results, look no further than Team Arora. We’re dedicated to making your real estate journey a success.

In the commercial real estate sector, we have a deep understanding of the needs of business owners and investors. We work closely with our clients to identify the best commercial properties for their needs, negotiate favorable lease terms, and manage their properties to maximize returns. Finally, in land development, we have a proven track record of success in helping landowners navigate the complex process of developing their land. We provide a full range of services, from initial site evaluation to project management, to ensure that our clients achieve their goals.

Our recent Google review has reaffirmed our commitment to excellence, and we are confident in our ability to deliver the highest level of service to our clients. We are passionate about real estate and are dedicated to using our expertise and experience to help our clients achieve their goals. In this blog, we will be sharing our insights, expertise, and news from the world of real estate. From tips on buying and selling a home to the latest trends in commercial real estate, we’ll cover it all. So, be sure to check back regularly for the latest updates, and don’t hesitate to contact us if you have any questions or are ready to get started on your real estate journey.

The Bank of Canada has raised its interest rate to 2.5%

07/13/22 1:53 PM

In an effort to curb runaway inflation, the Bank of Canada raised its benchmark interest rate largest amount in the past 20 years.

Canada’s central banks raised Wednesday their benchmark interest rate by one percentage point to 2.5% This is the largest single increase in the bank’s rate since 1998.

Canadians will receive high rates from their lenders for things such as mortgages and credit lines.

All things being equal, a central banking institution will reduce the lending rate when it wants the economy to grow by encouraging people to borrow money and invest. When it wants to cool an overheated economy, it raises rates.

The bank had previously lowered its interest rate to record lows during the pandemic. It has since raised its rate four more times since March in an aggressive campaign against inflation. This is the bank’s highest rate in 40 years.

Canada’s inflation is more severe and persistent than the Bank predicted in its April Monetary Policy Review (MPR). It will likely stay around 8% for the next few months. Global factors like the conflict in Ukraine and continuing supply disruptions have been the main drivers of inflation, but domestic price pressures are increasing due to excess demand. The CPI is seeing more than half of its components rise by over 5%. The Bank’s core inflation measures have increased to between 3.9% – 5.4% due to the increasing price pressures. Surveys show that more people and businesses expect inflation to rise for longer periods of time, increasing the risk of inflation becoming entrenched in wage- and price-setting. The economic costs of restoring price stability would be higher if this happens.

The impact of Russia’s invasion of Ukraine and ongoing supply constraints as well as strong demand have all contributed to global inflation being higher. To combat inflation, many central banks tighten monetary policy. The resulting tighter financial environment is limiting economic growth. The United States is experiencing high inflation and rising interest rate, which contributes to a slowdown of domestic demand. China’s economy is being held back in the face of restrictive measures to control COVID-19 epidemics. The oil prices are still volatile and high. The Bank expects that global economic growth will slow to around 3 1/2% this year, 2% in 2023, and then strengthen to 3% by 2024.

TD Bank Mortgage Rates Brampton July 2022

The Canadian economy has seen an increase in excess demand. The labour market is tight, with a record-low unemployment rate, wide-spread labour shortages and rising wage pressures. Businesses are increasing prices to offset higher labour and input costs due to strong demand. The rebound in spending on difficult-to-distribute services is driving strong consumption. High commodity prices are boosting business investment and increasing exports. According to the Bank, GDP increased by approximately 4% in quarter 2. The third quarter is forecast to see a slowing of growth to 2%, as consumption growth slows and the housing market activity recovers from the unsustainable strength experienced during the pandemic.

The Bank predicts that Canada’s economy will grow by 3 1/2% in 2022 and 1 3/4% in 2023 respectively, and 2 1/2% in 2024. As global growth slows, the Bank expects Canada’s economy to grow by 3 1/2 % in 2022, 1 3/4 % in 2023, and 2 1/2 % in 2024. This, along with the resolution to supply disruptions will bring demand back into balance and reduce inflationary pressures. The global energy prices are expected to fall. Inflation is expected to start to fall later in the year. It will be around 3% by next year before returning to its 2% target by 2024.

The economy is clearly in excess demand and inflation high and widening. More businesses and consumers expect high inflation to continue for longer. Therefore, the Governing Council decided today to accelerate the path to higher interest rate. They raised the policy rate 100 basis points. The Governing council continues to believe that interest rates must rise further. However, the Bank’s continuing assessment of inflation and economy will determine the pace of increases. Quantitative tightening is continuing and complements increases in the policy rate. The Governing council is steadfast in its commitment price stability and will continue to take the necessary actions to reach the 2% inflation target.

(Source)

Canada’s housing markets are finally moving back towards balance

06/8/22 2:31 PM

The chill that gripped Canada’s housing market after the Bank of Canada raised interest rates earlier in the year has turned several degrees cooler.

Many of Canada’s most expensive markets, including Toronto, Vancouver and Montreal, as well as Ottawa, Ottawa, Hamilton, saw their sales decline in May. This was the third month of decline for many.

Robert Hogue , assistant chief economist at RBC, stated that “Clearly the Bank of Canada has raised interest rates since March and there are prospects for more”. They’re raising the bar for buyers and lowering earlier (super-bullish) sentiment.

Since March, the central bank has increased its key rate three more times, from 0.25 to 1.5%. Economists expect that it will continue increasing until it reaches 2.5%.

Hogue stated tha Canada’s housing market is now undergoing rapid rebalancing.

The Toronto-area market has seen a dramatic change in the last three months. The demand-supply situation has changed from being the tightest in records to almost as loose as it was during the 2017 correction. Due to the high interest rate sensitivity of buyers due to the large mortgage sizes and the steep prices in the area, the Bank of Canada’s rate increase campaign has left them on guard. In the last three months, home resales fell by a third.

This includes a 9.3% m/m decrease in May (seasonally adjusted). After falling to historic lows during the pandemic in 2004, inventories are rising and have risen 26% over May 2012. The buyers’ urgency and willingness to participate in bidding wars has decreased significantly. In April and May, the MLS Home Price Index declined m/m. The strongest headwinds are being felt by single-detached homes in the 905 belt, which had seen their values rise the most over the past year. The City of Toronto condos have shown greater resilience. As buyers gain pricing power, we expect prices to continue falling.

This was particularly evident in Toronto where “demand-supply conditions swung close to the tightest records to nearly as loosely as during the 2017 correction,” he stated.

Source: Canadian Real Estate Association, Toronto Region Real Estate Board, RBC Economics | *Yellow dot indicates estimate for May 2022

According to RBC’s seasonally adjusted estimate and the MLS Home Price Index, Vancouver was Canada’s most expensive market. Home resales dropped more than 15% compared to the previous month. Although inventories are still lower than the previous year, they increased.

Hogue wrote that Vancouver buyers are the most rate-sensitive in the country. He believes they will be severely affected by the Bank of Canada increasing their interest rates by 100 basis points. RBC expects that buyers will negotiate better prices with sellers in the future.

Montreal, where sales fell below pre-pandemic levels one year ago, has been on the path to a soft landing longer than other markets. Hogue stated that the notable development in May was a significant increase in new listings. Prices have risen so far, but this could change if there is more supply.

Calgary’s lower prices have made it a busy market in recent years. Although three rate increases have slowed the pace of activity, Hogue said that it is still “incredibly bustling”.

The supply is tight and home resales are still well above the pre-pandemic peak levels. The cooling effect is most evident in the prices. They rose slightly in April, but were flat in May. This is a significant change from blockbuster gains earlier.

Brampton housing markets are finally moving back towards balance. The supply is finally catching up with demand so prices are stabilizing. Get a good deal on your next house, before prices go up again! Visit our blog for more information about Brampton housing market trends.