Vancouver condo market shows signs of crashing, and the Home of the Week: Canadian real estate news for the week of May 16
This week, the renter, home construction and condo markets take a hit as demand continues to drop. Plus, the 'poor millionaire' homeowner, and one home worth a look.
Try The Globe's business and investing news quiz
The demand for new condos in Canada is dwindling, leaving landlords to compete for the attention of potential tenants. As Salmaan Farooqui writes, it's a sign that concerns about the Canadian economy and a surge in new condo completions this year are making it difficult to find renters. In past years, renters needed to jump on the first available opportunity, while landlords could be more choosy – sometimes hoping for a bidding war. Now, the roles have reversed. A spokesperson for Rentals.ca said the largest promotions he's seen include two months of free rent, cash rebates of up to $1,000, free parking and free subscriptions to services like internet and cable.
As the condo market slows, the home construction industry is slowing down with it, leading to development companies pulling back on buying up new land. According to data from Atlus Group, the value of deals for residential land development in the Greater Toronto Area has been dropping, culminating in the first quarter of 2025 ranking as the lowest in the last five years. And as Shane Dingman writes, there are already worrying signs that builders are pulling back on construction for sites they currently own.
A long-established Vancouver development company has terminated its presales efforts for a major project and returned purchasers' deposits, in a sign that the city's condo market is in trouble. According to Karen West, vice-president for marketing and sales with Boffo Developments Ltd., the company launched the first of what was meant to be a four-tower, 1,200-unit development last July in the hopes that the market was starting to improve as interest rates were coming down. But as Frances Bula writes, only 44 units of the 318 in the first tower sold between July and December, and then sales dropped off completely in the new year, leading to the company pausing the project, returning deposits with interest, and waiting for better conditions.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Thursday May 15.
When you celebrate real estate like we do in Canada, you end up with anomalies such as people who are house rich and retirement poor, writes personal finance columnist Rob Carrick. It all starts when you stretch your finances to buy a house and justify it with the expectation of building wealth through home equity. Open Policy has found that Toronto's Top 50 neighbourhoods ranked by average home values in 2021 had 6,860 people 65 and older with poverty-level incomes and homes worth more than $1-million. A more common story is the senior who starts off okay in retirement, then finds their savings are running out. A basic rule if you're concerned about not having enough retirement income and own a home: Make sure you have a home equity line of credit (HELOC) in place before you leave the work force.
8482 Highway 337, Georgeville, N.S. – Full gallery here
Nova Scotia is famous for its kitchen parties, but if you build a house with a large enough open space you can take it to the next level: a house concert. The owner of the three-bedroom home in Antigonish County, Nova Scotia, has used its great room to host musical acts for their friends and neighbours. The home is essentially a big square behind a wide apron of tarmac – the front door opens directly into the centre of the main room, a 30- by 40-foot space that's almost like a church nave with the ceiling rising 18 feet to a point above a huge stone chimney. The guest house is further to the right past the garage, built into a steep ridge with a basement walkout to the slope below. While your guests are being serenaded, enjoy the ocean view of the home's outdoor kitchen.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
13 minutes ago
- CTV News
Ontario to make Ring of Fire a special economic zone ‘as quickly as possible': Ford
Protesters chant and wave flags during a demonstration outside the Ontario Legislature at Queen's Park in Toronto, Monday, June 2, 2025. THE CANADIAN PRESS/Cole Burston TORONTO — Ontario intends to designate the mineral-rich Ring of Fire as a so-called special economic zone 'as quickly as possible,' Premier Doug Ford said Thursday. Ford said he and several ministers will consult all summer with First Nations about the new law that allows the Ontario government to suspend provincial and municipal rules before making the designation. 'We need to start moving on that,' Ford said of the designation for the Ring of Fire. Last week, Indigenous Affairs Minister Greg Rickford and Energy and Mines Minister Stephen Lecce said they would hold off on making the area a special economic zone until they had consulted with all affect First Nations. The law seeks to speed up the building of large projects, particularly mines. Ford's government has committed $1 billion to develop the Ring of Fire. Three First Nations have signed various agreements with the province to help build roads to the region, as well as develop the area where it connects to the provincial highway system. However, First Nations across Ontario have risen up to protest the province's new law, livid about what what they describe as the government's audacity to strip away any law it sees fit for any project at any time. They say it tramples their treaty rights and ignores their concerns. The First Nations want to be part of development, including mines, but want to be equal partners with the province on the legislative side. They have warned Ford repeatedly that they will take the fight to the courts and to the land. Blockades of highways, railways and mines are on the table this summer, numerous First Nations said. 'This is a once in a generation opportunity for our First Nations communities and I understand some may disagree, but I'll tell you, a lot of them agree,' Ford said. Tensions have been high at the provincial legislature over the past few weeks because of the opposition to the bill. Dozens of First Nations members flew from the far north to Queen's Park to watch the province pass Bill 5, the Protect Ontario by Unleashing Our Economy Act, on Wednesday. Security booted about a dozen of them from the legislature's chambers for raining jeers down upon the politicians as they passed the bill into law. NDP legislator Sol Mamakwa, the representative for Kiiwetinoong where the Ring of Fire is located, was also kicked out earlier this week for saying Ford was 'telling untruths' to First Nations about his government's plans for the Ring of Fire. There is plenty of opposition to the new law in addition to First Nations' concerns. Critics also say the bill guts protections for endangered and threatened species. The legislature rose for its annual summer break and will not return until Oct. 20. This report by The Canadian Press was first published June 5, 2025.
Globe and Mail
14 minutes ago
- Globe and Mail
Steady interest rate complicates mortgage math and the Home of the Week: Canadian real estate news for the week of June 6
Hi, I'm Moira Wyton, an audience editor at The Globe filling in for Jacob from Vancouver, the other real-estate hotbed of Canada. This week, we're crunching the numbers on why the Bank of Canada's decision to hold its key interest rate could make it harder for homeowners and prospective buyers to figure out their mortgage plans. Plus, we'll dive into the downsides of downsizing and one property worth a look. Try The Globe's business and investing news quiz The Bank of Canada held its policy rate at 2.75 per cent for the second consecutive time, citing 'unusual uncertainty' around inflation and continuing trade tensions with the United States. The BoC's decision will have some reverberating effects on the real estate market. As Erica Alini writes, a rate hold doesn't help homeowners who are facing a hefty increase in their mortgage renewal in the next few weeks. Even though the gap has shortened in the past year, homeowners are still left to work out the math on their finances. And as Salmaan Farooqui writes, the BoC announcement won't be seen as encouraging for first-time homebuyers who have been waiting on the sidelines for a sign to dive into the housing market. Some experts think later this year will be the time for housing markets to heat up – if more rate cuts materialize. If Ottawa's plan to offer a GST rebate to first-time buyers of new homes is meant to ease affordability and speed up construction, some builders say it will barely move the needle where it's needed most – and could actually drive up prices elsewhere. Last week the Department of Finance said it would remove GST on new homes sold for less than $1-million and rebate some of the tax on homes below $1.5-million. But as Shane Dingman writes, critics say those limits don't reflect the prices facing buyers in Canada's most expensive housing markets in Toronto and Vancouver, limiting the rebate to apply to a modest condo at most. And while it may not make a dent in the most expensive cities, one real estate agent says the threshold would include, ironically, 'luxury'-level homes virtually everywhere else in Canada. That could give investors a further leg up in those markets and drive out-of-reach prices even higher for first-time buyers. Their share of new home sales has already shrunk to barely five per cent as investors dominate pre-sales over the last 15 years, according to industry data. The rebate also wouldn't include anyone 'buying up' – moving from a condo to a townhome, or from a duplex to a detached home – when builders say those buyers are critical to generating pre-sales, which have sharply declined in the GTA and other areas since last year. And as builders push Ottawa to remove GST on all new homes, a decades-long rebate debate has been revived over whether a new home should be considered a consumer good at all, or taxed like one. Downsizing is a popular choice for those looking to simplify their lives and spend less time and money caring on upkeep, but many homeowners are still unaware that less space doesn't necessarily mean fewer problems. As freelancer Katrya Bolger writes, the downsides of downsizing range from unforeseen financial costs, like penalties for breaking a mortgage or storage fees for belongings, to lifestyle challenges, like having less outdoor space or room for guests. Michelle Thorne learned that lesson the hard way. She downsized in 2015 while she was still working as a teacher in Barrie, Ont., going from a four-bedroom house to a three-bedroom townhouse close to shops and services she figured she would use in retirement. But it was a hard adjustment to a smaller space. She missed the quiet of her old neighbourhood and the time she had spent outside in her garden, realizing she had been thinking too much about what she'd need in the future rather than how she wanted to live in the present. Two years later, Thorne moved again to a quiet two-bedroom bungalow near the water. Other downsizers Katrya spoke with also had advice on how to make it work – like decluttering instead of paying for extra storage – and how to know when smaller isn't necessarily the best for you. Personal finance advice, in this economy? Tariff uncertainty, stock market volatility and the unpredictable whims of a certain U.S. President have left many Canadians wondering whether it's a good time to buy or sell a home, renovate or lock in their mortgage rates. Globe reporters answered 42 of the most-asked money questions from readers to help Trump-proof their finances. And as personal finance reporter Sal Farooqui notes, it's no wonder readers had so many questions about real estate. 'It's hard to understate Donald Trump's impact on real estate in this country,' Sal told me. 'Economists and real estate professionals generally thought our housing market would be chugging along now that interest rates have dropped notably. Instead, buyers are sitting scared on the sidelines and purchases are at extremely low levels because Trump's global trade war has made things so uncertain.' The advice covers everything from downsizing to investment properties and mortgage rates, and the gist is that if you can wait to offload an investment, you should. But on the other hand, it could also be a better time to buy than usual for first time home buyers who have secure employment 'because rates are low, prices have dropped and there's very little competition,' says Sal. Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Thursday, June 5. As the vacancy rate goes up in Vancouver, renters do have more options – but unfortunately, those renters don't include lower-income households, notes real estate writer Kerry Gold. The city is 'still far from an abundance of affordability in our time, especially for those on living wage incomes,' said Andy Yan, associate professor of professional practice in urban studies at Simon Fraser University. Even as the market downturn drove the city to approve more purpose-built rental buildings than condos in 2024, a reversal of the proportion pre-2022, lower rents still haven't materialized. That's because of the high cost of land, construction, insurance, financing and more are making developers more likely to hit pause than to lower rents, said Prof. Yan. 90 Madison Ave., Toronto – Full gallery here You don't need a cat – or nine lives – to enjoy this Annex-style brick mansion that takes a classic to new heights. Bought by a born-and-raised New Yorker in the early 2000s, the home's massive addition centred around a three-storey atrium now maximizes natural light, something the buyer longed for growing up in the East Village. Now they sometimes need sunglasses in their living room, but it's created the feel of a ski chalet or backcountry cottage right in the city. Parts of the Victoria mansion are woven into the renovation, along with brushed steel, light wood and suspended catwalks, plus an elevator installed later for an aging relative. There are also still two separate apartments in the original building – either a nice income stream or a potential for expansion.
Globe and Mail
14 minutes ago
- Globe and Mail
Canadian unemployment rate rises to 7% in May as economy adds 8,800 jobs
Statistics Canada says the unemployment rate rose to 7 per cent in May, up a tick from 6.9 per cent in April. The agency says overall employment was little changed amid a gain of 8,800 jobs in the month. More coming.
