Latest news with #CanadianRealEstateAssociation
Yahoo
27-05-2025
- Business
- Yahoo
Posthaste: Burning your mortgage is going the way of rotary phones and station wagons
The days of burning your mortgage as a rite of passage into your golden years appear to be slipping into the past along with rotary phones and station wagons. A new survey by real estate company Royal LePage suggests that millennials and gen Z are not the only generations struggling with housing affordability in Canada — seniors are carrying the burden well into retirement. Almost a third of Canadians who are planning to retire in the next two years will continue to make mortgage payments on their primary residence into retirement, the survey said. That's twice as many seniors carrying mortgage debt as a decade ago, and in 1999 the share was just eight per cent. Home prices in Canada soared to $827,100 in 2023 from $120,200 in 1990, according to the Canadian Real Estate Association, and these gains have been a 'double-edged sword' for older Canadians, Royal LePage chief executive Phil Soper said. 'On one hand, it has delivered unprecedented financial gains. On the other, this generation is far more likely to have carried mortgage balances that would have been unimaginable to their parents or grandparents,' he said. It's a trend that will likely continue as first-time homebuyers increasingly enter the housing market later in life. A Royal LePage study in 2023 said 43 per cent of first-time homebuyers were aged 35 and older, up from 33 per cent just two years earlier. In the pricey Ontario real estate market, the median age of a first-time homebuyer hit 40 in 2024, up from 36 a decade earlier, which Teranet said is 'a testament to the likely effects of the affordability challenges in the Ontario housing market.' Yet Royal LePage also said that a surprising number of older Canadians are not willing to downsize in retirement — nearly half, 47 per cent. Seniors in Manitoba and Saskatchewan, according to Royal LePage brokers, are more inclined to downsize, while more retirees in Quebec and Ontario opt to stay in their own homes. 'The benefits of entering retirement as a homeowner with a paid-off mortgage are clear: more disposable income, insulation from interest rate changes, and even the emotional security that comes from knowing you'll always have a place to live,' Soper said. 'In the era of rotary phones and station wagons, burning your mortgage was the economic finish line. Today's retiree reality is much more nuanced.' to get Posthaste delivered straight to your manufacturing isn't the American dream. President Donald Trump has made it clear he wants to bring factory jobs back to the United States, but this chart from TD Economics suggests the American people might be a bit more ambivalent. Most agree that there should be more people working in domestic manufacturing, but far fewer think it should be them. Trump might have a harder time than he thought convincing Americans that they need to pay higher prices to win back factory jobs. Today's Data: United States durable goods orders, Conference Board consumer confidence, S&P CoreLogic Case-Shiller home price index Earnings: Bank of Nova Scotia, Autozone Inc. How Trump's 'big beautiful bill' could become a big headache for corporate Canada and investors Many investors remain unaware of the scale of the unfolding bond crisis What you need to know about Canadian Tire, the retail giant that bought Hudson's Bay brands Canadian household wealth surged to a new collective high of $17.49 trillion at the end of 2024, and on average Canadians saw their net worth climb 5.77 per cent to reach $1,026,205, fuelled by strong financial asset gains. The Financial Post's Serah Louis breaks down the state of household wealth in Canada — and looks at the uncertainty that lies ahead. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ 'The fear is real,' says TD, predicting 100,000 jobs will be lost in looming recession Canada home prices are heading into correction territory
Global News
23-05-2025
- Business
- Global News
Are mortgage rates getting cheaper? Depends on where you live
If you're looking to buy a house this summer or renew your mortgage, there could be good news for you. But whether your rates are going up or down depends on where you live. The monthly home affordability report by looked at home prices and mortgage rates from 13 Canadian cities. In seven of those cities, mortgage affordability improved. While borrowing costs remained largely stagnant in late March and early April, plummeting home sales across Canada contributed to improved affordability, the report said on Thursday. According to the Canadian Real Estate Association, home sales dropped by 9.8 per cent in April. 'The lowest 5-year fixed rate as of May 22 is 3.84%. We've used the average of the Big Five Bank's rates in our calculations. Securing a lower rate, such as 3.84%, would have a big impact on how much you can qualify for,' Penelope Graham, mortgage expert at said in a news release. Story continues below advertisement 2:05 Business Matters: Canadian home sales fell in February amid tariff uncertainty Where did rates go down? According to the report, the city that saw the most significant improvement in housing affordability in April was Hamilton, Ont. The average home price in Hamilton was $801,400 — a drop of $9,600 from March. A Hamilton homebuyer would need an annual income of $166,500 to be able to buy a house. With a 10 per cent down payment and a 25-year amortization, their monthly mortgage rate came down to $4,066 a month. Story continues below advertisement This means that a Hamilton mortgage buyer who locked down their rate in April would save $49 a month compared to someone who locked it down in March. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'The Hamilton borrower in this scenario would save $49 on their monthly mortgage payment ($588 a year) in April compared to if they bought in March,' Graham said. The mortgage figures in this report are based on a mortgage with a 10 per cent down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating costs. Toronto saw the second biggest drop in home prices, with the average home price dropping $7,500 to $1,009,400. A Torontonian would need an annual income of $205,850 to afford a home and their average mortgage payments came in at $5,122 a month — a drop of $38. While Vancouver saw the third biggest decline in home prices, with a decline of $6,300, it remains Canada's most expensive housing market by far, with an average home in April costing $1,184,600. Vancouverites also need the highest annual income of any city in Canada at $238,970 a year. They would also have to pay the highest monthly mortgage of $6,011 with a 10 per cent down payment, although it dropped $32 from March. The two Maritime markets that saw a drop in home prices are Fredericton (average home price of $333,900) and St. John's ($369,400). The annual income needed to buy a home is $78,000 in Fredericton and $84,760 in St. John's. Story continues below advertisement The average monthly mortgage payment for a homebuyer in Fredericton in April was $1,693 (a drop of $11 a month) and in St. John's it was $1,100 (a drop of $6 a month). The two big Alberta markets saw affordability improve marginally. The average Calgary home cost $583,000 in April, a drop of just $400. A homebuyer in that city would need an annual income of $125,170. The average Edmonton home cost $431,100 in April, a drop of just $200, and an Edmontonian would need an annual income of $96,430. Monthly mortgage payments came down by $2 in Calgary ($2,958) and $1 in Edmonton ($2,187). 2:00 Business Matters: Canadian housing market on hold, CREA data shows Where did rates go up? In six out of 13 cities, mortgage rates and home prices have both gone up. Story continues below advertisement The city that saw affordability worsen the most was Regina. The average home price in Regina rose $9,100 to $335,400 and the annual income needed to buy a house rose to $78,330. A Regina homebuyer who locked down their mortgage in April would have to pay $1,702 a month. 'The Regina borrower in this scenario would pay an additional $46 on their monthly mortgage payment ($552 per year),' Graham said. Montreal saw the second steepest hike in housing affordability with the average home price rising $6,300 to $574,900 in April compared to the price in March. A Montrealer who locked down their mortgage in April would have to pay an additional $32 a month with monthly costs of $2,917 compared to one who did so the month prior. They would need an annual income of $123,640. In April, Victoria came in as the third most expensive housing market in Canada after Vancouver and Toronto, with average home prices rising to $897,300 and the average homebuyer needing an annual salary of $184,620. Monthly mortgage costs rose $32 to $2,917 a month. The cost of the average home in Halifax rose by $6,000 to $563,000, with an annual income of $121,400 needed to buy a house. Monthly mortgage payments rose to $2,857. Story continues below advertisement Housing also got more expensive in the nation's capital, with the average Ottawa home now costing $631,200. A homebuyer in that city would need an annual income of $134,300. An Ottawa resident locking down their mortgage in April with a 10 per cent down payment would have to pay $3,203 a month. Winnipeg also saw a marginal worsening of affordability, with home prices rising by $700 to $385,300 and monthly mortgage costs rising by $4 to $1,955. A Winnipeg resident would need an annual income of $87,770 to buy a house, the report said.
Global News
20-05-2025
- Business
- Global News
If you're a seller, what's your best move in a tricky real estate market?
While it may be a good time for some Canadian home buyers to make the jump into real estate, realtors say those selling their home could face difficulties. Spring is often a season that sees home sales ramp up, but depending on where you live and what kind of property you're trying to sell, you're likely to face a trickier time, experts say — and some, like condo owners, may need to 'take the loss' just to get a deal done. According to the Canadian Real Estate Association (CREA), home sales in April declined nearly 10 per cent compared to last year. 'A lot of people are just kind of waiting to see what's happening,' said realtor Stephen Moore with Century 21. 'We can blame it on the situation that Canada is in, where there was an election that kind of paused things, the Trump tariffs kind of put people at bay, those kind of things put people on the sideline. They want to wait.' Story continues below advertisement 3:43 Competitive Saskatoon housing market driving prices in an upward trend As a result, certain markets like Toronto and Vancouver saw a stagnation in home sales and in prospective buyers who would purchase those properties. But Moore said that's not the case in every market. The national price map from CREA shows that while housing prices in Ontario have declined from a year ago — Ontario dropped from $902,535 to $859,645, while B.C. fell from about $1 million to $946,000 — other markets saw increases such as Alberta. That province saw an average increase of about $25,000 and Quebec rose by $50,000. Even at a more city level, Moore notes some cities saw price increases even if the average provincial price dropped. The Vancouver Island region saw prices increase by 3.1 per cent and the Ottawa region saw an estimated 1.1-per cent rise. Story continues below advertisement So what does that mean if you're planning to sell your property? What are the keys to selling right now? Moore told Global News while it can be difficult to predict exactly when the best time to sell will be, there are things homeowners can do including looking at the current situation in their market. He says sellers must look to the 'three Ps': price, promotion and product. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy This means ensuring your property is staged well and has good photos in the listing, while also promoting the home through both realty services like the Multiple Listing Service (MLS) and social media. In addition, listing it for the right price is important as Moore notes if you're listed $10,000 above what it's worth, people won't show up. 'If you've got a great product and you're priced consciously, it may be a good time,' he said. 'It's really important that people set their home up for success.' Story continues below advertisement 'If they're prepared to be able to go through it and the market's not flooded, it's still a good time, there's still buyers out there,' he said. If people are thinking of the right season to sell, Moore added fall could be the right time as summer often sees a lag in sales, while autumn is a time when people are trying to get things done before the winter holidays. 1:43 Should home prices go down? 'No,' says Canada's new housing minister A recent report from RBC showed that while Canadian home prices continue to slide, there is a stabilization occurring with national home resales in April down only 0.1 per cent from March, compared to a sharp cumulative 19-per cent decrease in the prior four months. 'The U.S. administration's decision to spare Canada from additional tariffs last month could boost confidence and attract buyers in coming months,' said RBC chief economist Robert Hogue in the report. Story continues below advertisement Andrew Lis, director of economics at Greater Vancouver Realtors, said determining when to sell can require weighing what makes the most sense. 'It depends on an individual's financial situation and so on,' he said. 'If you are say a seller that's comfortably housed and you've got a place that you've lived in for some long period of time and you're looking to make a move, well, you're going to be competing with a lot of other sellers in the market. So you're going to have to have some realistic price expectations. However, Toronto-based realtor Melanie Piche told Global News it can be difficult to wait to sell especially if dealing with financial stress. 'Depending how much equity you have in your property and how important it is to you, to me: if you have to sell, you need to be on the market and it's not a terrible market if you price yourself properly,' she said. Piche added those who have owned their property for a long time who expect to get a lot of money for their property, however, may find it better to wait, since many buyers want price flexibility. Home owners should take into account the reasons why they want to sell when deciding whether to wait or sell now, according to Tony Tintinalli, Bank of Montreal head of specialized sales Story continues below advertisement 'It really is about, why do you need to move? Like if there's a timeline and a decision, then accelerating that is really going to be dependent,' he said. 'You can try to play the market and you can, you try to study it as much as you can, but ultimately, what is the goal here? If you need to be somewhere, then getting going on it is probably the best way to think about it.' It's why he noted it can be wise to work with an expert like a realtor to better understand the market and how to sell your property, as opposed to waiting and jumping in when you think it's right. Condo market in 'big trouble': realtor Realtors add that single-family homes appear to be seeing higher demand compared with multi-unit options like condominiums, which means those condo owners are having more difficulty selling. Story continues below advertisement 'The condo market is in big trouble,' Moore said. Tweet This Click to share quote on Twitter: "The condo market is in big trouble," Moore said. 'The biggest reason why is because the majority of these condos that have been built over the last decade have been, for lack of a better term or marketing term, like a dog crate condo so 500 square feet or less.' The RBC report showed condos were leading the price decline, with Toronto's MLS home price index down 7.3 per cent annually, with Vancouver's down two per cent. 'Rising inventories have shifted market dynamics decisively in buyers' favour throughout Ontario and B.C., creating some of the most buyer-friendly conditions in decades,' said Hogue. Piche highlighted that the uncertainty caused by tariffs and interest rates to nine months worth that would take the same amount of time to sell. 2:08 Metro Vancouver condos sitting empty amid housing crisis The Toronto Regional Real Estate Board in their April report showed sales for a condo apartment dropped by 30 per cent year-over-year in April. The Greater Vancouver Realtors also showed significant decline compared to last year, with condos seeing a 20-per cent drop in sales. Story continues below advertisement The biggest buyers of those condos have been investors and first-time home buyers, Piche noted, but added the uncertainty has 'scared off' the two primary buying groups for the condos. For Piche, when to sell really depends on your current situation. 'I think the question is less about what month should you list in but what is that strategy behind it in terms of pricing and what your needs are,' Piche said. 'If you're happy to stay somewhere for five years or three years then, you know what, you can hold on and wait … But if you need to sell, I think it's incredibly risky to be waiting because we just don't know.' But Moore paints a potentially starker picture for condo owners. 'People think, well, I'll wait until the fall to sell my condo, it's not going to be any better,' he said. 'It's not going to be better for 2026, it's not going to get any better for 2027. The condo prices are already inflated, you just need to take the loss if you're selling and move on.' —with files from Global News' Uday Rana and Ariel Rabinovitch
Globe and Mail
20-05-2025
- Business
- Globe and Mail
Eight smoking hot housing markets across Canada
The overall picture on home prices tells us the trade war has scared buyers away, and that prices are falling. But a lot of the negativity in housing is generated by what's happening in expensive markets like the greater Toronto and Vancouver areas. In other cities, the latest numbers tell us housing is doing just fine or better. Here are a few examples from the April national resale numbers from the Canadian Real Estate Association: The national average resale price in April fell 3.9 per cent to $679,866 from $707,380, fed in large part by declines of 1.8 per cent in Greater Vancouver and 7.6 per cent in the Greater Toronto Area. Nearby southern Ontario cities like Oakville and Hamilton were down 12 and 6.4 per cent, respectively. Home sales were subdued in April, which means market conditions could change. Still, there's an obvious two-track pricing trend in housing today. While some places are in sharp decline, other are smoking hot. Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here. Home prices in the New Brunswick provincial capital are up 85 per cent in the past five years. As you can see from the above list of hot markets, the average Fredericton home price is low by national standards. But for city residents, it's getting into unaffordable territory. Six in 10 mortgages are set to renew this year, and 60 per cent of them will result in higher payments. Here are some numbers to document how much homeowners should expect to pay. One of the hottest investing sectors in the exchange-traded fund world as measured by money flows is international equity, which means developed stock markets outside North America. This is a clear result of Canada-U.S. friction in 2025 – international stocks were never a high-demand sector before. Here's a list of top international equity ETFs to consider. Eight splurges that are worth the cost because of the benefits they bring. A quality mattress is on the list, which makes sense. Subscribe to Stress Test on Apple podcasts or Spotify. Q: Have you looked at the Hubert Financial High Interest Savings Account? Online only from Access Credit Union in Manitoba. A: Hubert Financial has been a strong competitor in online savings accounts, but the current rate of 1.6 per cent lags several other alternative banks. Deposit insurance is unlimited through the Deposit Guarantee Corporation of Manitoba. The rate for TFSA, RRSP and RRIF savings accounts is 1.65 per cent. Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity. Tools and guides A look at the cost of owning a pet. Sorry, I meant 'pet parenthood.' In the social sphere Social Media: A Reddit discussion on EQ Bank, a strong competitor of the big banks. Watch: Preet Banerjee on how to find tax credits and federal benefits that apply to you. Money-Free Zone: Curtis Harding's new song There She Goes demonstrates his mastery of classic psychedelic soul. Harding's 2017 album Face Your Fear is great listen in the Lenny Kravitz mode. More PF from The Globe
Global News
15-05-2025
- Business
- Global News
Canadian real estate market entering a ‘transition period,' says CREA
The latest data suggests Canada's housing market may be showing a sense of calm amid an uncertain trade war, and that things may be starting to slowly pick up. According to the latest report from the Canadian Real Estate Association (CREA), April saw actual home sales fall 9.8 per cent compared to the same period in 2024. 'Actual' in this sense means the data counts the total number of sales recorded in the month. However, on a seasonally-adjusted basis, the report for April showed national home sales were virtually unchanged from March of this year, with a drop of 0.1 per cent. This 'seasonally-adjusted' method of analysis is preferred by most economists because it eliminates seasonal variations and highlights the underlying economic picture. 'Sales have been falling rapidly, really since January 20th, when the tariffs were first announced, we could see it in daily data,' says senior economist Shaun Cathcart at CREA. Story continues below advertisement 'And so as of March, we were 20 per cent down from just November, and that's huge. What stood out in April was that we didn't fall at all, just sort of paused. So in that sense, I guess flat is the new up.' 4:10 Pressure for the Bank of Canada to lower interest rates The report also shows the number of new properties added to the real estate market fell by one per cent in April compared to March, and the MLS Home Price Index (the average listing price) fell 1.2 per cent. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Compared to 2024, listing prices fell an average of 3.6 per cent across Canada, and the actual sale price was down 3.9 per cent compared to April of last year. 'So sellers are definitely willing to give a little bit, understanding that it's not the same market that it was four years ago, but it's not to the point where prices are in free fall,' says Cathcart. Story continues below advertisement 'It's still a negotiation, and I think people are still coming to a mutually agreed upon result at this point.' 4:55 New cabinet role puts former Vancouver mayor back in the spotlight The outlook for the trade war has many buyers and sellers waiting on the sidelines to see how tariffs will develop, as well as interest rates determined by the Bank of Canada which affects mortgage rates for home buyers. This new data from CREA suggests the real estate market may have already seen the worst of the impacts. 'Right now we're in the transition period between uncertainty and the certainty that this (trade war) is going to be damaging to our economy,' says Cathcart. 'I think that the fear, the risk is if we have massive layoffs, then you'd get a lot of people that have to sell and can't wait and can't negotiate and just have to get rid of that asset. We're not there yet, but certainly that's the risk of this trade war.'
