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Globe and Mail
11 hours ago
- Business
- Globe and Mail
Dog days come early for Toronto homesellers
Sellers in the Toronto-area real estate market are facing a slow and stifling summer as buyers take their time and negotiations drag on. Inventory ballooned in May from the same month last year, and sales remained historically low for a month that typically marks the height of the spring market. In the condo segment, buyers feel empowered by an abundance of listings, says Christopher Bibby, broker with Re/Max Hallmark Bibby Group Realty. Some can be ruthless in their negotiating tactics. In May, the average price for a condo apartment in central Toronto, where Mr. Bibby concentrates much of his business, was $758,214. That marks an 8 per cent slide from May of last year. 'That is a significant number,' says Mr. Bibby of the drop. Crunch time for Toronto home sellers as spring market heralds burst of activity 'Every deal has a story' in Toronto real estate Condo sales fell 21 per cent in the same period in central Toronto and active listings increased 14 per cent. As a result, units sometimes sit so long between showings that owners call to ask if their notifications are still active. 'This is the most active number of price reductions I've seen in my entire career,' says Mr. Bibby, who was selling real estate through the 2008 financial crisis. In some cases, condo owners who purchased in 2019 are looking at selling for less than they paid. Pritesh Parekh, real estate agent with Century 21 Legacy Ltd., says he has never experienced a market so steeply tilted in favour of buyers. Still, he says, prices have held up fairly well given the amount of supply. He points to data from the Toronto Regional Real Estate Board which shows the average price of a detached house dipped 5.4 per cent in the Greater Toronto Area last month from May, 2024 to stand at $1,425,264. Sales of all home types in the GTA dropped 13.3 per cent in May compared with the same month last year while active listings swelled by 41.5 per cent. Daren King, economist at National Bank of Canada, says market conditions in the GTA are at their softest since 2008-2009. Mr. King notes that overall sales rose 8.4 per cent on a seasonally adjusted basis in May from April, but remained 29 per cent below their most recent peak in November. The sharp deterioration of the labour market in the GTA will limit the extent of any potential recovery in the market, Mr. King cautions in a note to clients. Mr. Parekh points out that many of the conditions that buyers were wishing for during the market frenzy – including more listings to choose from and cooler competition – are here, but buyers are still hesitant. He remembers taking buyers to newly listed properties and urging them to let him know right away if they wanted to make an offer. 'It's so vivid,' he says, recalling the fast pace. 'I would say, 'I'm going to sit in my car and draft an offer.' I didn't want to risk driving home.' Now Mr. Parekh is working with some first-time buyers who have their financing lined up and plenty of time to make decisions, but they are still fearful of how economic and political turmoil might affect them. Many buyers are also anticipating that interest rates will continue to fall, he says. Others are worried about unemployment. In one case, Mr. Parekh was working with a house hunter who had been looking for many, many months but always remained cautious. 'Then they actually lost their job. It actually happened in the GTA,' Mr. Parekh says of the moment the hypothetical became real. When word spreads amongst friends and family about a lost income, it undermines the confidence of other potential buyers. 'People start to think about their own security with their jobs.' Mr. Parekh says some buyers who do have steady employment may be able to take advantage of the current downturn in the market if they are planning to own the property for the medium to long-term. He doesn't see a quick turnaround any time soon. 'It feels like this time, it will be a slow transition to a different market,' he says. In the condo segment, Mr. Bibby has recently been stickhandling offers for eight of his listings. Only two so far have resulted in signed deals. In some cases, the two sides sign offers back and forth until they are close to an agreement, then the potential buyer walks away. The same buyer will return a day later with an offer $20,000 below their previous one. A week later, they reduce their offer to $50,000 below that. Mr. Bibby says the buyers playing hardball believe sellers are in distress, but for owners who bought their units years ago, that's often not the case. 'None of those eight people had to take what was in front of them,' he says. 'The buyers are looking for blood, but the sellers will decide what they're willing to accept.' He adds that high-pressure manoeuvres can backfire because they turn off sellers. 'They could do it with a little more dignity,' he says of buyers pushing for a deal. 'We don't want to sour the negotiation.' Mr. Bibby says some people planning to sell still contact him believing that they can achieve a 2021 price because their building, finishes or view is superior to the competition. 'I think the numbers that a lot of people have in their minds – those numbers are long gone.' It's important for potential sellers to understand that their ambitious price can quickly be undercut if a unit in the same building comes on the market with an asking price five per cent below that, he adds. When the lower price results in a sale, that becomes the new benchmark. Over the summer, the stream of new listings may slow in the condo segment, Mr. Bibby predicts. But he is already receiving calls from sellers who are looking optimistically towards the fall market. If positive signals emerge, such as the Bank of Canada cutting its key interest rate, or good news coming out of trade talks, the market may stabilize as prices come down and supply flattens out, he says. But Mr. Bibby doesn't see the basis for a strong rebound in the fall. 'Even if we recover, are we going to be better off in a year? I don't think so.' Mr. Bibby believes the current malaise is partly the unwinding of the unharnessed run-up in prices during 2020 and 2021. It will take time to work through the bloated inventory. 'Where we are today doesn't surprise me,' he says. 'The ingredients have been there for a long time.'
CTV News
2 days ago
- Business
- CTV News
‘Substantially less affordable': How much money you need to buy a house in Winnipeg
A house is the largest single investment most of us will ever make and if you want to put a sold sign in front of a Winnipeg home these days, it's going to cost you a lot more than it once did. 'It's gotten substantially less affordable,' said Re/Max realtor Ed Dale. 'I've been doing this for 15 years and it's probably tripled or quadrupled in price since I've been doing this.' According to the Winnipeg Regional Real Estate Board, the average price for a residential detached home in Winnipeg was roughly $275,000 in 2015. Ten years later, that price has spiked to $460,000. 'So that's about a 40 percent increase,' said Michael Froese, the president of the board. 'For those, especially first-time buyers, saving up for that down payment, you've got to save now, you know, five per cent down of $450,000 as opposed to $275,000.' Then you have closing costs, the land transfer tax, legal fees and other expenses. So, how do you know if you can afford to buy a house? Daryl Harris from One Link Mortgage suggests before calling a real estate agent, you need to sit down with your banker. 'That involves being pre-approved. Getting your income verified, knowing where the down payment is coming from, getting all that verified so that when you make that offer, you know you're going to be able to move forward.' The amount of that offer will vary depending on the neighbourhood and the type of home you buy. 'Compared to ten years ago, we've seen much more building of townhouses and single attached homes,' said Froese. 'That presents more affordable options.' Options that can help people make the leap into the Winnipeg housing market.
CTV News
15-06-2025
- Business
- CTV News
Dreaming of a lakeside cottage but can't afford it? Co-ownership could open that door
Muskoka chairs sit on a dock looking over Boshkung Lake, in Algonquin Highlands, Ont., Monday, Oct. 5, 2020. THE CANADIAN PRESS/Giordano Ciampini A lakeview cottage with cosy rooms, a sandy beach nearby and a dock to gaze into the sunset was the dream for Corrine Evanoff. 'For years, I've been on this journey of trying to find a cottage that would work for us,' she said. But Evanoff and her husband didn't want to incur the burden of constant cottage maintenance — spending vacation days fixing decks and pruning trees. They opted instead to rent over the years, still hoping to one day buy. Then, it happened. They found a cottage not too far from home — for a fraction of the price they thought they'd have to pay, thanks to fractional ownership. Also called co-ownership, it allows people to buy a share of a property with others, whether it's family, friends or even strangers. Affordability sits at the heart of fractionally owned cottages. Many Canadians still find themselves priced out of the market, even as cottage prices have declined from peaks seen during the pandemic. Re/Max brokers and agents anticipate a national average price increase of about 1.8 per cent across the Canadian recreational market in 2025, a May report by the real estate firm, showed. On their first visit to check out a prospective cottage last fall, Evanoff recalled walking into a lake-facing cottage with large windows at Frontenac Shores in Cloyne, Ont., about 300 kilometres northeast of Toronto, and was sold. 'We sat in these Muskoka chairs on the beach and our feet are in the water, and I just felt the stress shredding off me,' she said. 'This is the dream that I've been dreaming for all these years … and this is within reach.' Evanoff and her husband now own one-tenth of a million-dollar cottage, costing them less than $100,000 for their share — and affording them five weeks a year at the property. Fractional ownership of a cottage is not like a timeshare, said Realtor Mike Lange, who has been dealing with co-owned cottages for about seven years in Kawartha Lakes, Ont. 'With a timeshare, you put your name in requesting a location, you have no guarantee that that's going to be available,' he said. 'There's been a lot of heartaches over them over the years.' Timeshare properties can be owned by for-profit corporations, leaving less autonomy for those staying there. Don Smith, who co-owns a property in Kawartha Lakes, bought into a cottage in the mid-2000s after he saw a newspaper ad about fractional cottage ownership. 'I was in the staff room reading the newspaper as a mathematics and computer studies teacher,' he recalled. 'As a math teacher, that caught my eye: What's this fraction all about, this cottage, this idea?' For the Smiths, fractional ownership wasn't a financial investment but a lifestyle investment that has paid off over the past two decades. 'This is where my daughter learned to swim, that's where my daughter learned to kayak, that is when my daughter had learned to appreciate animals.' But it may not be for everyone. Smith said fractionally owned cottages are usually 100 per cent debt-free. That means new co-owners typically can't secure a mortgage against the property from traditional banks and will have to rely on personal loans or a line of credit to buy their share. Personal touches to the cottage can also be missing with fractional ownership and people can't just show up at any time, he said. 'It's not like you can personally put all your favourite pictures and put all of the junk that you don't want in your home garage and take it up there and leave it,' Smith said. Real estate developer John Puffer has years of experience building cottages and selling them in fractional ownership arrangements in Ontario's cottage country regions. When he first got into the business, Puffer assumed the buyers would mostly be people in their 30s with young families. Instead, they happened to be people in their 50s and 60s, buying cottage shares for their adult children and grandchildren, or people who don't want to commit the dollars and worry about maintenance. 'That is part of the Canadian cottage experience in Ontario … that's where families congregate at the cottage and (it's) multi-generations,' said Puffer, president of Chandler Point Corp. Tanya Walker, litigation lawyer and managing partner at Walker Law, suggests potential buyers should get a good contract lawyer and treat the contract 'as if it's a pre-nuptial agreement' before signing on to be a co-owner. She said buyers going into fractional ownership should ask questions about who the other co-owners are, the voting rights people get for their share and what happens when they want to sell their stake. Walker added it's also important to look into who manages the property, the financials of the property as well as how much time you'll get to use the cottage and when. Puffer said people really have to understand what they're buying into. He suggested people read the contract and find out who's in control, what their obligations are, and talk to people who already own. For Evanoff and her husband, it will be their third time heading up to the Frontenac Shores cottage next month. 'It's like, wow! That just seems like a gift,' she said. 'This (fractional ownership) seems like the best-kept secret but I think it's going to catch on ... and you're going to see a lot of people tap into this market.' This report by The Canadian Press was first published June 15, 2025. Ritika Dubey, The Canadian Press
Yahoo
15-06-2025
- Business
- Yahoo
Dreaming of a lakeside cottage but can't afford it? Co-ownership could open that door
A lakeview cottage with cosy rooms, a sandy beach nearby and a dock to gaze into the sunset was the dream for Corrine Evanoff. "For years, I've been on this journey of trying to find a cottage that would work for us," she said. But Evanoff and her husband didn't want to incur the burden of constant cottage maintenance — spending vacation days fixing decks and pruning trees. They opted instead to rent over the years, still hoping to one day buy. Then, it happened. They found a cottage not too far from home — for a fraction of the price they thought they'd have to pay, thanks to fractional ownership. Also called co-ownership, it allows people to buy a share of a property with others, whether it's family, friends or even strangers. Affordability sits at the heart of fractionally owned cottages. Many Canadians still find themselves priced out of the market, even as cottage prices have declined from peaks seen during the pandemic. Re/Max brokers and agents anticipate a national average price increase of about 1.8 per cent across the Canadian recreational market in 2025, a May report by the real estate firm, showed. On their first visit to check out a prospective cottage last fall, Evanoff recalled walking into a lake-facing cottage with large windows at Frontenac Shores in Cloyne, Ont., about 300 kilometres northeast of Toronto, and was sold. "We sat in these Muskoka chairs on the beach and our feet are in the water, and I just felt the stress shredding off me," she said. "This is the dream that I've been dreaming for all these years … and this is within reach." Evanoff and her husband now own one-tenth of a million-dollar cottage, costing them less than $100,000 for their share — and affording them five weeks a year at the property. Fractional ownership of a cottage is not like a timeshare, said Realtor Mike Lange, who has been dealing with co-owned cottages for about seven years in Kawartha Lakes, Ont. "With a timeshare, you put your name in requesting a location, you have no guarantee that that's going to be available," he said. "There's been a lot of heartaches over them over the years." Timeshare properties can be owned by for-profit corporations, leaving less autonomy for those staying there. Don Smith, who co-owns a property in Kawartha Lakes, bought into a cottage in the mid-2000s after he saw a newspaper ad about fractional cottage ownership. "I was in the staff room reading the newspaper as a mathematics and computer studies teacher," he recalled. "As a math teacher, that caught my eye: What's this fraction all about, this cottage, this idea?" For the Smiths, fractional ownership wasn't a financial investment but a lifestyle investment that has paid off over the past two decades. "This is where my daughter learned to swim, that's where my daughter learned to kayak, that is when my daughter had learned to appreciate animals." But it may not be for everyone. Smith said fractionally owned cottages are usually 100 per cent debt-free. That means new co-owners typically can't secure a mortgage against the property from traditional banks and will have to rely on personal loans or a line of credit to buy their share. Personal touches to the cottage can also be missing with fractional ownership and people can't just show up at any time, he said. "It's not like you can personally put all your favourite pictures and put all of the junk that you don't want in your home garage and take it up there and leave it," Smith said. Real estate developer John Puffer has years of experience building cottages and selling them in fractional ownership arrangements in Ontario's cottage country regions. When he first got into the business, Puffer assumed the buyers would mostly be people in their 30s with young families. Instead, they happened to be people in their 50s and 60s, buying cottage shares for their adult children and grandchildren, or people who don't want to commit the dollars and worry about maintenance. "That is part of the Canadian cottage experience in Ontario … that's where families congregate at the cottage and (it's) multi-generations," said Puffer, president of Chandler Point Corp. Tanya Walker, litigation lawyer and managing partner at Walker Law, suggests potential buyers should get a good contract lawyer and treat the contract "as if it's a pre-nuptial agreement" before signing on to be a co-owner. She said buyers going into fractional ownership should ask questions about who the other co-owners are, the voting rights people get for their share and what happens when they want to sell their stake. Walker added it's also important to look into who manages the property, the financials of the property as well as how much time you'll get to use the cottage and when. Puffer said people really have to understand what they're buying into. He suggested people read the contract and find out who's in control, what their obligations are, and talk to people who already own. For Evanoff and her husband, it will be their third time heading up to the Frontenac Shores cottage next month. "It's like, wow! That just seems like a gift," she said. "This (fractional ownership) seems like the best-kept secret but I think it's going to catch on ... and you're going to see a lot of people tap into this market." This report by The Canadian Press was first published June 15, 2025. Ritika Dubey, The Canadian Press Sign in to access your portfolio
Yahoo
18-05-2025
- Business
- Yahoo
Tariff uncertainty should slow Canada's cottage market this year: ReMax
Canadians who had considered a cottage or cabin purchase are increasingly sitting on the sidelines, victims of the same economic conditions that have held back the broader housing market, a new report from ReMax Canada says. Uncertainty due to U.S. President Donald Trump's trade policies has led to 'a quieter-than-normal spring market across recreational and traditional residential properties alike,' Don Kottick, ReMax's president, says in the company's 2025 report on trends in the recreational property market. 'We are optimistic that recreational activity could pick up later this season, but there's a big 'but' looming,' Kottick said. 'Buyers and sellers will need further clarity around Canada's approach to tariffs now that the election is behind us, before we see a return to more normal levels of activity.' The housing market has slowed notably since the trade war began to take shape. A survey conducted for ReMax by Leger Marketing found 44 per cent of Canadians surveyed were less confident in the market than they were a year ago. What movement there is this year can be attributed to a number of factors, the report says, including the transfer of wealth from Boomers to younger generations, evolving work patterns, and new short-term rental rules in some areas. ReMax forecasts prices for recreational properties will rise around 1.8 per cent this year. In last year's trends report, the projected annual growth was 6.8 per cent. Year-over-year sales growth is expected to be in the range of flat to around 10 per cent, 'with limited inventory impacting activity,' the report says. Sales are expected to decrease in some parts of Ontario and grow in some parts of B.C. There are considerable variations in the forecast between provinces and even within provinces, with projected activity dependent upon a few factors. Whistler, for example, which the report says "is seeing varied conditions based on the price segment and limited inventory,' is forecast to have around 15 per cent fewer sales this year, with the average sale price rising 13.5 per cent. In Alberta, strong demand is expected to drive average prices up 3.3 per cent in 2025. In Ontario, the 'market is more or less paused,' the report notes, because of economic uncertainty. 'Sixty per cent of regions are expecting prices to increase as pent-up demand in these regions will place additional pressure on existing inventory, while 40 per cent of regions expect price declines as inventory remains steady and more listings go onto the market in the warmer months.' In some parts of Ontario, as well as in B.C. and Nova Scotia, new restrictions have been placed on short-term rental properties. The report says around one-fifth of those selling a recreational property listed this change as a reason for their choice to sell, saying they no longer see the property's investment potential. The top reason identified for considering a sale — by 27 per cent of those in that position — was the property becoming unaffordable due to the higher cost of living. Affordability is also driving another trend noted in the report, with some prospective buyers considering recreational property markets for their primary residences. The report says around 30 per cent of those considering buying a cottage or cabin see it as a 'viable' main home. 'While this is not a trend expected to take off across the board, it is a unique scenario in certain provinces and cities where longer commute times, remote and hybrid work are common,' the report said. 'Homebuyers in search of affordability and who love the nature and slower lifestyle that can be achieved beyond urban centres are finding ways to achieve both within their price range.' The report notes an ongoing evolution in the demographics driving the market, with families being the dominant force in 83 per cent of regions this year, up from 59 per cent last year. In 2018, the driving force in 91 per cent of markets was retirees. The report also notes that 'soon-to-be cottage owners inheriting family cottages are beginning to consider their next moves,' with some choices potentially leading to greater inventory in the months ahead. 'Seventeen per cent of cottage owners who are planning to sell in the next one to two years said the next generation in their family is not interested in taking over the property,' the report said. 'Another 17 per cent plan to put the family cottage on the market as a result of an estate decision.' John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
