Majority of Canadians “Concerned” About Buying Or Selling Their Home In 2023
Rampant housing affordability and supply issues have left the majority of Canadians feeling uncertain about the prospect of buying or selling a home.
Fifty-nine percent of respondents to a Real Estate Canada-commissioned Leger survey indicated that they have at least one concern related to buying or selling their home in 2023.
The greatest stress sources were the rising cost of living and inflation (34%) and a lack of affordable housing (25%). Another 25% worried that the rising cost of rent would impact their ability to save for and eventually purchase a home.
The survey is part of Real Estate Canada’s 2023 Industry Trends Report, which examines how key economic and transaction trends will impact buyers and sellers, the real estate industry, and the broader economy over the coming year.
Rampant housing affordability and supply issues have left the majority of Canadians feeling uncertain about the prospect of buying or selling a home.
Fifty-nine percent of respondents to a Real Estate Canada-commissioned Leger survey indicated that they have at least one concern related to buying or selling their home in 2023.
The greatest stress sources were the rising cost of living and inflation (34%) and a lack of affordable housing (25%). Another 25% worried that the rising cost of rent would impact their ability to save for and eventually purchase a home.
The survey is part of Real Estate Canada’s 2023 Industry Trends Report, which examines how key economic and transaction trends will impact buyers and sellers, the real estate industry, and the broader economy over the coming year.
Addressing the affordability and supply crisis should be a top priority for governments across Canada — a sentiment shared by 66% of those surveyed — while 41% believe that removing zoning and development red tape is a “key measure” to alleviating the issue.
Sixty-six percent of respondents indicated that protecting the environment would factor into their future real estate transactions. Real Estate Canada noted that the Government of Ontario’s plans to develop the Greenbelt has been a “particularly contentious topic.”
Locally, the Greater Toronto Area is expected to see residential sale and rental prices rise, due in part to increased immigration and the rising cost of living, unless more inventory hits the market. A similar trend will play out in Vancouver, compounded by move-over buyers, and in Edmonton, as Canadians head for the dwindling faction of affordable cities across the country.
“Not only are their housing options being impacted, but a tighter housing market may compromise job prospects, among other things, placing even greater urgency on governments and housing industry experts to address Canada’s affordability crisis.”
On an industry level, the changing market could result in some “major shifts” in how realtors run their business and cautioned that the economic slowdown may result in some consolidation of brokerages.
Beyond buyers, sellers, and realtors, the effects of affordability and supply challenges are felt on a much grander scale — according to Statistics Canada, the Real Estate and Rental and Leasing (RERL) sector contributes more than $266B annually to Canada’s gross domestic product (GDP).
.
Sixty-six percent of respondents indicated that protecting the environment would factor into their future real estate transactions. Real Estate Canada noted that the Government of Ontario’s plans to develop the Greenbelt has been a “particularly contentious topic.”
Locally, the Greater Toronto Area is expected to see residential sale and rental prices rise, due in part to increased immigration and the rising cost of living, unless more inventory hits the market. A similar trend will play out in Vancouver, compounded by move-over buyers, and in Edmonton, as Canadians head for the dwindling faction of affordable cities across the country.
“Not only are their housing options being impacted, but a tighter housing market may compromise job prospects, among other things, placing even greater urgency on governments and housing industry experts to address Canada’s affordability crisis.”
On an industry level, the changing market could result in some “major shifts” in how realtors run their business and cautioned that the economic slowdown may result in some consolidation of brokerages.
Beyond buyers, sellers, and realtors, the effects of affordability and supply challenges are felt on a much grander scale — according to Statistics Canada, the Real Estate and Rental and Leasing (RERL) sector contributes more than $266B annually to Canada’s gross domestic product (GDP).
.
▪️اصلاح قیمت در بازار مسکن کانادا یکی از بزرگترین اصلاحات در حوزه ملک در سراسر جهان می باشد. در تحقیق موسسه Fitch Ratings آمده است که افزایش قیمت ملک در در سراسر جهان در حال اصلاح شدن است و انتظار می رود بازار کانادا یکی از بزرگترین اصلاحات قیمت خود را تجربه کند. بازار کانادا یکی از شدیدترین افزایش های قیمت ملک را در جهان نشان داد بگونه ای که قیمت ملک از سال 2020 تا اوج قیمت در سال 2022 افزایش 41 درصدی را نشان داد. این میزان افزایش قیمت در جهان دومین رشد پس از بازار آمریکا با 43 درصد افزایش قیمت بود.
▪️پس از این دوره رشد حالا انتظار برگشت وجود دارد، و پیش بینی می شود طی امسال قیمت ملک 15 درصد از قیمت اوج کاهش یابد. این موسسه همچنین تخمین می زند که قیمت ملک در انتهای سال 2022 29 درصد افزایش ارزش داشته اند. حالا با افزایش دستمزدها، کاهش قیمت ملک و تثبیت نرخ بهره انتظار می رود این افزایش ارزش گذاری و رشد قیمت در ماههای آینده افت شدیدی داشته باشد.
▪️پس از این دوره رشد حالا انتظار برگشت وجود دارد، و پیش بینی می شود طی امسال قیمت ملک 15 درصد از قیمت اوج کاهش یابد. این موسسه همچنین تخمین می زند که قیمت ملک در انتهای سال 2022 29 درصد افزایش ارزش داشته اند. حالا با افزایش دستمزدها، کاهش قیمت ملک و تثبیت نرخ بهره انتظار می رود این افزایش ارزش گذاری و رشد قیمت در ماههای آینده افت شدیدی داشته باشد.
This media is not supported in your browser
VIEW IN TELEGRAM
▪️بر فراز آبشار نیاگارا
Toronto Spring Real Estate Forecast: A Market As Unpredictable As The Weather
Toronto’s spring real estate forecast and its spring weather forecast have one thing in common: unpredictability.
As we look ahead to the warmer months, brokers, sellers, buyers, and would-be buyers are sitting on the sidelines, eagerly watching the Greater Toronto Area (GTA) real estate market for new signs of life.
But, if we’ve learned anything in recent years, it’s that the GTA’s ever-dramatic housing market is a tricky one to predict. With talks of a looming recession still swirling, a climate of sky-high interest rates, and a stark reality of low home sales, some headlines inevitably warn of doom and gloom on the real estate front as we move into 2023.
The figures don’t lie: GTA home sales were down 44% year-over-year in January and new home sales dropped to a 23-year low the same month.
.
Toronto’s spring real estate forecast and its spring weather forecast have one thing in common: unpredictability.
As we look ahead to the warmer months, brokers, sellers, buyers, and would-be buyers are sitting on the sidelines, eagerly watching the Greater Toronto Area (GTA) real estate market for new signs of life.
But, if we’ve learned anything in recent years, it’s that the GTA’s ever-dramatic housing market is a tricky one to predict. With talks of a looming recession still swirling, a climate of sky-high interest rates, and a stark reality of low home sales, some headlines inevitably warn of doom and gloom on the real estate front as we move into 2023.
The figures don’t lie: GTA home sales were down 44% year-over-year in January and new home sales dropped to a 23-year low the same month.
.
But some experts say there’s also room for optimism. In their most recent market outlook report, the Toronto Regional Real Estate Board (TRREB) called 2023 “a year of two halves.” The 2023 Market Outlook & 2022 Year in Review Report suggests an uptick in GTA real estate activity in the second half of the year when we’ll see an increase in sales activity, heightened competition among buyers, and renewed upward pressure on home prices.
“We start the year more or less where we were through the fall and winter of 2022, but I anticipate that, as we move into the second half of the year — and that can include part of the spring market — that we’ll start to see a greater number of would-be homebuyers moving off the sidelines,” TRREB’s chief market analyst Jason Mercer tells STOREYS. “If you think of previous interest rate cycles and even the onset of the OSFI stress test a few years ago, it takes about a year or a year and a half for a change in the interest rate environment to have its full impact on the market. People have to pull back and think about how they’ll mitigate the impact of higher borrowing costs. They may look at a different priced house or in a different part of the GTA, but — after a year — people have made that decision.”
So, Mercer says they’ll move back into the marketplace — albeit with a potential re-evaluation of expectations. “All of the other preconditions for housing demand are in place,” highlights Mercer. “We have an extremely tight market and we’re seeing the population grow at a record pace — people require a place to live.”
With that said, there’s no denying that this spring’s real estate market will look different than it has in recent years, especially in the wake of the GTA’s red-hot and record-smashing run that began not long after the term “social distancing” became a common one in our collective vocabularies.
.
“We start the year more or less where we were through the fall and winter of 2022, but I anticipate that, as we move into the second half of the year — and that can include part of the spring market — that we’ll start to see a greater number of would-be homebuyers moving off the sidelines,” TRREB’s chief market analyst Jason Mercer tells STOREYS. “If you think of previous interest rate cycles and even the onset of the OSFI stress test a few years ago, it takes about a year or a year and a half for a change in the interest rate environment to have its full impact on the market. People have to pull back and think about how they’ll mitigate the impact of higher borrowing costs. They may look at a different priced house or in a different part of the GTA, but — after a year — people have made that decision.”
So, Mercer says they’ll move back into the marketplace — albeit with a potential re-evaluation of expectations. “All of the other preconditions for housing demand are in place,” highlights Mercer. “We have an extremely tight market and we’re seeing the population grow at a record pace — people require a place to live.”
With that said, there’s no denying that this spring’s real estate market will look different than it has in recent years, especially in the wake of the GTA’s red-hot and record-smashing run that began not long after the term “social distancing” became a common one in our collective vocabularies.
.
Market Watch Infographic for February 2023
Home sales are down 47% across Canada, with 4,783 units sold in February 2023, compared to 9,028 in February 2022.
The average price of homes sold across Canada in February 2023 was $1,095,617, down 17.9% from $1,334,062 in February 2022.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers
- Non-residents
- Buying a house/condo for Investment Property investment
- Renovation services
☎️ Ways to contact us via Phone or Email:
+1 (647) 772-9502
hoizady@yahoo.com
.
Home sales are down 47% across Canada, with 4,783 units sold in February 2023, compared to 9,028 in February 2022.
The average price of homes sold across Canada in February 2023 was $1,095,617, down 17.9% from $1,334,062 in February 2022.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers
- Non-residents
- Buying a house/condo for Investment Property investment
- Renovation services
☎️ Ways to contact us via Phone or Email:
+1 (647) 772-9502
hoizady@yahoo.com
.
▪️ثابت نگه داشتن نرخ بهره در بازار بهار ملک چگونه خواهد بود؟ بانک مرکزی کانادا پس از چندین بار افزایش نرخ بهره، اینبار نرخ بهره را تغییر نداد و آنرا ثابت نگه داشت. برخی متخصصان بازار ملک معتقدند این امر می تواند به معنای پایان اصلاح قیمت ملک باشد اما ابهاماتی در مورد افزایش احتمالی نرخ در آینده وجود دارد و روی خریداران و فروشندگان تاثیرگذار است. پس از افزایش 25 صدم درصدی نرخ بهره در ماه ژانویه بنظر می رسد بازار پس از افت سال 2022 نشانه های بازگشت به زندگی را نشان می دهد، و در تورنتو نشانه هایی از افزایش حجم فروش و قیمت مشاهده شد. به گفته یکی از مدیران Royal LePage حجم واقعی فروش ملک و قیمت ملک نسبت به سالهای اخیر، پایین تر است و بنظر میرسد پس از ژانویه و دسامبر کند و راکد، حالا فعالیت بازار درحال رسیدن به الگوی فصلی خود می باشد.
.
.
High interest rates are still a problem for potential homebuyers: Here is advice for navigating the real estate market
Real estate agents break down how the rates affect the market, and how you can navigate the changes
If you’re looking to purchase a home or renew a mortgage, you’ve no doubt been paying close attention to interest rates.
Since January 2022, the Bank of Canada has raised interest rates from a low of 0.25 to 4.5 per cent. It’s been a wild ride for those looking to buy; watching mortgage rates climb with each rate increase.
As mortgage rates climbed, it put a squeeze on the once-hot Canadian housing market. Home sales fell by 40 per cent from February 2022 to February 2023. However, the Canadian Real Estate Association (CREA) reports that sales are starting to rise again. Between January and February, sales rose by 2.3 per cent, an increase fueled by the Greater Toronto Area and Greater Vancouver.
Real estate agents break down how the rates affect the market, and how you can navigate the changes
If you’re looking to purchase a home or renew a mortgage, you’ve no doubt been paying close attention to interest rates.
Since January 2022, the Bank of Canada has raised interest rates from a low of 0.25 to 4.5 per cent. It’s been a wild ride for those looking to buy; watching mortgage rates climb with each rate increase.
As mortgage rates climbed, it put a squeeze on the once-hot Canadian housing market. Home sales fell by 40 per cent from February 2022 to February 2023. However, the Canadian Real Estate Association (CREA) reports that sales are starting to rise again. Between January and February, sales rose by 2.3 per cent, an increase fueled by the Greater Toronto Area and Greater Vancouver.
If you are looking to buy this spring, you may feel overwhelmed by high interest rates and prices creeping back up, especially in competitive markets like Toronto or Vancouver. That’s why we spoke to two realtors, who offered up their expert advice on how to navigate this new real estate environment.
Why interest rates matter
The Bank is in a fight against inflation. The consumer price index sat at 5.2 per cent in February, well above the Bank’s target of two per cent. This fight is going on south of the border as well, where the U.S. Federal Reserve just raised interest rates a quarter of a point — and indicated that more hikes are a strong possibility
With the Canadian economy closely tied to our southern neighbours, the BoC may need to raise interest rates yet again.
“We need to make sure that there’s not too much of a divergence in our interest rate policies, or benchmark rates,” said Adil Dinani, a Vancouver-based real estate agent with Royal LePage West.
“If we don’t follow the States, our dollar suffers,” said Tom Storey, a sales representative with Royal LePage Signature Realty in Toronto.
Link between house prices and interest rates
Dinani sees the Bank of Canada holding interest rates as a positive sign for the housing market.
He notes that, historically, there’s been an inverse relationship between the BoC’s interest rates and home prices. As the Bank rate rises, home prices decline. That seems to be holding true so far.
According to the Canadian Real Estate Association, the benchmark price for a detached home in Vancouver was $1,813,100 in February, a decrease of 12 per cent from the previous year. Meanwhile Toronto saw a decrease of 17.9 per cent, with the medium home price sitting at $1,095,617 in February 2023.
That’s still substantially more than the national average home price of $662,437 — which declined 18.9 per cent from the previous year.
Why haven’t high interest rates lowered prices more substantially in these markets?
“If you look at the active inventory in Toronto,” Storey said, “as of right now, for properties available, it’s nowhere close to where it was in 2008.” That year saw listings upward of 25,000, while the active inventory is now closer to 14,000.
Despite higher interest rates slowing the boom, that high demand and lack of supply continues to drive home prices upward, making housing unaffordable in some regions.
In Q4 2022 the housing affordability index showed a slight decline; from slightly over 10 per cent, to just under. Meanwhile, the National Bank of Canada’s Housing Affordability Monitor demonstrates that in Vancouver and Toronto, homes are still not affordable.
In Vancouver, the monthly mortgage payment on median home prices for non-condominiums was 120 per cent of the median income for Q2 2022, while Toronto was at approximately 96 per cent.
And it doesn’t look like Toronto is getting more affordable anytime soon.
The Toronto Regional Real Estate Board (TRREB) anticipates that the average selling price of homes will rise to $1,140,000. This indicates that, despite a four per cent dip in price from 2022 as a whole, the Toronto market has high demand.
Buying a home
Storey recognizes that today’s mortgage rates make it more difficult for first-time homebuyers to enter the market.
So, what can you do if you’re looking to buy your first home?
While you may be approved for a substantial mortgage, Storey points out that there’s no reason you have to take the full loan you are offered. If you’re approved for a million-dollar mortgage, it doesn’t mean you need to buy a million-dollar home.
Dinani and Storey both believe it’s critical to audit yourself and your finances before jumping into the housing market.
When it comes to rates, Storey says that most people buying a home anticipate they’ll live there for the next five years.
“If you think that rates are going to hold and then go down next year, then you may consider a variable rate, but you’re taking a gamble on it.”
Why interest rates matter
The Bank is in a fight against inflation. The consumer price index sat at 5.2 per cent in February, well above the Bank’s target of two per cent. This fight is going on south of the border as well, where the U.S. Federal Reserve just raised interest rates a quarter of a point — and indicated that more hikes are a strong possibility
With the Canadian economy closely tied to our southern neighbours, the BoC may need to raise interest rates yet again.
“We need to make sure that there’s not too much of a divergence in our interest rate policies, or benchmark rates,” said Adil Dinani, a Vancouver-based real estate agent with Royal LePage West.
“If we don’t follow the States, our dollar suffers,” said Tom Storey, a sales representative with Royal LePage Signature Realty in Toronto.
Link between house prices and interest rates
Dinani sees the Bank of Canada holding interest rates as a positive sign for the housing market.
He notes that, historically, there’s been an inverse relationship between the BoC’s interest rates and home prices. As the Bank rate rises, home prices decline. That seems to be holding true so far.
According to the Canadian Real Estate Association, the benchmark price for a detached home in Vancouver was $1,813,100 in February, a decrease of 12 per cent from the previous year. Meanwhile Toronto saw a decrease of 17.9 per cent, with the medium home price sitting at $1,095,617 in February 2023.
That’s still substantially more than the national average home price of $662,437 — which declined 18.9 per cent from the previous year.
Why haven’t high interest rates lowered prices more substantially in these markets?
“If you look at the active inventory in Toronto,” Storey said, “as of right now, for properties available, it’s nowhere close to where it was in 2008.” That year saw listings upward of 25,000, while the active inventory is now closer to 14,000.
Despite higher interest rates slowing the boom, that high demand and lack of supply continues to drive home prices upward, making housing unaffordable in some regions.
In Q4 2022 the housing affordability index showed a slight decline; from slightly over 10 per cent, to just under. Meanwhile, the National Bank of Canada’s Housing Affordability Monitor demonstrates that in Vancouver and Toronto, homes are still not affordable.
In Vancouver, the monthly mortgage payment on median home prices for non-condominiums was 120 per cent of the median income for Q2 2022, while Toronto was at approximately 96 per cent.
And it doesn’t look like Toronto is getting more affordable anytime soon.
The Toronto Regional Real Estate Board (TRREB) anticipates that the average selling price of homes will rise to $1,140,000. This indicates that, despite a four per cent dip in price from 2022 as a whole, the Toronto market has high demand.
Buying a home
Storey recognizes that today’s mortgage rates make it more difficult for first-time homebuyers to enter the market.
So, what can you do if you’re looking to buy your first home?
While you may be approved for a substantial mortgage, Storey points out that there’s no reason you have to take the full loan you are offered. If you’re approved for a million-dollar mortgage, it doesn’t mean you need to buy a million-dollar home.
Dinani and Storey both believe it’s critical to audit yourself and your finances before jumping into the housing market.
When it comes to rates, Storey says that most people buying a home anticipate they’ll live there for the next five years.
“If you think that rates are going to hold and then go down next year, then you may consider a variable rate, but you’re taking a gamble on it.”
Renewing your mortgage
If you might sell your home within a year or so, Storey said it’s worth considering a variable-rate mortgage at the time of renewal. Even though variable-rate mortgages presently charge higher rates than fixed-rate ones, Storey points out that the penalties for breaking them are cheaper.
The penalty for breaking a variable-rate mortgage, is often about three months interest, while breaking a fixed-rate mortgage requires you to pay additional fees, such as the prepayment penalty. This is based on how much time is left in your mortgage term, and can amount to thousands of dollars.
Can you pass the stress test?
If you are determined to buy this spring, you shouldn’t let a high (but manageable) mortgage deter you from possibly getting a home. However, you shouldn’t make the commitment if the mortgage payments will lead to financial strain.
The mortgage stress test ensures homebuyers can manage higher interest rates. This test ensures that mortgage holders are able to pay an interest rate of 5.25 per cent, or the buyers’ current rate plus two per cent, whichever is higher.
If you’re coming up on renewal, chances are that you were stress-tested to 5.25 per cent. With the rise in rates, you’ll now be tested around seven per cent.
Whether you’re looking to purchase your first home, or are in the market to upgrade from your current residence, the key is knowing what you can comfortably afford.
“Look for the best opportunity in the market that will allow you to build equity,” said Dinani, “and eventually graduate to the next level.”
.
If you might sell your home within a year or so, Storey said it’s worth considering a variable-rate mortgage at the time of renewal. Even though variable-rate mortgages presently charge higher rates than fixed-rate ones, Storey points out that the penalties for breaking them are cheaper.
The penalty for breaking a variable-rate mortgage, is often about three months interest, while breaking a fixed-rate mortgage requires you to pay additional fees, such as the prepayment penalty. This is based on how much time is left in your mortgage term, and can amount to thousands of dollars.
Can you pass the stress test?
If you are determined to buy this spring, you shouldn’t let a high (but manageable) mortgage deter you from possibly getting a home. However, you shouldn’t make the commitment if the mortgage payments will lead to financial strain.
The mortgage stress test ensures homebuyers can manage higher interest rates. This test ensures that mortgage holders are able to pay an interest rate of 5.25 per cent, or the buyers’ current rate plus two per cent, whichever is higher.
If you’re coming up on renewal, chances are that you were stress-tested to 5.25 per cent. With the rise in rates, you’ll now be tested around seven per cent.
Whether you’re looking to purchase your first home, or are in the market to upgrade from your current residence, the key is knowing what you can comfortably afford.
“Look for the best opportunity in the market that will allow you to build equity,” said Dinani, “and eventually graduate to the next level.”
.
نرخ های بهره بالا هنوز برای خریداران بالقوه مسکن مشکل است: در اینجا توصیه هایی برای حرکت در بازار املاک و مستغلات وجود دارد.
کارگزاران املاک و مستغلات چگونگی تاثیر نرخ ها بر بازار و نحوه کنترل تغییرات را توضیح می دهند
اگر به دنبال خرید خانه یا تمدید وام مسکن هستید، بدون شک به نرخ بهره توجه زیادی داشته اید.
از ژانویه 2022، بانک مرکزی کانادا نرخ بهره را از 0.25 به 4.5 درصد افزایش داده است. برای کسانی که به دنبال خرید هستند، این یک سفر وحشیانه بوده است. مشاهده افزایش نرخ وام مسکن با هر افزایش نرخ.
با افزایش نرخ وام مسکن، بازار مسکن کانادا که زمانی داغ بود، تحت فشار قرار گرفت. فروش خانه از فوریه 2022 تا فوریه 2023 40 درصد کاهش یافت. با این حال، انجمن املاک و مستغلات کانادا (CREA) گزارش می دهد که فروش دوباره شروع به افزایش کرده است. بین ژانویه و فوریه، فروش 2.3 درصد افزایش یافت، که افزایشی ناشی از منطقه تورنتو بزرگ و ونکوور بزرگ بود.
.
کارگزاران املاک و مستغلات چگونگی تاثیر نرخ ها بر بازار و نحوه کنترل تغییرات را توضیح می دهند
اگر به دنبال خرید خانه یا تمدید وام مسکن هستید، بدون شک به نرخ بهره توجه زیادی داشته اید.
از ژانویه 2022، بانک مرکزی کانادا نرخ بهره را از 0.25 به 4.5 درصد افزایش داده است. برای کسانی که به دنبال خرید هستند، این یک سفر وحشیانه بوده است. مشاهده افزایش نرخ وام مسکن با هر افزایش نرخ.
با افزایش نرخ وام مسکن، بازار مسکن کانادا که زمانی داغ بود، تحت فشار قرار گرفت. فروش خانه از فوریه 2022 تا فوریه 2023 40 درصد کاهش یافت. با این حال، انجمن املاک و مستغلات کانادا (CREA) گزارش می دهد که فروش دوباره شروع به افزایش کرده است. بین ژانویه و فوریه، فروش 2.3 درصد افزایش یافت، که افزایشی ناشی از منطقه تورنتو بزرگ و ونکوور بزرگ بود.
.