A what’s what of Canada’s fast-moving real estate sector from real estate expert and founder of Crescendo Equity, Mathew Moxness. For more news and insights on Canadian real estate and the factors that shape the sector, explore the Crescendo Equity blog.
After months of rising rental vacancies, it seems that Toronto’s rental market is finally rebounding on par with easing COVID-19 restrictions in Ontario. Rental market numbers in Toronto are now resembling pre-pandemic levels and average monthly rents are increasing month-over-month as demand picks back up.
Buying and Selling
The largest property bubbles in Canada have officially begun to deflate. Home prices in Toronto have risen since last month, but not nearly as much as they needed to to maintain the bubble momentum. Meanwhile, in Vancouver, prices have remained relatively stagnant. This indicates that there are less people rushing to purchase real estate in these markets. With that said, home prices aren’t expected to return to affordability any time soon.
Though luxury home sales are in the midst of normalization in markets across the country, real estate experts in Montreal say that demand for luxury properties in the city remains strong. In part, this is because there is so little supply. Strain on Montreal’s luxury market is expected to intensify when international travel resumes and foreign investors return to the market.
Though Canadians are purchasing properties in great numbers, a recent survey from RATESDOTCA and BNN Bloomberg revealed that many Canadian homeowners are financially unprepared for the expenses associated with homeownership. The survey indicated that 40 percent of homeowners don’t have savings to cover unexpected costs such as emergency home repairs.
The Bank of Montreal (BMO) has announced a $12 billion investment into Canada’s stock of affordable housing. The BMO’s financing will be put towards purchasing, developing, renovating, and maintaining affordable housing of all types, including social housing, community housing, shelters, and housing for vulnerable populations.
The rental market has finally returned to some semblance of pre-pandemic normalcy, and this means that the market could very quickly teeter into a demand-heavy imbalance once again. In a recent article for Global News, realtors across Canada recommended renters lock down their leases in anticipation of the increasingly competitive market. In the coming months, students will resume in-person post-secondary schooling and Canada’s borders will reopen leading to more immigration and more foreign activity in the rental market. These factors, coupled with chronically low rental inventory, will not only make it tough to snag rental housing in the near future, but will add further challenges to rental affordability.