OPINION: Let's be clear — realtors play a vital role in Ontario's housing market
Ontario’s real estate market is an essential part of the province’s economy, creating jobs and giving families a way to build wealth and financial security. For these reasons, those covering the market must use good data sources and consult with experts to give consumers the best information. A recent piece in the Toronto Star unfortunately used incorrect data sources and inaccurate statistics to describe the state of the Greater Toronto Area (GTA) and Ontario real estate industry. Ontario’s “exodus of 45,000 real estate agents and brokers” erroneously inflated The article used Statistics Canada data to share that Ontario experienced an “exodus of 45,000 real estate agents and brokers” between February 2022 and December 2023 — representing a decline of over 24 per cent. Yet, this data erroneously inflates the numbers by including appraisers, property managers and rental housing professionals. The Star has since updated the article to clarify this point. Just 5,000 fewer licensed agents between 2022 and November 2023: RECO The real change for realtors is much less dramatic than what was initially reported. The Real Estate Council of Ontario (RECO) reports only a modest decline of 4.5 per cent from 110,000 licensed agents in 2022 to 105,000 as of November 2023. The article also suggests that the 65,000 residential home sales in 2023 represent all the property transactions that 73,000 GTA realtors supported last year. The truth is realtors support every segment of the Ontario real estate market — not just sellers. 2023 TRREB member realtor activity more than three times what was referenced Our members work with home buyers, sellers, landlords and tenants. Thousands of realtors also work in the commercial market, across office, retail and industrial spaces, in leasing, sales and property development. Realtors supported sale and lease transactions for over 200,000 property transactions through the Toronto Regional Real Estate Board (TRREB) MLS system in 2023. In addition, TRREB members were also involved in transactions reported through MLS systems operated by other boards and associations in Ontario. Finally, many realtors are also involved in non-MLS system transactions, including the pre-construction sale of new homes. All told, TRREB member realtor activity in 2023 was more than three times what was referenced in the article — a fact that speaks volumes about the breadth and depth of their involvement in the market. Continuing to advocate for elevating industry standards Despite these missteps, the Toronto Star article rightly acknowledges the progress to elevate standards in real estate services through the Trust in Real Estate Services Act (TRESA) in Ontario. TRREB continues to lead the way in advocating for these changes and through the phase three regulation process we are continuing that important work. The collaboration between TRREB, policymakers, Minister Todd McCarthy and Premier Doug Ford is a testament to our shared commitment to bolstering the integrity and professionalism of our industry. The path to well-informed real estate consumers is paved with accurate data and the right information. As stakeholders in Ontario’s real estate market, TRREB takes its responsibility to ensure consumers have accurate information very seriously and understand the vital role realtors play in Ontario’s housing market.
Real estate market outlook in the greater toronto
In our exploration of the vibrant real estate scene in the Greater Toronto Area, it's like embarking on a fascinating journey. Today, we're here to chat about the latest happenings in the market, focusing on the cozy world of mortgage trends, the warm welcome from sellers, and a friendly update on the market. Whether you're dreaming of a bigger space or something a tad cozier, this article is your friendly guide, packed with insights to help you along your property journey. Mortgage rates have been the talk of the town lately, with their ups and downs and the buzz around changing lending rules. Right now, we're in a sweet spot with historically low mortgage rates, which opens up a world of possibilities for both homebuyers and sellers. These lower rates mean buying a home is more accessible for many, and sellers get to shine, attracting a broader audience looking to find their perfect home. But, as we all know, the world of finance loves to keep us on our toes, so it's a good idea to chat with a mortgage pro who can help you find the right path for your financial journey. For those thinking about selling, the stars are aligning. With more people looking for homes than there are homes available, it's like being the most popular house at the party. This demand can lead to exciting bidding wars and offers that might just exceed your expectations. Teaming up with an experienced real estate agent can make this process as smooth as butter, helping you get the best bang for your buck. Now, for those looking to buy, whether you're aiming to upsize your living space or downsize to something more manageable, the market is a bit of a hot potato. The competition is stiff, thanks to the limited number of homes up for grabs. This is where having a trusty real estate agent by your side makes all the difference. They're your local market guru, ready to help you navigate through the hustle and bustle, all while keeping your budget and dream home checklist in mind. Let's dive into the current vibe in the Greater Toronto Area. Despite the rollercoaster ride the world's been on, the real estate market here has stood strong, like a lighthouse in the storm. Lately, we've seen a steady rise in home prices, fueled by the unwavering demand and a tight squeeze on inventory. The suburbs have been getting a lot of love as more folks look for a change of scenery, craving more space to live, work, and play. In a nutshell, the real estate outlook in the Greater Toronto Area is looking bright and cheery for both buyers and sellers. With mortgage rates at a sweet low, it's a great time to make those home dreams a reality, and for sellers, the market's eager appetite is your ticket to a successful sale. Whether you're on the hunt for a new home or looking to pass on your keys to the next owner, having a friendly and knowledgeable real estate pro by your side is the secret ingredient to making your real estate adventure a joyous one. Keep your spirits high, stay informed, and let's make the most of these exciting times in the market. --Ali Bolourchi's Desk
What $1 million can buy in Canada’s housing market: Royal LePage
A new report by Royal LePage delves into the purchasing power of a budget hovering around $1 million in Canada’s major housing markets, shedding light on the evolving landscape of real estate affordability. Key findings The report notes that the average home in Canada valued between $950,000 and $1,050,000 across all property types in December 2023 had 3.2 bedrooms, 2.1 bathrooms and 1,760 square feet of living space.National trends indicate that the purchasing power of $1 million has remained relatively consistent year over year, owing to subdued market activity and modest price growth.“Depending on the market that you are shopping in, a $1-million home can mean something very different. In Calgary, a budget of $1 million is considered the move-up price point for existing homeowners. In Vancouver, the same amount is often the starting point for entry-level buyers,” says Karen Yolevski, COO of Royal LePage Real Estate Services Ltd.“Years ago, a $1-million budget could buy a generous amount of square footage and access to sought-after neighbourhoods in almost any market. Over time, however, we have watched the purchasing power of $1 million vary more widely between cities. These days, this budget can buy a luxurious detached home in one location, or a two-bedroom condominium in another.”Homes of all property types valued between $1,950,000 and $2,050,000 in December 2023 typically offered 3.7 bedrooms, 2.6 bathrooms and 2,501 square feet of living space, reflecting the impact of a higher budget. Challenges for buyers Buyers are not without challenges. Rising interest rates and stringent mortgage qualification standards have increased monthly carrying costs, even though the housing supply shorting has caused property prices to plateau.Mortgage lenders require a minimum 20 per cent down payment — at least $200,000 — for homes priced over $1 million, presenting a significant barrier to entry for first-time buyers. And, higher qualification thresholds due to elevated interest rates have limited the amount banks lend, particularly in high-priced markets.“The greatest barrier to entry when buying a home is often the down payment. For first-time homebuyers living in communities where entry-level homes start at $1 million or close to it, getting a foot on the property ladder can be a considerable challenge. This is why it’s become increasingly common for parents and family members to step in with financial assistance,” Yolevski explains. Public perception A Royal LePage survey revealed that 64 per cent of Canadians feel a $1 million budget for a home is sufficient to meet their needs. The report notes there’s a vast discrepancy between what that amount will buy in various parts of the country.Buyers in larger urban areas must compromise more than smaller locations to get a home they can afford. Specifically, residents in British Columbia and Ontario are more likely to feel that $1 million is inadequate for their housing needs compared to those in Alberta and Quebec. Housing affordability: The new relocation driver “Finding employment has historically been one of the primary drivers for Canadians relocating to regions outside of major cities. Now, as housing affordability remains front and centre for many, we are seeing families move to new locations specifically to find a home within their budget, and prioritizing employment second,” says Yolevski.“The increased flexibility that the remote work movement has afforded many people makes this possible. We saw this phenomenon play out during the height of the pandemic, as the mass adoption of remote working enabled Canadians to migrate across the country.” Future outlook As interest rates are expected to decrease, increased buyer activity may drive property prices higher, exacerbating affordability challenges.“Without a significant increase in supply, especially in cities like Toronto and Vancouver, the standard for a $1-million property will continue to evolve away from large homes,” Yolevski points out. Review the full report, including regional summaries and properties, here. Enjoying this article?Get the latest REM articles in your inbox 3x week so you stay up to date on the latest in the Canadian real estate industry Success! Email Subscribe The post What $1 million can buy in Canada’s housing market: Royal LePage first appeared on REM.The post What $1 million can buy in Canada’s housing market: Royal LePage appeared first on REM.
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