Cottage Country Sales Down, and How Builders Feel About Building

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week.

Canadians Are Buying Houses Again, Just Not in Canada

The grass may always be greener on the other side, but it’s also attached to a more affordable home, causing many Canadians to hop the fence, and buy south of the border. According to the American National Association of Realtors the 12-month period that began in April 2023 featured the fewest foreign home sales in America since it started tracking the data in 2009. However, the study found that Canadians were the top buyer of U.S. property during that time, accounting for 13% of purchases, beating out both Mexico and China who tied with 11% each.

The Young and the Hopeless

Like mental health stigmas, cursive writing and Facebook, Gen Zers may be the first generation of Canadians to give up on the dream of homeownership, at least in some parts of the country. According to a recent survey by Royal LePage Canada, those aged 18 to 38 still believe in the value of homeownership, with 84% saying it’s a worthwhile investment and 74% of renters labelling it a priority. At the same time, just 54% say it’s attainable, including less than half of Ontario youth. Quebec’s Gen Zers, meanwhile, remain the most optimistic, with 64% saying ownership remains realistic.

A Chilly Summer in Ontario’s Cottage Country

2024 may go down in history as the first year Ontarians who have cottages are jealous of their friends who don’t. That’s because, despite some rosy predictions at the start of the season for a recreational property price boom, the market has swung in the opposite direction, and far. According to a new report by Lakelands Association REALTORS® — which includes Muskoka, Wasaga Beach, Huntsville and Lake of Bays — median sales prices of lakefront homes have plummeted by 23% since July of 2023. The market also saw a similarly sized decline in total sales this July compared to last.

GTA Home Sales Hit a Brand New Low

Toronto is breaking records and winning awards, but not the kind their mother wants to hang on the fridge. According to a new report from the Building Industry and Land Development Association (BILD), July was the worst month for new home sales since the agency started tracking the data. Just 654 new homes found new owners in the GTA – including 367 single family homes and 287 condo units — marking a 48% drop from July of 2023 and 70% below the 10-year average. As sales crawl to a stop inventory is also reaching new heights, prompting slowdowns in new home construction.

Builders Don’t Want to Build

It’s hard to blame builders for not being super jazzed about building homes that nobody can afford, but their (entirely valid) pessimism is making the housing shortage worse. The Canadian Home Builders Association’s Q2 Housing Market Index, which measures builders’ confidence in new home sales, hit a low of 29.9 out of 100 nation-wide; a five-point decline from earlier this year and 10 lower than the same time last year. In Ontario, confidence in multi-family developments was down to just 11.6. Despite being most in need of new housing, housing starts in the province are down 15% this year.

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