The Latest on the Canadian Condo Market, and Ski Chalet Prices Expected to Jump
Every Friday, Wahi brings you the most important real estate stories from the past week.
Canada’s Housing Market is in for a Long, Cold Winter
Canada’s housing market is about as frozen as the fans at a Winter Classic, and like the annual outdoor NHL exhibition, the market is overpriced, undersold, and so cold you can hardly feel the double-double between your mittens. According to a recent report by Desjardins, Canada’s housing market is in for an icy winter and a frosty spring, with economic uncertainty and high interest rates set to slow sales and even bring down prices. In fact, TD suggests that excess inventory in B.C. and Ontario could cause prices to drop by as much as 10% next year.
“According to a CIBC report on the Canadian condo market, the sky-high prices of the low-interest COVID era are falling back to earth, thanks to growing inventory and lackluster demand.”
The Canadian Condo Market is in Trouble
Seeing a return on a condo investment in Canada used to be as certain as a snowy December in Edmonton, but new data suggests investors may be coming up dry. According to a report by CIBC, the sky-high prices of the low-interest COVID era are falling back to earth, thanks to growing inventory and lackluster demand. Meanwhile, rent increases haven’t kept up with mortgage costs, leading investors to list more condos in a weaker market. That’s left the country “approaching a buyers’ market with no buyers,” according to the report, suggesting condo investors might be in for a rare loss.
Experts Warn Billions in Federal Assistance Won’t Make Much of a Dent in Housing Crisis
Despite pouring billions into addressing the housing crisis, experts warn new federal housing initiatives will be about as useful as a butter knife in a bear attack. Last week’s Fall Economic Statement introduced new investments designed to increase the country’s housing stock, including $15 billion in loans for new rental housing and $1 billion for affordable housing construction. Despite the significant sums, experts — including Ontario’s Minister of Finance, the founding director of the Smart Prosperity Institute, and whoever is behind the X (formerly Twitter) account of the non-profit Housing Assessment Resource Tools project — suggest it won’t be nearly enough.
A Correction is Coming to Toronto — For Real This Time
Torontonians have been warned of an imminent housing correction since the Chretien administration, and like the opening of the Eglinton LRT or the bringing home the Stanley Cup, many have lost faith it’ll reach the city in their lifetime. New data, however, suggests rising inventory and sluggish sales will put downward pressure on prices for real this time. According to a new report by BILD, GTA home sales dropped 7% in October, while inventory levels reached a 7-year high. That’s going to cause a significant drop in prices, according to a recent report by RE/MAX, which predicts a decline of 3% in 2024.
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Winter Recreational Home Prices are Heading Uphill
The properties in and around Canada’s winter playgrounds are on a downward slope, but a new forecast suggests the market is about to get a lift. According to a report by Royal LePage, the winter recreational home market has suffered from many of the same challenges as the broader market, with high interest rates keeping sales activity low. That’s expected to turn around in 2024, according to the report, which anticipates a 2.9% price jump in the next twelve months. That would bring the cost of a detached single-family chalet from a median price of $1,068,200 to $1,099,660.
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