Homebuyers Continue to Wait for Interest Rates to Drop, and Cottagers Expected to Stay Put Despite New Capital Gains Tax

This week’s top real estate stories.

By Jared Lindzon | 2 minute read

May 3

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

CMHC an Important Resource, Says CMHC

The Canadian Mortgage and Housing Corporation is patting itself on the back for being “a company that Canadians can count on,” according to its annual report. The national housing agency said it delivered almost half-a-million housing units in 2023 through various housing programs, far exceeding its target of 350,000, including more than 150,000 affordable homes. Last year over 48,000 housing units were also purchased using the crown corporation’s homeowner insurance products. At the same time, CMHC acknowledged that Canada still faces a shortage of 3.5 million homes, and that new home construction declined thanks to higher interest rates.

“This week local real estate boards reported three of Canada’s largest cities are seeing surges in housing stock, but not all were accompanied by an increase in sales. ”

Home Sales Up in Vancouver and Calgary; Down in Toronto

As the Kevin Costner classic promises, “if you build it, they will come” — unless you build it in the Greater Toronto Area. This week local real estate boards reported three of Canada’s largest cities are seeing surges in housing stock, but not all were accompanied by an increase in sales. Listings shot up 42% in Metro Vancouver last month, while sales increased by 3.3%. Calgary saw a similar surge in availability, with new listings up 11.5% in April, accompanied by a 7.3% increase in sales. The Greater Toronto Area also experienced a massive 47% jump in listings, but sales volumes dropped 5%.

Bidding War Whiplash in the GTA

Toronto’s real estate market is experiencing an identity crisis, rapidly switching between a buyer’s and seller’s market with little notice or explanation. According to our latest data the GTA was just starting to see the return of bidding wars when “the tables began to turn” in April. In December and January, 98% of neighbourhoods were in underbidding territory, but after two straight months of declines that dropped to just 51% in March, before climbing to 57% in April. Roughly 4% of the city’s neighbourhoods saw homes sell close to asking last month, while the remaining 39% remain in overbidding territory.

Aggressive Policies Fail to Impress Renters

As the Federal Government goes to bat for tenants, renters aren’t playing ball. This year’s federal budget was chock-full of policies designed to make life easier for renters, ranging from a $1.5 billion Canada Rental Protection Fund to a $40 billion Apartment Construction Loan Program to a proposed “Renter’s Bill of Rights.” According to a recent survey by Rentals.ca, 66% of renters are familiar with the budget, and 55% are aware of the housing-related provisions contained within, but only 10% say the policies will have a positive impact. Overall, 77% said the government’s efforts to address housing affordability has been “ineffective.”