LACKIE: Toronto in the grip of the tightest real estate market in recent memory

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Justin Trudeau’s Liberals must desperately follow through on campaign pledge to tackle Canada’s housing (un) affordability crisis

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Well, fall has officially arrived.

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The election is over, the air is finally fresh, and the leaves are starting to turn. We have the impression that a new chapter is opening before us.

After a relatively slow summer, the real estate market has woken up with buyers and their agents moving from exhibit to exhibit, sellers and their agents getting homes ready to go on the market, while everyone else is shuffling away. its best to keep calm.

Managing expectations while leaving room for the market to work on its chemistry is pretty much the name of the game these days.

Even with the welcome wave of new activity, Toronto is still besieged by the tightest real estate market in recent memory. Active listings are at their lowest for 25 years as demand, supported by record interest rates, remains fierce. These market conditions do not bode well for those who cling to the hope that prices will come down soon.

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If anything, we are already seeing signs that the dramatic growth we have witnessed in the freehold market is now taking root in the condominium market, the latest front for future homeowners to now priced appropriate homes in. the 416 and 905. If you can’t afford a house in town and your job requires you to show up for work in person, your options are limited – you can understand the logic of taking advantage of low rates while you can and buying what you can afford versus continuing to rent in an equally tight market with rents almost completely back to pre-pandemic levels.

  1. A real estate sign that reads

    LACKIE: Housing affordability crisis is unlikely to improve anytime soon

  2. We are ending a slow summer in the tightest real estate market in recent memory.

    LACKIE: Don’t be afraid of a real estate crash, but the supply must improve

  3. Prime Minister Justin Trudeau delivers remarks at a press conference at a housing construction site in Brampton on July 19, 2021.

    LACKIE: Liberal housing plan seems spurious

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The good news is that the elections are now over and we may finally have some respite from the hollow discussions on how best to deal with the housing (in) affordability crisis in Canada. With the Liberals now having four more years to implement their election promises, it will be interesting to see how that plays out, given that a number of their proposals seemed extremely difficult to deliver.

Do you think the Homebuyers Bill of Rights will come into effect anytime soon? Doubtful since this is a federal policy and the real estate sector is regulated by the provinces. If blind auctions are to be banned, and frankly I don’t see how it could be, it will take years of consultation for the process to be in its place and for a regulatory system to enforce it.

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Instead, I would expect them to quickly follow through on their promise to freeze overseas home purchases, as it won’t take much more than a stroke of the pen. If this is the case, I would also expect an increase in foreign buyer activity by then, especially in the condominium sector, which, at least in the short term, will stimulate demand and help rising prices.

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The other aspect of the platform that most pundits are predicting will be the Liberals’ promise to raise the threshold for insured mortgages from $ 1 million to $ 1.25 million, thereby increasing the purchasing power of consumers. buyers. Forgetting for a moment that all that will work is allowing people to compete for the same homes by spending more, which in turn will be another driver of demand, in the short term this can have consequences unforeseen.

While some buyers may wait for their purchasing power to increase, we might also see sellers doing the same, which will further limit inventory and raise prices in the short term.

The reality is that Toronto is not unique – the affordability of housing in major cities is a global issue.

The best way to deal with the crisis is an ongoing conversation in countries and cities around the world. Canada is just getting started.

@brynnlackie

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