Today, the Canadian Real Estate Association (CREA) held a special general meeting (SGM) in Ottawa where members voted in favour of transitioning Realtor.ca into a wholly-owned taxable subsidiary of CREA.

The platform has been operating on a not-for-profit basis to this point.

“This decision represents a forward-thinking approach that reflects the evolving needs of both Realtors and consumers. By transitioning Realtor.ca into a wholly owned subsidiary, 100 per cent owned by CREA, we’re unlocking new opportunities for innovation and growth while ensuring Realtors remain at the heart of the platform,” says Janice Myers, CREA CEO.

The case for the structure change

For the past 18 months, CREA has been engaging the Realtor association community to discuss what the future of Realtor.ca looks like and the potential to make this change, as it deems it a “financial necessity and strategic move to secure Realtors at the centre of Canadian home buying, selling and renting journeys.”

CREA points out that Realtor.ca has largely created how real estate is marketed and consumed in Canada but says the status quo isn’t sustainable because competition in tech grows each year, consumers expect more and operational costs increase.

Specifically, the organization notes that Realtor.ca can’t pursue new revenue streams or engage in some business-related activities. A for-profit model would offer the ability to change this and better position CREA to succeed in a competitive market.

PricewaterhouseCoopers (PwC) conducted an analysis and presented opportunities the transition could offer in a draft business case.

It found that as a taxable entity, Realtor.ca could generate significant estimated revenues to help reduce dependence on CREA funding from member dues. Specifically, over a 10-year period, member dues funding Realtor.ca would drop from 43 per cent to 25 per cent, allowing CREA to focus on advocacy and professionalism.

Dues wouldn’t necessarily decrease, but these funds could go toward priorities other than Realtor.ca.

Proposed focus

In a previous interview with REM, Myers emphasized the focus is on maintaining control while enhancing the platform’s capabilities and ensuring it continues to meet the evolving needs of both consumers and Realtors. She highlighted three main points solidified by a special task force and endorsed at an SGM:

1. Ownership. Realtor.ca will remain wholly owned by CREA, ensuring that Realtors retain ownership through their membership.

2. Governance. The platform will be managed with an independent board and as a taxable entity, allowing for greater operational flexibility.

3. Revenue reinvestment. Any profit generated will be reinvested back into the platform for the benefit of Realtors and consumers alike.

“Today’s vote is about securing the future of Realtor.ca. Every day, Realtors proudly serve clients in every corner of the country. This decision will help ensure Realtor.ca continues to meet the needs and expectations of today’s property owners, buyers, sellers and renters,” says James Mabey, CREA chair.

“We’re excited about the future of Realtor.ca and grateful for the trust and support of our members as we take this important step,” Myers adds.

Photo: CREA

This morning, the Bank of Canada (BoC) surprised the market by announcing a 50 basis point (bps) cut in its benchmark interest rate, bringing it down from 4.25 per cent to 3.75 per cent. As homeowners and potential buyers digest this news, the primary question on many minds is how this will impact mortgages, real estate, inflation and the broader economy.

Here’s a breakdown of what the rate cut could mean, with a focus on the housing market, mortgage renewals and the wider financial landscape.

Why a rate cut might not be all good news

At first glance, the BoC’s 50 bps rate cut might seem like positive news for borrowers. Lower interest rates generally translate to cheaper borrowing costs, which could help prospective homeowners and businesses. However, such a rate cut may not be a sign of economic health.

Often, when central banks cut rates significantly, it’s because they anticipate economic challenges ahead. In this case, the rate cut could signal concerns about a looming slowdown or potential recession in Canada. A recession could lead to deflationary risks for some parts of Canada’s economy, and when consumers feel prices are falling, they stop spending and wait for better prices. This fear is especially real outside of the housing market.

Within the housing market, we see that shelter inflation is a primary contributor to inflation in Canada, according to the BoC’s recent Monetary Policy Report, released with today’s interest rate cut. This inflationary pressure from rent and mortgage interest costs can be observed below in the CPI component breakdown. Especially worth noting is that “House price related services” have been ice-cold for the better part of two years now. Realtor commissions remain at historic lows, and the BoC could be gaining confidence that the market will not overheat in response to rate cuts.

Though the lower rate will reduce the cost of borrowing, it also suggests that the BoC is attempting to stimulate a flagging economy. While homeowners may see some relief in their monthly payments, this could be overshadowed by rising unemployment or weaker economic activity if a downturn materializes. RBC noted this reality very directly in a recent brief that characterized retail spending as “abysmal”: 

Effect on inflation due to mortgage renewals

While the BoC has cut its interest rate, inflation continues to be a concern, partly due to mortgage renewals at higher rates. Tiff Macklem, the BoC’s governor, mentioned they’re equally concerned about the risk of deflation and inflation. If we don’t see further reduction, mortgage rates could keep upward pressure on inflation into 2025 and 2026.

From mid-2020 to early 2022, Canadian mortgage rates were exceptionally low, prompting a surge in both new mortgages and refinances. As a result, a large proportion of these mortgages — about 60 per cent — are set to renew in 2025 and 2026. With today’s overnight rate now standing at 3.75 per cent, homeowners renewing their mortgages will face significantly higher payments than they did during the era of 0.25 per cent overnight rates. 

This situation has indirect implications for inflation. Higher monthly mortgage payments reduce disposable income for other goods and services, potentially slowing consumer spending and easing some inflationary pressure. However, the “base effect” comes into play, as the shift from historically low interest rates to the current elevated levels still poses a financial strain for many households. Even with the recent cut, the elevated rates for renewed mortgages will continue contributing to inflationary pressure in the Canadian economy — particularly through rising housing costs.

Bond yields control fixed-rate mortgages, not the BoC

A common misconception is that the BoC directly controls all mortgage rates. While it does influence variable mortgage rates, the majority of Canadians who opt for fixed-rate mortgages are affected more by bond yields than by the BoC’s overnight rate. Fixed-rate mortgages are very popular and closely tied to the performance of government bonds, especially the five-year one, which has been on a declining trend since April 2024.

As it stands, the bond market seems to be pricing in fewer cuts in the future, though there’s likely a bit of myopia toward the market as a result of the United States election. The market likely doesn’t anticipate any significant actions from the Federal Reserve prior to the election, as it could become too politicized. (In fact, it already seems to be.)

This means that we’ll likely need to wait until the U.S. election is over for a real idea of what will happen with bond yields and interest rates in 2025. To get an understanding of this, it’s very important to think about how the BoC monitors Federal Reserve activity. 

The importance of U.S. Federal Reserve decisions

In light of the BoC’s 50 bps cut, the interplay between Canadian and U.S. monetary policy becomes even more significant. The U.S. Federal Reserve plays a crucial role in shaping the broader North American economic landscape. Since the Canadian and U.S. economies are closely linked, the BoC must carefully consider Federal Reserve actions to avoid a widening policy gap. If the BoC continues cutting rates aggressively while the Federal Reserve holds rates steady or raises them, it risks devaluing the Canadian dollar against the U.S. dollar, because the Canadian currency would have a lower “return” — as measured by its interest rate.

Since we purchase most of our imports in USD, a weaker CAD makes imports from the U.S. more expensive, which could drive up inflation in Canada — a risk that the BoC is keen to avoid. This is why, despite today’s cut, the BoC will remain cautious and closely watch the Federal Reserve’s decisions moving forward. The bank’s goal is to maintain a balance, ensuring that the Canadian economy stays competitive without letting inflation rise uncontrollably due to a depreciating currency.

One key byproduct in this regard is that the BoC observed exports becoming an increasing contributor to Canadian GDP. A weaker GDP could support that notion, but we don’t have a significant export-based economy to capitalize on that reality as we have in past recessions, where Canada was a larger exporter. 

A recession could help reduce inflation

Though it may seem counterintuitive, a mild recession could keep inflation at more manageable levels. Economic slowdowns typically reduce demand for goods and services, which can ease price pressures. According to economists like CIBC’s Benjamin Tal, recessions are often an inevitable part of the economic cycle and can play a role in controlling inflation. This is why Tal often states that when given the choice between inflation and a recession, the BoC will choose a recession every time. 

The BoC may be willing to allow a controlled recession if it helps bring inflation closer to its target range. While Macklem did mention in his press release question period that he felt he could stick the landing, time will tell if it’s possible. A recession would result in short-term economic hardship but has historically proven as necessary to restore balance in the economy and ensure long-term stability. This is especially true in economic setups where a risk of rising inflation might be present — and Macklem made it clear that he’s just as worried about a return of inflation as he is about deflation/recession. 

How mortgage holders and market activity will be affected

For those with variable-rate mortgages, the 50 bps rate cut will bring some immediate relief. Variable-rate mortgage holders have seen their payments increase significantly over the past year due to previous rate hikes. With the overnight rate down 50 bps, these borrowers can expect their monthly payments to decrease slightly, offering some breathing room in their budgets. Static-payment variable rate holders will see more principal paid each month. 

In this regard, the BoC can really only play to the supply side of the market by easing pressure on existing mortgage holders, reducing the likelihood that they sell their property. Because variable rates are priced higher than fixed rates in today’s market, a reduction in variable rates doesn’t “add” any buying power to the market. If buyers needed a lower rate to get more buying power, they’d have used the fixed rate. Therefore, the bond market is more in control of the demand curve in Canada through fixed-rate mortgage pricing. 

Lower interest rates typically boost housing market activity by making borrowing cheaper. However, with housing prices already elevated in many parts of Canada, today’s rate cut may not be enough to spur significant increases in homeownership, especially with the stress test still in place and most buyers opting for two-, three- or five-year fixed-rate mortgages.

Additionally, the overall economic uncertainty caused by the rate cut may cause potential buyers to remain cautious. While borrowing costs will drop, concerns about a slowing economy or job losses could temper enthusiasm for new home purchases in the short term. Many market participants seem to be adopting a “wait and see” approach, to wait even if rates continue falling, and to better understand if there are risks under the surface. 

The BoC’s decision to cut interest rates by 50 bps, bringing the overnight rate to 3.75 per cent, offers both opportunities and challenges for Canadians. While variable-rate mortgage holders will see some immediate relief, those buying with fixed-rate mortgages might not benefit as much, this early.

The broader economic implications, including potential recession risks and inflation concerns, mean that this rate cut is not all good news. Realtors, homeowners and prospective buyers should carefully consider the broader economic context as they plan their financial futures.

Canada’s luxury housing market stabilized in this year’s third quarter, with moderating growth in Toronto and Vancouver as the effects of population growth and declining mortgage rates offset a slowing economy and wavering consumer confidence.

According to Sotheby’s International Realty Canada’s Top-Tier Real Estate: Fall 2024 State of Luxury Report, these conditions have shifted luxury condominium markets in both major cities into buyers’ territory, with supply outpacing demand and prices stabilizing.

Toronto: Modest gains in luxury single-family homes

In the Greater Toronto Area (GTA), luxury real estate sales over $4 million remained steady, with a 3.0 per cent year-over-year increase between July and August 2024. Single-family homes priced over $4 million saw a 4.0 per cent rise in sales, while the luxury condominium market softened, with a 25 per cent decline in $4 million-plus condominium sales compared to last year.

September data showed a continued trend, with GTA residential sales over $4 million increasing 9.0 per cent year-over-year. However, condominium sales remained flat, with just one luxury sale, mirroring last year’s figures.

Vancouver: Market cools amid election uncertainty

Vancouver’s luxury real estate market faced softer sales in Q3 2024. Sales of homes priced over $4 million fell 13 per cent compared to summer 2023 levels, while single-family home sales dropped 16 per cent. Consumer uncertainty surrounding the upcoming provincial election contributed to the decline.

In September, Vancouver’s luxury market saw a significant 52 per cent drop in $4 million-plus home sales, with no luxury condominium sales recorded. Overall residential sales over $1 million were down 31 per cent year-over-year.

Montreal: Luxury market strengthens

Montreal’s top-tier real estate market saw notable growth, with $1 million-plus sales increasing 15 per cent in Q3 2024 compared to the same period last year. Though sales of homes over $4 million were down from last year, the market remains strong heading into the fall, with September $1 million-plus residential sales surging 83 per cent year-over-year.

Calgary: Leading the luxury market surge

Calgary continues to outperform other major Canadian cities, driven by population growth and strong demand. Luxury sales over $1 million rose 31 per cent year-over-year in Q3 2024, with the market poised for further growth as sales climbed 15 per cent in September, including two properties sold over $4 million.

Favourable conditions for buyers

Sotheby’s president and CEO, Don Kottick, notes that buyers are encountering some of the most favourable conditions in years as top-tier property listings increase and housing prices stabilize. While the market is expected to remain stable in the short term, Kottick warns that population growth and rising building costs will continue to fuel competition for luxury properties in the future.

“This trend is especially evident in the once fiercely competitive markets of Vancouver and Toronto, as well as across the luxury condominium sector,” Kottick highlights. “Over the longer term, there’s no doubt that population growth will intensify competition for housing … There’s an opportunity to take advantage of the favourable homebuying conditions we’re seeing today.”

Kottick also highlights that the cumulative effect of interest rate cuts has permeated market sentiment, boosting confidence and spurring transactions. Should additional rate cuts occur before year-end, luxury home sales could see a substantial boost.

Review the full report, including detailed findings, here.

The Canadian Real Estate Association (CREA) released its quarterly forecast on October 15 and, as it turns out, it’s a mixed bag. There’s cautious optimism as national home sales are expected to see a modest recovery, and interest rates are forecasted to drop further.

However, don’t pop the champagne just yet.

The market’s recovering, but not at a sprinting pace to the finish line

The reality of affordability challenges continues to loom over the Canadian housing market, despite interest rate optimism felt by the real estate industry. According to Bloomberg, Canadian interest rates would need to fall 350 bps to restore pre-covid affordability:

Source: Bloomberg

CREA’s forecast highlights a steady uptick in home sales — largely thanks to recent interest rate cuts by the Bank of Canada. A 5.2 per cent bump in sales for 2024 is being touted as a sign of recovery.

Although this is what we’ve all been waiting for, some regions are still dragging their feet. And price increases, while present, are lukewarm at best. In other words, the market’s recovering, but it’s not exactly sprinting to the finish line.

The (not so) immediate impact of interest rate cuts

Three interest rate cuts in 2024, and what do we have to show for it? Well, according to CREA’s report, national home sales recorded over Canadian MLS systems inched up 1.9 per cent in September compared to August. It’s the highest level since July 2023.

With each rate cut, sales have bumped up slightly, but the market is not all sunshine yet as consumer sentiment has remained low. 

CREA’s senior economist, Shaun Cathcart, is already warning that buyers might hit the pause button, waiting for the next round of rate cuts next year — the market could stall again before the rebound we’re all supposed to get excited about in 2025. This is one of the primary reasons that interest rate cuts take such a long time to move through the market. If buyers see more rate cuts ahead, they may wait for lower rates, especially if they don’t see prices rebounding anytime soon. 

Experts seem to think they could be wrong, though. TD Bank recently projected that recent CMHC insurance changes will front-load any house price increases into the first half of 2025, leading to slower growth at the end of next year:

6.9 per cent increase in September home sales but prices still down year-over-year

September saw a 6.9 per cent increase in home sales compared to the same time last year. This sounds great, but the reality is that the market is stabilizing after the roller coaster ride of relatively higher interest rates and the economic turmoil we’ve seen in the last couple of years.

Interestingly, the number of newly listed properties shot up 4.9 per cent, suggesting that sellers are feeling brave enough to test the waters. This is a welcome change compared to the “wait and see” approach we’d seen from sellers earlier in the year when they seemed to hope rate cuts would help them achieve a better price or faster sale. With prices down 3.3 per cent year-over-year, it appears interest rates are not supporting price growth the way they’d hoped.

CREA is quick to point out that month-to-month, things are trending upwards. In short, we’re on the mend, but it’s hardly over yet. 

Housing prices rising slow and steady 

According to CREA’s forecast, the national average home price saw a year-over-year increase of 0.9 per cent, bringing the average to $683,200. Looking ahead, prices are projected to rise another 4.4 per cent in 2025, crossing the $700,000 mark ($713,375 to be precise), which suggests solid market fundamentals. As mentioned before, this growth could be aided by recent changes to Canadian mortgage rules, increasing the CMHC limit to $1.5 million.

For now, prices are mostly flat with only minor month-over-month fluctuations. This could be considered good news for those considering selling their home in the near future, where the absence of volatility makes the market much safer to buy and sell simultaneously. This is a welcome change from the high-stress buyer’s markets we’ve seen across Canada over the last few years.   

More listings, more options — but not necessarily more sales

September had a significant rise in new listings — up 4.9 per cent from August. On the surface, this sounds like a great thing for buyers who’ve been struggling to find a decent property. But the surge in listings hasn’t exactly translated into a flood of sales. In fact, sales are climbing at a slower rate than new listings, and this could tip the balance toward buyers — eventually.

The increase in supply should give buyers more leverage, but for now, the market is still holding steady in what CREA calls “balanced” territory. In other words, neither buyers or sellers are fully in control, but this could change if listings keep rising and sales don’t pick up pace. 

Months of inventory has stabilized just above four months, though the sales-to-new listings ratio continues to slow down, meaning buyers aren’t absorbing new listings as quickly as they were. 

185,000+ properties listed in September, below historical average — power could soon shift to buyers 

As of September, there were 185,427 properties listed for sale on MLS systems nationwide, up 16.8 per cent from the previous year. Keep in mind that we’re still below the historical average of around 200,000 listings.

The national sales-to-new-listings ratio dropped to 51.3 per cent in September from 52.8 per cent in August. While this is consistent with a balanced market, it’s worth noting that if listings keep rising and sales don’t, the power could soon shift to buyers. 

Will the real estate market rebound in 2025? It’s never as smooth as it sounds

According to CREA, home sales are forecast to climb by 6.6 per cent in 2025, with 499,800 units expected to change hands. This optimism hinges on expectations of even more interest rate cuts and a friendlier economic environment.

The narrative here is clear — 2025 is the year when everything is supposed to come together. Demand will surge, inventory will remain low and prices will rise steadily. But as always, there are still plenty of variables at play, and it’s never as smooth as it sounds.

CREA’s latest forecast paints a cautiously optimistic picture for the Canadian housing market. While 2024 is showing some incremental improvements, real action is expected in 2025 when interest rates drop further.

Until then, we can expect more of the same: a slow, steady recovery that’s more about survival than celebration. Buyers and sellers alike should keep their expectations in check as we move through the final months of 2024.

This week, as part of its Political Action Committee (PAC) Days, the Canadian Real Estate Association (CREA) is hosting realtors from across Canada to meet with their local Members of Parliament to advocate for critical housing policies encouraging access to housing for all Canadians.

CREA notes that as realtors are experts on market conditions and consumer interests, they’re well-positioned to contribute to discussions around housing policy.

Much work still to be done

Though CREA has been working to encourage federal initiatives that address the ongoing housing supply crisis, the organization notes there’s still much work to be done with all levels of government and key stakeholders.

“It’s essential we strive together to advance effective policies that foster increased housing supply while ensuring affordability and accessibility for Canadians across the entire housing continuum,” says Janice Myers, CREA CEO.

This year’s housing policy & solution ideas

With housing demand increasing along with the country’s population, yet inventory and new construction not keeping pace, realtors are advocating for innovative solutions and policies to increase housing supply, such as emergency shelter and community housing, rental accommodation, homeownership and more.

This year, specific ideas include:

• Stimulating supply across the housing continuum by embracing innovation through offsite construction technologies
• Establishing a permanent mechanism to collaborate and coordinate housing policy and development, such as a national housing secretariat
• Extending HST/GST relief for non-profit-built affordable ownership housing

When Raven Woods, a master-planned development located in the Roche Point neighbourhood of Metro Vancouver’s North Shore, was originally built, it was one of the first businesses in North Vancouver to sell residential units on leasehold land.

Leasehold land, according to the government of British Columbia, is: 

A long-term residential leasehold is a form of homeownership where a person (the lessee or leaseholder) purchases from the owner of a building (the lessor or leasehold landlord) the right to occupy a premise for a long-term, fixed period (more than 20 years, and usually for 99 years, on first sale). This is sometimes referred to as “prepaying the lease.”

In the case of Raven Woods, the land belongs to the Tsleil-Waututh First Nation, who traditionally held the territory.

A rocky road to the shift in sentiment toward leasehold

Cal Pye, a realtor now with Babych Group Realty, was part of the original sales and marketing team for the project. Having worked in the area for over three decades, Pye has seen a shift in sentiment toward leasehold properties over the years.

But it hasn’t been a straightforward line getting there.

“The leasehold aspect has always been a contentious issue with those that don’t educate themselves about the details,” he points out. “But the confidence of the investment and the huge community spirit of Raven Woods has overcome the fears associated with the lease (from) when we started in 1994.

The buyers and their realtors who do some due diligence on the value and the community soon realize what a wonderful place (it is) to live while being comfortable with the ownership details.”

Leasehold land: A previous stigma preventing people from understanding nuances & benefits — but much of what’s left

Sarah-Jane Copeland, lands manager with Cheam First Nation, also contributes her thoughts on how people think about and work with leasehold land:

“People’s perceptions and understanding of leasehold land has changed a lot over the past decade,” she notes. Before, “(They) just wanted to kind of hide it, not really have it at the forefront.”

But Copeland believes that this previous stigma prevented people from truly understanding the nuances at hand.

“There are actually quite a lot of benefits to leasehold land as well,” she adds. “Usually there’s no property transfer tax, tax rates could be lower, it’s all different. But I think currently the reality of the situation is that First Nations land (includes) some of the only large land masses that we have left, especially since Metro Vancouver is very geographically constrained.”

‘Everyone has to start somewhere’ but education and partnership are keys to success

Copeland advocates for accessing and developing these large parcels of land to help address growing housing pressure needs, but to do so in a way that truly understands the needs of the Indigenous bands she works with.

The key word, according to Copeland? Partnership.

“I think the main thing is making sure that all parties involved have an understanding of the main goal you’re working toward and being respectful of the laws and policies that these First Nations already have,” she shares.

Aiden Mauti is a Toronto-based consultant with Creative Fire, a 100 per cent Indigenous-owned consulting and communications firm.

Like Copeland and Pye, he believes in the significance of both education and partnership when it comes to real estate sales and marketing practices for leasehold properties on Indigenous land.

For realtors who are interested in learning more but aren’t sure how, Mauti’s advice would be to just get started.

“It’s such a journey that there’s always going to be a critique, there’s always going to be a different opinion of what ‘good’ looks like,” Mauti says. “Everyone has to start somewhere.”

A journey that’s just starting

And while land acknowledgements and showing support on Truth and Reconciliation Day are major steps in progress toward national attention and recognition of Indigenous issues, Mauti believes that the journey for Canadians is just getting started.

“I think there’s just a lot more learning to happen on what reconciliation really means, beyond an orange shirt or even what we see in the industry of wanting to just hire more Indigenous people for the sake of it,” he adds.

The real estate development space has seen a rise of Indigenous-led projects, such as kʷasən Village and Sen̓áḵw in Metro Vancouver, and YZD in Toronto. The land’s history has been incorporated and welcomed, rather than avoided, in their ongoing sales and marketing efforts, with the Squamish nation calling the Sen̓áḵw project “reconciliation in action.”

Resurgence over reconciliation

Mauti reflects on the words of Kahnawà:ke Mohawk writer, researcher, policy analyst and political strategist Taiaiake Alfred:

“Taiaiake talks a lot more about resurgence over reconciliation,” he notices. “A resurgence of cultures — how could we enable the next generation of Indigenous people to support their own self-determination, for whatever that might look like.”

Something to consider both within the real estate industry and beyond.

Photo credit: aquilinidevelopment.com

A recent survey by Service Line Warranties of Canada (SLWC) reveals that 76 per cent of Canadian homeowners have dealt with at least one home repair emergency over the past year. Despite this high frequency of repair issues, nearly one-third of respondents reported having $500 or less set aside — or nothing at all — for home repairs. 

Home repair emergencies on the rise

The survey found that while the number of homeowners facing repair emergencies has dropped slightly from last year’s peak of 80 per cent, the rate remains alarmingly high. The most common repair issues reported by homeowners involved appliance failure (29 per cent) and HVAC systems (26 per cent), followed by blocked sinks (19 per cent), toilets (18 per cent) and leaking water pipes (17 per cent).

Lack of financial preparedness

Almost 30 per cent of homeowners have minimal or no savings for unexpected repairs, with 6.0 per cent having only $500 set aside, 9.0 per cent having less than $500 and 12.5 per cent having nothing saved for home repairs.

This lack of preparedness puts many homeowners at risk when emergencies arise, as these repairs can often come with significant costs.

DIY vs. hiring a professional

The survey also explored homeowners’ approach to tackling emergency repairs. The vast majority of respondents prefer hiring professionals, particularly for complex systems: 92 per cent would hire a professional for heating or air conditioning repairs, 90 per cent would leave water supply line replacements to experts and 89.5 per cent would hire a professional to install water heaters.

However, homeowners feel more confident handling smaller tasks themselves, such as installing shower heads (82 per cent), light fixtures (75 per cent), kitchen appliances (60.5 per cent) and faucets (57.5 per cent).

Seasonal preparation: Winter and summer concerns

As Canadians prepare for seasonal weather changes, the survey found that many homeowners are taking proactive measures for the colder months, with 34.5 per cent fixing leaks around windows and doors, 31 per cent tuning up furnaces and 18 per cent installing smart thermostats. However, 27 per cent of homeowners reported not taking any steps to prepare for winter at all.

Key winter concerns include losing heat (29 per cent), pipes freezing or bursting (24 per cent) and power outages (22 per cent).

Conversely, in preparation for summer heat, 43 per cent of respondents avoided heat-generating activities during the hottest part of the day and 39 per cent turned off electronics when not in use. While 34.5 per cent tuned up air conditioners, 28 per cent switched to energy-efficient LED lights and 19.5 per cent installed portable air conditioning units.

Homeowners’ biggest worries

Homeowners’ concerns vary by season. In summer, severe weather (32 per cent) and air conditioning loss (20%) are top worries, while winter brings fears of heat loss (29 per cent) and frozen pipes (24 per cent). 

With home emergencies becoming more common and many homeowners financially unprepared, it’s crucial to have a plan in place to address unexpected repair costs and keep homes safe and comfortable year-round.

Re/Max recently held its annual Activate Conference in Toronto. The company notes that attendees gained valuable insights, built meaningful connections and discovered innovative strategies to elevate their business. It shares several key moments of the event:

Basketball tournament and live auction in support of Children’s Miracle Network

Five basketball teams participated in the tournament, raising $4,000 for the Children’s Miracle Network.

Also, over $110,000 was raised for the organization during the live auction and several other breakout sessions including prize drawings. Donations raised will benefit the 13 Children’s Hospitals across Canada. The event featured CMN patient ambassadors Ava and Cash.

Alyssa Rae Johnson Fund hits $1 million milestone

Bruce Johnson, agent with Re/Max By The Bay Brokerage, and his family were also recognized for reaching the $1 million mark in donations for the Alyssa Rae Johnson Fund, benefitting the SickKids Hospital.

The network raised $165,635 at the conference to help reach this goal. Johnson was also awarded the inaugural Lifetime Achievement Community Care Award for his outstanding fundraising efforts, including his renowned Motorcycle for Miracles campaign.

Canada’s economic outlook: CIBC economist Benjamin Tal

At the event, Tal revealed that the real estate sector is facing its toughest challenge since the 1991 recession due to aggressive interest rate hikes from the Bank of Canada, which have inadvertently increased inflation through higher mortgage payments.

He predicts that interest rates will drop by 50-75 basis points this year, reaching about 2.5 per cent by the end of 2025, supporting a market recovery.

Artificial intelligence decoded

Dr. R. David Edelman, founder and director of Project TENS at MIT and former White House tech advisor, discussed artificial intelligence and its impact on our work and the world. He emphasized that these technologies can “transform our interactions,” and help improve business practices.

Arlene Dickinson: Entrepreneur, on CBC’s Dragons’ Den

Dickinson shared her entrepreneurial journey to becoming a visionary leader and influential figure in Canadian business. Despite facing numerous challenges in life, her vision, dedication and perseverance have been her guiding forces. She highlighted the importance of taking risks on yourself, regardless of fear or the opinions of others.

Love them or hate them, depreciation reports are critical documents essential to strata corporations and properties. They outline the current condition and long-term maintenance needs of a building’s joint assets, such as the roof, plumbing and elevators. The report assesses the building’s condition, estimates the remaining lifespan of its components and projects future repair and replacement costs over 30 years.

B.C.’s mandated change

In April 2024, British Columbia’s provincial government enacted additional regulations regarding obtaining these reports, forcing strata councils and owners to stop burying their heads in the sand and ignoring the need for future planning.

Effective July 1 this year, depreciation reports have become mandatory for any building larger than five strata lots. These reports will also need to be updated on a five-year cycle. Strata corporations can no longer opt-out via a three-quarter vote at an annual or special general meeting. There will be a grace period for allowing the completion of these reports, depending on where the building is located within the province.

Impact of the changes — a surprise for some

What does this mean for owners, buyers and sellers? Some might see the changes as bad news, but the pros outweigh the cons.

“These reports are a great tool in a strata corporation’s toolbox for planning their budget and repairs for the next several years,” comments Pam Zak, vice president of management services at Tribe Management.

For many, these new regulations may have come as a surprise. But those working directly with strata corporations saw the changes coming.

“The recent changes weren’t a surprise for our clients,” Zak adds. “We announced it well in advance, so our portfolio of properties has been well prepared for the new requirements. We received very little negative feedback from clients regarding the changes.”

Two reports go hand in hand, creating some cost savings

With the growing demand for electric vehicles (EVs) and the move away from gas-fired appliances in B.C., the new legislation now requires strata corporations to conduct electrical planning reports to assess their building’s electric infrastructure capacity and the depreciation report.

The electrical planning report intends to provide the strata with an overview of its current electrical capacity and what changes might be needed to upgrade that capacity, including items such as heat pumps and EV charging.

Mack Grigg, project manager with Sense Engineering, notes that these two reports go hand in hand. He says there’s a crossover between the electrical and HVAC equipment that needs to be captured in both a depreciation report and an electrical planning report, so it makes sense for buildings to do both reports simultaneously, which results in some cost savings.

“A depreciation report can be overwhelming for the average homeowner. They’re long and complex,” adds Mack.” That said, an executive summary of a high-level snapshot of the report should be provided, which we find quite helpful for owners. It makes for an easy entry into reading these lengthy reports.”

Cost increases can occur for those who budget according to report recommendations

Although change can be difficult for owners, buyers and sellers, these stricter requirements can be beneficial in the long run. While these changes have perceived downsides, such as potential for increased fees, Zak meets with her team and has not heard of significant increases overall — but that could be different for those who choose to budget according to the report’s recommendations.

Key advantages

The three key advantages of these reports for owners and sellers are financial preparedness, property valuation and sustainability.

When it comes to strata corporations themselves, the reports bring many advantages by helping them plan long-term repairs and upgrades, which can help prevent unexpected expenses for capital projects. They also provide various funding models so owners and buyers know what to expect for expenses down the road. Unlike in other provinces, British Columbian strata corporation owners still have the option of how they want to fund these projects.

Well-maintained buildings with updated reports attract potential buyers by offering transparency on the state of the building and what repairs should be expected in the future, barring unforeseen events. As many buyers look for well-run complexes, future maintenance costs and the building’s financial health can help maintain or increase property value.

Sustainability is at the forefront of real estate. Electrical planning reports ensure building managers know the electrical systems and their capacity. Owners and buyers will know if the building is ready for EV charging infrastructure or what changes need to be made to support the increased demand for more sustainable environmental solutions.

The recent changes to depreciation reports in B.C. represent a significant step forward for property owners and buyers. These updated regulations promote proactive and long-term planning in the real estate market by ensuring that buildings are better maintained and financially prepared for future repairs. In the long run, the enhanced focus on proactive maintenance and informed decision-making will benefit everyone involved.

For the first time since March, the share of Greater Toronto Area (GTA) neighbourhoods experiencing overbidding has increased, signalling growing competition for single-family homes. According to a recent analysis from Wahi, 13 per cent of the 284 neighbourhoods with at least five home sales in September were in overbidding territory — up from 8.0 per cent in August.

While 1.0 per cent of GTA neighbourhoods sold homes at-asking, the majority (86 per cent) of neighbourhoods still saw homes sell below asking price.

“With the start of the historically busier fall real estate market, stronger competition is expected,” says Wahi CEO Benjy Katchen. “However, we’re still seeing transaction levels and bidding activity well below last year’s level for this time of year.”

In September 2023, 24 per cent of GTA neighbourhoods were in overbidding territory, and an additional 3.0 per cent of homes sold at asking.

Demand for single-family homes fuels bidding wars

The competition between housing types is diverging, with condominiums and single-family homes moving in opposite directions. Just 5.0 per cent of neighbourhoods with at least five condominium sales saw overbidding in September, down from 8.0 per cent in August and 10 per cent in the same period last year.

For single-family homes, however, 18 per cent of neighbourhoods experienced overbidding, up from 13 per cent in August. Despite this increase, bidding activity remains far below last year’s levels, when 35 per cent of neighbourhoods saw overbidding for single-family homes.

Most homes still selling below asking

The majority of homes sold in September were purchased for less than their asking price, with 69 per cent of all properties selling below asking — down slightly from 70 per cent in August. A year ago, 61 per cent of homes sold for under their listing price.

By housing type, the trend continues to differ. For single-family homes, 64 per cent were purchased below-asking in September, a slight improvement from August. However, for condominiums, 77 per cent of sales were below asking, consistent with August figures.

Top 5 underbidding GTA neighbourhoods

For the first time in 15 months, Oakville’s Eastlake neighbourhood did not rank among the top five underbidding neighbourhoods in the GTA. Three of the top five underbidding neighbourhoods were located in the City of Toronto, with Forest Hill reclaiming the top spot after placing fourth in June.

Luxury markets priced between $2 million and $4 million dominated the list of underbidding neighbourhoods, with Port Credit in Mississauga being the exception.

Top 5 overbidding GTA neighbourhoods

Toronto neighbourhoods accounted for four of the top five overbidding areas, with St. Clair West leading the way in Old Toronto. The Danforth and Parkwoods were among the GTA’s top overbidding areas in August.