Last month, Calgary’s market continued to move from the strong seller’s market conditions of the spring, the Calgary Real Estate Board (CREB) reports. More inventory and fewer sales brought months of supply to more than two months, a level unseen since 2022.

“As expected, rising new home construction and gains in new listings are starting to support a better-supplied housing market,” says Ann-Marie Lurie, chief economist at CREB. “This trend is expected to continue throughout the remainder of the year, but it’s important to note that supply levels remain low, especially for lower-priced properties. It will take time for supply levels to return to those that support more balanced conditions.”

More inventory driven by higher-priced properties; fewer sales thanks to lower-priced properties

Last month’s inventory reached 4,487 units, 37.3 per cent higher than the year prior but almost 25 per cent lower than long-term trends for August.

Higher-priced properties mostly drove these gains, with more new listings and less sales, at 2,186 — 19.5 per cent less than 2023’s record high yet 17 per cent higher than long-term averages for August. Sales declines were for homes priced below $600,000.

August’s unadjusted residential benchmark price was $601,800, 6.3 per cent higher than last year and slightly lower than last month. The average benchmark price rose by 9.0 per cent year-to-date.

Detached homes

Compared to a year ago, detached home sales fell by 14 per cent. August saw 2,011 detached homes in inventory, with over 85 per cent priced above $600,000, helping push the months of supply up to nearly two months.

August’s unadjusted detached benchmark price was $762,600, just under last month but over 9.0 per cent higher than last year.

Semi-detached homes

For semi-detached properties, the region saw 297 new listings and 172 sales, with a sales-to-new-listings ratio drop to 58 per cent that supported increased inventory and a months of supply jump to nearly two months.

This category’s August unadjusted benchmark price was $681,200, a drop from July but almost 10 per cent higher than last year.

Row homes

Last month, new listings for row homes priced above $400,000 added to year-to-date growth of about 16 per cent, while slower sales over the past quarter also boosted inventory gains. There were 660 row home units available, a 75 per cent increase over particularly low levels reported last year.

This category’s unadjusted benchmark price in August was $461,700, slightly lower than last month but over 12 per cent higher than the year prior.

Apartment condominium homes

August’s new listings of apartment condominium homes reached 1,001, a record high for the month. This was paired with declining sales, which caused the sales-to-new-listings ratio to fall to 60 per cent and inventories to rise to 1,476 units, with months of supply to rise to about two and a half months.

The month’s unadjusted benchmark price was $346,500, similar to July’s and almost 16 per cent higher than 2023’s prices.

Review CREB’s full reports for the city and region.

As the long-awaited decline in interest rates begins to take shape, early insights from Re/Max brokers and agents nationwide suggest the fall’s housing market activity will be steady. According to Re/Max’s 2024 Fall Housing Market Outlook, average sale prices for all housing types are expected to increase between one and six per cent in most regions by the end of the year.

With the next Bank of Canada (BoC) interest rate announcement scheduled for September 4, many Canadians are watching closely. A recent Re/Max survey reveals that 16 per cent of Canadians would feel more comfortable entering the real estate market if the BoC implements a rate cut of more than 100 basis points by the end of the year.

“The fall market is usually a good early indicator for activity as we look ahead to early 2025, and we’re headed toward more healthy territory. With interest rates starting to ease, buyers are beginning to come off the sidelines,” says Christopher Alexander, president, Re/Max Canada. 

However, Alexander notes that while the market is showing signs of life, it won’t necessarily return to historical activity levels without a more substantial move from the Bank of Canada.

Consumer confidence on the rise with remaining challenges

As anticipation builds around further potential interest rate cuts, first-time homebuyer confidence is notably increasing. The survey found that 25 per cent of Canadians are actively saving for a home and believe they will soon be able to purchase, with the most optimism seen among younger Millennials and Gen Zs aged 18-24 (35 per cent).

On the other hand, some current homeowners may find that the rate cuts come too late. 14 per cent of homeowners facing mortgage renewal at higher rates are considering selling their homes due to affordability challenges.

Financial priorities for many Canadians remain focused on day-to-day expenses, such as utilities and food (58 per cent), and travel (45 per cent), with home purchases ranking among the top three priorities for 25 per cent of respondents. Meanwhile, affordability concerns are prompting 28 per cent of Canadians to consider relocating to another country, and 25 per cent are reconsidering starting a family.

Affordability and supply remain key concerns

“Despite some consumer confidence starting to return to the market this season, the reality is Canadians are still grappling with some serious housing affordability challenges rooted in lack of supply. Yes, borrowing is becoming less expensive, but this won’t make housing affordable in the long run,” says Alexander.

As more buyers re-enter the market and available inventory is absorbed, Alexander warns of potential upward pressure on prices. He stresses the need for a comprehensive national housing strategy developed collaboratively by all levels of government to address supply shortages strategically.

“In the meantime, buyers would be wise to work with an experienced real estate agent to help navigate those cyclical market ups and downs that often accompany this push and pull of supply and demand.”

Review the full report, including regional insights.

Recently, the Home Construction Regulatory Authority (HCRA) revoked Mariman Homes’ license to build and sell homes in Ontario. This is the strictest action the authority can take against a licensed builder.

What happened

Due to complaints from purchasers, the HCRA suspended the Hamilton builder’s license last December. An inspection showed it had entered into agreements of purchase and sale for 108 homes without proper authorization and enrollment in Tarion’s warranty program (a requirement to legally build and sell homes in Ontario).

Also, the HCRA discovered that Mariman had allowed its creditors to seek improper price increases from purchasers and failed to hold the deposits it received in trust (as was required under the company’s purchase agreements).

To minimize the impact on purchasers, the HCRA gave Mariman the chance to enroll the homes and prove it could complete construction within the timeframe and price it had committed to. This was done to find a solution that would still allow purchasers to obtain their homes.

Unmet commitments result in revoked license and fines of $400,000

When Mariman was unable to satisfy its commitments, the HCRA revoked its license and ordered it to pay $400,000 in administrative penalties. In the end, the company sold over 100 homes it was not authorized to sell.

“Given these infractions, including a history of financial mismanagement, the HCRA has revoked Mariman’s license to build and sell new homes,” says Wendy Moir, chief executive officer and registrar of the HCRA. “This builder’s past and present conduct raises serious doubts about its ability to operate their business lawfully and with honesty and integrity.”

A ‘textbook example of why builders and sellers must go through the licensing and enrollment process’

Moir stresses, “This is a textbook example of why builders and sellers must go through the licensing and enrollment process. These standards are designed to ensure builders have the competency and financial capability to operate a business before they collect money from purchasers.”

Mariman is currently undergoing receivership proceedings in the Ontario Superior Court of Justice. Tarion is monitoring the situation for any impact on deposit protection coverage for purchasers.

Results from the Canadian Home Builders’ Association (CHBA) 2024 Q2 Housing Market Index (HMI) showed even worse builder sentiment than the previous quarter across key Canadian regions.

CHBA reports that new home sales figures indicate housing starts activity won’t materially pick up in the near future. What’s particularly concerning is the record HMI lows in Ontario (11.6/100 for single and multi-family dwellings) and British Columbia (17.8/100 for single-family and 32.5/100 for multi-family dwellings) combined with the large affordability challenges and need for more supply these provinces face.

The association also points out that the slowdown’s full effects are yet to be felt in housing starts because of long building timelines, especially for multi-family structures.

Over 60% of builders expect half the housing starts this year as were in 2023

Nationally, 48 per cent of HMI respondents stated they’re building fewer units than they otherwise would have as a result of challenges with mortgage qualifications for their customers, while 22 per cent stated that lack of sales has led to the cancellation of projects. 61 per cent of respondents expect an average of half the number of housing starts this year compared to 2023.

“The slowly dropping interest rate environment is not enough to counter the restrictive mortgage rules contributing to buyers’ inability to enter the market with today’s house prices. Canada continues to need both more supply and changes to mortgage rules to help drive the construction of that supply,” says CHBA CEO Kevin Lee.

‘Much more policy change is needed to turn the tides and get housing supply momentum underway’

Lee continues: “If buyers can’t get better access to mortgages, and municipalities don’t lower development taxes and address the barriers to home building, the chronic undersupply of homes will only get worse in many areas of the country, which will drive up house prices again. Much more policy change is needed to turn the tides and get housing supply momentum underway.”

‘Every level of government must tackle this problem from every angle’ — what’s still needed?

As of August 1, first-time buyers of new construction homes can access 30-year amortizations on insured mortgages, which Lee describes as an “important action to help the next generation of well-qualified individuals into the market.” He explains that more relief on the mortgage front is still needed though, through means like expanding 30-year amortizations on all insured mortgages for new construction.

“We also need revisions to the mortgage stress test to make it dynamic and lower it at higher rates. Every level of government must tackle this problem from every angle, in concert,” he stresses.

Get more information on CHBA’s HMI, including detailed methodology and key takeaways.

While there were early signs of renewed momentum in June following the Bank of Canada’s first interest rate cut since 2020, activity in Canada’s housing market took a pause in July, according to data released earlier this month by the Canadian Real Estate Association (CREA).

“With another rate cut announced on July 24, we’ve now seen two rate cuts in a row, and the expected pace of future policy easing has steepened considerably, with markets now anticipating rate cuts at every remaining Bank of Canada decision this year,” Shaun Cathcart, CREA’s senior economist, says in a statement.

“Combine that with a record amount of demand waiting in the wings, and the forecast for a rekindling of Canadian housing activity going into 2025 has just gone from a layup to a slam dunk.”

According to CREA, in July:

• National home sales decreased 0.7 per cent month-over-month
• Actual monthly activity was 4.8 per cent above July 2023
• Number of newly listed properties was up 0.9 per cent month-over-month
• MLS Home Price Index was up 0.2 per cent month-over-month but was down 3.9 per cent year-over-year (benchmark price was $718,700)
• Actual national average sale price ($667,317) was down just 0.2 per cent year-over-year

Uptick in market interest since interest rate cuts

Phil Soper, CEO of Royal LePage, says there has been a material uptick in market interest since the Bank of Canada started cutting interest rates. 

“Our principal portal which is royallepage.ca is the busiest real estate company portal in the country. Not as busy as realtor.ca … Every week I get an update from our IT team on royallepage.ca and we’ve seen a material uptick in viewership and engagement in our planning tools.”

Soper notes that a leading indicator is the increasing number of people using the site is unusual for August: “August is typically a very slow month. Things pick up at the end of August and into September. It’s indicative of re-ignited interest.”

He says the final leading indicator is the brand’s showings system, which clients use to book property showings with their realtors: “We saw an uptick in that in July. There’s clearly more interest and I believe it’s related to three principal things.

One, variable rate mortgages are cheaper given that the bank rate has come down. Two, fixed-rate mortgages are cheaper given the state of the bond market and the slowing economy — we’ve seen a real material drop in the popular five-year fixed. The third is building demand. We had this very large influx of new Canadians in 2022 (and) 2023 — a record. That’s going to put pressure on the entire housing ecosystem.”

Soper says demand is building and it will be released at some time. There will be an uptick in sales volume triggered by cheaper borrowing and pent-up demand should result in a busy fall. 

He believes those most impacted by higher interest rates, the overall lack of consumer confidence in the economy and the housing market in general are predominantly renters or first-time homebuyers. “That’s a big piece of the puzzle.”

Alberta, Nova Scotia, New Brunswick strong while Ontario struggles

Listings are going up because existing homeowners are seeing some positive indicators. However, Christopher Alexander, president of Re/Max Canada, says province by province is a different story.

“The year started off with a bang. Lots of anticipation that the Bank of Canada was going to start a series of rate cuts in the spring. That never materialized so you had this kind of malaise and slowness for several months, and then a strong majority of economists were insisting there would be rate cuts in June, so the market almost stopped in May. Then we got the rate cut and it really did nothing, but after the second rate cut we’re seeing renewed activity,” he notes.

“Alberta has been strong. New Brunswick and Nova Scotia have been pretty strong. Ontario has really struggled with slower market conditions.”

Alexander expects the market will see a renewed sense of urgency from buyers. 

“We’ve got a lot of inventory, so that should keep prices in check for the foreseeable future. We’re expecting more rate cuts and I think once the overnight rate gets to around four per cent, we’ll see sustained activity. All the indicators are showing we’re entering healthy territory again which is a good thing,” he says. 

‘End of the slump in most of Canada by end of this year’ but deeper rate cuts needed

Robert Hogue, assistant chief economist with RBC Economics, described the Canadian real estate market as slow, generally speaking, with obviously some variances across the country. Prices are mostly flat and some condominium prices are under pressure.

“We’ll need more interest rate cuts to get the market going,” he notes. “It’s a fairly slow grind this summer but it remains our view that as we get more rate cuts it’s going to translate more into lower mortgage rates, and that should get the market going a little faster.

We’re not expecting a big boom or anything like that but it will be the end of the slump in most of Canada by the end of this year.”

Hogue says the Bank of Canada’s interest rate cuts in June and July likely marked a turning point for struggling housing markets across the country, but so far the impact has been mixed. He says it will take deeper rate cuts to meaningfully reduce ownership costs and stimulate homebuyer demand more broadly.

“Supply, on the other hand, continues to grow. In some cases, such as in Toronto, it reflects the completion of many newly built units (mainly condominiums) that owners (mainly investors) are looking to offload. In other cases, it could be sellers betting lower rates will spur buyer interest and improve sale outcomes. In some, it may be a sign of homeowner distress arising from high rates,” notes Hogue.

He goes on to say that the balance between supply and demand varies considerably from market to market. “Conditions in Calgary, Edmonton and, to a lesser extent, Montreal favour sellers. It’s the opposite in the Toronto area where buyers have the upper hand — albeit just barely. A tenuous equilibrium holds in Vancouver.”

However, Hogue also points out that home prices have generally levelled off since spring. “Calgary — Canada’s housing hotspot — remains an exception, though gains have moderated recently. We see flat price trends persisting until larger rate cuts heat up demand more materially.”

Total listings up nearly 23%, sales-to-new listings below long-term average but balanced

According to CREA, at the end of July, there were about 183,450 properties listed for sale across Canada, up 22.7 per cent from the prior year but still about 10 per cent below historical averages (more than 200,000 for this time of the year). New listings were up slightly by 0.9 per cent month-over-month. 

The national sales-to-new listings ratio went down 0.8 per cent from June to 52.7 per cent last month. CREA notes the long-term average for the national sales-to-new listings ratio is 55 per cent, with a ratio between 45 per cent and 65 per cent generally consistent with balanced housing market conditions.

The term “missing middle” has become as common in today’s real estate vocabulary as “a hot market” or “location, location, location.” Cliches often have some truth in them — and in the case of the “missing middle,” it’s gaining traction in the Canadian real estate market in part due to the rise of a newer property type: multiplexes.

Changes in B.C. and Toronto

Multiplexes are residential homes that consist of multiple separate units within what would have traditionally been a lot designated for a single detached home. They can generally vary from two to eight units.

In 2023, British Columbia made amendments to their Housing Statutes (Residential Development) Amendment Act — more commonly referred to as “Bill 44.” That same year, Toronto’s city council adopted its own Official Plan Amendment and Zoning Bylaw Amendment to allow multiplexes throughout the city.  

Jasmine Cracknell-Young, vice president of market advisory at Zonda, saw that the rise of multiplex listings in Toronto jumped dramatically since these amendments. According to the Toronto Regional Real Estate Board (TRREB), in 2023 there were 115 listings and in 2024, 168 listings — a 46.1 per cent increase.

“I think because housing has become such a hot topic, we have all levels of government finally talking about it because they realize the crisis that we’re in,” she comments. 

A ‘tiny part of the market’: Legislation may not go far enough

Chris Spoke, builder and developer with Toronto Standard, has seen firsthand the impact of these legal changes on housing projects. Personally, he doesn’t believe the legislation goes far enough. 

“So we have five residential zones in Toronto. Two of those residential zones do support multi-unit housing, but the zoning bylaws paired with the city’s Official Plan and the language of it is if there’s any new development within the neighborhood’s designation, it has to respect and reinforce the existing physical character.

(This) means that even if the zoning technically allows for multi-unit housing, if it’s not consistent with the existing physical character, then you’re not going to get past this test,” Spoke explains. “We’ve still not seen a lot of activity because I think the multiplex bylaw doesn’t go far enough in terms of the permissions. So it’s still like a tiny part of the market.”

Optimism and opposition: Major Streets Study

However, Spoke is optimistic that multiplexes will continue to rise in popularity in Toronto, particularly with the momentum surrounding the Major Streets Study which “focuses on permitting gentle density — missing middle housing — on major streets in low-rise neighbourhoods across Toronto.”

“These are the major arterials in the city that have bus routes on them,” adds Spoke. “So this also opened up a new scale of development in parts of the city where it was not legal before.”

However, these policies are met with some opposition. When it comes to the Major Streets Policy, traffic is a big concern among current residents.

“It’s always traffic,” shares Cracknell-Young. “They just think it’s taking up road space.”

Bill 44 in B.C. addresses these concerns by eliminating new vehicles from entering neighbourhoods altogether in some cases: if a housing project is within 400 metres of a transit stop, no minimum parking is required. Transportation accessibility is poised to play a significant role in the development of multiplex housing.

Ottawa: Multiplex increases expected post-bylaw approval in 2025

Nachiket Kulkarni, an architectural designer with Architrix Studio, has worked on multiplex projects both in Vancouver and Ottawa, where he now lives.

“Ottawa would be two or three years behind Vancouver when it comes to that change,” he says. “So whatever happens in Vancouver right now, the same change would be in Ottawa two or three years down the line in terms of multiplexes.”

While Kulkarni has seen a big shift towards more multiplex development over the past couple of years in Ottawa, he anticipates that to increase even further after December 2025, when the new zoning bylaw is expected to have final approval.

“In Ottawa, they’ve consolidated the number of zones into just six zones now, just like Vancouver did,” adds Kulkarni.

In October 2023, the City of Vancouver implemented a new zoning designation, “R1-1,” otherwise known as “Residential Inclusive.” This was put in place to replace and simplify the previous zoning structure, which included various RS (One-Family Dwelling), RT (Two-Family Dwelling) and RM (Multiple Dwelling) designations.

And similar to Toronto and Vancouver, Ottawa’s changes will also aim to reduce parking requirements.

‘Citizen developers’ on the rise

Spoke believes that with these new changes, multiplexes will open the door towards something he refers to as “citizen developers:” where those such as home builders, general contractors and even everyday homeowners can actively participate in building up new housing opportunities.

“Multiplexes offer a form of development that’s accessible to people who haven’t worked professionally as developers,” Spoke says.

While multiplexes will likely not solve all of our housing problems overnight, they provide an opportunity to think of density in a more nuanced manner. 

“I think it’s a really great product form. You can have multiplexes go into existing communities and have people of different incomes and demographics able to access some of the best communities that we have,” says Cracknell-Young. “To stop the sprawl and have more people in our existing communities where it’s possible … I hope that we will see more of them.”

Image: ShapeYourCity.ca

In July, Ottawa’s housing market saw a significant uptick in activity, with 1,241 homes sold through the MLS system, the Ottawa Real Estate Board (OREB) reports. This marks a 13.6 per cent increase from July 2023, signaling a strong month for sales.

However, despite this surge, home sales were still 7.1 per cent below the five-year average and 8.8 per cent below the 10-year average for the month of July. Year-to-date, total home sales reached 8,349 units in July, a 5.5 per cent increase compared to the same period in 2023.

Encouraging market activity but Ottawa needs supply-side action

“As the market pace typically slows in the summer, July’s activity is encouraging and could be a sign of more gains ahead,” says OREB president Curtis Fillier. “Buyer confidence is slowly but surely catching up while sellers continue to add a steady stream of new listings. Of course, the extent to which that translates into transactions depends on the type of properties and price points available in our communities as supply and affordability issues persist.”

“It’s too early to tell, but recent policy developments could be a boost,” says Fillier. “Two consecutive interest rate cuts by the Bank of Canada, coupled with the federal government’s introduction of 30-year amortization periods on mortgages for first-time homebuyers purchasing newly built homes, will help some buyers. However, these are demand policies, and Ottawa — as well as many cities across the country — needs action on the supply side.”

Housing supply growth challenges and OREB’s response

The Bank of Canada’s Monetary Policy Report highlighted ongoing challenges in housing supply growth, pointing to municipal zoning restrictions and high development fees as significant barriers. Recent Ontario government data underscores these challenges, showing that Ottawa has built 1,593 homes out of its 12,583 target for 2024.

In response, OREB and its member realtors continue to advocate for solutions to the housing crisis, including allowing four units per lot and reducing high development fees.

Source: OREB

July prices

The overall MLS Home Price Index (HPI) composite benchmark price was $648,900 in July, a slight increase of 0.1 per cent from July 2023.

The benchmark price for single-family homes was $734,700, down 0.1 per cent year-over-year. Townhouse/row units saw a 3.4 per cent increase, with a benchmark price of $506,100. The benchmark apartment price was $422,800, a 0.9 per cent decrease from the previous year.

The average price of homes sold in July 2024 was $679,610, down 2.1 per cent from July 2023. Year-to-date, the average price stood at $681,082, up 1.0 per cent from last year.

July inventory & new listings

July 2024 also saw a 17.1 per cent increase in new residential listings, with 2,231 new listings hitting the market. This figure was 6.3 per cent above the five-year average and 6.9 per cent above the 10-year average for the month of July.

Active residential listings reached 3,480 units by the end of July, marking a 37 per cent increase from the previous year. This inventory level was 50.6 per cent above the five-year average but 2.3 per cent below the 10-year average for July. The months of inventory rose to 2.8 months in July, up from 2.3 months during the same time in 2023.

Review the full report here.

As real estate professionals, we’re well aware of the challenges facing today’s housing market, especially for younger buyers. Millennials and Gen Z are finding it increasingly difficult to break into the market due to soaring property prices, high interest rates and the ongoing cost of living crisis.

However, shared homeownership is emerging as a strategic solution, offering a creative pathway to homeownership that aligns perfectly with current market trends.

A shift in homeownership dreams

Homeownership has long been synonymous with stability, wealth and personal success — the quintessential Canadian dream. Yet, this dream seems increasingly out of reach for many younger Canadians.

A recent BMO survey highlights a significant generational shift, with 68 per cent of Canadians believing that buying a home is less attainable now than it was for their parents. This sentiment is even stronger among Gen Z and younger Millennials, who are navigating an unprecedented affordability crisis.

The financial landscape 

The National Bank of Canada reports that housing affordability has reached record lows, particularly in major urban centres. For example, in Vancouver, the cost of a home has surged to 14.5 times the median household income, while in Toronto it stands at 11.8 times and in Victoria, 10.7 times. Meanwhile, the cost of living has increased substantially, with rent prices in urban centres like Vancouver and Toronto averaging $2,500 to $3,000 per month for a two-bedroom apartment and exceeding $3,500 for single-family homes.

These financial pressures highlight the need for innovative solutions to make the dream of owning a home achievable for younger generations once again.

The co-ownership advantage

Shared homeownership offers many benefits that make it an attractive option for prospective buyers. By dividing the costs of a down payment, mortgage and maintenance fees, this approach makes it possible for individuals to enter the housing market sooner and with less financial impact. Sharing the financial responsibility reduces the risk for each co-owner, making the investment and monthly obligations more manageable.

A Royal LePage survey conducted by Leger reveals that six per cent of Canadian homeowners co-own their property with another party, not including their spouse or significant other, and that number is growing. According to a study by Compare the Market, 61 per cent of Canadian respondents expressed willingness to buy a home with friends or family to offset costs. The concept is simple: multiple parties jointly purchase a property, sharing the costs and benefits. 

One approach to shared homeownership involves parents co-signing mortgages to help their children qualify for better financing, leveraging their financial stability for improved terms and interest rates. This has led to more multigenerational homes, where families either live together or parents provide a financial investment while living separately.

Another common structure is Tenancy in Common (TIC), allowing multiple parties to own undivided shares of a property. Each owner holds a specific percentage and has the right to use the entire property, making TIC ideal for friends or family members co-owning a home while maintaining individual ownership stakes.

A case study in modern shared homeownership

Consider the case of Liane Van Raalte, a Squamish, British Columbia-based realtor. She and her family invested in two presale units at Sokana, a Kerkhoff Develop-Build development in Penticton, B.C. Developments like this go beyond simply providing homes; they offer a lifestyle specifically designed for the new generation of homebuyers.

Increasingly, new developments are transforming the concept of co-ownership by including resort-style amenities that elevate the shared living experience. These features make shared ownership even more appealing by providing benefits that individual buyers might struggle to afford on their own.

Co-owners can enjoy state-of-the-art co-working spaces, fitness centers, rooftop pools and communal areas, enhancing their overall lifestyle. This approach shows that shared ownership not only makes homeownership more affordable but also enriches the living experience, making it a highly attractive option for today’s younger generation of buyers.

For Van Raalte, the decision to invest in Sokana was driven by the development’s unique offerings and blend of practical and luxurious amenities. “We wanted to invest in something with our children that they may potentially live in down the road while starting to build equity now, rather than wait until they are more settled in their lives,” she explains.

Key considerations for co-ownership

While shared homeownership offers many benefits, it requires careful planning and clear agreements to ensure a smooth experience. Here are some essential factors to consider when counselling clients on co-ownership options:

1. Legal agreements. Advise clients to draft a comprehensive co-ownership agreement. This document should clearly outline each party’s rights and obligations, detail financial contributions and include processes for dispute resolution and exit strategies. A well-drafted agreement is crucial for protecting all parties involved.

2. Financial contributions. Emphasize the importance of clearly defining each party’s financial responsibilities. This includes the initial down payment, mortgage payments, property taxes and ongoing maintenance costs. Clear financial delineation helps prevent misunderstandings and conflicts.

3. Responsibilities and maintenance. Encourage clients to establish a detailed plan for property upkeep and repairs. This ensures that the property is well-maintained and helps prevent disputes over maintenance responsibilities.

4. Exit strategies. Stress the necessity of a well-defined exit strategy. This should cover the process for selling a party’s share of the property, valuation methods and rights of first refusal for remaining co-owners. Having these details sorted in advance can prevent contentious separations.

5. Conflict resolution. Recommend including mediation or arbitration clauses in the co-ownership agreement. These can help resolve disputes amicably and avoid costly legal battles.

Understanding and promoting shared homeownership can help you better serve your clients, particularly Millennials and Gen Z. This model not only makes homeownership more accessible but also aligns with the evolving needs and financial realities of younger generations. By embracing innovative approaches like co-ownership, you can help turn the dream of homeownership into a reality for more Canadians.

The Greater Toronto Area (GTA) housing market saw a noticeable drop in bidding competition this July, marking the fourth consecutive month of decline, according to Wahi.

Only 14 per cent of GTA neighbourhoods experienced overbidding, down from 27 per cent in June, as homebuyers took advantage of nearly 10,000 more active listings compared to last year.

“The spring selling season that never was has been followed by a slower-than-usual summer,” says Wahi CEO Benjy Katchen. That said, Katchen notes that homebuyers have a lot of choice, which is “helping more buyers negotiate better deals and purchase homes below-asking.”

Sales and price drops, longer days-on-market

Despite a 12 per cent year-over-year drop in sales with 4,991 homes sold in the GTA, the median price of a home fell slightly by 2.0 per cent, settling at $960,000.

Homes also stayed on the market longer, with the average number of days increasing to 24, up from 17 last July.

Overbidding and underbidding in the GTA

The GTA’s share of overbid neighbourhoods was down year-over-year. In July 2023, more than a third (38 per cent) were in overbidding territory. Now, this share has dropped to the lowest level since January, which saw zero per cent of neighbourhoods overbid. 

For only single-family homes specifically, 23 per cent of neighbourhoods were overbid, compared to 6.0 per cent for condominiums.

As for underbidding, for the 14th consecutive month, Oakville’s Eastlake was in the top five and is the only carryover from June’s top five.

Hamilton: ‘Showing more signs of life than some Ontario cities’

In contrast, Hamilton’s housing market is experiencing a resurgence in competition. Wahi reveals that 18 per cent of Hamilton neighbourhoods were in overbidding territory, a significant jump from 7.0 per cent in the first quarter.

Central Hamilton neighbourhoods, in particular, had the strongest bidding activity, with the majority of overbidding neighbourhoods and four of the top five located there.

The city saw 2,221 homes sold at a median price of $780,000.

“Hamilton is showing more signs of life than some Ontario cities,” notes Katchen. “It will be interesting to see whether the Bank of Canada’s July rate cut encourages more bidding competition in the third quarter.”

A new report from Re/Max Canada reveals that the detached housing market in the Greater Toronto Area (GTA), Greater Vancouver and Fraser Valley is being fueled primarily by investors and move-up buyers.

With first-time homebuyers increasingly priced out of these expensive markets, those looking to upgrade or invest in real estate have become the main drivers of sales activity in the first half of 2024.

‘The first (June’s) interest rate cut did little to incentivize buyers, but the second may have struck a nerve’

“While affordability remains the top obstacle for first-time homebuyers, more experienced buyers and investors are taking advantage of softer housing values, making their moves ahead of the Bank of Canada’s (BoC) end to quantitative tightening,” says Re/Max Canada president Christopher Alexander.

“Pent-up demand continues to build, with an estimated 20,000 to 25,000 buyers currently lying in wait in the GTA, and another 5,000 buyers in the Greater Vancouver area ready to pull the trigger. The first interest rate cut in June did little to incentivize buyers, but early indications show the second may have struck a nerve.”

The Re/Max Hot Pocket Communities Report found that nearly 40 per cent of the surveyed markets (33 out of 83) reported an increase in detached home values in the first six months of 2024, while 30 per cent of markets (25 out of 83) saw a rise in the number of sales. This indicates a robust demand for detached homes, even in the face of affordability challenges.

GTA: Sales momentum and price increases

In the GTA, the 416 area code (encompassing Toronto proper) has shown the strongest sales momentum. Just over 34 per cent of neighbourhoods there either remained stable or experienced growth in detached homebuying activity, outpacing the 905 area code as well as Greater Vancouver and Fraser Valley. This resurgence is particularly notable given the region’s challenging real estate landscape, where high prices have kept many first-time buyers on the sidelines.

Specific neighbourhoods in Toronto have seen notable increases in homebuying activity. Areas such as Dufferin Grove, Little Portugal, Trinity-Bellwoods and Rosedale-Moore Park have all reported significant gains in sales.

On the pricing front, the West End of Toronto has led the way with some of the highest increases in detached housing values. For example, neighbourhoods like Kingsway South and High Park North have seen prices rise by over 7.0 per cent to 9.0 per cent compared to last year.

Greater Vancouver and Fraser Valley: Limited inventory drives price appreciation

In British Columbia, limited inventory has been a critical factor supporting price appreciation in the detached home category, particularly in the Fraser Valley, with over 83 per cent of its local markets reporting an increase in average prices. This is followed closely by Greater Vancouver, where over 70 per cent of neighbourhoods have noted rising median values.

Areas such as Squamish, Burnaby and Port Coquitlam have experienced some of the largest price gains, with median home values increasing by as much as 14.2 per cent. Despite the rising prices, demand remains strong, driven by a combination of local buyers and investors looking to capitalize on the region’s long-term growth potential.

Change in investor activity

The report highlights a notable shift in investor behaviour, particularly in the GTA. Disenchanted with the performance of condominiums, many investors are now turning their attention to detached homes, especially on smaller lots in Toronto’s east end.

A recent report by Urbanation and CIBC Economics found that condominium investors who closed on newly completed units in 2023 faced negative cash flow (of nearly $600 per month), which has prompted many to reconsider their investment strategies.

Affordable housing and the first-time buyer dilemma

While the report highlights significant price appreciation in many markets, it also underscores the challenges facing first-time buyers. Affordability remains a significant barrier, particularly in high-demand regions like the GTA and Greater Vancouver. However, there are still pockets of affordability within these markets.

Regions like Durham in the GTA and the Sunshine Coast in Greater Vancouver offer detached homes priced under $1 million, providing opportunities for those looking to enter the housing market.

The report also calls for policy changes to address the affordability crisis. One suggestion is to extend longer amortization periods (up to 30 years) to resale homes, similar to what is currently available for new construction. While it may not be enough, it could help more buyers qualify for mortgages in high-priced markets and provide some relief to the ongoing affordability challenges.

“All boats rise with the tide — once the first-time buyers segment gains greater traction, we should see a ripple effect,” says Alexander. “We’re not there quite yet, but the tide is beginning to turn … The gap is closing amid growing buyer confidence. The only dark cloud on the horizon is the possibility of a U.S. recession given stock market volatility.”

Alexander stresses that being so closely tied to the U.S. economy, Canada is not insulated, and we can expect buyers to “stay tuned to any possible economic headwinds.”

Review the full report, including market overviews, here.