With the future of housing on our minds, TRREB President Kevin Crigger hosted the Real Estate Now virtual event to break down what’s unfolding in the industry. On November 4, over 3,000 Members registered to hear industry experts and insiders discuss supply issues, increasing demand, the rebounding condo market and state of the mortgage industry.
Ongoing Obstacle of Tight Supply
Looking at the last eleven months, some marked record-breaking sales. The demand for homeownership pushed the average price of a home to an all-time high.
“Homeownership is the Canadian dream and the fourth pillar of retirement planning for the average resident. But now it seems like it may be slipping away. We have been saying for many years that an increased supply of homes is the only true tool to solve the key issues facing the Canadian housing markets,” said TRREB CEO John DiMichele.
It’s not surprising the federal election sparked discussions on moving beyond band-aid solutions to increase housing supply in the Greater Toronto Area (GTA). John DiMichele outlined how the Liberal government plans to build more homes, as well as the new programs for first-time buyers.
A Rebound in the Condo Market
While sales for detached, semi-detached and townhome markets soared, the condo market took another direction earlier this year. The start of the COVID-19 pandemic had buyers re-considering where they wanted to live. More buyers said goodbye to their condos and headed to the city’s outskirts for more space.
At the event, TRREB Chief Market Analyst Jason Mercer updated attendees on the rebound of condo sales to pre-pandemic levels.
Jason shared, “We’ve seen a return to normal for the condo market, and a lot of that had to do with more people entering homeownership for the first time. Through consumer polling, we found that about 40 per cent were first-time buyers and this had an impact on the condo market,” said Jason Mercer.
Mortgage Rate Hikes
Climbing mortgage rates are on the horizon as the economy recovers.
The President & CEO of Mortgage Professionals Canada, Paul Taylor, shared two scenarios if rates are raised much higher than what buyers can currently expect through a bank or lender.
“If interest rates move too quickly, the cost of debt will increase and slow economic activity. But if rates are not raised, inflation rates could increase and also present new challenges for the economy,” said Paul.
Explore more real estate trends by watching the full event. Plus, hear what Members asked in the Q&A session.