After years of a severe housing shortage and many buyers being shut out of the market, the times are changing in Canada’s housing sector.
As Calgary realtors Anna Kaufman and Rut Kaufman-Aronovich were gearing up for a busy weekend of showing houses, they told Global News a new kind of clientele is emerging.
A few years ago, the new side-by-side in the community of Logan Landing that they were showing off on Friday would have attracted buyers aiming to upsize from a condo or buyers looking for an investment property to rent.
But Kaufman-Aronovich said it’s now attracting a new kind of buyer. “We’re now seeing a lot more new buyers who’ve never been in the market before.”
Realtors say the federal government’s GST rebate for first-time home buyers and a softening of the rental market are the big reasons for the change.
Data from the Canada Mortgage and Housing Corporation shows rental inventory is on the upswing in Calgary — with 3,100 available units in March.
That’s a 15 per cent increase from a year ago and the situation is similar in other large Canadian cities.
“The amount of time it’s taking to find tenants has greatly increased to about 45 days,” explained Shamon Kuresh, of the Calgary Residential Rental Association.
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“We’ve found the vacancy rate has increased drastically, now sitting at about five and a half per cent.”
At the same time, the average rental price is down by nearly the same rate in Calgary, sitting just below $1,800.
And Calgary’s rent-to-income ratio is lower than other comparable markets, like Edmonton or Vancouver.
“Why rent when you can own?” asked realtor, Len T. Wong. “You’re seeing some of those people get into the marketplace (and) interest rates right now are pretty good.”
Wong, who’s spent years working in the local real-estate market, said it’s also opening up more inventory because “a lot of the people who were buying for investment purposes aren’t getting the same rate of return (so) now they’re selling the property.”
That’s opening up opportunities for people who might not have thought it was possible.
“It’s super exciting,” Kaufman Aronovich said. “Before, we’d be looking at a townhome, maybe a condo, depending on what part of the city you’re in. But now you can go down to a suburb, they have a front yard, they have a back yard.”
While industry experts don’t have a crystal ball to predict how long the correction in the market will continue, Kaufman has some advice for those thinking of taking the leap.
“Prices might go up, prices might go down, but the time might be perfect for you.”
Don’t ever trust a real estate agent or used car dealer.
Rent faster says there is 7800 units available
People are noticing the upside of buying an older well maintained 30+ year old home to be a better buy, compared to the newer ones that were quickly slapped together between 10-20 years ago because of the population explosion. Most of those cheap built homes (boxes) were built by inexperienced laborers. I’ve been in a couple to see the cheapness, such as: skinny baseboards, cheap paint wearing thin, leaking roofs staining the ceiling inside the homes. So many problems to expect inside those cheap built boxes. And if you think your new home insurance will cover it all on your new buy, be prepared to wait a year or longer to have it fixed.
Bidding on a Home should have never started to begin with. Taken over by the Greedy Real Estate Industries, even in the U.K. It’s supposed to be a Home not an Art piece from an Estate Sale. Why is this Illegality still being allowed to continue?
The sad thing to see in this housing “crisis” is the behaviour of the Real Estate Industry. They are now reaping what they have sown with their bidding wars (illegal auctions) and their greed of trying to recreate the 2021 – 4 glory years. No manner of spin is going to create that sort of market again as prices have just climbed too high. Now this spin of trying to get buyers interested again. “New kind of buyer?” No, not really. Not going to happen unless prices come down, which won’t happen as a lot of folks bought when the market was buzzing a few years ago and now will not see any return on their home purchase. Some will see a loss. Sad, but the reality of the realty.
Mortgage, loosely translated from French, means “death grip”.
If you think the incentives offered are in your best interest, sorry to disappoint you. The banks are still the real winners, and the extended length of your mortgage will only make the lenders richer.
Don’t forget, the older the house the higher the maintenance costs, there’s always something to replace or replace. Like a dead furnace in the middle of the winter. Believe me, I know.
Still, I’m grateful I have a house as my “death grip” payment is still way better than if I were to rent.
Cost of borrowing is never talked about ! Banks take advantage of anyone that barely qualifies for mortgage in Canada you will pay forever is what they wish for