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SATURDAY, MAY 4, 2019 | THE GLOBE AND MAIL G E3

CANADIANS HAVE ALWAYS enjoyedgetting off the grid and cottages holda special place in our national identi-ty. For many, a recreational propertyis the fulfillment of a dream. Thewaterfront beckons.

For baby boomers and retireeswho are flush with cash after sellingtheir homes in such hot markets asthe Greater Toronto Area, this dreamis coming true at an acceleratingpace.

“Retirees are the key to thismarket in Ontario and for GTA resi-dents in particular,” says Cam Forbes,general manager and broker ofRE/MAX Realtron Realty Inc., which isbased in the GTA. “There really aren’tvery many millennials buying in therecreational market largely becausemost can’t afford to do so.”

Retirees are buying recreationalproperties in two ways. They areeither selling their GTA homes andbuying a recreational property to livein, Forbes says. Or, they are downsiz-ing to smaller properties such ascondos in the GTA, then buyingrecreational properties as vacationspots.

The RE/MAX 2018 RecreationalProperty Report shows that, asCanada’s residential market hasrecovered, recreational property hasexperienced a surge.

The findings from this latest reportshow that one quarter of Canadianswould consider buying a recreationalproperty in the future. Those sur-veyed said the top reason is to havea place to go where they can relaxand spend time with friends andfamily.

In 2017, slightly more than half ofregions surveyed had retirees drivingthe market, the report says. In 2018,91 per cent of popular Canadianrecreational markets were beingdriven by retirees.

“Waterfront property is still thedream, but the reality of affordabilitycomes to bear,” Forbes says. “So,people seeking recreational [proper-ties] are now looking at propertiesthat are a bit smaller, maybe a condowhere you’d be near water but alsohave access to things such as golfand skiing, such as Collingwood.”

One of the waterfront devel-opments that are selling briskly isStone & South’s condominiumproject in Gananoque, Ont. Prices forthe luxury dockside residences startat $500,000 and occupancy isscheduled for next spring. The townof Gananoque is 287 kilometres eastof Toronto and located on the northshore of the St. Lawrence River.

“Everyone who comes here lovesbeing on the water,” says Stone &South spokesperson Mariah Hamil-ton. “Gananoque is well-known asthe Canadian gateway to the Thou-sand Islands. They can open theirfront door, then walk to a restaurantor theatre or even their boat slip.”

Buyers from larger urban centres

are drawn by both the beauty of theregion and a simpler lifestyle, shesays. With access to the train, High-way 401 and airports, they can be inToronto or Montreal within threehours.

Sixty per cent of the buyers arefrom the GTA. For those seeking thewaterfront dream, just 28 suitesremain within the project’s 70 con-dominiums.

“Many of our buyers are downsiz-ing and this is replacing their cottageas their summer home,” Hamiltonsays.

“Some will live here during thesummer and go away for the win-ter.”

For buyers who are still workingwith the aim of returning to the GTAa few times a week, the trend ofworking from home is allowing themto live on the waterfront whileenjoying the best of both worlds,Hamilton says.

While condo developments areselling strongly, Forbes says, manyCanadians are still looking for atraditional cottage. For buyers look-ing for a site near clean lakes that hasgood value, Forbes suggests theylook in the area of Parry Sound, Ont.,located about 225 kilometres northof Toronto.

He says prospective buyers couldfind a reasonable cottage that hashad some renovations at about the$400,000 price point, althoughshouldn’t expect it to be sitting righton the waterfront.

“Retirees are still looking for thatdetached cottage that is winterizedand available throughout the year,”Forbes says. “They’re looking forsomething not too far off a mainroad for snowplowing.”

For those who want to dream big,how about purchasing your ownisland? And you may not have to bea retired NHL or movie star to do so.

In fact, 12 per cent of Canadianswould consider owning an islandproperty, according to the RE/MAXreport.

The Thousand Islands is fastbecoming the next Muskoka, saysKim Lunman, publisher of Island LifeMagazine, a magazine about theThousand Islands that is distributedin Ontario and New York.

“Island life here comes withsignificantly less sticker shock forthose wishing to buy a piece ofparadise,” Lunman says.

In recent years, the archipelago of1,864 islands on the Saint LawrenceRiver between Kingston and Brock-ville, Ont., and northern New York’sCape Vincent and Morristown, hasbecome a popular retirement desti-nation for boomers seeking affor-dable waterfront properties.

While some Canadian islandproperties with cottages in theThousand Islands are listed as low as$350,000 to $400,000, more lavishmainland waterfront properties andislands are palatial, multi-milliondollar estates. Eagle Point, an opulentmansion on the Saint Lawrence Rivereast of Gananoque was listed in 2012for a staggering $20-million and hassince been resold.

One can always dream.

SPONSOR CONTENT

BUYING THE DREAM: JUST ADD WATERRetirees are flockingto recreational properties,opting for both cottageand condominium living

The Thousand Islands region of Ontario has become a popular retirement destination for boomers looking for waterfront cottages and a slower pace. DREAMSTIME PHOTO

Condos are becoming a popular choice for those seeking recreational properties. Stone & South offers luxurycondos with a view and many amenities in Gananoque, Ont.. PHOTOS COURTESY OF STONE & SOUTH

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E4 G THE GLOBE AND MAIL | SATURDAY, MAY 4, 2019

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THROUGHOUT THE GREATERTORONTO AREA, the housingmarket is showing no signs of aslowdown.

Many buyers who are beingpriced out of the Toronto regionare moving into the 905 regions.For example, in the Durham Regioneast of Toronto, buyers are takingadvantage of lower prices forsingle-detached homes. Improvedtravel accessibility, including fournew Go Train stations and expan-sion of the service further east toBowmanville, Ont., on the way, ismaking that market even moreappealing.

Throughout all of the GTA,according to the 2019 Market Year inReview & Outlook Report from theToronto Real Estate Board (TREB),the population will continue togrow in 2019 – between two and2.5 per cent – in part driven by apositive employment forecast.Population growth is key to de-mand for housing.

The market is still sortingthrough the impact of tighter mort-gage lending guidelines introducedin early 2018 and multiple increasesin interest rates over the past sever-al years, but the trend is for thingsto continue to improve slowly. TheBank of Canada left its benchmarkinterest rate unchanged at 1.75 percent in March.

“It won’t be asuper active mar-ket, but it will bemore normal, withmoderate priceappreciation,”predicts Christoph-er Alexander,executive vice-president andregional director ofRE/MAX’s Ontario-Atlantic region,pointing to theresults of recentlyreleased RE/MAX2019 HousingMarket Outlookreport.

“It looks likeinventory challenges remain, espe-cially in the GTA. In the last fewweeks, more product has come onthe market.”

For Toronto, the RE/MAX reportprojects that the average residentialsale price will rise two per cent in2019, with condominium salesprojected to jump five per cent. Itforecasts fewer sales of single-detached homes because of higherprices.

Government regulations aroundlending have caused challenges forbuyers, with a ripple effect throughevery segment of the market. In2018, according to the reporrt,average sale prices in Torontodropped by four per cent, from$822,572 in 2017 to $789,181 in2018, and unit sales were down by16 per cent.

Despite projecting an increase inprices for 2019, the RE/MAX studysays interest rates and the mortgagestress test, which requires borrowersto prove they could afford mortgagepayments even if interest rates risesubstantially, will continue to shapethe market.

The guidelines that came intoeffect were meant to curb riskylending as household debt and highhome prices in some marketssteadily rose. Home buyers nowneed to show they can cover theirpayments at two percentage pointsabove a market rate before they

qualify for a mortgage. In otherwords, lenders want to see howthe borrower would handle aworst-case scenario.

More and more, borrowersrejected from large banks andtraditional lenders are turning tomore expensive private lenders andmortgage investment corporationsthat are not government regulatedto implement the stress test foruninsured mortgages.

Both the number of transactionsand the average price of a homeshould increase on a year-to-yearbasis in 2019, according to thereport. TREB is forecasting 83,000sales in the GTA this year, up from77,426 in 2018, with an averageprice expected to hit $820,000, upfrom $787,300 in 2018.

It is still worth noting that saleswill still be well below the recordpace from 2016 and the first quarterof 2017, says Jason Mercer, chiefmarket analyst at the Toronto RealEstate Board.

“While sales will remain belowrecord levels, there will still beenough market activity vis-à-vis theconstrained supply of listings toprovide support for moderate year-over-year average price growth in2019,” he says, pointing to a morethan one per cent year-over-yearincrease in sales prices at the endof the first quarter of 2019.

The TREBreport cites arecent Ipsos pollindicating thatmore people inthe GTA are likelyto buy a home in2019 than in2018, with 29 percent saying lastNovember theywere likely to,compared with 26per cent sayingthe same inNovember, 2017.

Still, accordingto the poll, manypeople are hold-ing back, partially

because of the tighter mortgagelending rules, with 36 per cent ofthose polled saying affordability wasthe big reason they would not bebuying a home in 2019. Whetherbuyers remain more pessimistic andsales figures remain closer to 2018levels is what observers are watch-ing out for.

According to the TREB report, thestate of the housing market stillremains a very important issue forCanadians – third, behind healthcare and the economy.

“The stress test still has animpact,” says Dominic Tompa,vice-president of sales at The Da-niels Corporation.

“Qualifying is still a major chal-lenge, especially for people in thatfirst-time buyers category. It haslevelled off over the last sixmonths, as people have adjusted toit. People are now getting them-selves qualified in advance, and areunderstanding that they can actuallyafford a home, before they arebuying.

“The market so far this year islooking really strong,” he adds,including more multi-offer scenariosfor a home on the market.

Daniels’ has an ongoing commit-ment to making home ownershipmore accessible and offers a varietyof programs for the first-time buyer.

OUTLOOKFOR GTAIS MODESTGROWTHReal estate market has seen stressors but rates arestill low and a burgeoning population will drive sales

“While sales willremain belowrecord levels,there will stillbe enough

market activity... for moderateyear-over-yearaverage price

growth in 2019.

Jason MercerChief market analyst

Toronto Real Estate Board

The Toronto Real Estate Board predicts that the average price for ahome in the GTA will hit $820,000, up from $787,300 in 2018.PHOTO COURTESY OF THE DANIELS CORPORATION

CONTINUED ON NEXT PAGE

ACROSS MUCH OF THE GREATER TORONTO AREA,the luxury market is not showing any signs of slow-down.

Oakville’s luxury market, for instance, is driven by“move-up buyers” and is expected to thrive in 2019,according to the RE/MAX 2019 Canadian HousingMarket Outlook. Some buyers are moving awayfrom more urban centres such as Toronto to embracethe livability of that area. Average residential saleprices there are projected to jump five per cent in2019, from 2018’s $1,078,595. The market is partic-ularly robust for homes beginning at the $2-millionprice point, according to the report.

Sam Mizrahi is president of Mizrahi Developments,the company behind The One, an 85-storey, uber-luxury condominium, hotel and retail tower going upon the southwest corner of Yonge and Bloor streetsin downtown Toronto. He says his company soldmore than 75 per cent of the units in The One in justover a year.

“We are seeing continued demand through 2019on our luxury projects both at The One and ourdevelopment in Ottawa at 1451 Wellington St. W., inwhich both developments’ unit pricing is over the$1.5-million level,” Mizrahi says.

While the mortgage stress test, rising in interestrates and the foreign buyers’ tax affected all realestate markets in Canada, including luxury, Toronto isa strong economic centre and can withstand moreshocks than any other market in Canada, says BradHenderson, president and chief executive officer ofSotheby’s International Realty Canada.

In its 2019 Top-Tier Spring Outlook released in

March, Sotheby’s forecasted a brisk spring on thesales front for luxury homes in the GTA. Preliminarysales data from the first two months of 2019 show amarket that has stabilized after the unpredictability of2018.

HIGHLIGHTS FROM THE SOTHEBY’S REPORT:

Sales of $1-million-plus residential homes in theGTA (condos, attached and single-family homes)dipped two per cent year over year over the first twomonths of 2019.

Sales on properties in the GTA between $1-million and $2-million decreased one per cent.

In the city of Toronto, sales of homes between$1-million and $2-million rose seven per cent overthe first two months of 2019, compared with the firsttwo months of 2018.

The forecast for the spring $1-million-plus condomarket is positive for the GTA, with top-tier condosales over the first two months of 2019 rising sevenper cent year-to-year.

The attached home market for the GTA alsolooks strong: Sales over $1-million soared 40 percent early in 2019, compared with the first twomonths of 2018.

“Notwithstanding the reduction in the number ofhomes that have been bought and sold, therecontinues to be upward pressure on price particularlyin the 416 region,” Henderson says.

“Well-located and well-priced homes will alwayscontinue to sell.”

LUXURY SALES ARE GOING UP

More than 75 per cent of the units at Mizrahi Developments’ The One tower, above, sold in justover a year, says company president Sam Mizrahi. He says he expects continued demand in 2019for luxury projects. PHOTO COURTESY OF MIZRAHI DEVELOPMENTS

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GananoqueU.S.A.

SATURDAY, MAY 4, 2019 | THE GLOBE AND MAIL G E5

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Average residential sale price in 2018 was $707,949, and isprojected to rise by two per cent in 2019. The new LRT projectand the GO Station in Hamilton East scheduled for completionsoon should impact the market in 2019.

Average residential sale price in 2018 was $1,078,595, and that isprojected to rise by five per cent in 2019, due to high demandand low inventory. The luxury market is thriving, a trend likely tocontinue in 2019 with homes starting at $2-million.

Average residential sale price was $705,406 in 2018 and that isexpected to rise by four per cent. Growing trends include millen-nials being priced out of the freehold market. The luxury marketis currently seeing an increase in activity.

The biggest challenge is the down payment, Tomba says.In April, Daniels held a ‘buyer’s workshop’ event at the

second phase of their FirstHome Beckenrose housing devel-opment in Brampton, Ont., which attracted more than 800people. Daniels laid out a five-per-cent gradual deposit programin which, after an initial deposit of $5,000, followed by another$5,000 in 10 days, the home buyer pays $1,000 per month untilthey take occupancy or reach the five per cent down paymenttarget.

“Our objective is to get the most educated buyer in themarketplace,” Tomba says. “There is so much demand for theaffordable product, for the first-time buyer, or the youngerfamily.”

Steps taken by the federal government in the recent budget

people intended to purchase condos than the higher priceddetached homes in 2019. So the market is making adjustmentsaccording to factors like the location or type of home or pricethey want to pay. The TREB study indicated an increase inhouseholds at least considering buying a home.

Observers are looking forward to seeing stronger spring salesnumbers. Conrad Zurini, a RE/MAX broker in the Hamilton/Burlington area, projects a record number of sales in April in hisregion, followed by a strong May.

“There is lots of pent-up demand due to the terrible weatherwe had in January and February,” he says.

“The balance of the year will be very much like 2017, whichwas a record year.”

In terms of Hamilton proper, from March 1 to mid April, Zurinisays 34 per cent of all the properties sold have sold for 100 percent or more of the listing price – as high as 153 per cent.

to incentify first-time home buyers via a shared equity programadministered by Canada Mortgage and Housing Corporationaimed at bringing down the mortgage cost for the buyer willhelp a little, Alexander adds, but not in major markets likeToronto, because prices are so high and the incentives don’t godeep enough. Millennials especially have it tough in the GTA, headds, where they face high home prices while trying to ridthemselves of student debt.

“From all the research we have done, they want to own realestate,” he says. “It will be difficult because of price point, butthey are a resilient generation.”

Alexander says he was looking for the government to ad-dress the stress test, making it easier for buyers to qualify formortgage financing. TREB has also been calling on the govern-ment to cut back the stress test a little.

The Ipsos survey indicated that, with the new rules, more

Real estate observers are looking forward to strong sales numbers

CONTINUED FROM PREVIOUS PAGE

Average residential sale price in 2018 was $577,846, which isprojected to rise by four per cent in 2019. Brampton’s housingmarket is driven primarily by young couples and new immi-grants in 2018, and many come from other parts of the GTA,drawn by the region’s affordability and access to highways.

Average residential sale price in 2018 was $594,585, and that isprojected to rise by three per cent in 2019. The region is rela-tively stable in price and inventory. A new casino is expected toopen in Pickering in 2019, which will help develop the condomarket in the region.

Average residential sale price in 2018 was $789,181, which isprojected to rise by two per cent in 2019. Rising interest ratesand the mortgage stress test were major factors affecting marketactivity in Toronto. Condo sales are strong – and expected to risefive per cent in 2019.

BRAMPTONESTIMATED AVERAGE RESIDENTIAL SALE PRICE 2019

UP 4%

TORONTOESTIMATED AVERAGE RESIDENTIAL SALE PRICE 2019

UP 2%

DURHAM REGIONESTIMATED AVERAGE RESIDENTIAL SALE PRICE 2019

UP 3%

HAMILTON-BURLINGTONESTIMATED AVERAGE RESIDENTIAL SALE PRICE 2019

UP 2%

OAKVILLEESTIMATED AVERAGE RESIDENTIAL SALE PRICE 2019

UP 5%

MISSISSAUGAESTIMATED AVERAGE RESIDENTIAL SALE PRICE 2019

UP 4%

SOURCE: RE/MAX 2019 HOUSING MARKET OUTLOOK REPORT

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$1,275,000305 Lakeshore Rd N, MeafordTodd Brooker (705) 888-1818RE/MAX Four Seasons Realty Ltd.

$2,499,90059 Church St, HamiltonRob Golfi (905) 745-0122RE/MAX Escarpment Golfi Realty Inc.

E8 G THE GLOBE AND MAIL | SATURDAY, MAY 4, 2019

IMAGINE WALKING THROUGH THESUITE of a condo and checking outthe views from the balcony, longbefore it’s ever built. That’s becominga reality, through the use of drones,360-degree video, interactive 3-Dmodels and virtual reality experi-ences. And that’s just the tip of theiceberg.

Property technology (proptech) ischanging the game in real estate, justas fintech has upended the bankingworld. Using big data, predictiveanalytics and machine learning,developers are able to create ‘smart’buildings. Tenants can control light-ing and household amenities frommobile apps, while landlords can usebig data to inform decision-making.

Drones are the top real estatedisruptor, according to PwC’s Emerg-ing Trends in Real Estate 2019 survey(based on Canadian respondents).Other top tech trends include virtualreality and augmented reality (VR/AR), machine learning, predictiveanalytics and blockchain. Proptech iseven changing the way peoplepurchase property, from new lendingservices to real estate apps, accordingto PwC.

One of the biggest challengesfaced by developers, however, isshowing potential buyers whatthey’re buying, when it’s still only anarchitectural drawing.

“People are buying views,” says

Mariah Hamilton, sales representativefor Stone & South Condominiums inGananoque, Ont., about 300 kilo-metres east of Toronto.

Back in the day, “we’d send aphotographer up on a crane” to getthose views. Or a helicopter wouldbe hired. Now, drones are the statusquo. In Toronto, buyers are used topre-sales.

“In this part of the world … peopledon’t understand it. They come intomy sales centre and say, ‘where isthe building?’” Hamilton says.

Drones are being used by devel-opers to show job site progression,but also to show potential buyers theexact view they’ll have from eachsuite. “In order to get any kind ofaerial [photography or video], it’squick, it’s cost-effective, it’s accurate,so we take advantage of that to agreat degree,” Hamilton says.

Taking it a step further, Stone &South has created other tools toshowcase the product, including 3-Dfloor plans and animations, so poten-tial buyers can “walk” through a suiteand change the finishes to theirliking.

At The One, a new condominiumand retail tower in Toronto, droneswere used to take 360-degree videosat the height of each floor, fromevery angle.

“We embedded that in the floorplans,” says Sam Mizrahi, president ofMizrahi Developments, developer ofThe One.

“So, if you’re looking for a one-bedroom and a den on the 43rd floorand want to see the southwest view,you would see the actual view [fromthe drone footage].”

Mizrahi Developments built atouchscreen presentation gallery forThe One, incorporating its dronefootage into custom-designed coffeetables. By swiping on the touch-screen, buyers could see the viewfrom each suite. Those views couldalso be projected onto the wall,giving buyers the impression they’relooking out the window.

The unit also lights up on a 3-Darchitectural model of the building.“It’s one thing to see it on paper oron a screen; it’s another to see it on a3-D model that’s in scale,” Mizrahisays.

When buyers are purchasing offplans, “the more you can help themvisualize their future home, thebetter,” says Mimi Ng, vice-presidentof residential sales and marketingwith Menkes Developments Ltd.

While Menkes is also using dronesfor aerial shoots, the firm is in-corporating virtual reality experiencesat its Sugar Wharf Condominiums, aredevelopment of the old LCBO headoffice and warehouse on the Torontowaterfront.

VR technology has become morepowerful, but also more cost-effec-tive, more inclusive and more userfriendly, Ng says. That means that,instead of creating short snippets of aVR experience, developers can createa sequence with more content, suchas walking into the lobby and goingup the elevator into the suite (allwhile wearing VR goggles). At thesame time, that user experience canbe projected onto a screen, so asalesperson can explain to the buyerwhat they’re seeing.

“It all goes back to helping peoplemake a more informed decision,” Ngsays, adding that not everybodyunderstands how to visualize spaceor look at plans. “A typical one-bedroom condo [in downtownToronto] is around half a milliondollars. Being able to engage themdeeper into the product is obviouslypreferable.”

While it’s still early days, othertrends PwC points to are artificialintelligence (for automating suchmundane tasks as data entry), block-chain (which could help cut costs andreduce fraud in rental payments andland title registries) and autonomousvehicles (which influence how devel-opers create parking lots).

The One, for example, is providingcharging stations for electric vehicles.“We started to build for that into thebuilding because we know that’scoming,” Mizrahi says.

The One will also have machine-learning elevators, which means theelevators will learn how the buildingworks and start to anticipate tenantneeds.

“It will start to adapt and anticipateintuitively what your patterns are soyou don’t have to wait for the eleva-tor,” Mizrahi says.

This is particularly important in abuilding like The One, which has 85floors. Through the use of dataanalytics, a building becomes “smart-er” and ultimately more efficient.

Proptech has the potential toradically transform real estate fromthe sales process to the end product,adding value for both homeownersand developers. As PwC points out inits survey, understanding theseshifting needs will be critical for thereal estate industry as tenant expecta-tions grow increasingly sophisticated.

PROPTECH IS THE NEW FINTECHTechnology is changing the real estate market, from pre-sales to smart buildings

Technology is changing the game in real estate. From virtual reality and 360-degree video to 3-D models and drones, the new landscape is helping developers and buyers. ISTOCK PHOTO

“The more you can

help [buyers]visualize their

future home, thebetter.

Mimi NgVice-president, residential

sales and marketingMenkes Developments

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WHEN IT COMES TO REAL ESTATEbuying and selling, many peoplewonder if there are good and badtimes of the year. Should the seasonsaffect your next real estate move?

Ask Mariah Hamilton about thebest time to buy real estate and herresponse is quick. “Now,” jokes thelisting agent for Stone & SouthCondominiums, a waterfront devel-opment in Gananoque, Ont., about300 kilometres east of Toronto.According to Hamilton, 48 of thered-hot property’s 70 units havealready been sold. This despite thefact that first occupancies aren’tscheduled until next spring,

Hamilton is the first to admit thatnot all cases are the same.

“Real estate is a personal decisionand many factors comes into consid-eration,” says the industry veteran.“These range from age, to salary,family situation and economic status.For example, if you put a couple ofkids into the mix, a buyer’s needschange completely. Then schedulingaround the school year becomes apriority.”

Data provided by the CanadaMortgage Housing Corporationsuggest that loan transactions issuedtended to pack during the spring,many presumably in advance of thecountry’s informal July 1st nationalmoving day. However, determina-tions about the best time to buy aproperty are often inextricably linkedto the best time to sell, as more thanhalf of new buyers need to alsounload their existing homes.

MORE CHOICES DURING WINTER

According to Pierre Leduc, a spo-

kesperson for the Canadian RealEstate Association, one good metricto assess transaction timing is thenumber of months’ worth of listingsthat brokers have in inventory at thecurrent pace of sales.

“If the idea is to sell quickly andget the price you are looking for,then the best time is when there aremore buyers relative to sellers,” saysLeduc. “For buyers that works inreverse.”

Based on long-term averagesduring the past 10 years, Marchthrough June have proven to be themost attractive months to sell ahouse. May is the month with thebest ratio of potential clients to thenumber of available listings. Buyershave the largest amount of choicesduring winter. The number of proper-ties available per buyer peaks inJanuary.

However, Leduc counsels that thedata provide only a general illustra-tion.

“Canada is composed of manydifferent local markets,” says theCREA spokesperson.

“While the aggregate data providea good picture, there can be signif-icant regional differences.”

SELL IN MAY AND GO AWAY?

Canadian real estate trends in someways mirror those in the investmentworld. Stock traders have a saying –“sell in May and go away” – whichencapsulates the tendency of pricesto reach near-term highs in late springbefore tapering off during summermonths, and then rebounding later inthe year.

Seller-to-buyer ratios in real estate

appear to follow a similar pattern.Tim Syrianos, president of RE/

MAX Ultimate, who manages threelocations and more than 200 agents,says that an ideal situation would seea seller close the sale of his existinghome during the spring, whendemand is strong, but then purchasea new property later in the year whenratios work in the buyers’ favour.

But Syrianos admits that it’s easierto do in theory than in practice. “June15th to July 15th remain the big daysfor moving, so if you sell your prop-erty before that, the buyers will likelywant to move in during that time,”says Syrianos.

“That means you’d need some-where to stay until you buy your newplace.”

Syrianos agrees that it is importantto monitor regional differences whenanalyzing months’ worth of sales ininventory data. However, he cautionsthat looking at longer trends alonedoesn’t tell the whole story.

“Here in the Greater Toronto Area,sales slowed from 114,000 units in2015 to just 77,000 units last yearthrough things have been picking uprecently,” said Syrianos. “The chang-ing momentum can also affectbuyers’ timing preferences.”

For her part, Hamilton’s personalexperience with Stone & South’snew-build lakefront condominiums inthe Thousand Islands and her otherclients in the resale home segmentconfirm trends in the CREA data.

“January is great month becauseyou get an early start and can thusbeat the crowd to many gem proper-ties,” says Hamilton.

“However, by the time May comesaround people start to think aboutvacations.”

WHEN IS THE RIGHT TIME TO BUY AND SELL?

SOURCE: THE CANADIAN REAL ESTATE ASSOCIATION

“June 15th to July15th remain the

big days formoving, so if yousell your propertybefore that, the

buyers will likelywant to move induring that time.

Tim SyrianosPresident

RE/MAX Ultimate

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E10 G THE GLOBE AND MAIL | SATURDAY, MAY 4, 2019

SPONSOR CONTENT

RECENT BUDGET MEASURES tomake it easier for Canadians to buyhomes are a good first step but realestate experts insist there's a need forcreative thinking at all levels ofgovernment to fix the affordabilityproblem.

In his pre-election budget tabledMarch 19, federal Finance Minister BillMorneau included several proposalsto help first-time home buyers andmillennials.

They included up to $1.25-billionover three years for the First-TimeHome Buyer Incentive program tolower monthly payments to buy ahome, giving first-time buyers greateraccess to their Registered RetirementSavings Plans to buy or build aresidence, and boosting the with-drawal limit of the Home Buyers'Plan from $25,000 to $35,000.

Access to shared equity mortgageswas also expanded.

“It's about time,” says ChristopherAlexander, executive vice-presidentand Ontario-Atlantic regional directorfor RE/MAX, of the new measures.

However, he questions how muchimpact the shared equity and homebuyers' plans would have in suchmarkets as Toronto and Vancouver.

“It's not going to really helppeople get into those markets be-cause property values are so highthere,” Alexander says. “I think thebiggest challenge the markets inCanada face is that there's a shortageof inventory and serious demand.”

That's a concern that is beingechoed by others.

“The solution has to be found onthe supply side,” says Robert Hogue,senior economist at RBC.

“So it's yet another round thattries to help out on the demand sidefor certain age cohorts but in ourview it's not going to do that muchto improve affordability on a sus-tained basis.

“The shared equity mortgage is apretty creative way to address part ofthe issue but at the same time if weare concerned about household debtin Canada, this is not going to help.It's still a form of debt.”

John Andrew, a professor of realestate at Queen's University's SmithSchool of Business, likes the in-centives but points out that municipaland provincial governments are keyto making housing more affordable.

He says there is a misconceptionthat there is a lack of land that can bedeveloped when it's actually a caseof a lack of land that can be devel-oped in an economically viable way.Andrew says affordable housing issometimes not part of a devel-opment plan because it's not cost-effective.

“Municipalities really need to gettheir act together in terms of the feesthat they charge to developers – thedevelopment fees, all the approvalfees – they need to shorten thetimelines for getting these devel-opments approved,” he says. “Theyneed to be more flexible in terms ofthings like building density because

they're really not.“They're not prepared to think

outside the box ... and really allowfor the kind of density of devel-opment that we need in order toprovide affordable housing.”

The Ontario government pledgedin its April 11 budget that its HousingSupply Action Plan would seek to cut

red tape, reduce development costsand trim restrictions.

Andrew says municipalities aresometimes being short-sighted whenthey are overly restrictive on thedevelopments they approve, sayinglarger condo projects, for example,would increase their property taxbase significantly.

“Obviously it's got to be appropri-ate to the neighbourhood but thereare a lot of areas in cities like Torontoand Vancouver that could easilyabsorb a greater density than it'scurrently zoned for,” Andrew says.

He suggests that provincial gov-ernments could set rules abouttimelines and maximum levels of

development fees.Andrew says the most important

aspect of the federal government'sinvolvement is the bank rate.

Anna Arneson, a spokeswoman atthe federal Finance Department, saysthe First-Time Home Buyer Incentiveprogram also addresses supply issuesas do other budget measures such asthe expansion of the Rental Construc-tion Financing Initiative and the $300million Housing Supply Challenge.

“The First-Time Home BuyerIncentive is designed to help eligiblefirst-time home buyers across Cana-da, including in the Toronto andVancouver areas,” she says.

“The program is expected to helpapproximately 100,000 Canadiansbuy homes that they can afford. Witha more generous incentive for newconstruction, the incentive could helpencourage the home constructionneeded to address some of thehousing supply shortages in Canada,particularly in our largest cities.”

Alexander says he was disappoint-ed that there was no re-evaluation ofthe mortgage stress test, which wasimplemented in 2018 with the goal ofpreventing Canadians from taking onmore debt than they could handle intheir eagerness to buy a home.

It requires uninsured potentialhome buyers to meet a minimumqualifying rate plus two per cent orthe Bank of Canada's minimumqualifying rate to get their mortgage.

Alexander says most predictionsindicate interest rates will rise by oneper cent during the next five years.“Asking people to qualify at two percent makes no sense.”

He agrees that one of the resultsof the stress test has been to drivepeople to the rental market “big time,especially in the GTA.” The RE/MAXexecutive says rent controls have alsocaused some developers to considermore rental-focused projects.

“In much of the GTA, if you priceyour rental unit properly, if it's a niceplace in good shape, you're probablygoing to have a lineup of offers,” hesays.

Hogue and Andrew, however, saythe government was right to leavethe stress test alone for now. It hadcooled the market and Hogue saysprices lowered as a result.

While he is open to softening thetest at some point, Hogue says to doso now could spark a rush of buyersback into the market where theywould likely end up in bidding warsthat would wipe out the gainsachieved with the stress test.

Arneson agrees that the stress testdid help limit speculation in key areasand control debt, but she doesn’t ruleout changes to it in the future.

“The government continues toclosely monitor the effects of itsmortgage finance policies — in-cluding the stress test for insuredmortgages — and would adjustthem if economic conditions warrant,to support access to housing whilesafeguarding financial stability,” shesays.

GOVERNMENT MOVESTO MAKE MORE HOMES

WITHIN REACH OF CANADIANS

Provide up to $1.25-billion over three years for the First-Time Home Buyer Incentive through Canada Mortgageand Housing Corporation (CMHC) to reduce the monthly payments required to buy a home for eligible first-timehome buyers. The First-Time Home Buyer Incentive is expected to be launched by September 2019. More detailsabout the First-Time Home Buyer Incentive will be released in the coming months.

Further expand Canadians’ access to shared equity mortgages by providing $100-million in lending to helpexisting shared equity mortgage providers scale up their business and encourage new players to enter the market.

Provide first-time home buyers with greater access to their RRSP savings to purchase or build a home, byincreasing the withdrawal limit of the Home Buyers’ Plan from $25,000 to $35,000.

Increase the supply of new housing by launching a $300-million Housing Supply Challenge to break downbarriers that limit new housing, with additional investments to support the recently announced Expert Panel onthe Future of Housing Supply and Affordability.

Expand the Rental Construction Financing Initiative to provide more affordable rental options for middle-classCanadians.

Increase the supply of new housing by launching a $300-million Housing Supply Challenge to break downbarriers that limit new housing, with additional investments to support the recently announced Expert Panel onthe Future of Housing Supply and Affordability.

Improve efforts to address housing supply with state-of-the-art housing supply modelling and related datacollection through CMHC.

The Government also continues to deliver on Canada’s first National Housing Strategy, which is a 10-year,$40-billion plan that will build 100,000 new affordable housing units, repair 300,000 others and reduce chronichomelessness by 50 per cent.

KEY PROPOSALS IN THIS YEAR’S FEDERAL BUDGET

The federal budget includes proposals for the first-time buyer but real estate experts wonder if more should be done

Harbour plaza is a mixed-use community from Menkes Developments in Toronto’s South Core Financial District. Real estate professor John Andrew says Toronto increases itsproperty tax base when it approves large condo projects and the city can absorb more density than it’s zoned for. PHOTO COURTESY OF MENKES DEVELOPMENTS

FINance Minister Bill Morenau released his budget in March. FRED CHARTRAND/THE CANADIAN PRESS

Product: TGAM PubDate: 05-04-2019 Zone: GTA Edition: 1 Page: SPReport_2789809 User: SLaloudakis Time: 04-22-2019 13:45 Color: CMYK

SATURDAY, MAY 4, 2019 | THE GLOBE AND MAIL G E11

SPONSOR CONTENT

BUYING OR SELLING A HOUSE isone of life’s most stressful trans-actions. The growing complexity ofthe Canadian housing market doesnot help.

Following Ottawa’s introduction ofthe mortgage stress test in 2016 andexpanded in 2018, designed toensure that homeowners could affordrising interest rates on mortgagepayments, it has become difficult forfirst-time buyers to qualify for amortgage. Though the 2019 federalbudget included a First-Time HomeBuyer Incentive to address this, manysay they’re still feeling heat from thestress test.

The housing market is also chang-ing. Sales currently are slowing forthe first time in two decades, and2018 saw the largest drop in thenational average price of a home innearly 25 years, according to theCanadian Real Estate Association.While prices are projected to stabilizein 2019, it’s nonetheless essential tofind a good realtor when navigatingthe buying and selling process.

Beyond external factors such asthe state of the overall economy atany given time, buying and sellinghouses is a trying process, accordingto Christopher Alexander, executivevice-president and regional director ofthe Ontario-Atlantic region for RE/MAX Integra.

Part of this is because of the fearof the unknown, he says. “Manyhome buyers worry that they’ll missout on the ‘perfect’ home, overpayfor a home, that the home hunt willtake longer than expected,” Alexan-der says.

Then there are the financial pres-sures of home ownership, coupledwith a sea of online data and adviceabout buying and selling – somehelpful, some less so. It all makesbuying a home a formidable under-taking for most Canadians.

“In the digital age, another layer ofstress comes from interpreting theabundance of information that is outthere,” Alexander says. “Homeownership is a huge expense and along-term commitment.”

Wading through this process witha top-notch realtor can make thingseasier. But what are the most impor-tant qualities to look for in a realestate agent? Above all, “goodold-fashioned knowledge and experi-ence,” Alexander says.

The best real estate agents havebeen in the industry for a while, hesays, and as such, have developed alarge network of contacts and honedtheir ability to negotiate and commu-nicate well with clients. Realtors who

work with large, reputable agenciesare more likely to have these skills,Alexander says.

“There’s definitely power innumbers, and agents who arebacked by big brands like RE/MAXreap the rewards and pass them onto the consumer,” Alexander says. “Areal estate transaction is complex,and experience counts, especiallywhen you consider how quicklythings change in this industry.”

In addition, working with a tech-savvy agent does not hurt. There arecountless online tools and platformsthat make buying and selling moreproductive by generating leads,connecting sellers to buyers andpersonalizing the search experience.

The right agent will know how toleverage these tools to their clients’advantage, Alexander says.

“Technology has become a vehicleto facilitate the transaction. The realestate landscape looks very differenttoday than it did just a few years ago.Agents can choose to go with theflow or get washed out.”

Avoid making the mistake ofgoing with an inexperienced orpoorly resourced agent, Alexanderadvises. You’ll save yourself troublein the long-term, he says.

“RE/MAX is always aiming to bebest-in-class,” Alexander says. “Wesupport our agents to compete in thisindustry. Their wins are the custom-ers’ wins.”

REAL ESTATE MARKET STRESSING YOU OUT?‘Good old-fashionedknowledge andexperience’ offersan advantage ina stressful process

Buying or selling a home is stressful, but a top-notch realtor will make the process easier. ISTOCK PHOTO

“A real estatetransaction iscomplex, and

experience counts,especially whenyou consider howquickly thingschange in this

industry.

Christopher AlexanderExecutive vice-presidentand regional direction ofOntario-Atlantic region

RE/MAX Integra

OPEN HOUSES STILL PLAY a criticalrole in the process of buying a homedespite new technologies and theproliferation of digital marketingefforts to sell properties.

Beautiful photos and slick videosdefinitely grab the attention of peo-ple right away in the digital world,but realtors say you just can’t beatthe in-person experience an openhouse gives. It allows a potentialbuyer to truly see what a property isall about.

“You can view floor plans online.You can view photos of a home. Butyou will never know how you feel inthat home until you’re physicallythere,” says Fatima Bregman, asalesperson with RE/MAX HallmarkRealty in Toronto.

“People still want to see the space,walk through the space, imaginetheir family living in the space.”

Although you might spend a lot oftime admiring the space and decorand feel of a home, make sure thatyou also look at the structure andcondition of the home, and ask manyquestions.

What are the mechanical systemslike? Have there been upgrades tothe electrical or plumbing systems? Ifthere’s been a new renovation, arethere new baseboards or are theyoriginal? If the original ones arethere, then it likely means there isn’tnew insulation in the home.

Look for the detail in craftsman-ship. What’s the natural light in thehome look like? Is the home facingsouth or north? Is it a dark home orone that’s well lit? What are theneighbours like?

“Truly, at the end of the day it’snice to go to open houses but then ifyou find something that you like, myrecommendation is always go backwith your realtor. Their eyes, theirexperience is going to help point outall these sort of little variables youmay not be looking at because thehouse looks so beautifully staged,”Bregman says.

“That’s another key element. Lookpast the staging. That’s very impor-tant at open houses. Real estate ishighly aspirational so we’re creatingan illusion in some ways of a lifestylewe all want to live.”

Pauline Aunger, a former presidentof the Canadian Real Estate Associ-ation and former president of theOntario Real Estate Association, sayspeople go to open houses for differ-

ent reasons. Obviously, many arethere because they are thinking ofbuying a home but people also go toopen houses because they’re think-ing of selling their own home andthey want to see what the neigh-

bourhood pricing looks like.“In a market where there’s a big

shortage of inventory, the house willhit the market … and you’ll be able tosee the pictures and the virtual tourthat’s on the listing but I believe real

estate is about feeling when you’re ina house,” she says.

The feature sheet is important atan open house because it will list allsorts of information on the home forsale – everything from the list price

and the square footage to propertytaxes and all the features included inthe home.

“It’s a nice time, I’ve always said,to ask questions,” says Aunger.“What about upgrades? How old isthe roof? Have they upgraded plumb-ing and wiring? Things that areimportant to know if you are buyinga home that is not a newer home.”

If you go through the home anddon’t like it, ask the realtor to helpyou find similar homes in the neigh-bourhood you are seeking.

Romana King, a personal financeand real estate expert, says prospec-tive buyers should walk through anopen house more than once.

At first glance, they’re impressedby how the house looks and thedesign of the house. They see thestaging that presents the house inthe best light.

“Stop. Go back to the front of thehouse and start walking through asecond time. This is the walk-throughthat really counts,” says King.

It’s all in the details. Take yourtime to check out the windows. Dothe windows look like they’re ingood repair? Is the caulking aroundthe windows secure? Or are thereany cracks? Have they been updated?Are they single pane or are theydouble pane?

Open and close doors to makesure they don’t stick. Check the waterpressure throughout the house byturning on the taps and flushing thetoilet.

Go to the basement and check outwhat the furnace and hot water tanklook like. Stickers on the furnace andwater heater can tell you how oldthey are and if they have beeninspected on a regular basis.

It’s a matter of looking past thegloss and looking at the minutedetails. King calls them the less sexycomponents of the house but theyare the more expensive ones – anddefinitely the things buyers reallyneed to look at.

When it comes to new construc-tion, show homes act as the openhouses and King says potential homebuyers need to realize that the showhome they see is not necessarily thehome they are buying.

The first question they need to askis what particular model they arelooking at and how that model fitsinto their budget. They should alsoask what features in that show homeare included in the model price andwhat is an upgrade.

The key is to have a critical eyewhen viewing potential properties sothat the house you fall in love with isthe house you continue to love yearsdown the line.

WHAT TO EXPECT AT AN OPEN HOUSEMake sure you look pastthe staging, look at thebones of the home andask plenty of questions

When you go to an open house and see a property you like, don’t just look at the decor and number ofbedrooms. Assess the condition of the home, too. Are the roof, foundation and windows in good repair? Isthe water pressure good? RE/MAX AND DREAMSTIME PHOTOS

Product: TGAM PubDate: 05-04-2019 Zone: GTA Edition: 1 Page: SPReport_2789810 User: SLaloudakis Time: 04-22-2019 13:45 Color: CMYK

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