Our Aging Population: Housing Options Available Where You Live

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Retirement is around the corner for many in Canada today, with a quarter of the demographic falling into the senior category by 2030. While so much of the population is hitting this milestone, their housing options may differ from what they once envisioned. Downsizing to a smaller home or condo is much more expensive than a decade ago, and options are limited. Retirement homes are becoming more expensive, and long-term care homes have become less desirable as stories of neglect and loneliness emerged during the pandemic.

In this issue, we look at emerging trends for supporting senior living.

Age in place

According to a November 2023 study by the CMHC, seniors who can afford to stay in their original homes choose to age in place as long as their health allows. Many communities provide more support for seniors in their original homes through activities, check-in services, and health care support. The City of Hamilton now provides several community services for aging adults (55+), all outlined in their fully downloadable and printable Older Adult Guide available online.

The goal of these services is to support seniors as they enjoy their retirement years while maintaining their original homes for as long as possible, including options such as food
delivery, yard work assistance, house cleaning, and in-home care options.

Co-housing

While much of Canada copes with housing challenges, alternative living arrangements are becoming
available to seniors. Co-housing is a structured community where each resident has a home but shares amenities. Some are retrofitted buildings, apartments or townhomes, and while most are not age- restricted, they have a senior focus.

The Canadian Co-housing Network (CCN) is a non-profit organization with 49 communities across Canada, either built or under construction. Hamilton is one of the communities actively looking for land to build 15 to 30 units by 2025. The CCN also aims to create homes with a smaller carbon footprint by using environmentally friendly building choices and designs with sustainability in mind.

Naturally occurring retirement communities (NORCs)

A NORC is a community or geographic area where many older adults reside and strive to bring services to a building or neighbourhood. The University Health Network (UHN) in Toronto researched how home care could be streamlined and publicly funded for NORCs, reducing travel time for many personal support workers (PSWs) by bringing them to several clients simultaneously in the same area.

In Hamilton, the El Mirador apartment building is supported by Oasis Senior Supportive Living. This NORC emphasizes physical fitness and healthy living programming. A dedicated team at the UHN is mapping potential sites to expand their reach and offer more housing options for seniors as the population of this demographic grows.

Co-living

Since home prices soared during COVID-19, so did the level of creativity families developed for sharing accommodations and affording a home. While we have seen multi-generational living grow, we also witnessed the emergence of co-living: seniors choosing to buy a home together and share expenses. This phenomenon is more common for older women who have become widowed, divorced or have grown children, and they prefer the company of friends to living alone. With Ontario zoning laws now allowing up to three separate residential units per property, this option is more accessible to those with the equity to pool resources.

While the age-in-place movement has grown, long-term care homes will remain necessary for those facing mobility and severe health challenges. As the population ages, the healthcare system will need to adapt. Those in good health want more choices of how and where they live, with services in place to support them.

By: JULIE ACHTERMEIER

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Where are the buyers coming from? Realtors share their insights

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It’s no secret that the dream of buying a home is becoming harder for many families and first-time homebuyers, yet the housing market is still doing well and homes are still selling at all price points. It begs the question: Who are the buyers? In the luxury market, prices vary depending on the location, but homes priced appropriately are still selling quickly. We know that real wages in Canada have not kept up with home prices, and most first-time homebuyers cannot afford a $250K down payment, but some are still able to enter the market for the first time.

SO, WHAT’S HAPPENING OUT THERE?

WE ASKED SOME OF OUR TOP REALTORS TO WEIGH IN AND PROVIDE THEIR INSIGHT. HERE’S WHAT THEY HAD TO SAY:

KIERAN MCCOURT, SALES REPRESENTATIVE WITH THE GOODALE MILLER TEAM
CENTURY 21 MILLER IN OAKVILLE:

Your team are experts at selling luxury homes in Oakville, Burlington and the surrounding area. Can you tell us where your buyers are coming from? Are they international or moving out of Toronto, or are people still able to “move up” in our local area? Are young families still able to afford to buy a home in the better neighbourhoods in our area?

We are seeing far fewer foreign investors buying property in Oakville these days. Speculation has died down and the government regulations restricting real estate purchases by foreign buyers have had an impact.

Our typical buyers for $5 million + homes are in their 40’s or 50’s, often with teenage kids. They value the great schools in our area, and have benefited from steady appreciation in home equity over the last 20 years. They likely have high income careers or have sold their businesses and have the capital to invest in a dream home. Some may also be taking advantage of generational wealth transfer as their parents move into smaller homes.

We estimate that about 50% of our buyers are local to the area, and the remaining 50% are coming from Toronto, Markham, Richmond Hill or are transferring to jobs in the GTA from the US or overseas. Higher interest rates are not really an issue for these buyers. We currently see no storm clouds on the horizon for Oakville. It has become a favourite destination for affluent buyers and the lifestyle is arguably one of the most desirable in the whole GTA.

ANITA SULLIVAN, BROKER WITH ROYAL LEPAGE
REAL ESTATE SERVICES IN OAKVILLE:

You do a lot of work helping seniors downsize and buy condos in Oakville, Burlington and the surrounding area. Can you tell us where your buyers are coming from? Are retirees still able to afford to buy a smaller home or condo in our area and release some of the equity they have tied up in their homes?

Our buyers are local and also coming from Mississauga and Toronto. For the majority their goal is to downsize from a detached home to a condo and put some equity in the bank.

But downsizing is more complicated than it was a few years ago. In the past, retirees would buy first, knowing their home would sell. This mindset has changed, and now they are uncertain about selling their homes. We are seeing more offers with a ‘condition on sale of property,’ something we haven’t seen for a while. The number of sales is down in the luxury condo market, and some condos are taking longer to sell.

MICHAEL BREJNIK, SALES REPRESENTATIVE WITH
ROYAL LEPAGE BURLOAK REAL ESTATE SERVICES
IN BURLINGTON:

You do a lot of transactions for homes that would normally be attractive to first-time buyers in Burlington and the surrounding area. Can you tell us where your buyers are coming from? Are they international investors, people moving out of Toronto, or are young people still able to “get a start” in our area? Are young families still able to afford to buy a home and how do they finance it?

The cost of a down payment for a first-time homebuyer has increased exponentially compared to a generation ago, and many young buyers need help affording it. It’s almost impossible without family help.

We are not seeing many international investors, but we do see buyers relocating from the GTA, Mississauga, and Brampton as prices continue to be more affordable in the Burlington area. We have also seen many young people put their search on hold because of interest rates and house prices, and some believe that house prices have further to fall, so are unwilling to risk entering the market at this time. The small interest rate drops recently will help, but more is needed for first-time homebuyers to start looking again.

By: Julia Achtermeire

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The Shifting Real Estate Market – Halton

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Who could have imagined a global pandemic would cause such a rise in housing demand and prices? But here we are over two years later, and after a brief pause in activity during the first lockdown in 2020, house prices have been rising ever since. A mass exodus from Toronto condos and homes to more rural spaces coupled with record low interest rates established a trend that has continued into 2022.

After two years of bidding wars and overinflated prices, the market finally seems to be poised for some sort of correction. But what does that mean? Is the market softening? Our real estate experts say no, there’s no need to push the panic button. The market is simply shifting and adjusting after two years of turmoil.

The Toronto Regional Real Estate Board (TRREB) explains that after explosive growth in the first quarter, the second half of 2022 should see “a more moderate pace of price growth” due to rising interest rates and a slight increase in inventory.

Alex Irish from Alex Irish & Associates in Oakville explains, “The market is adjusting and becoming more balanced. It’s been skewed for sellers and made it very difficult for buyers, but now we’re seeing a market that favours both buyers and sellers.”  Alex reminds us that spring is typically a busy selling season. The grass is green, pools are open, and homes look more attractive than in winter.

Despite new restrictions on foreign buyers and interest rates on the rise, it’s not enough to get people worried. Some buyers may be holding off, but many more are anxiously diving in now that they can compete.

“Buyers are always optimistic that prices will drop,” says Alex. “They recognize a great opportunity as listings increase, and many have been waiting a long time to break into the market.”  While homes in desirable neighbourhoods are still going into multiple bids, sellers are no longer listing low and hoping to get well over asking.

“Buyers are fatigued from the competition and many put purchasing a home on the back burner,” explains Michael Brejnik from Royal LePage Burloak Real Estate Services in Burlington. “Stabilizing prices mean fewer bidding wars and a more traditional market, so buyers are looking again.”

Michael explains that there are now fewer listings with offer dates, which means homes have to be priced more accurately, rather than the practice which had become common of underpricing and holding offers on a specific date. This scenario gives buyers more confidence and the ability to negotiate, something they haven’t been able to do in two years.

Another factor that may be impacting the market is that homeowners who bought in 2017 when interest rates were very low now have mortgages coming up for renewal, and they may find that they can’t afford the new payments. Some are looking for homes with rental apartments to create a source of income to help offset mortgage payments. Or they are forced to downsize or move out of the area.

In other cases, buyers who were pre-approved at lower interest rates a few months ago now have 60-90 days left before their paperwork expires and they need to find something quickly.

And then there are the buyers who left Toronto at the start of the pandemic and moved to the outskirts but now find they are going back to the city to socialize and work once restrictions were lifted. “People realize they’re ok sharing common areas again, so some are heading back to the city,” says Michael.

Overall, the market is in flux, and multiple factors continue to affect buying and selling decisions. It’s too soon to make solid predictions, but all indications point to a more balanced market which is good news for buyers and sellers.

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The Shifting Real Estate Market – Hamilton

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Who could have imagined a global pandemic would cause such a rise in housing demand and prices? But here we are over two years later, and after a brief pause in activity during the first lockdown in 2020, house prices have been rising ever since. A mass exodus from Toronto condos and homes to more rural spaces coupled with record low interest rates established a trend that has continued into 2022.

After two years of bidding wars and overinflated prices, the market finally seems to be poised for some sort of correction. But what does that mean? Is the market softening? Our real estate experts say no, there’s no need to push the panic button. The market is simply shifting and adjusting after two years of turmoil.

The Toronto Regional Real Estate Board (TRREB) explains that after explosive growth in the first quarter, the second half of 2022 should see “a more moderate pace of price growth” due to rising interest rates and a slight increase in inventory.

Lynn Fee from Keller Williams Complete Realty in Grimsby explains, “Supply and demand changes give the impression the market is softening, but that’s not the case. Inventory is increasing, so bidding wars have slowed down, but prices are still high, and it’s still a sellers’ market.”

Despite new restrictions on foreign buyers and interest rates on the rise, it’s not enough to get people worried. Some buyers may be holding off, but many more are anxiously diving in now that they can compete.  “I wish I had a crystal ball,” Lynn laughs. “But the reality is this is a market that changes weekly. It’s tough to predict what will happen next, but it appears we’re heading into a more balanced market.”

While homes in desirable neighbourhoods are still going into multiple bids, sellers are no longer listing low and hoping to get well over asking. Those buying are looking for recently renovated homes, or ones with pools, and are willing to pay top dollar.

“Buyers know that renovations are costly, and the wait time to hire a contractor or put in a pool can be up to two years,” explains Sarit Zalter from RE/MAX Escarpment Realty in Ancaster. “Buyers want a home that doesn’t require any renovations, and they are more educated about what’s out there.”

She says that while the market is still high and vibrant, it is becoming more sensitive and specific. “A few months ago, you could sell high no matter where you lived, but now people are more selective about the location.”

Another factor that may be impacting the market is that homeowners who bought when interest rates were very low now have mortgages coming up for renewal, and they may find that they can’t afford the new payments. “Rising interest rates make monthly payments difficult for families renewing mortgages,” says Lynn. “We may see an influx of homes purchased in 2017.”

In other cases, buyers who were pre-approved at lower interest rates a few months ago now have 60-90 days left before their paperwork expires and they need to find something quickly.

And then there are the buyers who left Toronto at the start of the pandemic and moved to the outskirts but found they were going back to the city to socialize and work once restrictions were lifted. As Sarit explains, “this type of buyer wanted more house for their money but didn’t embrace their new community, so now, they want to move back to the city a few years later.”

Overall, the market is in flux, and multiple factors continue to affect buying and selling decisions. It’s too soon to make solid predictions, but all indications point to a more balanced market which is good news for buyers and sellers.

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Market Update: Oakville

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Market Update: Burlington

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Market Update: Hamilton

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2021 Real Estate Market In Review: Oakville

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It’s no secret that the housing market has been booming since the early days of the pandemic, but just how crazy is it? The Toronto Regional Real Estate Board (TRREB) recorded home sales at the second-highest level on record for October 2021. Inventory remains at an all-time low, with new listings down almost one-third compared to October 2020.

In the Oakville residential area, buyers spend roughly $1.3 million on a new home, up over 30 percent from last year. The average detached house is selling for $1.679 million, an increase of 33 percent over 2020 prices. With inventory continuing to decline, many residents are forced to move out of the area to acquire an affordable home, if we consider “affordable” as stretching families to their financial limit. And while the price of a home has increased significantly, there have been fewer actual sales across most of the Greater Toronto Area (GTA), except for the condominium market, which has made a strong comeback. The number of homes sold through the MLS® System of the Oakville-Milton and District Real Estate Board showed an overall decline of 15.5% compared to the same time last year.

While it may sound discouraging for the home buyer to see such inflated house prices, the strong market represents a rebounding economy, a reason to be optimistic.

“The tight market conditions across all market segments and areas of the GTA is testament to the broadening scope of economic recovery in the region and household confidence that this recovery will continue,” said TRREB Chief Market Analyst Jason Mercer.

However, with that comes a renewed need for affordable housing solutions and experts agree the government needs to step in.

“The only sustainable way to address housing affordability in the GTA is to deal with the persistent mismatch between demand and supply. Demand isn’t going away. And that’s why all three levels of government need to focus on supply. The federal government has stated that collaboration with provinces and municipalities is required. This collaboration could be spearheaded, at least in part, with housing-related incentives tied to federal infrastructure investment,” said TRREB President Kevin Crigger.

So, if demand is so high, it begs the question – why is inventory so low?

For one thing, housing development slowed considerably during the pandemic, with some builds just starting to pick back up again. And while builders may now have the green light, soaring lumber prices have made construction more costly and complex. The supply chain has been backed up for almost two years which results in even more delays. Existing plans have either been scrapped altogether or require builders to accept losses, neither a favourable option. In many cases, projects have been put on hold until corporations assess the pandemic’s overall impact on the construction sector.

Outside of Toronto, many suburbs have seen changes in zoning to protect the Green Belt. While this is a positive for protecting the environment and green space, much of the current zoning is outdated and requires a new strategy to consider the growing population while protecting vulnerable areas.

In addition, many homebuyers who at one time could list their home knowing they’d find something quickly once it sold are now afraid that low inventory means not finding a property in the area they want or at the price they can afford. Bidding wars also turn many homebuyers off. The high stress of multiple bids and a highly competitive market create a better argument for staying put and upgrading the current home instead.

Wherever you sat on the spectrum this year, it was undoubtedly an exciting market to watch.

By: Julie Achtermeier

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2021 Real Estate Market in Review: Hamilton

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It’s no secret that the housing market has been booming since the early days of the pandemic, but just how crazy is it? The Toronto Regional Real Estate Board (TRREB) recorded home sales at the second-highest level on record for October 2021. Inventory remains at an all-time low, with new listings down almost one-third compared to October 2020.

In the Hamilton-Burlington residential area, single-family detached properties are the most competitive, with an average price reaching a new record of $1,000,000. Townhouses had an eight percent increase in sales compared to September 2021, yet overall, sales began to dip slightly after the summer months.

“In line with seasonal trends, July and August tend to have fewer new listings and sales, which is exactly the case here,” says Realtors’ Association of Hamilton-Burlington (RAHB) President Donna Bacher. “Even though we have fewer active listings and sales, we are also seeing a slight dip in the average sale price. Overall, the same story continues, and that is that the level of inventory remains at critically low levels. We definitely need more supply on the market.”

Current Hamilton MLS® stats indicate an average house price of $877,800 as of October 2021.

Despite the slight drop in sales prices, there is still an urgent need for affordable housing solutions, and experts agree the government needs to step in.

“The only sustainable way to address housing affordability in the GTA is to deal with the persistent mismatch between demand and supply. Demand isn’t going away. And that’s why all three levels of government need to focus on supply. The federal government has stated that collaboration with provinces and municipalities is required. This collaboration could be spearheaded, at least in part, with housing-related incentives tied to federal infrastructure investment,” said TRREB President Kevin Crigger.

So, if demand is so high, it begs the question – why is inventory so low?

For one thing, housing development slowed considerably during the pandemic, with some builds just starting to pick back up again. And while builders may now have the green light, soaring lumber prices have made construction more costly and complex. The supply chain has been backed up for almost two years which results in even more delays. Existing plans have either been scrapped altogether or require builders to accept losses, neither a favourable option. In many cases, projects have been put on hold until corporations assess the pandemic’s overall impact on the construction sector.

Outside of Toronto, many suburbs have seen changes in zoning to protect the Green Belt. While this is a positive for protecting the environment and green space, much of the current zoning is outdated and requires a new strategy to consider the growing population while protecting vulnerable areas.

In addition, many homebuyers who at one time could list their home knowing they’d find something quickly once it sold are now afraid that low inventory means not finding a property in the area they want or at a price they can afford. Bidding wars also turn many homebuyers off. The high stress of multiple bids and a highly competitive market create a better argument for staying put and upgrading the current home instead.

Wherever you sat on the spectrum this year, it was undoubtedly an exciting market to watch.

By: Julie Achtermeier

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The Exploding Real Estate Market & Where It’s Headed

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Over the past ten years, we’ve seen a steady climb in real estate prices across Ontario. Despite some fluctuations over the years, prices have remained high while interest rates have remained relatively low. The onset of the pandemic 18 months ago caused a surprising spike in house prices, especially in the suburbs, as families moved outside city limits for more space and a new remote work lifestyle. Lack of inventory led to bidding wars becoming the norm, and it wasn’t unusual to see a home sell for $100K over asking.

Almost two years later, the market is beginning to stabilize with prices levelling out, yet the overall average sale price has not dropped.

“There is such low inventory that if a property gets nine offers, the eight whose offers aren’t accepted are still looking for a home,” explains Rina DiRisio from Royal LePage Real Estate Services Ltd.

Despite a slight increase in inventory in recent months, many potential sellers are too nervous about selling. “There’s a real reluctance to sell right now,” explains Rina. “Homeowners are afraid if they sell their home, even for top dollar, they won’t be able to find a home to move into, and this is a real concern.” It also contributes to the low inventory issue, creating a bigger problem in the market.

WHAT WILL IT TAKE TO CAUSE A MARKET CORRECTION?

“Without any real government intervention, the only way a market correction can happen is if interest rates go up, and that’s horrible news for homeowners,” says Jordan Zalter of RE/MAX Escarpment Realty in Ancaster. “At the same time, the only way supply will increase is if people are forced to leave their homes, also not a good solution.”

Despite some rumblings of housing correction promises during the federal election, the government has lacked any real leadership to solve the affordability issues.

The Ontario Real Estate Association (OREA) has a proposed plan to make homeownership an attainable dream once again, and it would serve the government well to listen. The focus centres around two main areas: Lowering the land transfer tax for first-time homebuyers and introducing Save the Canadian Dream Act, 2021 (to build on the current Housing Supply Action Plan). The Act would permit innovative housing solutions, stop
money laundering in the real estate market and end exclusionary single-family zoning. For more information, visit https://bringaffordabilityhome.com/our-plan

JEOPARDIZING A GENERATION?

For first-time homebuyers, the dream of homeownership continues to feel out of reach. Tighter lending rules went into effect in July 2021, making it more difficult for buyers to get approved for a mortgage, but it hasn’t corrected real estate prices yet. While the stress test now requires all borrowers to qualify for their mortgage payments at 5.25% (up from 4.79%), established homeowners motivated to buy can still use the equity in
their homes. It’s the first-time buyers who struggle the most. “We see a lot of parents helping their adult children get into the market,” says Rina.
“Without the financial help, most first-time homebuyers are effectively shut out of the market.”

And, where first-time homebuyers were once able to buy in the suburbs, they are now looking even further into rural areas or sacrificing space for more affordable condo living.

Real estate experts advise getting into the market if they can, despite the adversity first-time homebuyers face. Prices will only continue to climb, even if they climb more slowly.

“The most realistic advice I can give to first-time homebuyers is don’t wait on the sidelines for prices to drop because historically, they haven’t,” explains Jordan. “If you want into the market, you may need to adjust your expectations and location as well as ensure you don’t buy more than you can afford, but you should get out there and do it.”

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