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The Home of the Week is a Scottish longhouse that showcases its views of Georgian Bay.Ruairi Duggan/Ruairi Duggan
This week: The three cities where home prices are changing fast and our real-estate experts share why it might not be a bad time to sell. Plus, another steady interest rate highlights a role-reversal for mortgages, and one property worth a look.
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Data
Three cities where home prices are changing fast
Depressed home prices aren’t just a tale of Canada’s two most expensive cities anymore. Prices have begun to decline in Halifax and growth is flatlining in Edmonton and Regina, where immigration cuts and new supply mean there are more little houses on the Prairie for fewer people looking. Even Ontario’s tepid increases weren’t enough to make up for these drops, prompting the Canadian Real Estate Association’s second sales-forecast downgrade in six months.
It’s clear slowing price growth is spreading, and these once-hearty cities aren’t immune. Salmaan Farooqui dived into the new data from real estate platform Wahi and valuation service provider Real Property Solutions to get a closer look at what exactly is going on. Halifax has posted year-over-year 4 per cent declines for the last three months straight, a jarring U-turn after months of 4-per-cent growth toward the end of last year. A boom in purpose-built rentals and a drop in foreign students at nearby post-secondaries are likely behind it, Halifax broker and Royal LePage Atlantic owner Matt Honsberger told Salmaan.
Regina has also completely flipped the script in a matter of months. In January, nine-per-cent value increases year-over-year made it one of the strongest markets in the country. In June, that growth had halted completely. But is it more than a typical boom and bust cycle for a Prairie city? Read Salmaan’s full analysis of the price data and why those three cities caught his attention.
Interest rate
Why fixed mortgages are higher – and more unpredictable – than variable rates right now
By its very definition, anything that’s “fixed” should be more dependable than a “variable,” right? Well, that’s not quite the case in Canada’s mortgage market. The Bank of Canada held its key rate at 2.25 per cent yet again this week, keeping variable mortgages steady while uncertainty continues to send fixed rates higher.
“Usually, it’s the possible future course of variable rates, which tend to rise or fall whenever the Bank of Canada adjusts its key interest rate, that keeps mortgage borrowers up at night,” writes Erica Alini. “But the Bank of Canada has been holding rates steady as it balances the risk that high oil prices will lead to elevated inflation against the risk that Canada’s already flatlining economy will grow weaker.”
Those two major risks are essentially cancelling each other out, but it’s another story for fixed rates. They rely heavily on Ottawa’s yields on the bond market, which is primarily concerned with higher inflation risks in the U.S. right now, and lenders are hiking rates accordingly. “As to where fixed rates are headed, that largely hinges on U.S. policy and politics. Your guess is as good as mine,” writes Erica.
This week’s lowest fixed and variable mortgage rates in Canada
Rates shown are the lowest available for each term/type and category (insured vs. uninsured) as of market close on Thursday, July 16.
Q+A
Is now a good time to buy or sell? We answered your questions
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What’s up with the housing market? Our real estate reporters tried to help you make sense of this strange summer.Jennifer Gauthier/The Globe and Mail
We’re just passing the peak time for home sales in Canada. At least, when it’s usually supposed to be. It’s a weird summer for the market – and the buyers, sellers and renters trying to navigate stagnancy and uncertainty. So to help you make sense of what to do, our real estate reporters answered your questions this week in a live Q&A.
Carolyn Ireland, Rachelle Younglai and Salmaan Farooqui shared their insights on everything from whether it’s a good time to buy or sell, to why some cities’ home prices are bucking national trends and how Alberta’s separatism vote might impact home values. You had great questions, and while it’s hard to give blanket advice, Carolyn noted that depressed home prices don’t necessarily mean it’s a bad time to be a seller everywhere.
“If you have an attractive property to sell, it could be a very good time to trade up because the more pricey homes are taking longer to sell,” she told one reader considering a spot south of Queen Elizabeth Way. “These trends are happening in many parts of southern Ontario, not just Oakville and Burlington.” Read their answers about what’s up with the housing market.
Design corner
What Marimekko can teach us about being bold
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The Finnish brand’s signature Unikko pattern manages to be both subtle and bold.
I can’t count how many packs of Marimekko napkins I’ve picked out for my dinner parties or to use as non-alcoholic hostess gifts over the years. The Finnish lifestyle giant’s signature Unikko graphic poppy pattern comes in more than 100 colour ways and never fails to delight whether on plates, towels or dresses. Now that I’m thinking about it, it’s a miracle I don’t have anything else in the design.
But even if you’re not smitten with the minimalist pattern, it offers a lesson in how decor can be both subtle and bold. As Marimekko turns 75, Matthew Hague spoke with creative director Rebekka Bak about the contradiction at the heart of the design that adorns houses and clothes around the world.
Home of the Week
A modern Scottish longhouse with nature at the centre
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With bright and earthy Scandinavian charm, this home honours its surroundings in more ways than one.Ruairi Duggan/Ruairi Duggan
58 Sydenham Trail W, Clearview, Ont. – Full gallery here
Is a property ever too beautiful to build on? This one tucked in the Niagara Escarpment was close, so its owners and Scot-Build Developments made sure to treat the surrounding nature like the centrepiece in more ways than one. No painting on the wall stands a chance against the Georgian Bay views, so there are very few. “You can look out any window and it is like a piece of art,” Sophie Howe said.
Minimalism is the word for the modern Scottish longhouse they concocted with elevated finishings and a distinct Scandinavian charm, just 15 minutes outside Collingwood. Oak hardwood floors run throughout the more than 4,000 square feet of living space, with vaulted beech ceilings forming a crescendo above the combined kitchen-living-dining great room. Strategically-placed windows frame the stunning views and radiant floor heating keeps the four-bed, five-bath feeling cozy.
The bright and earthy home also reflects its love for mother nature in invisible ways. Howe’s husband James Kennedy works in clean energy, and the home is net-zero, with a solar panel system nearby, an electric car charger in the garage and a heat pump powering the in-floor heating. But the couple still have a soft-spot for combustible energy: a wood-burning Renaissance Rumford fireplace built tall and shallow “so it’s almost like the fire is in the room,” Kennedy said.
What do you think is the asking price for the property?
a. $2,975,000
b. $3,475,000
c. $3,825,000
d. $4,125,000
c. The asking price is $3,825,000.