Why Canada’s cottage country has changed forever and the Home of the Week: Canadian real estate news for August 9

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Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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Toronto home sales drop in July as buyers remain unmotivated

Although buyers had been waiting for the Bank of Canada rate cuts that came in June, the slightly cheaper cost of mortgages has not spurred a flurry of home-buying activity, writes Rachelle Younglai. Instead, homeowners have been putting their homes up for sale, especially those who own condos. Active listings, also known as the amount of inventory up for sale, are at the highest level since the 2008-09 financial crisis. Because home prices have been steady and volume is high, buyers believe they have more time to shop for a property – realtors say buyers feel no pressure to jump into the market, and will likely only get in once they see prices starting to rise. According to Toronto’s real estate board, sales are expected to pick back up in the fall.

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Opinion: The old cottage country is dead. The future of the new rural Canada is up to us

When you think about Canada’s cottage country, your mind wanders to natural landscapes, a cottage dock jutting into serene waters, bordered by lush forests with the call of loons emanating from somewhere distant. But there’s a looming profanity in paradise, writes Sam Riches, in the form of short-term rentals. An increased number of visits to small cottage towns, which began at the start of the COVID-19 pandemic, led to significant environmental and infrastructural challenges that haven’t caught up to the population growth. The short-term rental boom has also driven up property values, as cottages become considered as assets more than homes, and brought a revolving door of tenants that goes against the spirit of these close-knit communities. For many, the cottage is no longer just a getaway – it’s a full-time home, a remote-working retreat, a business opportunity, and, increasingly, a place undergoing a contentious transformation. Where once it meant something rural and rustic, it has become shorthand for luxury and exclusivity. As Paul Kershaw wrote back in April, owning a cottage is no longer a middle-class reality. It’s a sign of affluence in a country where rent and home ownership are so much more expensive for younger residents today than when baby boomers were young.

U.S. property giant Hines has $2-billion to shop for housing development projects in Canada

Hines Interests LP, the Houston-based real estate giant firm which owns and manages about 850 properties in 30 countries, views apartment building developments as a top investment in Canada given the country’s shortage of affordable homes. Its $2-billion pool of capital will let it compete for deals at a time when the commercial real estate sector is reeling from higher construction and borrowing costs, writes Younglai. The firm is looking mostly at land in major cities such as Toronto, Vancouver, Calgary and Montreal, where the company can develop apartment rental units. Hines has already developed condos in Canada as well as purpose-built rentals, and has finished or is completing seven of these buildings, amounting to 2,600 units in Toronto and Calgary.

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New homes made ‘attainable’ with ready-to-rent additions

With mortgage costs remaining high despite recent interest rate cuts, and prices stubbornly high in even small markets, real estate developers are offering new and potentially revenue-generating features to make it more “attainable” for a buyer to commit to a preconstruction contract, writes Shane Dingman. A Bracebridge, Ont. project is offering townhouse apartments with an additional rental unit attached to it, which they say buyers could rent out for “as much as $2,500,” and would help them pay off their mortgages. But critics say the trend shows how expensive housing prices have become – even in a small community of 15,000. Between 2019 and 2022, the price of a single-family home in Bracebridge had nearly doubled, and advocates say luxurious rentals attached to new townhomes isn’t going to make housing more accessible.

Home of the Week: Converted 1911 church at a country crossroads

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83506 Livingstone Line, Huron East, Ont. – Full gallery here

Built in 1911 as a Presbyterian church, the deep red brick building has seen extensive renovations over the decades. The four-bedroom home has a fullymodernized interior, but still retains elements of its past history. The altar platform remains raised above the rest of the space, but is now occupied by the kitchen and island. Some pews were saved for a breakfast nook, and the original maple floors shine with the honey glow of 100 years of polishing. A painted wood ceiling arches from all four walls toward a central medallion with a fan, and long pendant lights extend down toward a midpoint from the high ceilings. The backyard features an in-ground swimming pool and cabana, perfect after long days sermoning over family meals.