Home of the Week, 71 Hell Point Rd., Kingsburg, N.S.Trevor Kennedy/Trevor Kennedy/Eye Capture Images
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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Interest rates have further to fall, but fixed mortgage rates are already nearing their bottom
The Bank of Canada is widely expected to cut its headline interest rate by an additional 2 or 2.5 percentage points in the coming year, but fixed rates for five-year and three-year mortgages will likely drop by much smaller amounts. That’s because banks and mortgage providers often set their long-term mortgage rates based on the performance of bond markets, writes Salmaan Farooqui. In general, weaker bond yields tend to align with lower rates, while stronger ones correspond with higher rates. in the last couple weeks, the bond market saw a small rebound after a considerable drop in the summer as the U.S. economy showed unexpected strength, and there’s some debate as to what it all means going forward. Economists and brokers say it’s unlikely for mortgage rates to reach 2.9 per cent this or next year.
Home sales lacklustre in September as Canadian real estate association predicts 2025 market rebound
Although the central bank reduced interest rates in June, July and September, the cost of a mortgage is still relatively prohibitive, with many prospective buyers unable to handle the monthly payments. But the Canadian Real Estate Association (CREA) believes that the new changes to mortgage rules will draw homebuyers into the market next year, writes Rachelle Younglai. CREA predicts there will be 499,800 home purchases next year. That would be 6.6 per cent higher than this year but still below the 10-year average. With more buyers expected to enter the market, competition for homes will increase and lead to higher prices. CREA forecasts that the average home price across the country will reach $713,375 next year, an increase of 4.4 per cent.
While investors eschew the condo segment altogether and downsizers tread cautiously, an emerging cohort of buyers has entered the arena: well-established homeowners who are eyeing the current weakness as an opportunity to purchase units for their adult children.Frank Gunn/The Canadian Press
Bank of Mom and Dad goes to work on the condo segment
While investors eschew the condo segment altogether and downsizers tread cautiously, an emerging cohort of buyers has entered the arena: well-established homeowners who are eyeing the current weakness as an opportunity to purchase units for their adult children. Realtors say parents are going beyond topping up a down payment, and several of their sales have involved wrangling with parents who not only provide the funds but also hold a lot of sway over the purchase, writes Carolyn Ireland. The sellers, meanwhile, are often investors who have decided to exit the market because a tenant has recently moved out. But young parents who buy now with the thought of holding a unit until their kids can move in need to think about paying maintenance fees and other expenses, and possibly finding tenants.
Magda and Alexander King outside their new home, which they closed on June 29, 2021 in Collingwood, Ont. Ms. King's company CF Crozier & Associates Inc. is helping her and other employees with $20,000 toward purchase of a first home.Tannis Toohey/The Globe and Mail
Helping employees with housing down payments has built loyalty for Ontario engineering firm
Mid-sized engineering firm C.F. Crozier & Associates Inc. is in its fourth year of offering employees as much as $20,000 for a down payment on their first home, writes Younglai. It has so far provided the benefit to 36 staff members, with the requirement that they remain with the firm for at least three years after receiving the money. But Crozier president Nick Mocan says the loyalty and goodwill the program builds with employees means many aren’t looking to move after that third year anyways. Some employees said the down payment program allowed them to be competitive in the market – many said they were getting regularly outbid – and move forward with life choices that wouldn’t have been possible in their past living situations, such as starting a family.
Home of the Week: Nova Scotia home is ‘a landscape-viewing device’
In the words of the Kingsburg home’s owner, Hill House is 'primarily a landscape-viewing device' for the natural landscapes surrounding it.Trevor Kennedy/Trevor Kennedy/Eye Capture Images
71 Hell Point Rd., Kingsburg, N.S. – Full gallery here
In the words of the Kingsburg home’s owner, Hill House is “primarily a landscape-viewing device” for the natural landscapes surrounding it. There are two buildings on the property: a main residence and, across the courtyard, a more rustic guest house. In the main house, the open-concept main living area combines the kitchen with dining and lounging. The interior features maple cabinetry and soapstone countertops, and beyond the living and dining areas stands the primary bedroom and bathroom. A library and home office provides vistas across the landscape to the sea. The refurbished lower level includes a darkroom for photography aficionados, as well as a media room.
Guess the price
d. The asking price is $3.5-million.