3 Key Takeaways from the Innovation in Real Estate Market Insight Forum
To connect you with our ecosystem of platform solutions and data insights that you need to thrive in your real estate business, Teranet hosts a series of informational Market Insight Forums, in which industry experts offer their knowledge and expertise in the Canadian real estate market.
In our latest virtual forum in June, we featured a panel of esteemed industry experts: Tim Hudak, CEO of the Ontario Real Estate Association, Jason Mercer, Chief Market Analyst at Toronto Regional Real Estate Board and Joe Vaccaro, Founder and President of RIOS. Tim, Jason and Joe were hosted by Teranet’s CIO, Fariba Rawhani.
As we continue to navigate an ever-changing market, our experts provided their thoughts and opinions surrounding housing affordability, lack of supply, and what could be next for the Canadian real estate market. This forum offered the following valuable takeaways, that will help you remain educated in your market and help keep your clients informed:
1. Housing affordability crisis stems from the lack of supply
With the housing affordability crisis being a primary concern for homebuyers and sellers in Canada, our panelists discussed solutions to this problem.
“The political discussion around how to respond to the housing crisis has been going on for ten years,” Joe Vaccaro pointed out, “in this election all political parties recognized that we need to build 1.5 million homes in the next ten years. For all of these parties to finally agree on this was a major step forward.”
As a member of the Housing Affordability Task Force assembled by the Ontario government, Tim Hudak was happy that in the election “the barometer moved to focus on the supply issue as opposed to trying to suppress the demand issue and make people poorer.”
Tim hopes that moving forward the government will focus on the “as of right” recommendations from the Housing Affordability Task Force’s report, which gives a greater ability of property owners to “as of right” make adjustments to their properties to make more livable spaces.
2. Assignment of condo sales are beneficial for the market.
Our panelists discussed the results of the 2022 Federal Budget, and how there is a focus on assignment of sales in the budget. Our panelists shared their thoughts on how this conversation about condo sales isn’t as informed as it needs to be. When condominiums break ground, about 80% of the units are already sold. While this has been discussed negatively, this is necessary as this is how the builder finances the building. The assignment window becomes an opportunity for an individual who bought a unit to sell it. Without the 80% of units being sold originally the building wouldn’t be built, so these assignments of sales are good for the market.
3. There is a need for beneficial ownership registries in Canada
This would essentially stop individuals purchasing real estate from hiding behind numbered companies. This would eliminate dirty money from being used in real estate transactions, and less competition to allow homebuyers an equal chance of purchasing.
To hear all that Tim, Jason and Joe had to say, click here to watch the full recording of the Market Insight Forum.