Barrie’s Real Estate Market Struggle Many home-buyers got caught in the spring real estate downturn. As a result, many homes have had delayed closings and people have even backed out of real estate deals, not caring that they will lose their deposit. Most of this stems from the buyers deciding to purchase a home in the heat of the market, placing a competitive down payment, only to realize that as their closing date approaches the value of the home has decreased significantly, sometimes more than the deposit that was made. Others have not been able to close due to the mortgage amount not meeting the purchase obligation of the home. Peggy Hill, a real estate agent for Keller Williams said, “closings have been stalling [everywhere] since the end of June.” In Barrie, even though prices are not at the level that Toronto has seen, the drop has been precipitous. Barrie’s average price for a home was $471,822 in July, while March was $570,199. That’s a $100,000 difference in a matter of months. Back in July of 2016, 208 of 260 homes listed were sold, but this July saw 201 sales with 683 active listings. The real estate frenzy in Barrie mimicked that of Toronto, with home selling in a week well over list price. Barrie homebuyers were even experiencing the same competitive market when looking to buy, resulting in bidding wars, and competing with people who live outside of the region, like buyers from Toronto who wanted to get out of the city. Unfortunately, the tough lesson here is that “a heated market does not automatically translate into a true market value. When you take away the heat, it settles down into something that is perhaps more reflective of what true market value is,” says Appraisal Institute of Canada’s CEO Keith Lancastle. Buyers tempted to walk have to realize that they may face a lawsuit. For example, if a house is bought for $500,000 and you decide to forfeit the deposit, the seller goes and gets $450,000 from another buyer, you can be sued for the difference. Realtors may also sue, because they are not getting a commission and have to incur additional legal and carrying costs. Some advice, be careful in the current real estate market. If you can wait it out, it may be a better idea than investing now, you don’t want to end up backing out of a deal only to realize you owe money to the seller and/or are being sued by a realtor. If you are in need of a Barrie Real Estate or Commercial Real Estate lawyer, please visit our website and contact one of our Barrie Real Estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Barrie office directly at 705-812-2100. By: Nicolas Di Nardo “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateAugust 28, 2017June 18, 2020
Rent Increase capped at 1.8% in 2018 By: Nicolas Di Nardo Under Ontario law, rent increases can not exceed 2.5 per cent. However, under the new housing reforms, the Liberal government extended their rent control to buildings since 1991 and landlords are required to apply to authorities if they are seeking to increase rent by more than 1.8 per cent next year. This will be done under what is known as The Rental Fairness Act, 2017. The Rental Fairness Act, 2017, will effect all privately-owned rental properties across the province, which is looking to help cities like Barrie from soaring rental prices. The Ontario Ministry of Housing has set the rate at 1.8 per cent, basing it on the provincial consumer price index, in the hopes of providing better housing to Ontarians. Barrie is in need of this cap. Based on data collected from PadMapper at the end of January, Barrie is the eighth most expensive city to rent in, when just three months prior it was sitting at 15th. It is now one of the most expensive cities in Canada to rent in. For example, recent rental rates have the average price of a two-bedroom unit sitting around $1,500 per month plus utilities. Renters are having trouble trying to find anything lower than that, even with a budget of $1,000 a month (inclusive), prospective renters are spending months searching for a place they can afford. With the new reforms in place, it will allow renters to afford to get into an apartment, and live there year after year, without the fear of rent being increased to an amount they will struggle to afford – it will be more predictable which can help renters get their finances in order. These protections come after a series of “unreasonable” rent increases and tenants being evicted from their units by their landlords. Landlords will now face a penalty if they evict tenants for personal reasons such as moving in a family member. Additionally, Premier Kathleen Wynne implemented this as part of their housing reforms in order to cool down the then-overheated housing market in April, when units built after 1991 were showing evidence of rent and sale price increases. There are exceptions to this cap. The cap does not apply to: Vacant units Social housing Nursing homes Commercial properties If a landlord makes improvements to their units, they have the option to apply to the Landlord and Tenant Board for increases (no more than 2.5 per cent). As a result, 250,000 tenants will be protected and 1.2 million private rental units will have to follow the new rent cap. If you are in need of a Barrie Real Estate lawyer, please visit our website and contact one of our Barrie Real Estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Barrie office directly at 705-812-2100. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJune 27, 2017June 22, 2020
