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New residential development focused on diversified housing sparks favour among Canadians and the real estate industry alike, according to RE/MAX® Canada

New residential development focused on diversified housing sparks favour among Canadians and the real estate industry alike, according to RE/MAX® Canada
Canada NewsWire
TORONTO and KELOWNA, BC, Feb. 22, 2023

Canadians optimistic that the housing ma…



New residential development focused on diversified housing sparks favour among Canadians and the real estate industry alike, according to RE/MAX® Canada

Canada NewsWire

Canadians optimistic that the housing market could regain balance, but affordability and inventory challenges highlight widespread impacts for consumers, real estate industry and broader economy

  • 32 per cent of Canadian homebuyers and sellers are optimistic about the housing market moderating and regaining balance in 2023
  • One in five Canadian homebuyers and sellers endorse new building developments that address the missing middle gap (22 per cent)

TORONTO and KELOWNA, BC, Feb. 22, 2023 /CNW/ -- Amid a fluctuating economic environment, Canadian homebuyers and sellers are optimistic that 2023 could yield a more-balanced market, according to RE/MAX Canada's 2023 Industry Trends Report. The report examines key economic and transactional trends that are likely to impact Canadian homebuyers and sellers, and the broader real estate industry this year.

According to a Leger survey commissioned by RE/MAX Canada as part of the report, most Canadians have at least one concern related to their homebuying or selling journey this year (59 per cent). Unsurprisingly, the highest-ranking on the list are the rising cost of living and inflation (34 per cent), followed by a lack of affordable housing options in their community (25 per cent), and the rising cost of rent (25 per cent).

Beyond the implications on Canadian homebuyers and sellers, these various housing-related factors will have a trickle-down effect on the real estate industry and the broader economy. According to Statistics Canada, the share of contributions from the Real Estate and Rental and Leasing (RERL) sector to Canada's gross domestic product (GDP) has grown considerably in the last two decades, with up to 1 in 5 GDP dollars now generated from RERL in some provinces. Nationally, RERL is the largest contributor to the Canadian economy, at 13.5 per cent.

To view the full interactive report, please click here.

"For the real estate industry this year, a moderating market could mean some major shifts in how brokers run their business. We may start to see some consolidation as brokerages adapt to the economic slowdown. On an individual level, part-time agents could have a harder time progressing, as they may not be able to meet the needs of Canadians, or their brokerages. And one-on-one, personalized meetings with clients will be more important than ever before," says Christopher Alexander, President, RE/MAX Canada. "This year, the industry needs to be focused on client service, education, and transparency in order to best serve clients."

Looking beyond the transactional impacts on consumers, real estate companies, and the housing industry, the challenges felt in Canada's housing market could likely touch other industries as well. According to RE/MAX Canada, this includes impacting employers' and companies' ability to attract new workers who may find it difficult to secure housing; local communities' ability to attract and retain new businesses to support economic growth due to rising office rental prices, lack of availability, and more.

"The potential wide-spread impacts of our housing crisis can be mitigated, but challenges need to be tackled in a coordinated, strategic effort by all levels of government. I encourage visionary thinking and solutions that may include reforming municipal zoning laws to allow for a greater diversity of housing; expanding capacity for laneway developments; and using available land to drive housing supply in a manner that doesn't compromise climate adaption and mitigation efforts," says Alexander. "For that to happen, some tough decisions need to be made."

Canadians strongly believe that addressing the affordability and supply crisis should be among the most important priorities for governments across the country (66 per cent). Additionally, 41 per cent feel that removing zoning and development red tape is a key measure to improve housing supply and something they hope will continue to expand.

"Our severe lack of supply in every town, community, and city across the country, seeps into almost every facet of the lives of Canadians. Not only are their housing options being impacted, but a tighter housing market may compromise job prospects, among other things, placing even greater urgency on governments and housing industry experts to address Canada's affordability crisis," says Elton Ash, Executive Vice President, RE/MAX Canada. "While we wait on these longer-term solutions to be implemented, Canadians should stay informed and work with experienced real estate professionals that can help them navigate the challenges of affordability, neighbourhood liveability, climate risks and zoning realities, among other factors, so that they may make the best buying and selling decisions for their unique situation."

Regional Industry Insights

RE/MAX brokers and agents were asked to provide a local perspective on the issues impacting their markets, including the Greater Vancouver Area, the Greater Toronto Area, Edmonton, Winnipeg and Halifax.

Vancouver-GVA, BC

The top trends anticipated to impact Greater Vancouver Area's housing market in 2023 include higher interest rates, the mortgage stress test and low inventory, which is compounded by looming demand from move-over buyers and the influx of new immigrants to the city.

Successfully navigating the market this year will mean, "forgetting the noise and looking at your own personal situation," says Tim Hill, real estate advisor at RE/MAX All Points Realty. "Make a real estate decision based on how it will benefit you and your family. If it makes sense, go for it. If not, don't follow the herd. Working closely with your REALTOR® to advise on key considerations and factors specific to your own goals will now be more important than ever before. You should be asking your REALTOR® to provide you with the latest news and counsel around these key factors, specific to your own situation." 

Toronto-GTA, ON

The Greater Toronto Area is also likely to feel the impact of the rising cost of living, increased demand from a growing population, unemployment status, the mortgage stress test and housing diversification as it relates to "the missing middle." With the higher cost of living hobbling first-time homebuyers' capacity to buy, rental prices are also hitting new highs.

When it comes to immigration, Canada is rightly welcoming record numbers of new Canadians. However, the added demand is expected to drive up both residential sale and rental prices unless more housing inventory is added to the market.

"Rising interest rates, inflation and a precarious economy have been a topic of discussion for more than a year now, but what remains the most pressing and elusive trend is our chronic lack of housing inventory across Canada, especially in larger urban centres such as the GTA," says Cameron Forbes, broker, RE/MAX Realtron. "We need our municipal, provincial and federal politicians to collaborate more strategically and creatively to address the problem, or risk it overshadowing the market until we come to responsible and sustainable solutions that will actually deliver."

Edmonton, AB

Similar to some of Canada's larger markets, the rising cost of living is a primary concern in Edmonton; however, unique to the region is the growing demand from inter-provincial migration, as Canadians continue to search for pockets of affordability across the country. According to a local RE/MAX broker in Edmonton, this is likely to put further strain on an already-limited housing supply.

"Navigating the most influential trends this year will be challenging. I recommend interviewing at least three REALTORs® before hiring one; thoroughly scanning their client reviews and social media presence, and asking for relevant past performance statistics. Pricing guidance when selling is also critical in 2023, with many listings not accurately priced," says John Carter, broker and owner, RE/MAX River City. "Aside from the guidance we can provide on an ongoing basis, in order to truly help Canadian homebuyers and sellers achieve their goals, it's critical that we look at effective, collaborative and visionary ways to increase housing supply across all levels of government."

Winnipeg, MB

While Winnipeg's market is likely to experience many of the same factors that are expected to impact other regions surveyed, higher taxes are also likely to be top of mind in 2023.

"Winnipeg is unique in that it's currently experiencing rising taxation levels, in addition to all of the other economic challenges facing the housing market. It's one more housing obstacle Winnipeggers need to overcome," says Akash Bedi, broker and owner, RE/MAX Executives Realty, Winnipeg. "While we wait for governments to implement a national housing strategy to boost Canada's supply of affordable housing, my advice for buyers this year is to assess their own individual situations, and work with the right professionals to help evaluate next steps that are right for them. For sellers, I advise that their property is priced and marketed according to current market conditions; and when reviewing sold comparables, be open to adjustments. Flexibility is important."

Halifax, NS

While cost of living remains top of mind in Halifax, red tape impeding development and "missing middle" housing is a prominent consideration this year. Together, these factors have contributed to stifling accessible and affordable housing options in a market that is already facing limited supply.

"While there's trepidation in the market right now, there are still pockets of affordability available in Halifax, and throughout the province," says Ryan Hartlen, broker, RE/MAX Nova. "For homebuyers and sellers alike, I advise them to seek out the right professionals to help them navigate all their options. This is especially critical while we wait on longer-term, more sustainable solutions that will support improving inventory levels and ultimately, affordability, not only in Halifax, but across the country."

Additional key insights from the Leger survey:

  • For 21 per cent of Canadians, anticipated changes/tighter restrictions to the mortgage stress test have encouraged them to make a real estate move sooner than originally planned in 2023
  • 66 per cent of Canadians believe that protecting the environment (i.e. Greenbelt in Ontario) is essential for our quality of life in the long-term
  • 47 per cent of Canadians believe technology could become more important than ever in real estate transactions
  • Investments into public transportation expansions (such as new subway lines) are a priority factor for 38 per cent of Canadians as they think about their homebuyer/selling journey, and may impact their homebuying decisions in the future

About Leger
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,554 Canadians was completed between January 20-22, 2023, using Leger's online panel. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.

About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC, RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit For the latest news from RE/MAX Canada, please visit

Forward looking statements
This report includes "forward-looking statements" within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company's business, the Company's ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company's ability to attract and retain quality franchisees, (6) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company's ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company's ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company's website at and on the SEC website at Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.


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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…



By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Mortgage rates fall as labor market normalizes

Jobless claims show an expanding economy. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.



Everyone was waiting to see if this week’s jobs report would send mortgage rates higher, which is what happened last month. Instead, the 10-year yield had a muted response after the headline number beat estimates, but we have negative job revisions from previous months. The Federal Reserve’s fear of wage growth spiraling out of control hasn’t materialized for over two years now and the unemployment rate ticked up to 3.9%. For now, we can say the labor market isn’t tight anymore, but it’s also not breaking.

The key labor data line in this expansion is the weekly jobless claims report. Jobless claims show an expanding economy that has not lost jobs yet. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

From the Fed: In the week ended March 2, initial claims for unemployment insurance benefits were flat, at 217,000. The four-week moving average declined slightly by 750, to 212,250

Below is an explanation of how we got here with the labor market, which all started during COVID-19.

1. I wrote the COVID-19 recovery model on April 7, 2020, and retired it on Dec. 9, 2020. By that time, the upfront recovery phase was done, and I needed to model out when we would get the jobs lost back.

2. Early in the labor market recovery, when we saw weaker job reports, I doubled and tripled down on my assertion that job openings would get to 10 million in this recovery. Job openings rose as high as to 12 million and are currently over 9 million. Even with the massive miss on a job report in May 2021, I didn’t waver.

Currently, the jobs openings, quit percentage and hires data are below pre-COVID-19 levels, which means the labor market isn’t as tight as it once was, and this is why the employment cost index has been slowing data to move along the quits percentage.  


3. I wrote that we should get back all the jobs lost to COVID-19 by September of 2022. At the time this would be a speedy labor market recovery, and it happened on schedule, too

Total employment data

4. This is the key one for right now: If COVID-19 hadn’t happened, we would have between 157 million and 159 million jobs today, which would have been in line with the job growth rate in February 2020. Today, we are at 157,808,000. This is important because job growth should be cooling down now. We are more in line with where the labor market should be when averaging 140K-165K monthly. So for now, the fact that we aren’t trending between 140K-165K means we still have a bit more recovery kick left before we get down to those levels. 

From BLS: Total nonfarm payroll employment rose by 275,000 in February, and the unemployment rate increased to 3.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in government, in food services and drinking places, in social assistance, and in transportation and warehousing.

Here are the jobs that were created and lost in the previous month:


In this jobs report, the unemployment rate for education levels looks like this:

  • Less than a high school diploma: 6.1%
  • High school graduate and no college: 4.2%
  • Some college or associate degree: 3.1%
  • Bachelor’s degree or higher: 2.2%

Today’s report has continued the trend of the labor data beating my expectations, only because I am looking for the jobs data to slow down to a level of 140K-165K, which hasn’t happened yet. I wouldn’t categorize the labor market as being tight anymore because of the quits ratio and the hires data in the job openings report. This also shows itself in the employment cost index as well. These are key data lines for the Fed and the reason we are going to see three rate cuts this year.

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January…



Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January jobs report was the "most ridiculous in recent history" but, boy, were we wrong because this morning the Biden department of goalseeked propaganda (aka BLS) published the February jobs report, and holy crap was that something else. Even Goebbels would blush. 

What happened? Let's take a closer look.

On the surface, it was (almost) another blockbuster jobs report, certainly one which nobody expected, or rather just one bank out of 76 expected. Starting at the top, the BLS reported that in February the US unexpectedly added 275K jobs, with just one research analyst (from Dai-Ichi Research) expecting a higher number.

Some context: after last month's record 4-sigma beat, today's print was "only" 3 sigma higher than estimates. Needless to say, two multiple sigma beats in a row used to only happen in the USSR... and now in the US, apparently.

Before we go any further, a quick note on what last month we said was "the most ridiculous jobs report in recent history": it appears the BLS read our comments and decided to stop beclowing itself. It did that by slashing last month's ridiculous print by over a third, and revising what was originally reported as a massive 353K beat to just 229K,  a 124K revision, which was the biggest one-month negative revision in two years!

Of course, that does not mean that this month's jobs print won't be revised lower: it will be, and not just that month but every other month until the November election because that's the only tool left in the Biden admin's box: pretend the economic and jobs are strong, then revise them sharply lower the next month, something we pointed out first last summer and which has not failed to disappoint once.

To be fair, not every aspect of the jobs report was stellar (after all, the BLS had to give it some vague credibility). Take the unemployment rate, after flatlining between 3.4% and 3.8% for two years - and thus denying expectations from Sahm's Rule that a recession may have already started - in February the unemployment rate unexpectedly jumped to 3.9%, the highest since February 2022 (with Black unemployment spiking by 0.3% to 5.6%, an indicator which the Biden admin will quickly slam as widespread economic racism or something).

And then there were average hourly earnings, which after surging 0.6% MoM in January (since revised to 0.5%) and spooking markets that wage growth is so hot, the Fed will have no choice but to delay cuts, in February the number tumbled to just 0.1%, the lowest in two years...

... for one simple reason: last month's average wage surge had nothing to do with actual wages, and everything to do with the BLS estimate of hours worked (which is the denominator in the average wage calculation) which last month tumbled to just 34.1 (we were led to believe) the lowest since the covid pandemic...

... but has since been revised higher while the February print rose even more, to 34.3, hence why the latest average wage data was once again a product not of wages going up, but of how long Americans worked in any weekly period, in this case higher from 34.1 to 34.3, an increase which has a major impact on the average calculation.

While the above data points were examples of some latent weakness in the latest report, perhaps meant to give it a sheen of veracity, it was everything else in the report that was a problem starting with the BLS's latest choice of seasonal adjustments (after last month's wholesale revision), which have gone from merely laughable to full clownshow, as the following comparison between the monthly change in BLS and ADP payrolls shows. The trend is clear: the Biden admin numbers are now clearly rising even as the impartial ADP (which directly logs employment numbers at the company level and is far more accurate), shows an accelerating slowdown.

But it's more than just the Biden admin hanging its "success" on seasonal adjustments: when one digs deeper inside the jobs report, all sorts of ugly things emerge... such as the growing unprecedented divergence between the Establishment (payrolls) survey and much more accurate Household (actual employment) survey. To wit, while in January the BLS claims 275K payrolls were added, the Household survey found that the number of actually employed workers dropped for the third straight month (and 4 in the past 5), this time by 184K (from 161.152K to 160.968K).

This means that while the Payrolls series hits new all time highs every month since December 2020 (when according to the BLS the US had its last month of payrolls losses), the level of Employment has not budged in the past year. Worse, as shown in the chart below, such a gaping divergence has opened between the two series in the past 4 years, that the number of Employed workers would need to soar by 9 million (!) to catch up to what Payrolls claims is the employment situation.

There's more: shifting from a quantitative to a qualitative assessment, reveals just how ugly the composition of "new jobs" has been. Consider this: the BLS reports that in February 2024, the US had 132.9 million full-time jobs and 27.9 million part-time jobs. Well, that's great... until you look back one year and find that in February 2023 the US had 133.2 million full-time jobs, or more than it does one year later! And yes, all the job growth since then has been in part-time jobs, which have increased by 921K since February 2023 (from 27.020 million to 27.941 million).

Here is a summary of the labor composition in the past year: all the new jobs have been part-time jobs!

But wait there's even more, because now that the primary season is over and we enter the heart of election season and political talking points will be thrown around left and right, especially in the context of the immigration crisis created intentionally by the Biden administration which is hoping to import millions of new Democratic voters (maybe the US can hold the presidential election in Honduras or Guatemala, after all it is their citizens that will be illegally casting the key votes in November), what we find is that in February, the number of native-born workers tumbled again, sliding by a massive 560K to just 129.807 million. Add to this the December data, and we get a near-record 2.4 million plunge in native-born workers in just the past 3 months (only the covid crash was worse)!

The offset? A record 1.2 million foreign-born (read immigrants, both legal and illegal but mostly illegal) workers added in February!

Said otherwise, not only has all job creation in the past 6 years has been exclusively for foreign-born workers...

Source: St Louis Fed FRED Native Born and Foreign Born

... but there has been zero job-creation for native born workers since June 2018!

This is a huge issue - especially at a time of an illegal alien flood at the southwest border...

... and is about to become a huge political scandal, because once the inevitable recession finally hits, there will be millions of furious unemployed Americans demanding a more accurate explanation for what happened - i.e., the illegal immigration floodgates that were opened by the Biden admin.

Which is also why Biden's handlers will do everything in their power to insure there is no official recession before November... and why after the election is over, all economic hell will finally break loose. Until then, however, expect the jobs numbers to get even more ridiculous.

Tyler Durden Fri, 03/08/2024 - 13:30

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