August home sales up 4.9% from last year

BCREA

The British Columbia Real Estate Association (BCREA) reports that a total of 7,093 residential unit sales were recorded by the Multiple Listing Service^® (MLS^®) in August, an increase of 4.9 per cent from the same month last year. The average MLS® residential price in the province was $685,575, an increase of 2.6 per cent from August 2018. Total sales dollar volume was $4.86 billion, a 7.6 per cent increase from the same month last year.

BC home sales continue to recover from a policy-driven downturn,” said BCREA Deputy Chief Economist Brendon Ogmundson. Home sales have been rising through the spring and summer, but still remain well below pre-B20 stress test levels.”

MLS^® residential active listings in the province were up 10 per cent from August 2018 to 40,098 units and were essentially flat compared to July on a seasonally adjusted basis. Overall market conditions remained in a balanced range with a sales-to-active listings ratio of about 18 per cent.      

Year-to-date, BC residential sales dollar volume was down 16 per cent to $34.9 billion, compared with the same period in 2018. Residential unit sales were 12.2 per cent lower at 50,806 units, while the average MLS^® residential price was down 4.4 per cent year-to-date at $686,303.    

© BCREA

Pricing trends vary across communities and types of property

Steve Randall
REP

A new report shows disparity in home price trajectories across Canada, including some large decreases.

The CENTURY 21 analysis of home prices reveals that some communities have seen some steep decreases in price per square foot in the past year, most notably in British Columbia.

BC’s decreases are led by some significant downturns in Vancouver, many suburbs in Metro Vancouver, and even some markets on Vancouver Island and the Okanagan seeing declines of 10-20% year-over-year in the first 6 months of 2019.

“What strikes me in this survey is how pricing trends varied so broadly across communities and types of property over the last year,” says Brian Rushton, Executive Vice-President of CENTURY 21 Canada. “It is not surprising to see Vancouver prices drop so much, but the drop is actually more significant in some Metro Vancouver suburbs like West Vancouver and secondary B.C. markets such as Vernon and Kelowna.”

It was the first time since the study began 3 years ago that the price of a single-family home on Vancouver’s West Side slipped below $1000 per square foot, at $990psf it represents a 13.74% year-over-year.

Montreal on the rise There were more moderate declines in Alberta and the Prairies, while Montreal condos jumped 25% ($709psf), Toronto gained 10% ($994psf), and most Atlantic Canada markets posted modest increases. Detached houses in Montreal gained 11.77% to $674psf

“Prices in Montreal and Toronto continue to head up, to the point detached houses in Montreal cost more per square foot than houses in many Metro Vancouver suburbs, and twice as much per square foot as Calgary,” noted Rushton.

Downtown Vancouver condos remain the most expensive properties in the survey at $1,241 per square foot, despite an 8.4% decline from the same period last year.

Calgary prices fell 3.59% from $293 per square foot to $282. Regina prices for a detached house fell 2.88% to $246 per square foot. Winnipeg saw the sharpest decreases in the Prairie Provinces, with decreases of almost 14% to $243 per square foot.

“With so much variation in the market and prices adjusting very differently depending on neighbourhood and property type, now more than ever it is important to have good information when making real estate buying and selling decisions,” Rushton added. “The list of complex local factors we see reflected in this survey is a long one, ranging from new taxes on property speculation and foreign buyers in B.C. through to a changing economy impacting neighbouring Toronto suburbs very differently.”

Copyright © 2019 Key Media Pty Ltd

Cyrus Hill townhomes will have plenty of room on offer

Simon Briault
The Province

A typical floor plan in a new townhome development in the Lower Mainland can sometimes be a somewhat narrow affair, with perhaps two or three bedrooms and a maximum size of about 1,600 square feet. But the townhomes at Cyrus Hill are anything but typical. Bassi Properties’ new townhome development in North Delta features plans with either three or four bedrooms and up to 2,342 square feet.

“The homes at Cyrus Hill are pretty large,” said Hardeep Bassi, vice-president at Bassi Properties. “We were conscious that growing families often want more space and when downsizers move from a bigger home, they don’t want to feel cramped. The four-bedroom plans feel very house-like. They have double garages, walk-in pantries, side-by-side laundries, double sinks and full closet organizers.”

With three young children, Nick Nashar said the extra space was a big part of the reason he and his wife decided to buy a home at Cyrus Hill.

“They’re offering a lot more space for the price, so we feel like we’re getting a lot more for our money with these guys,” Nashar said. “It’s also close to the school we want to send the kids to and then you have all the amenities nearby.”

“Right now, we’re in Surrey, but it’s getting very busy there,” Nashar added. “Even though the commute time for me will only be about 10 or 15 minutes less each way, that actually makes quite a big difference when you add it up over a week.

Bassi is eager to point out that the Cyrus Hill site is within a very walkable community.

“It’s a great location in terms of access to shopping and outdoor recreation,” Bassi said. “There’s a great trail network, so we see a lot of hikers, bikers and dog-owners. The highway is just down the street so you can be in Richmond in 15 minutes or Vancouver in 25 minutes.”

Kitchens come with bevelled Shaker-style cabinets, soft-closing doors and drawers, quartz stone countertops and under-cabinet task lighting.

Bathrooms feature quartz countertops with coordinated tiles, under-cabinet kick lighting, two undermount sinks and showers with frameless glass doors.

“We include features here that would normally be considered extras and that other developers would charge buyers more to install,” said Bassi. “The biggest thing for us is focusing on a high-quality product at an affordable price.”

Trust in the developer was never an issue for Nashar when buying a home at Cyrus Hill. The Surrey native had recently bought a condo from Bassi Properties and knew that they took pride in the quality of their products and the finishes within their homes.

The first phase of homes at Cyrus Hill, scheduled to be completed this fall, is about 80 per cent sold out, even before the grand opening event for the presentation centre scheduled for Saturday. The second phase should be complete by the spring of 2020.

Cyrus Hill

What: 40 three- and four-bedroom townhomes

Where: 11568 72 Ave, Delta

Residence size and prices: 1,426 to 2,342 square feet, from the mid to high $600,000s

Developer: Bassi Properties

Sales centre: #40 11568 72 Ave, Delta

Sales centre hours: Grand opening on Sept. 14; hours noon — 5 p.m., Sun — Wed

Sales phone: 778-893-8001

© 2019 Postmedia Network Inc.

Canadian municipalities registered and increase in building permits

Steve Randall
REP

Canadian municipalities issued $8.3 billion worth of building permits in July according to new figures from Statistics Canada.

The 3% gain month-over-month and 0.7% increase from a year earlier was driven by gains in the multifamily and commercial property types.

Residential permits totaled $5.1 billion, a 2.2% increase from June but 4.3% below July 2018. Within this, multifamily permits accounted for $2.8 billion, up 4.2% month-over-month but down 5.7% year-over-year.

The gain for multifamily units was led by Ontario (+$95 million) and Quebec (+$72 million), following declines the previous month in both provinces.

Single-family intentions slipped 0.2% from June to $2.3 billion and were 2.6% below July 2018’s level.

The number of dwellings for which permits were issued totaled 18,402, a 0.9% increase from June but 7.8% below July 2018. This includes 4,864 single-family units (down 1.7% month-over-month and down 4.7% year-over-year) and 13,538 multifamily units (up 1.9% from June but 8.9% below the July 2018 total).

Commercial leads non-res The commercial sector posted a 6.7% gain in the month from June to July with $2.0 billion worth of permits issued, offsetting three months of declines and representing an 18% gain year-over-year.

This gain was driven by high-value permits issued for offices in the Vancouver CMA.

Industrial permits fell in 6 provinces and were down 6.9% overall to $558 million, 23.4% below July 2018. Institutional permits gained 7.6% month-over-month and 26.7% year-over-year to $26.7.

Ontario sets new record Ontario issued a record high $3.5 billion in permits in July.

This was the fifth consecutive monthly gain, moving the province $209 million or 6.3% higher than the same month a year earlier. Manitoba (+$56 million) and New Brunswick (+$27 million) also reported strong year-over-year gains.

Copyright © 2019 Key Media Pty Ltd

Commercial Activity Remains Stable in 2019 Q3

BCREA

The BCREA Commercial Leading Indicator (CLI) rose by 0.7 points to 135.7 in the second quarter of 2019. Compared to this time one year ago, the index is unchanged compared to the same time last year..

Slowing provincial economic activity continued in the second quarter of 2019, with declines in retail sales and wholesale trade more than offsetting gains in the manufacturing sector. This meant the economic activity component of the CLI remained negative for the fourth consecutive quarter. Meanwhile, employment was up in office and manufacturing, resulting in a positive change in the employment component of the CLI. The financial component of the CLI was positive for a second straight quarter. The underlying trend in the CLI has been relatively flat over the past four quarters, suggesting a continued stabilizing environment for commercial real estate activity.

Following several years of robust growth, the BC economy continues to slow in the

first half of 2019. Broad-based declines in retail sales put a drag on economic activity,

particularly in the sub-sectors of motor vehicles and parts, food and beverage, and gasoline.

Following several years of robust growth, the BC economy continues to slow in the early part of 2019. The economic activity component of the CLI posted a third consecutive quarterly decline, led by the personal and household goods, and building material and supply components of wholesale trade.

Employment growth in key commercial real estate sectors was strong in the second quarter. Office employment in finance, insurance, real estate and leasing was up by 6,700 jobs. This measure of office employment now sits at an all-time high, signalling strong future demand for office space. Meanwhile, manufacturing employment rebounded by 6,300 from the previous quarter.

The CLI’s financial component was positive in the second quarter, as a narrowing of short-term credit spreads offset a decline in benchmark Canadian REIT prices.

© BCREA

Knight Frank Global Cities report places Canada at number 49 of 50

Steve Randall
REP

Home prices across the world are under pressure from trade disputes, fears of a recession, Brexit, and other economic and political concerns.

According to the Knight Frank Global Cities report for the second quarter of 2019, more countries and territories are seeing price rises year-on-year than at any time in the last decade, but the average rate of growth is slowing significantly as global uncertainty impacts.

Across the 56 countries included the average growth was 3.4% year-over-year, led by China (10.9%) which has topped the rankings for the first time in 10 years.

Canada’s 0.5% growth means ranking at number 49, one place behind the UK and just above Poland. Australia is the worst performer with a 7.9% decrease in prices year-over-year, one of just 4 countries to be in negative territory.

Canada ranks 6th out of the G7 nations, beating Italy which was another of the countries that saw an annual decrease (Morocco and Finland complete the four).

Despite the slower pace of growth, this latest quarterly report shows an uptick in the number of countries registering year-over-year increases or static prices (93%).

Copyright © 2019 Key Media Pty Ltd

Canadian REITs weighted to housing have posted an average 18.6 per cent return in the past year and are still prowling for quality acquisitions

Frank O’Brien
Western Investor

Residential real estate investment trusts (REITs) are leading the REIT sector this year and apparently see opportunity in the Metro Vancouver market that has spooked most residential investors and developers.

The strategy of investing in income-producing residential real estate is apparently paying off. A Bloomberg survey released  August 15 showed that the average year-to-date return for REITs involved in the residential sector was 18.6 per cent, blowing past projections of 6 per cent year-over-year yields  for the entire REIT sector.

One of the big movers was Vancouver-based Pure Multi-Family REIT, which specializes in high-end rental apartment properties in the U.S. Sunbelt. Formed a decade ago, Pure Multi-Family REIT was sold in July for $1.5 billion in an all-cash deal to U.S.-based Cortland Partners, a deal still awaiting regulatory approval. Cortland plans to take Pure private. 

The residential REITs to watch now are those stocking up on multi-family rentals in the West.

A major player is Canadian Apartment Properties Real Estate Investment Trust (CAPREIT), which has been rapidly acquiring new purpose-built apartment buildings in Metro Vancouver. CAPREIT owns interests in 53,334 residential units, composed of 45,637 apartments and 45 manufactured-home communities comprising 7,697 land lease sites located in and near major urban centres across Canada. CAPREIT is currently trading at $51.81 per share, up 16.9 per cent so far this year.

In April, CAPREIT paid $69.6 million to buy a 191-unit apartment building in Langley, and in the past three months it bought the Point, a new 98-suite rental building in Langley for $39 million and paid a similar amount for another new rental project, the Meridian, across the street.

Lance Coulson, executive vice president of CBRE’s national apartment investment properties group team in Vancouver, whose team brokered both deals, said CAPREIT has been a major player in Vancouver since he sold it a 19-building portfolio of rental properties totalling 919 units three years ago for $170 million, one of the biggest multi-family deals in Metro Vancouver history.

Coulson said CAPREIT approached him about buying the Point when the rental building was still half-built.

Big institutional players like CAPREIT are not spooked by per-door prices in Metro Vancouver that can top $400,000 for new rental projects, or by Canada’s skinniest capitalization rates that are often below 3 per cent, he said. 

“The capex [capital expenditures] is low or zero on a new building,” Coulson explained, adding that, in comparison with Lower Mainland condo apartments that have a benchmark price of $649,000, rental apartments are seen as inexpensive. 

As well, he noted, new rental buildings can generate monthly rents of from $2.15 to $2.25 per square foot. 

There are two other big advantages right now for long-horizon institutional buyers in Metro Vancouver: smaller rental investors are running scared and lending rates are falling to very low levels.

Sales of existing Metro apartment properties have nearly ground to a halt since last fall, Coulson said. 

“Sellers are taking property off the market,” he said, despite the region having the highest rents and lowest vacancies in the country. 

Coulson and other multi-family agents say a series of perceived anti-landlord policies, from the provincial government and local municipalities, is largely to blame for the sales slump. 

But, Coulson noted, apartment deals can be financed today with Canada Mortgage and Housing Corp.-insured mortgage rates of two per cent for five-year terms and 2.3 per cent for 10-year terms, the lowest rates available in the commercial or residential sector. Such low rates ease the pain of low cap rates, he explained.

“We will continue to see strong demand for quality multi-family assets,” he said. 

© Copyright 2019 Western Investor

At 100 Lombardy in Parksville, scaling down can be a step up for retirees

Michael Bernard
The Vancouver Sun

Whenever Albertans Sandra and Ted Beath have visited the Vancouver Island seaside town of Parksville, they enjoy a coffee at the McDonald’s off the city’s main drag. It was on such a recent stop that they saw something — something that will end up being a game changer in their lives.

“We had noticed that a building had been torn down beside the McDonald’s there and said to each other, ‘Wouldn’t it be nice to be right beside McDonalds?’” Sandra said laughing. They dropped into the showroom for the 100 Lombardy new-home project and fell in love with what they saw.

Sandra admits there were other factors that played into their decision to buy a penthouse in the boutique collection of 29 condominium homes in a five-storey wood-frame building located but a stroll from the inviting sandy shore and boardwalk on Parksville Beach. Like the nine-hour highway drive from their home in Drayton Valley, 130 kilometres southwest of Edmonton, to their vacation home at Shuswap Lake in the north Okanagan. Or the fact that it will be much easier for their three adult children to bring their grandkids on a 90-minute flight from Edmonton to Nanaimo airport, about 40 minutes south of Parksville.

Yet another reason is that the Beaths have friends from Alberta who purchased a home in Parksville home and a boat, prompting the Beaths to follow suit, which they did by buying a 40-foot Grand Banks-style vessel to explore the Gulf Islands and Georgia Strait.

Garwin Wuerch, whose company Radcliffe Development Corp. is building and selling 100 Lombardy, says the Beaths, along with Metro Vancouverites looking to cash in on the equity on their homes, constitute a good portion of those who stop by the project presentation centre.

“Our market is mainly the retirement market,” he said. “People who are 55-plus who want to scale down, get rid of the yard and move into this form of housing, where they can lock (up) and go travelling. Even local residents are finding “they can buy our new homes in a better location and maybe put some money in the bank.”

The building that once occupied the one-acre site was a 28-room resort motel with a restaurant and swimming pool. “Back in the 1960s and 70s, Victoria people would come up for the weekend and use the pool and the beach,” said Wuerch. “But over the years, it just deteriorated, so we bought the property in 2012 and deconstructed the motel and restaurant.”

In its place will rise a modern design condo development with both surface parking and parking under the building. There will also be some retail space taking up the ground level. All the floor plans have two bedrooms and two bathrooms, plus a flex space that can be used for a study or for storage. The homes range from 1,134 to 1,528 square feet with some homes having an unrestricted views of Parksville Beach, just 200 metres away.

Wuerch said 100 Lombardy has a few different features compared to an earlier project Radcliffe built nearby called Stone’s Throw, not the least of which is the flex space, measuring about eight by eight feet.

”We did originally have some plans that were two bedroom, but didn’t have the flex space. But the flex space is really important because people, especially the older demographic, still want a place for a computer, for their desktop and have it separate from the rest of the living space.”

The other major difference is that all homes are all one level units with no stairs. “Stairs are a real barrier in this market,” said Wuerch. “If we’re selling to someone that’s thinking about (aging in place) in future, it’s a real issue. So I really liked the idea of developing an apartment condominium with the elevator. And the other consideration is resale value for people who are thinking they want to sell the unit and move on it’s going to be easier.”

Outdoor spaces range from 170-square-foot balconies up to terraces on ground floor units of up to 783, he said.

Inside, Radcliffe has included features that it knows will appeal to a seniors’ crowd, including premium KitchenAid full-sized stainless-steel appliances with the option to upgrade to Bosch appliances for an additional $3,500. There are quartz countertops throughout the home, including a generously sized nine-foot-long kitchen island with a waterfall edge on the entry side.

All homes come standard with smart home features, including a NEST learning thermostat that ‘remembers’ temperatures the homeowners are accustomed to. Those features can be controlled from a mobile device anywhere in the world. That same distant mobile access applies to controlling the Yale keyless lock.

The homes are heated and cooled through a ductless system for advanced energy efficiency.

Radcliffe has increased soundproofing levels by adding a 3/8-inch underlayment system, and added to that is sound-reducing drywall and a concrete topping on all floors. Flooring is a luxury vinyl planking.

All homes come with a Whirlpool full-sized washer and dryer and a Napoleon 42-inch electric fireplace that can be upgraded to a natural gas unit.

Another feature bound to be popular among some retirees is low strata-maintenance fees, averaging around $215, Wuerch said. One couple recently purchased sold their condo in an upscale development elsewhere in Parksville to buy into Lombardy because they were paying more than $600 a month for amenities they didn’t use, he noted.

100 Lombardy

Project city: Parksville

Project scope: Five floor building with 29 condos with two beds, two bathroom and flex room. A shot walk to the beach and close to city amenities, including a gym, stores and restaurants

Prices: $485,000 to $879,000

Size: 1,134 —1,528 sq. ft.

Developer: Radcliffe Development Corp.

Architect: dHKarchitects, Nanaimo

Sales centre: 100 Lombardy St.

Centre hours: 10 a.m. to 4 p.m. daily

Contact: Garwin Wuerch

Sales phone: (250) 228-0512

Website: lombardystreet.ca

Completion date: November 2020

© 2019 Postmedia Network Inc.

Of the continent’s large metropolises, the best ones to live in are all found in Canada

Ephraim Vecina
Mortgage Broker News

Of the continent’s large metropolises, the best ones to live in are all found in Canada, according to the latest edition of the Economist Intelligence Unit’s liveability index.

Calgary, Vancouver, and Toronto were all within the top 10 in the global rankings. Vienna and Melbourne led the list worldwide.

All of these cities are characterized by vibrant economies, top-tier education, and excellent public health care, along with robust transport systems.

“Overall, our index remains dominated by medium-sized cities in wealthy countries,” the report explained.

“The upsides of these cities tend to be fully realized. You get a good collection of cultural activities, you get good access to healthcare and education,” EIU Asia regional director Duncan Innes-Ker told Bloomberg. “But you don’t get a lot of downsides that tend to come with big cities, things like traffic congestion, crime problems and general wear and tear.”

This is despite a tendency towards elevated housing prices in the Canadian cities, according to a RE/MAX survey conducted by Leger earlier this year.

“While price and value are always top of mind for buyers, there are some aspects about a home that you can’t change,” RE/MAX of Ontario-Atlantic Canada executive VP Christopher Alexander stated at the time. “These liveability factors are what make your home more than just the place you live.”

Calgary has proven to be especially attractive destination, with RE/MAX stating that the city ranked high in nearly two-thirds of the liveability benchmarks polled. Such criteria include population growth, housing supply, and access to retail outlets.

Vancouver boasted of particularly strong public transit options, including the Skytrain and bus system. The city also ranked high in RE/MAX measures of walkability, especially in Yaletown.

Meanwhile, Toronto ranked medium in terms of access to green spaces/parks, and high in population growth, retail store availability, and healthcare access.

Copyright © 2019 Key Media