CMHC is financing 514 residential units in North York

Duffie Osental
Mortgage Broker News

Canada Mortgage and Housing Corporation (CMHC) has announced that it is financing more than $147 million to help construct 514 residential units at 3415 Weston Road in North York.

The project, by real estate developer Medallion Corporation, is receiving financing through CMHC’s Rental Construction Financing initiative (RCFi), a National Housing Strategy program delivered by CMHC that supports rental housing construction projects to encourage a stable supply of rental housing for middle-class families in expensive housing markets and those families looking to join them.

 “Canada’s middle class and those looking to join them will benefit from the construction of new rental housing,” said Ahmed Hussen, minister responsible for CMHC. “Through new investments, our government is taking action to increase the supply of new rental developments, providing housing options that are closer to services hard-working Canadian families need.”

“I want to thank the federal government for providing a $147 million financing commitment towards the creation of new rental housing for our residents,” said Toronto mayor John Tory. “Today’s announcement is a reflection of the importance of private and public partnerships and the impactful work that can be done.”

“We applaud CMHC for introducing the innovative RCFI program which is encouraging Medallion to immediately proceed with the construction of much needed, high quality new purpose built apartment buildings for Canadians and their families,” said Peter Grater, chief financial officer at Medallion Corporation.

Copyright © 2020 Key Media

Highpointe offers urban design, stunning views in quiet setting

ROBIN BRUNET
The Province

The images of Highpointe depict a beautiful, horseshoe-shaped condo complex with staggered terraces and plenty of signature architectural details, overlooking the Fraser River, an adjacent park, local mountains and Mt. Baker.

But one of Highpointe’s main selling points, apart from aesthetics, is that under the urban design and low maintenance exterior features, is a solid structure of steel and concrete.

Wayne Lyle, director of marketing for Highpointe (which is being developed by Concordia Properties), explains, “Steel and concrete is a rare and innovative choice for a low-rise condo and provides many benefits, including terrific mold and fire resistance and lower insurance costs compared to standard wood construction. The structure is rock solid – no warping or shrinking over time – and there is much better sound and thermal insulation performance, which also translates into less than normal cost of ownership.”

Location is another of Highpointe’s big advantages: the 153-unit complex is situated on a quiet tree-lined street adjacent to seven acres of parkland – and yet is just one block away from downtown Maple Ridge. “Home owners really have the best of both worlds,” says Lyle.

He adds that Maple Ridge centre offers shopping, dining, fitness clubs and even art galleries and a theatre (plus the new B-Line express service to the Coquitlam Skytrain). Beyond the city centre, the parks, dikes, lakes, streams and Golden Ears Provincial Park mean easy accessibility to great hiking, biking, kayaking, camping and horseback riding.

The homes themselves are a modern collection of no less than 39 floor plans (studios to three bedrooms) featuring nine- to 18-foot ceilings, oversize windows, stylish built-in Euro-brand appliances, gas cooktops, Silestone countertops, Napoleon fireplaces, and Lumon solariums – the latter providing a bonus room. The solarium fully retracts in summer for a breezy open deck, and then encloses in cooler weather to add an extra room.

Better still, prices for the homes begin in the high $200,000s for a studio, low $300,000’s for a 1 bedroom and mid $400,000s for a 2 bedroom.

© 2020 Postmedia Network Inc.

Stately neighbourhood inspires design of Shaughnessy’s Chateau Laurier

Michael Bernard
The Province

Shaughnessy, Vancouver’s original posh neighbourhood, has its roots in the development of the Canadian Pacific Railway, Canada’s first transcontinental railway. In fact, it was named after Thomas Shaughnessy, one of the railway’s presidents. Just two decades after the last of 30 million iron spikes was hammered into place, the CPR was developing a new expensive enclave for the aristocracy of Vancouver’s business community.

So it’s no surprise that the design style of the just-completed Chateau Laurier, a four-storey collection of 11 homes at Laurier and Oak streets, would take its cue from the enormous and stately European-inspired homes of Shaughnessy. The Laurier’s classic features— from the stone cladding and elegant columns to the graceful arches of its large windows—were also seen by the building’s architects as perhaps one way to entice current Shaughnessy residents to stay on where they had raised their families.

Architect Bryce Rositch said one of the first questions the firm asked itself was: “‘What is the best way of encouraging people who currently live in Shaughnessy, who have a $7 million to $12 million house, and kids who have left, to stay in the neighbourhood?’ That is why we went with the very classic approach to the architecture.”

But there are other reasons that keep people in their neighbourhoods. A Gallup Organization survey of 20,000 Americans, for instance, found that most people preferred to stay where they had raised a family. They also put at the top of their reasons for staying things such as social relationships, quality of place, the ability to meet people and make friends and physical beauty. It’s why Rositch expects that the nearby location of social amenities like the Vancouver Lawn Tennis & Badminton Club, and the Arbutus and Jericho recreation clubs is an important factor that local buyers would find attractive.

The homes also have another major drawing card—ample living space to match the roominess of larger single family houses. It’s something that potential buyers are quick to comment on when they tour the homes, says Looby Qian, marketing manager for the developer, Landa Global Properties. The smallest home, a two-bedroom unit on the ground floor, measures 1,450 square feet, while the average size of the remaining five is about 2,000 square feet. The penthouses’ wrap-around balconies, with views of the North Shore mountains and Queen Elizabeth Park, measure 2,000 square feet each, including covered space with provision for a hot tub, outdoor fireplace and a barbecue.

 “These are large size suites,” says Rositch. “We don’t often get to design buildings with suites that are this large.” For instance, the islands in the larger kitchens are huge by most condo standards, measuring 10 feet long by four feet wide. There is enough room for each of the three-bedroom homes to have separate ensuite bathrooms plus a powder room. The space also allows for a dedicated laundry room with sink, cupboards and storage space and full-size stacked Samsung washer and dryer. The den can also be used as an office space or—as in the one penthouse available for sale—a media room.

The kitchens come equipped with premium appliances: a Wolf six-burner gas range, a 24-inch Wolf microwave, a 36-inch integrated Sub-Zero refrigerator, and a 24-inch Asko integrated dishwasher. Also included is a 24-inch Marvel wine fridge. The cabinetry is white lacquer with a piano finish while countertops are in matching Wonder Grey quartzite, offset by an elegant glass backsplash. A Blanco undermount kitchen sink with garburator is complemented by a Hansgrohe chrome faucet.

Throughout the homes is wide-plank engineered hardwood flooring. Featured in the living room is a chateau-inspired fireplace with a sculpted mantle and an electric flame. The expansive main entry and all of the bedrooms have built-in, custom-designed closet systems. Master ensuites have dual-vanity cabinetry with Caesarstone countertops, free standing shower tub with Brizo tub filler, Toto smart toilet with integrated washlet, and marble flooring and wall tiles. Medicine cabinets have mirrors, shelves and built-in lighting.

Each of the homes has dedicated private parking for at least two cars, space that is segregated from the common parking and visitor space. The homes also come with a Bang and Olufsen smart home system for controlling everything from lighting levels to integrated controls for air conditioning and home heating. The company, best known for its high-end stereo systems (which can be added in), puts those controls on a tablet that is docked in a wall-fitting in the main entrance. Nearby is a powder room with an elegant herringbone flooring tile and Venetian palace wallpaper, reminiscent of the bathrooms of days gone by.

Chateau Laurier, Vancouver

Project address: 1009 Laurier, Vancouver

Project Scope: The release of the final six of 11 homes in a four-storey concrete condominium in the historic Shaughnessy neighbourhood: one two-bedroom home on the ground floor and five three-bedroom and den homes, ranging in size from 1,450-2,050 sq. ft. Rendered in classic architecture, including extensive use of limestone and marble on the exterior and interiors. Close to the Vancouver Lawn Tennis & Badminton Club, two of Vancouver’s exclusive private schools, restaurants and designer boutiques.

Price: From $2.48 million

Developer: Landa Global Properties

Architect: Rositch Hemphill & Associates Architects

Interior Design: Sublime Interior Design

Sales Centre: 1009 Laurier Ave., Vancouver

Centre Hours: By appointment

Sales Phone: 604-559-8181

Website: chateau-laurier.ca

Completed: December 2019

© 2020 Postmedia Network Inc.

Bank of Canada has cut the policy rate to 1.25%

Richard Laycock
other

Taking swift action in response to global and domestic markets, the Bank of Canada has cut the policy rate to 1.25% today.  

 

The decision can be seen as a reaction primarily to the Coronavirus outbreak and its effect on global commerce. 

 

Just two of 11 economists on Finder’s Bank of Canada interest rate forecast panel accurately forecasted the decision. However, nearly half of the panel thought the Bank should cut the rate, and the majority (91%) said the next rate movement would be down. 

 

The reason so many experts didn’t forecast the cut comes down to timing. Finder surveyed the economists between 17-25 February. Since then Wall Street experienced its worst week since the 2008 global financial crisis and the OECD has warned the virus could halve global economic growth this year. 

 

Earlier this week the Federal Reserve issued an emergency rate cut and Australia’s central bank, the Reserve Bank of Australia (RBA), decreased the rate to a record low of 0.50% in an effort to shield the local economy from a coronavirus fall-out. 

 

Vice President and Deputy Chief Economist, Brett House, was one economist, alongside Professor of Economics at Concordia University, Moshe Lander, who accurately forecasted today’s rate cut. 

 

“…The scope and scale of the novel coronavirus epidemic are both now much greater than the Bank of Canada anticipated in January,” he said. 

 

“Since January, Bank communications have opened the door to a cut, and the most recent data and developments pave the way for the Bank to follow through at the March meeting.”

 

Director & Senior Economist at TD Economics Brian DePratto, was also in favour of a rate cut, despite predicting the rate would hold. 

 

“The list of shocks and risks to the economy keeps getting longer,” he said. 

 

“Risk management suggests that getting ahead of these challenges now is likely worth the tradeoff against housing/financial stability, particularly given that the macroprudential environment is considerably different now than even just a few years ago.” 

 

When asked what level of impact the Coronavirus would have on the Canadian economy, over a quarter of panellists (27%) said the impact would be significant while the remainder said it would have somewhat of an impact.

 

Professor of Economics at the University of Toronto, Angelo Melino expects a significant impact. 

 

“The slowdown in China will hurt commodity prices, and the disruption of supply chains will spill over to the rest of the world. Although so far it has been contained in Canada, this is a highly contagious disease and there is a substantial risk that it will become established here as well,” he commented. 

 

You can find the full report here: https://www.finder.com/ca/bank-of-canada-interest-rate-forecast 

© 2020 finder.com

The speculation and vacancy tax impact limited to Metro Vancouver

Steve Randall
REP

The impact of British Columbia’s Speculation and Vacancy Tax (SVT) on the province’s home sales has been highlighted in a new report.

BCREA’s Market Intelligence Report estimates that the areas covered by the tax have seen sales decline by an additional 12.5% versus those that were not covered since 2018.

Growth in home prices since 2018 is estimated to be 5% lower in taxable regions in BC compared with non-taxable regions due to the SVT.

But when Metro Vancouver is removed from the estimations, there is little impact, suggesting that the impact of the SVT has been mostly on Metro Vancouver.

The SVT’s impact on the rental market also appears to be more material in Metro Vancouver, where there was a record increase in rental supply. But BCREA says that it is not yet possible to disentangle this from impacts of the Empty Homes Tax and short-term rental regulations that were implemented around the same time.

The report notes that home sales are recovering across British Columbia but supply issues need to be addressed if any progress towards better affordability is to be maintained.

Copyright © 2020 Key Media Pty Ltd

REBGV says condo inventory is lacking

Steve Randall
REP

Metro Vancouver home sales gained 44.9% year-over-year in February to a total 2,150.

Real Estate Board of Greater Vancouver reported that home sales were up 36.9% month-over-month but despite the gain sales were 15.6% below the 10-year average for February.

“Home buyer demand again saw strong year-over-year increases in February while the total inventory of homes for sale struggled to keep pace,” Ashley Smith, REBGV president said. “This was most pronounced in the condo market.”

Listings increased just 2.8% year-over-year and 3.4% month-over-month at 4,002 while total inventory of 9,195 was 20.7% down year-over-year but up 6.7% month-over-month.

“Our Realtors are reporting increased traffic at open houses and multiple offer scenarios in certain pockets of the market. If you’re considering listing your home for sale, now is a good time to act with increased demand, reduced competition from other sellers, and some upward pressure on prices,” says Smith.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,020,600, up 0.3% from February 2019 and a 2.7% increase over the past six months.

Stats by property type Sales of detached homes in February 2020 reached 685, a 52.9% increase from the 448 detached sales recorded in February 2019. The benchmark price for a detached home is $1,433,900. This represents a 0.7% decrease from February 2019 and a 1.9% increase over the past six months.

Sales of apartment homes reached 1,061 in February 2020, a 39.8% increase compared to the 759 sales in February 2019. The benchmark price of an apartment property is $677,200. This represents a 0.9% increase from February 2019 and a 3.6% over the past six months.

Attached home sales in February 2020 totalled 404, a 45.8% increase compared to the 277 sales in February 2019. The benchmark price of an attached home is $785,000. This represents a 0.6% increase from February 2019 and a 1.7% increase over the past six months.

Copyright © 2020 Key Media Pty Ltd

BoC likely to follow US rate cut

Phil Hall
Mortgage Broker News

Yesterday’s unexpected announcement by the U.S. Federal Reserve to cut its benchmark interest rate in response to the economic uncertainty tied to the outbreak of the novel coronavirus (formally known as COVID-19) has convinced industry leaders that the Bank of Canada (BoC) will be forced to take a similar action today.

The emergency rate cut by a half percentage point to a target range of 1.00% to 1.25% was justified by the Federal Reserve as a necessary response to the economic risks posed by the coronavirus. The BoC is expected to announce its rate cut today from the 1.75% that has been in place since June 2015. The 1.75% benchmark interest rate is the highest among the G7 nations.

Following the news from the Federal Reserve, industry experts fanned out across the media to insist the only question related to a BoC rate cut would be the depth of the action.

“Twenty-five basis points may prompt loonie strength and derail the stimulus of the cut itself, while 50 basis points could stoke a housing bubble,” said Simon Harvey, FX market analyst for Monex Europe and Monex Canada, in a Reuters interview. “Markets are running with the fact that the latter is a less concerning risk at the moment and are aggressively pricing a similar 50 bps from the BoC,”

Although Canada has not experienced the abrupt increases in coronavirus cases that have been recorded in other countries, the economy is expected to feel an impact in certain sectors including travel and tourism, as well through disruptions in its global supply chain.

“That’s enough for them to cut on its own – the terms of trade shock, the travel and tourism, the supply chain disruptions from not being able to source inputs from China,” said Royce Mendes, an economist at Canadian Imperial Bank of Commerce in Toronto, in a Bloomberg interview.

Gareth Watson, wealth adviser at Richardson GMP, predicted the BoC will cut the benchmark interest rate a quarter percentage point.

“It will be a shocker to me if Canada doesn’t follow suit, considering Australia did this morning and there are expectations The Bank of England will follow suit this month,” said Watson in a CBC News interview.

Avery Shenfeld, chief economist at CIBC Capital Markets, told the Ottawa Citizen that a rate cut was long overdue.

“The Canadian economy was barely growing in the last quarter of 2019, so we’re putting a shock into the global economy at a time when Canada desperately was looking for momentum,” said Shenfeld.

And Derek Holt, economist at Bank of Nova Scotia, bluntly stated to the Wall Street Journal, “The Bank of Canada needs to cut. Now. Enough dithering.”

Separately, Prime Minister Justin Trudeau raised the possibility that the government would be willing to provide help to firms experiencing financial damage as a result of the coronavirus outbreak.

“There will be impacts on Canadian businesses, on entrepreneurs, and we will always look for ways to minimize that impact and perhaps give help where help is needed,” said Trudeau, although he did not offer specific details on the type of help or the possible qualifications for receiving assistance. 

Finance Minister Bill Morneau took to Twitter to stress that Canadian actions related to the economic impacts of the coronavirus outbreak would be conducted in coordination with the other G7 countries, rather than in a domino effect of nation following nation in hurriedly adapting game plans.

“This morning I spoke with my G7 counterparts regarding the impacts on global economic activity from the COVID-19 outbreak,” Morneau wrote on Twitter. “We have reaffirmed our readiness to take action as necessary to aid in the response and support the economy. I’m continuing to monitor the issue closely.”

Copyright © 2020 Key Media

Low inventory on luxury homes spur increase in prices

Gerv Tacadena
Canadian Real Estate Wealth

Prices in the prime property segment are expected to grow further next year as buyers compete for a limited supply of homes, according to the latest market forecast by Royal LePage.

Substantial gains are forecast for the Greater Toronto Area (GTA), the Greater Montreal Area (GMA), and the Greater Ottawa, with both homes and condo segments likely to post stable price increases next year.

The condo segment in GTA is expected to outpace the growth in the region’s detached segment.  During the past 12 months to January this year, the median price of luxury homes in GTA rose by 1.2% to $3.63m while the value of condos increased by 7% to $2.4m.

Steven Green, a sales representative at Royal LePage Partners Realty, said condos in the region receive massive interest from a range of buyers, including downsizers, young executives, property investors, and foreign buyers.

“Luxury buyers face the same low-inventory scenario that challenges the overall residential market. Some of the city’s most desirable pockets have a very low inventory of listings, which is unfortunate for sellers who want to move up in the same neighbourhood,” Green said.

Condos are expected to realise a 6% gain in prices to $2.55m next year, while detached homes are projected to do the same at 2.5% to $3.72m.

Supply issues were also one of the main drivers of price gains in the GMA. Over the year to January, the market registered increases of 8.5% to $1.85m for houses and 8.3% to $1.41m for condos.

Marie-Yvonne Paint, a real estate broker at Royal LePage Heritage, said sales for luxury houses happen quickly because of the intense competition amongst buyers for a limited supply of listings.

“While demand continues to grow for luxury condominiums, buyers still have an excellent selection, and there is less pressure to move quickly when a listing becomes available,” she said.

Over the next 12 months, the median prices of houses and condos in the region are poised to grow by 5.5% to $1.96m and 5% to $1.48m, respectively.

In the Greater Ottawa, newly-built condo projects are selling for more than what is being asked in the resale market.

“The price gap is putting upward pressure on resale luxury condo prices. Rising land acquisition and construction costs are significant contributors to increasing prices in the luxury home market,” said Charles Sezlik, sales representative, Royal LePage Team Realty.

The median price of luxury houses in the Ottawa region rose by 2.7% to $1.84m while that of condos increased by 2.2% to $1.01m.

Based on forecasts, the Greater Ottawa is likely to report gains of 2.5% to $1.9m for houses and 1.5% to $1.03m for condos.

Copyright © 2020 Key Media Pty Ltd

Alberta condo board prevent short-term rentals

Canadian Real Estate Wealth

A condo board in Alberta has won a court battle preventing owners from engaging in short-term rentals through web-based platforms.

Court of Queen’s Bench Justice Paul Belzil issued a permanent injunction Thursday in support of The Ten Lofts Condominium Association in Edmonton and its legal right to ban rentals through groups such as Airbnb, Expedia, Kayak, and HomeAway.

The condo association had sent a letter to unit owners last year informing them of a ban, but some continued to rent out their condos. Under the board’s bylaws, a unit is to be exclusively used as a “one-family residence” and for residential, not commercial, purposes.

A judge had issued a temporary injunction preventing the practice last fall, but now it’s permanent.

Belzil said in his decision that the condo bylaw is constitutional and temporary renters, who do not have a lease, are not allowed.

“Reduced to its essence, short-term occupancy through platforms like Airbnb, where no lease is entered into, results in the functional equivalent of a hotel stay,” Belzil wrote.

“The short-term rental of units, in the absence of a lease, not only contravenes the bylaws of the corporation, but would result in a fundamental change to the structure and character of the condominium, without the consent of the board and without the consent of the vast majority of unit owners.”

A number of condo boards have expressed concern about short-term rentals due to security and wear and tear on the property.

Airbnb connects homeowners with people looking for accommodations. It is available in more than 81,000 cities and 191 countries.

Belzil said allowing rentals to continue would be unfair to the majority at the Ten Lofts condos.

“If the respondent’s argument were accepted, the board would have its ability to manage the corporation significantly impaired,” he wrote.

“This would result in a small minority of unit owners unilaterally changing the character of the condominium regime, thus adversely affecting the majority of unit owners, without their consent.”

Copyright © 2020 Key Media Pty Ltd