Archive for April, 2020

Canadian Employment (Mar) – April 9, 2020

Thursday, April 9th, 2020

BCREA

Canadian employment plummeted in March, falling by 1.01 million jobs (-5.3%, m/m). The unemployment rate increased 2.2 percentage points from 5.6% to 7.8%, as government measures intended to limit the spread of COVID-19 led to the closure of non-essential businesses and travel restrictions. 
Job losses were unsurprisingly right across the country, with the largest declines in Ontario (-403k), Quebec (-264k), BC (-132k) and Alberta (-117k). The decline in employment was driven by the private sector (-830k), while the public sector reported a smaller decline of 145k and self-employed were down by 32k. The shock to the Canadian labour market resulting from physical distancing measures hit certain sectors harder, which included accommodation and food services (-24%), information, culture and recreation (-13%), educational services (-9%) and wholesale/retail trade (-7%). Compared to the same month last year, Canadian employment was down by 4% (-765.2k).
Meanwhile, employment in BC fell by 132,400 jobs (-5%, m/m) in March, increasing the provincial unemployment rate 2.2 percentage points from 5% to 7.2%. The decline was driven by both part-time work (-76k) and full-time work (-57k). By industry, employment losses were generally broad-based, with the largest declines reported in COVID-19 sensitive industries including, accommodation and food services (-19%), information, culture and recreation (-14%), wholesale and retail trade (-10%) and business, building and other support (-10%). In contrast, employment was up in agriculture, utilities, manufacturing and public administration. Compared to one year ago, employment in BC is down by 6% (-151k) jobs. 
The impact of COVID-19 measures on employment will be clearer next month given further layoffs continued past the reference week used in March’s employment report. There are reports that more than four million people have applied for various income support programs. Additionally, it will be interesting to see whether some businesses are able to reverse their layoff decisions with the help of the Federal government’s wage subsidy program. 
Copyright © 2020 British Columbia Real Estate Association

Online COVID-19 resources for real estate investors, landlords and developers

Thursday, April 9th, 2020

Industry organizations have made numerous resource hubs available online

Western Investor

One silver lining amid the COVID-19 pandemic is how individuals and organizations are coming together to help each other and offer support where they can.

The real estate industry is no different, with many industry bodies and companies creating invaluable hubs of online resources to help investors, landlords, property managers, developers, contractors and others during this challenging period. 

These resource hubs include elements such as free webinars, videos, articles, reports, useful links to government resources and information, and much more besides.

Here’s our pick of some great industry sites to click on during the pandemic.

 

Urban Development Institute – Pacific Region

The UDI has three super-handy hub pages. One is dedicated to COVID-19-related updates for the development industry, one to non-industry resources such as government help, and one for municipal updates for the industry across the Lower Mainland.

https://udi.bc.ca/udi-covid-19-updates/

https://udi.bc.ca/external-covid-19-resources/

https://udi.bc.ca/covid-19-municipal-updates/

 

Homebuilders Association Vancouver (HAVAN)

HAVAN has a one-stop hub page that is constantly updated, where you can find all the relevant advice regarding development and construction in British Columbia. 

https://havan.ca/covid-19-resources/

 

Canadian Home Builders’ Association

Also for the building industry, the CHBA has a dedicated COVID-19 resource hub, but you can only access the good stuff if you’re a CHBA member.

https://www.chba.ca/covid-19

 

Real Estate Board of Greater Vancouver

Although not a dedicated COVID-19 page, much of the REBGV’s news page is currently taken up with important news and information about the real estate market as it relates to the pandemic.

https://www.rebgv.org/real-estate-news.html

 

Altus Group

Real estate services and software firm Altus Group has one of the best COVID-19 hub pages we’ve seen, with a host of links to useful resources, as well as FAQs and province-specific information.

https://www.altusgroup.com/insights-2020

 

JLL Canada

Real estate consultancy JLL Canada has an awesome COVID-19 resource hub page with a wealth of useful articles and advice.

https://www.jll.ca/en/coronavirus-resources

 

CBRE

CBRE’s National Apartment Group & Investment Properties Team has a COVID-19 resource hub page geared towards multi-family landlords, investors and property managers.

https://multifamilybc.cbrevancouver.com/covid-19-resources/

 

Avison Young

Avison Young has a COVID-19 hub page with industry and research updates targeted towards helping the commercial real estate industry.

https://avison-young.foleon.com/covid-19-updates/resource-centre/research-update/

 

Colliers International

The global commercial real estate brokerage has an impressive COVID-19 resource page with excellent articles and webinars.

https://www.collierscanada.com/en-CA/Countries/Canada/covid-19

 

Cushman & Wakefield

Another commercial brokerage with an excellent hub of online articles specifically about operating during the pandemic.

https://www.cushmanwakefield.com/en/insights/covid-19

 

Goodman Commercial

Commercial brokerage Goodman Commercial’s Market Insights page has a lot of COVID-19 related content right now, including free webinars and video recordings of those webinars.

https://goodmanreport.com/market-insights/

 

B.C. Real Estate Association and Real Estate Council of B.C.

If you’re a realtor, the BCREA and the RECBC both have a great COVID-19-specific resource hub page for you.

https://www.bcrea.bc.ca/practice-tips/covid-19-resources-for-realtors/

https://www.recbc.ca/public-protection/covid-19-and-real-estate-services

Copyright © Western Investor

Things to do when you’re stuck at home: Indoor activities for the whole family

Wednesday, April 8th, 2020

Turn isolation into a mini staycation with family fun and games you can enjoy at home.

other

1. Host a movie night

There ain’t no party like a Netflix party. Assemble in cyberspace for a digital movie night or boxset blowout, as you group chat with family and friends from afar.

2. Go big on backyard games

Giant Jenga, croquet, swing ball — now is the time to dust off, or top up on, those backyard family favorites.

3. Film a family talent show

Karaoke queens, dance-floor divas and aspiring actors assemble for your five minutes of fame. Film and share your show virtually with family and friends and get them to vote for their favorite act.

4. Send the children on a scavenger hunt

Hide clues, riddles and treats around the house then set the family off on an indoor quest with a prize for the family member who finishes first.

5. Grow an indoor garden

If you can’t get out, bring the outdoors in. Plant your favourite flowers to colour yourselves happy, or start a windowsill herb garden that not only looks good, but smells and tastes great too!

 © 2020 Vrbo

 

B.C. suspends evictions, offers renters’ rebate of up to $500 a month

Wednesday, April 8th, 2020

Landlords get support from BC government

Andrew Weichel
other

As more and more people face layoffs due to the COVID-19 crisis, the B.C. government has announced a new renters’ rebate and a freeze on evictions across the province.

Speaking from the legislature on Wednesday, Premier John Horgan said the government is offering struggling renters up to $500 a month for four months to ensure they don’t lose their homes.

But Horgan stressed that the money, which will be distributed by B.C. Housing and paid directly to landlords, is only intended for those who need it to get them through the crisis.

“If you can pay your rent, you should pay your rent,” the premier said. “This fund is there to help people who are in genuine distress. The fewer people who access the program, the more ability we have to expand it going forward.”

B.C. Housing Minister Selina Robinson said the relief is designed for those who make a low or moderate income and have seen a “significant reduction” in pay due to COVID-19.

The government also announced it is suspending all current and future evictions until the pandemic, which has already prompted hundreds of thousands of layoffs and job losses across the country, has passed.

That includes all evictions already approved by the Residential Tenancy Branch, but not those ordered by the courts, which the province cannot control. There will also be exceptions for extraordinary circumstances, such as cases where there are safety concerns with a tenant.

Planned rent increases have been put on hold as well.

Horgan said he is cognizant of the challenges faced by landlords as well, but that the renters’ rebate will ensure property owners can at least “continue to see some revenue coming in.”

“Homes should be a place of comfort and security,” Horgan said. “We don’t want people to think that they may lose that home as a result of this pandemic.”

The new measures, which were approved by cabinet on Wednesday, also give landlords the power to control guest and visitor access to common areas.

Minister Robinson said that could take the shape of closing down a multi-purpose space, or limiting the number of people who can use a shared laundry room at one time.

“This is to protect the health and safety of everyone in these buildings and beyond,” she said. “We have to minimize the number of people touching shared surfaces.”

The Ministry of Housing said landlords cannot restrict access to a tenant’s unit, however. Anyone with questions about a particular circumstances can call the Residential Tenancy Branch to learn their rights, officials said.

The renters’ relief and eviction freeze are in addition to a previously announced one-time payment of $1,000 that B.C. pledged to people struggling through the COVID-19 crisis.

Earlier on Wednesday, the federal government also promised additional support for those struggling to make ends meet. People who have lost their job, are off sick or are taking care of their children due to COVID-19 will be able to claim the Canada Emergency Response Benefit, which provides $2,000 a month for four months.

Prime Minister Justin Trudeau said Canadians should receive the assistance about 10 days after applying.

© 2020 BellMedia All rights reserved.

TD Bank chief optimistic of steady recovery after the pandemic

Wednesday, April 8th, 2020

The economy is expected to regain ground after COVID-19

Ephraim Vecina
Mortgage Broker News

Toronto-Dominion Bank’s CEO has expressed confidence that the domestic financial system and household purchasing power will regain valuable lost ground once the coronavirus threat recedes.

Speaking to BNN Bloomberg earlier this week, Bharat Masrani stated that the rate of recovery in the post-outbreak environment will heavily depend on how fast things get back to normal.

“How deep this [downturn] is is obviously important but more important is how long, what’s the duration of this. If this turns out that we can bounce back to some extent next quarter, there is a good chance of having a V-type, or V-ish type of recovery,” Masrani explained. “But without a doubt, you can see some recovery, and then a meaningful recovery to come because you will not have some kind of forced lockdown.”

“Now, it will be interesting to see how steep the V[-shaped recovery] is, but I certainly expect good growth coming out of the crisis.”

However, the revitalization of the Canadian housing market might still be a year away, Royal Bank of Canada senior economist Robert Hogue estimated in a recent report.

“We see the outlook improving markedly next year in most markets,” Hogue said. “Exceptionally low interest rates, strengthening job markets, and bounce-back in in-migration will generate substantial tailwind. We project home resales to surge more than 40% to 491,000 units in 2021.”

Copyright © 2020 Key Media

Canada’s residential property market labouring under amplified risk

Tuesday, April 7th, 2020

Real estate is now perceived as riskier

Ephraim Vecina
Mortgage Broker News

With the wholesale suspensions of mortgage and rent payments amid the COVID-19 outbreak, the residential real estate market has become a “riskier” choice, University of British Columbia professor Tsur Somerville argued.

“Real estate is now perceived as riskier (for banks) than it was three months ago because there’s a realization you could have people stop making mortgage payments or rent payments en masse. Normally in a downturn that evolves slowly,” Somerville told the Vancouver Sun.

This dovetailed with a recent analysis by Dominion Lending Centres chief economist Sherry Cooper, who attributed the noticeable increases in mortgage rates to said greater risk.

Somerville warned that using the last major financial downturn as a reference point might lead to mistaken predictions about where the market is headed.

“In the [2008] financial crisis there were different sorts of uncertainties around. They were economic, so you could understand a bit about what the phenomenon was. But with this it’s not the economy grinding down slowly, it’s not a financial panic, it’s not an economic shock. It’s a public health shock,” the veteran industry observer explained.

“Governments are rightly loading up on debt to get us through. But on the other side you have to pay off that debt. But what if we have a 5% to repay the debt? Well, that slows the economy. We have so much uncertainty that it’s very hard to think about where things might be once we have more certainty. How we relate to each other is going to be different.”

Copyright © 2020 Key Media

Lower interest rates to give Canadian households a measure of relief

Tuesday, April 7th, 2020

Big banks lower credit card interest rates

Ephraim Vecina
Mortgage Broker News

Canada’s battered purchasing power might feel some of the weight taken off its shoulders with the Big Six banks’ announcement that they will lower interest rates on some debt.

Over the past few days, these major institutions have responded to the global COVID-19 outbreak by introducing significant cuts on credit card interest rates, which normally range from 10.99% to 20.99%.

Reuters reported that the latest such reductions were made by Bank of Montreal, which said on Saturday (April 4) that said rates will be reduced to a maximum of 10.99% for consumers stricken with hardship, and Bank of Nova Scotia, which introduced a similar change the day prior.

Meanwhile, National Bank will cut its annual rates to 10.9% for those receiving three-month payment deferrals, and CIBC will give a lower 10.99% interest rate on personal credit cards belonging to those receiving deferrals.

This is especially welcome news to a consumer base that has been reeling under the worst financial effects of the pandemic.

A recent MNP LTD survey has found that 49% believe that they are just $200 or less away from insolvency, while 34% are afraid to lose their jobs in the current climate.

“The global crisis surrounding COVID-19 has delivered an unprecedented financial shock to Canadians at a time when personal finances are already a source of stress for many,” the MNP report noted.

“Many households were already limited in their ability to face any kind of financial disruption. Now, all Canadians are feeling the effects on their paycheques, pocketbooks and stock portfolios. Those who were already saddled with a lot of debt are in economic survival mode,” MNP LTD president Grant Bazian added.

Copyright © 2020 Key Media

Raising the bar on real estate photography

Tuesday, April 7th, 2020

It?s not exactly a newsflash that along with staging, photography plays a powerful role in promoting your listings

Connie Jeske Crane
REM

In Vancouver, Suzanne Rushton is a highly rated photographer with a passion to “raise the bar for real estate photography.” Recently, Rushton says a Realtor friend of hers was having problems selling a property. As a next step, “He had it staged professionally and then had me come to take photographs.” In short order, says Rushton, that once-stagnant listing flew off the market, $50,000 over asking to boot. “So there’s an actual case that shows that staging matters, and photography matters.”

It’s not exactly a newsflash that along with staging, photography plays a powerful role in promoting your listings and your business. Yet for real estate professionals, the expectations have ramped up twofold. First you need to keep up with all the trends and then decide how and where to best focus your time and money.

To get a sense of photography trends and best practices today, we talked to Rushton and successful Canadian Realtors in two of Canada’s largest cities. Here’s their advice:

Understand the “why”:

The digital revolution has only made photography more vital, Realtors told us. We know, for example, that for most buyers going online is an integral part of their property searches. As a result, the role of visuals has morphed. Rather than simply documenting a home’s features, photos must grab the attention of buyers as they scroll.

In Montreal, Catherine Dawe, a broker with Keller Williams Urbain, agrees, stressing that professional photography is a must for property listings: “Visuals are the No. 1 way that you’re going to get people interested. That’s what we get paid for.”

And there’s also evidence to suggest good photos can speed up your sales cycle. One study by the National Association of Realtors Center for Realtor Development found homes with high-quality photography sell 32 per cent faster.

But the final reason for investing in visuals is the great chance to convey your brand – and sell yourself. To online browsers, Rushton says, “The quality of the photos that the Realtor gets says more about the quality of the Realtor than about the property.”

Strategies for standing out:

How to stand out? Salespeople looking to make a mark face stiff competition. “We’re all used to seeing visuals and the bar has been raised. Every year it seems to get higher,” says Rushton.

In Toronto, Melanie Wright, broker and owner at the Wright Sisters Group, says choosing a professional, engaged photographer whose style you like is a great start.

Sounds simple but surprisingly, Wright says she sees more salesperson smartphone shots than you’d think. “It’s sad for me to see a nice property get listed and they’re iPhone photos that the agent took at 8 p.m.”

To elevate your listings, Rushton says, “You don’t have to get a full set of images for everything – for a smaller property or on a fixed budget. But I do think it’s worth getting at least a few really good photos that draw people in.”

With bigger listings, Wright also advises asking the photographer to take any extra shots that might raise offers. If a property has public lane access, for example, Wright might ask for some shots of the garage area “so people can see they could create laneway housing.”

For physically outstanding properties, Wright adds aerial photography. “For example, we’ve had two lakefront properties in the Beach, and in both of those situations we used drone footage.”

When it comes to higher-end listings, salespeople might pay for HDR (High Dynamic Range) digital images, twilight photography or arrange Matterport photography to create 3D walkthroughs and schematic floor plans. Dawe says, “I had a photographer come in with a Matterport camera, and from that you can pull stills. It also takes all the measurements for me so that I don’t have to spend my time doing that.”

Video:

Video is increasingly popular for property listings and social media. Dawe says, “I will put together all of that stuff because some people like videos, some like to look at stills… These days, you really need to cover a whole gamut of different kinds of media.”

While she generally uses photographers for full videos, Wright says sometimes she’ll also shoot on-the-fly 30-second “coming soon” videos with her smartphone. “But we would never shoot a video just with the iPhone. We have a mic, we have a diva light…to make it somewhat professional.”

Lifestyle photography:

Another trend Wright sees is lifestyle photography and listing photos that include close-up shots of little details. “It’s zooming in on a beautiful marble countertop with a bowl of fruit, so using different images just to set yourself apart, that’s something we’re starting to see more and we’re integrating into our marketing.”

At the very top end, Wright also sees a lifestyles-of-the-rich-and-famous trend crossing over from luxury U.S. markets into Canada.

“It’s not unheard of for them to use models and horses and have luxury vehicles, Porsches and Mercedes, pulling up… It would be pretty rare for us to do that but if I had a luxury property I wanted to promote, that’s something I would definitely look at, depending on what my sellers wanted.”

Injecting personality:

Influenced by social media, Rushton sees real estate professionals revealing more of themselves, their team, personal interests and community life into their visuals and digital marketing. Head shots of real estate teams for digital platforms, she says, should be updated at least every five years and express personality. “But also have some lifestyles shots in there – ‘I have a dog. I drink coffee. I’m interviewing a client. I’m immersed in the city!’…People like to know that,” says Rushton, “because we all do business with people as opposed to companies.”

Putting together a lifestyle shoot doesn’t have to be complicated, she says. “Hire a photographer for an hour or two with your team or by yourself, have it planned. It’s almost like a dating profile to be honest, but it’s not. Take your dog to the park, get some shots. This is content you can use for the next several months.”

On the horizon:

Ultimately, the key to success for Realtors seems to involve creativity, trying new things – trying lots of things – and being open to whatever can help them serve clients better.

As for what’s next, the industry is getting ready for virtual reality. Dawe says, “One other trend that Keller Williams has been talking about for a few years now is virtual visits, where people don’t even have to leave their living room – they can put on their VR glasses and visit a house… We’re not there yet. But that’s where we’re going.”

© 1989-2020 REM Real Estate Magazine

Vast majority of tech CEOs say firms don’t qualify for wage subsidy

Tuesday, April 7th, 2020

Tech industry group urges federal government to rethink eligibility

Tyler Orton
Western Investor

When Ottawa revised its COVID-19 wage-subsidy program in late March, expanding eligibility from small businesses only to large corporations and non-profits alike, throngs of organizations were suddenly poised to get 75 per cent of employees’ salaries covered.

But not so for the tech sector, according to the Canadian Council of Innovators (CCI).

Survey results released April 6 reveal 94 per cent of the 651 tech CEOs canvassed say their companies are not eligible for the wage-subsidy program, based on current criteria.

That leaves as many as 39,000 information and communications technology in the lurch, according to the CCI’s estimates.

The Canada Emergency Wage Subsidy (CEWS) is currently available to businesses, non-profits and charitable organizations that have demonstrated a 30 per cent decline in revenue compared with the same month a year earlier.

But the CCI said most tech CEOs don’t measure a decrease in business activity by such revenue loss.

“This measurement is only appropriate for a small number of static, traditional businesses, and is not appropriate for high-growth firms in Canada’s technology sector or SMEs that experience monthly recurring revenue,” the CCI stated in its report.

Alternative measures recommended

Instead, the council is recommending government consider tech companies’ declines in billable hours, units shipped, gross bookings and subscription revenue.

“It is not always reasonable to expect SMEs to have monthly income statements that report sales, as sales in most cases is not the right metric to determine a business’s growth or business activity,” the CCI stated.

The council is also urging Ottawa to accelerate the deployment of funds and hand off decision-making on who qualifies from the Canada Revenue Agency to financial institutions.

The survey, which was conducted April 1-4, found that 40 per cent of respondents have already had to lay off employees since the beginning of the pandemic, while 82 per cent of total respondents plan cut jobs in the coming weeks.

“Gaps in current approach”

The B.C. Tech Association is also calling for the CEWS to be retooled, noting there are a “few gaps in the current approach.”

The West Coast industry group recommends changing the wage subsidy criteria so that it applies to a company that can demonstrate 30 per cent revenue declines or else apply to a “qualifying” small company.

As for fast-growth companies, the association is recommending the government allows month-to-month comparisons rather than annual comparisons in revenue.

Many software-as-a-service (SaaS) companies that sell on an annual subscription basis spread revenue to comply with accounting rules.

“Which in normal circumstances gives a true picture, but not in the environment we’re in today,” BC Tech said in a statement.

BC Tech CEO Jill Tipping said the government is aware of those gaps and her organization is hopeful future announcements will address those concerns.

Copyright © Western Investor

Sharp drop in B.C. home sales should be followed by steady recovery: BCREA

Tuesday, April 7th, 2020

As COVID-19 makes its way around the globe, it is also bulldozing its way through the economy

Albert Van Santvoort
Western Investor

As COVID-19 makes its way around the globe, it is also bulldozing its way through the economy.

While airlines and event venues were the first to be infected, many are anxious about how the virus will affect other parts of the economy, including the real estate market – which made up 17.4 per cent of B.C.’s GDP in 2018.

Earlier this month, B.C. real estate brokers cancelled all open houses. When houses aren’t shown they become more difficult to sell, and when houses aren’t selling the broader market suffers. 

While the outlook doesn’t look good, it is still too soon to know what impact COVID-19 will have on real estate. 

“We’re in early days still, and we’ll see how this all evolves,” said Brendon Ogmundson, chief economist at the B.C. Real Estate Association (BCREA). “It’s pretty clear that the next few months are going to be pretty rough.”

Before COVID-19 struck home, March was a strong month for sales, according to Ogmundson, but that could change.

Steep decline, then rebound

In its most recent analysis, the BCREA predicts a steep decline in home sales in the second quarter, followed by a slow recovery. Sales are not expected to reach pre-COVID 19 baseline expectations by the end of 2020.

Housing prices, on the other hand, will likely experience only a modest temporary decline and should recover to baseline over the next year.  

The main reason home prices are expected to remain steady despite COVID-19 is that there isn’t a large enough supply for people to take advantage of low prices. 

“It works both ways. If people aren’t out there buying right now, they’re probably not listing either,” said Ogmundson. 

What usually drives real estate price down is a drop in sales activity coupled with a large increase in inventory, he said. People aren’t likely to be trying to get out of the real estate market at this time, so there is unlikely to be an increase in inventory. Even if demand falls off more than expected, it will take some time for that to be evident in real estate prices.

A slowdown in sales could also lead to pent-up housing demand, Ogmundson said. This means that once fears surrounding COVID-19 have settled down, the housing market could come back with a surge in sales and ultimately a spike in prices. 

Mortgage industry impact

While COVID-19 may not have a significant effect on housing prices, it is already making waves through the mortgage industry. 

The fear isn’t that lenders are going to stop lending, but that essential functions required to support lending will be damaged by the pandemic, said Taylor Little, CEO of Neighbourhood Holdings.

Not only are people avoiding open houses but appraisers are also staying home. Without needed appraisals, deals can’t be closed, and companies like Neighbourhood Holdings are put in a sort of realestate limbo, Little said. Delaying the closing of these real estatedeals will add to the economic stress already broadly being felt.

“How do you even complete a home refinance or purchase if an appraiser won’t even come into your house?” Little said.

The mortgage industry, including big banks and credit unions such as Vancity, are also suspending the need for borrowers to make mortgage payments for up to six months.

While at first glance this may appear as a negative for lenders, Little said it is beneficial. During difficult economic times, lenders are generally concerned about high debt delinquency; the deferral of mortgage payments will help prevent that.

Copyright © Western Investor