Point2 reached 13 million visits in May

Ephraim Vecina
Mortgage Broker News

Amid the mobility restrictions brought about by COVID-19, real estate marketplace Point2 (formerly known as Point2 Homes) reached a record-high 13 million visits in May.

The month’s results were largely driven by organic visits (79%). New visitors also represented 73% of users, Point2 said.

This came after a strong 9.1 million page views in January and 9.2 million in February. And while March posted a weaker 8.6 million level, April’s recovery pushed the site’s visits up to 9 million.

The online portal said that it also extended its business “to accommodate broader real estate needs.”

“As a result of these changes, Point2’s visual identity and logo have been redesigned to reflect the organization’s commitment to offering more property types to its visitors,” the firm said. “The website’s modern design and layout enhancements also make it easier and faster to browse listings.”

Point2’s survey a few weeks into the pandemic illustrated how the crisis has changed Canadians’ house-hunting habits: Around 20% of respondents said at the time that they will begin looking for new homes again only after the outbreak has passed.

Another 31% said that they planning to buy homes within the next six months, while 26% will be doing so next year. Meanwhile, 29% said that they are bracing themselves for noticeable delays in the home purchasing process, although 44% remained confident in the housing market’s prospects.

Copyright © 2020 Key Media

Centred Development launches Horizon 21, a 150-unit tower in growing Coquitlam neighbourhood

Simon Briault
The Province

The COVID-19 pandemic may have choked off much economic activity in the Lower Mainland, but the developers behind a new residential tower in Coquitlam are hoping that people still know a good deal when they see one. Centred Development’s Horizon 21 is a 150-unit development that will stand at the intersection of Blue Mountain Street and Lougheed Highway. It has plenty to recommend it.

The development gets its name from the 21 stories in the building and the views it offers of the Fraser River, according to Sally Wang, a sales representative with Key Marketing who is working with the developers.

“There’s lots of shopping and amenities in the area already and the walk to Braid Skytrain is also only 13 minutes. As a result, we’ve had a lot of purchasers coming from downtown Vancouver — it’s only 33 minutes away using rapid transit,” Wang said.

Located adjacent to two major thoroughfares – the Lougheed and Trans-Canada Highways, residents at Horizon 21 will have easy access to Lower Mainland destinations in all directions. And if they want to stay closer to home, there’s plenty of shopping, dining, schools and amenities in the area. The website for the development lists the highlights, including Cineplex Cinemas, Cactus Club Café, Town Hall Public House, Real Canadian Superstore, Ikea, Place Des Arts, Alderson Elementary and Maillard Middle School.

“This is a chance to be among the first to move into a new condo in this neighbourhood,” said Wang. “I can really see this area becoming the next Brentwood or the next Lougheed Town Centre.”

“We’ve seen lots of first-time buyers and investors here because the price is right for them,” she added. “Our studios and one-bedrooms are facing south so you’ll get a view and lots of natural light. Then on the north side there are mountain views as well.”

Chris Tioseco, a realtor who lives in Yaletown, is one of those investors, having bought a small studio apartment at Horizon 21. He liked the development so much he even recommended it to one of his clients, who also bought one of the homes on offer.

“The reason I chose that particular plan is because of the way it faces,” said Tioseco. “You get a water view with a small studio, which is tough to find anywhere else. I like the layout of it. It was relatively wide, rather than long and narrow. I thought the floor plans in this development were very well done.”

“I like being the first in the neighbourhood,” Tioseco added. “It went from Brentwood to the North Road area and the Lougheed Town Centre SkyTrain station where we were seeing tons of highrises. But in this neighbourhood, which is the next stop down at Braid Station, there weren’t any. There’s been some lowrise development here, but I think this is the next gap that’s going to be filled, so to me it seemed like a great investment.”

Centred Developments is a new company and Horizon 21 will be their first project. They also have a townhouse project in the works on the west side of Vancouver.

“They’re a fast-growing developer that has bought a lot of land,” said Wang. “They’ve hired a very good construction company and architects with Kerkhoff Construction and DA Architects & Planners to help them design and put this building together.”

The result of their efforts will be a concrete tower with a façade of metal, glass and limestone-like panels. There will be retail and office space on the podium levels and the building will also include a fitness centre, a multi-functional amenity room and a south-facing outdoor patio on the fourth floor. The development includes studios, plans of between one and three bedrooms and eight townhouses. Homes are priced from $299,900 to $1,222,900.

Kitchens at Horizon 21 come with quartz countertops and marble-inspired porcelain tile backsplashes, under cabinet lighting and double-bowl stainless steel sinks. Luxury matte black pull-down faucets are an upgrade option. The appliance packages are by Blomberg, Bosch, Panasonic and AEG.

Bathrooms have quartz countertops, mirror cabinets for extra storage, under cabinet lighting activated by motion sensors, chrome shower kits (again with optional matte black upgrades) and porcelain tile flooring.

“I like the finishes in the homes — the black faucets in particular — and the colour schemes,” said Tioseco. “As an investment, they also look like they’ll wear very well so that was one of the things that drew me to this project. I thought it was just a very well-done building.”

Horizon 21

Project location: 218 Blue Mountain Street

Project size: 150 homes – studios, one-, two- and three-bedroom plans and eight townhomes. Prices range from $299,900 to $1,222,900.

Developer: Centred Developments

Architect: DA Architects & Planners

Interior designer: Ross & Company Interiors

Sales centre: 218 Blue Mountain Street

Hours: By appointment only

Sales phone: 604.423.4222

Website: horizon21living.com

© 2020 Postmedia Network Inc

Vancouver most luxurious rental homes in limbo

Frank O’Brien
Western Investor

Perhaps the three most luxurious rental homes in Vancouver completed this month but remain in limbo due, the developer says, to a unique lease arrangement and a pandemic that has kept the targeted tenants at bay.

The Eventide, a four-storey apartment building with just three units, including a stunning near-3,000-square-foot penthouse overlooking English Bay, are covered by a non-renewable 30-year lease. 

This shelters the property from B.C.’s 20 per cent foreign-home buyer tax and the provincial property-transfer tax, but also makes it difficult to move.

“This is ultra-high-end, ultra luxury,” said developer Stanley Dee. “I promised the family that we would have a mechanism to eventually get it back.”

Dee, founder of Deecorp, said his family-run company would like to sell the entire property at 1460 Bute Street at the corner of Beach Avenue under a 30-year leasehold, with Decor maintaining ownership.

“But very few people are interested in that,” he said.

Dee had one potential buyer get as close as talking to lawyers, but that agreement eventually fell apart.

Now, ideally, he would like some group, perhaps a film studio, a major tech company, a professional sports organization, or perhaps, he said, a “New York billionaire,” to lease Eventide on a 30-year commercial lease.

“We also had some film people looking, and they were interested, but now, with the COVID situation, they are not allowed back into Canada,” Dee said.

Deecorp has had inquiries from potential tenants about renting the two smaller apartments on a short-term basis, but that isn’t appealing, Dee explained, because all of the apartments are complete with very expensive furnishings. 

“We would need very large damage deposits,” he said. Also, having tenants in place could skew a deal for the entire property.

Dee was reluctant to discuss prices, but he said Eventide’s value would likely surpass the $2,000-per-square-foot price of Vancouver’s top condominiums. 

BC Assessment values the penthouse alone at more than $6.6 million.

The Eventide suites are not vacant, which means the owners aren’t subject to the City of Vancouver’s empty home tax of 1 per cent of the property’s value.

“We have caretakers, people we know and trust, living there at very nominal rents,” he explained.

Dee said the ideal end game is a single long-term lease holder taking the entire building but, “with the right client and the right terms, we could be adaptive.”

Copyright © Western Investor

CECRA program relies on both parties to work together

Natalka Falcomer
REM

The most critical element you need to get a “good deal” is integrity. And this element is playing an even more critical role as I assist landlords and tenants navigate the Canada Emergency Commercial Rent Assistance (CECRA) program. The reason is simple: the program relies upon both parties to work together and requires very little by way of substantiating the eligibility of the tenant.

In other words, by participating in the program, landlords may be exposing themselves to significant legal and financial responsibility. While what I outline below is neither intended to provide a full scope of the program nor provide advice on eligibility, it is a brief summary of the questions I’ve been receiving that are not addressed by the government purveyors of the program.

1. Why isn’t my landlord applying for CECRA and what can I do?

Many lawyers are counseling landlords to not agree to the CECRA program if the landlord wouldn’t be financially able to grant the rent reduction without financial assistance from the government. Why? Because the tenant may not provide the required documentation in order to qualify, leaving the landlord holding the bag and exposed to claims from the tenant that the landlord promised to provide the reduction and, therefore, must fulfill this promise.  Nonetheless, the CECRA program is retroactive, meaning that landlords can always apply at a later date. If your landlord has not applied, you qualify for the program and you are prepared to provide the documentation to prove it, ask your landlords to commit to seeking the benefit of the CECRA program and to provide retroactive relief upon acceptance into the program.

2. What if I don’t have the documents to support that my business has been affected by COVID-19?

The program is clear: documentation is needed to support the loss of revenues. You, as a tenant, must also provide your registered business name, number of employees, consolidated revenues, lease area and the monthly gross rent for the period of April, May and June 2020. If you don’t have the documentation, such as a rent roll, audited financial statements and so on, then you expose yourself and your landlord to not only failing to meet the application requirements but, worse yet, an audit and the requirement to pay back the monies received. It’s unclear at this stage, but I suspect that any tenant or landlord intending to defraud the government will face financial and other ramifications.

3. What if my tenant has lied in order to qualify for the program?

The program is clear. If your tenant has made false or misleading representations to CMHC or is committing fraud or misconduct in connection with the application, and you, the landlord, become aware of this conduct, you must notify CMHC. If monies under the program have been received by the landlord, then CMHC has full recourse to recover the CECRA funds from the landlord.

CMHC’s recovery rights extend to further remedies available to it, which may include the landlord paying for additional fees incurred by CMHC to recover such amounts. What is more, if fraud occurs, the landlord is also obligated to “use commercially reasonable efforts to recover rent previously forgiven (and shall use such amounts collected to repay CMHC)”. This means that the landlord will have to incur legal fees, administrative costs and may be implicated in a more complex legal battle with CMHC.

Landlords contemplating applying for this program must ensure that their tenants have high levels of integrity and would qualify for this program. It’s also wise, if you are a landlord, to ensure that any rent reduction agreement required for this program include strong indemnification rights and default rights, which includes misrepresentation in favour of the landlord.

4. Is this a windfall for the landlord?

No. Funds are strictly for: “reimbursing impacted tenants for any rent paid above 25 per cent during the eligible period unless the tenant chooses to apply the previously paid rent against future rent any costs and expenses relating directly to the property, including any financing held by the property owner”; and “operation and maintenance and repair obligations (such as costs of common area maintenance, property taxes, insurance and utilities)”.

This means the funds cannot be used for the landlord to pay for a new car or to pocket any profits. The strict nature of the funds may also be a reason why landlords are unwilling to participate.

For example, will participating in the program give rise to an audit? What if the landlord also owns the property management company servicing the property – will paying the property management company qualify for the use of funds? What if the landlord can use the funds to pay for the mortgage and not the repair obligations, which take precedence according to the program? These questions will likely give any landlord cold feet.

5. Does this forgive rent that I owed before April 2020?

Tenants are attempting to use this opportunity to “get off the hook” for past rent owed. Landlords should be wary of such tenants and ensure that any rent reduction agreements make it clear that any rent falling outside the scope of the program is still owed. In fact, as a condition of participating in the program, landlords are wise to request that tenants first make good on any amounts outstanding.

It’s clear: to survive this crisis, tenants and landlords must act with integrity. Without it, neither will be pulled to safety.

© 1989-2020 REM Real Estate Magazine

CMHC is changing its underwriting policies for insured mortgages

other

The COVID-19 pandemic is affecting all sectors of Canada’s economy, including housing. Job losses, business closures and a drop in immigration are adversely impacting Canada’s housing markets, and CMHC foresees a 9% to 18% decrease in house prices over the next 12 months. In order to protect future home buyers and reduce risk, CMHC is changing its underwriting policies for insured mortgages.

Effective July 1, the following changes will apply for new applications for homeowner transactional and portfolio mortgage insurance:

To further manage the risk to our insurance business, and ultimately taxpayers, during this uncertain time, we have also suspended refinancing for multi-unit mortgage insurance except when the funds are used for repairs or reinvestment in housing. Consultations have begun on the repositioning of our multi-unit mortgage insurance products.

“COVID-19 has exposed long-standing vulnerabilities in our financial markets, and we must act now to protect the economic futures of Canadians,” said Evan Siddall, CMHC’s President and CEO. “These actions will protect home buyers, reduce government and taxpayer risk and support the stability of housing markets while curtailing excessive demand and unsustainable house price growth.”

These decisions are within CMHC’s authorities under the National Housing Act and are in anticipation of potential house price adjustment. We will continue to monitor market conditions and work with our federal colleagues on potential macro-prudential policy options.

CMHC supports the housing market and financial system stability by providing support for Canadians in housing need, and by offering housing research and advice to all levels of Canadian government, consumers and the housing industry.

Canada Mortgage and Housing Corporation (CMHC) ©2020 

FVREB indicated a notable recovery in May

Ephraim Vecina
Canadian Real Estate Wealth

Fresh data from the Fraser Valley Real Estate Board (FVREB) indicated that the region’s property sales and listings have showed notable recovery in May.

A main driver of this is the market’s steady adjustment “to the new, necessary safety measures required to buy and sell a home during the provincial state of emergency due to COVID-19,” the FVREB said.

“This is an encouraging sign. Real estate is an essential service and it’s one of the most important economic drivers in BC’s economy,” said Chris Shields, board president with FVREB. “It’s not easy to adapt quickly to physical distancing, virtual tools, and strict personal safety protocols, and yet we’re seeing more and more transactions happening daily as we all get more comfortable and confident with the new normal.”

Sales activity went up by 17% from April, for a total of 805 transactions. This volume was 47% lower than the May 2019 level of 1,517 sales, however.

As for supply, last month saw 2,207 new listings go live in the market, which was 56% higher monthly and 38% lower annually. Active listings stood at 6,454 properties, an increase of 8% from April and a decrease of 24% from May 2019.

“Although our overall numbers remain significantly lower than seasonal norms, it’s to be expected. The market is resilient and as all of us continue to work together responsibly for the betterment of public safety, it will continue to improve,” Shields said.

FVREB’s data release also said that overall prices remained stable, with the benchmark price for single-family homes ($990,400) ticking down by 0.2% monthly and growing by 2.7% annually.

“We’re not seeing a lot of downward pressure on prices because for many areas there is a shortage of inventory,” Shields said. “We’re even seeing multiple offer situations currently where buyers are paying asking price. When supply and demand stay in balance, prices remain relatively firm.”

Copyright © 2020 Key Media Pty Ltd

Toronto Regional Real Estate Board shows sales improved across the region

other

As home buyers, sellers and the real estate industry at-large adjust to new market conditions and health and safety measures under the COVID-19 emergency, new data from the Toronto Regional Real Estate Board (TRREB) for May shows that sales activity improved substantially across the region since the previous month. Sales across the Toronto Region increased 55% month-over-month (m-o-m) in May, with 4,606 transactions taking place. Despite the m-o-m improvement, May sales remained subdued on an annual basis; marking a 54% drop since May 2019. 

Average home prices across the Toronto Region increased 3% annually to $863,599 since May 2019. Compared to February 2020, the last full month before COVID-19 measures were implemented, the average home price dropped slightly by 5%.

Home Sales Recovered in Double Digits Across Toronto Region From April, But Down Over 50% Annually 

“While the public health and economic concerns surrounding COVID-19 continue to impact the housing market, the May sales result represented a marked improvement over April,” noted Michael Collins, TRREB President. Sales improved on a m-o-m basis in the strong double digits in every region. While still substantially lower compared to the same period in 2019, the monthly improvement provides some signal with respect to the direction of market activity.

In the City of Toronto, sales across all housing types were up 44% m-o-m, but down a striking 60% annually. The strongest m-o-m improvement was noted in condominium property types, with the condo townhouse sales up 70% from April, followed by condo apartments that noted a 51% monthly increase with 727 sales taking place in May 2020. On an annual basis, condo townhouse sales were least impacted, with a 53% annual decline, followed by the condo apartment segment that noted a 58% year-over-year (y-o-y) decline from May 2019. 

Toronto Region Housing Market Remains in Balanced Territory, Apart from Durham Region

New listings followed a similar annual decrease as sales with 9,104 new listings hitting the market in May. This marked a 51% annual drop, but an increase of 48% m-o-m.  

As such, the housing market maintained steady and balanced market conditions for the second month in a row, with a sales-to-new-listings (SNLR) ratio of 51%. An SNLR figure between 40% – 60% indicates that market competition is balanced, while above and below that threshold reflect sellers’ and buyers’ markets, respectively. 

These balanced market conditions were consistent across specific regions, with the exception of Durham Region. The City of Toronto (45%) York Region (43%), Peel Region (53%), and Halton Region (59%) all maintained balanced market competition conditions in May. Durham Region on the other hand inched back into sellers’ market territory with an SNLR of 68%. There were 770 sales in Durham Region in May compared to 1,138 new listings that month. In May 2019, all these were in balanced market territories.

Average Toronto Region Home Price Dropped 5%, or $46,491, From February 2020 

Across the Toronto Region, average prices remain lower than February 2020, which was the last full month before COVID-19 health and safety measures were introduced. 

As noted, while the average home price across the Toronto Region of $863,599 was up 3% annually, it marked a 5% decrease from February’s value of $910,290. Condo townhouse prices were most affected, with average prices declining 8% since February to $618,532. This was followed by detached houses and condo apartments where average prices declined 7% and 6% respectively. Semi-detached houses noted a slight 1% decline in average prices since February to $867,717. 

For the City of Toronto, average sold home prices across all home types improved on an annual basis by 2%, but declined by 3% since February 2020 to $955,273. Within the city, the condo segment led the declines since February; average home prices for condo townhouses dropped 8% to $715,572 followed by condo apartments by 7% to $674,028. Both segments noted annual average price increases of 3% and 5% respectively. 

The average City of Toronto detached house price rose 3% annually but declined 4% since February to $1,422,273. Semi-detached properties noted a 5% decline since February, but climbed 9% y-o-y to $1,143,322. 

Check out the infographics below to see how sales and average prices have changed by home type for TRREB and the City of Toronto in May.

© 2015 – 2020 Zoocasa Realty Inc., Brokerage

Toronto Regional Real Estate Board shows sales improved across the region

other

As home buyers, sellers and the real estate industry at-large adjust to new market conditions and health and safety measures under the COVID-19 emergency, new data from the Toronto Regional Real Estate Board (TRREB) for May shows that sales activity improved substantially across the region since the previous month. Sales across the Toronto Region increased 55% month-over-month (m-o-m) in May, with 4,606 transactions taking place. Despite the m-o-m improvement, May sales remained subdued on an annual basis; marking a 54% drop since May 2019. 

Average home prices across the Toronto Region increased 3% annually to $863,599 since May 2019. Compared to February 2020, the last full month before COVID-19 measures were implemented, the average home price dropped slightly by 5%.

Home Sales Recovered in Double Digits Across Toronto Region From April, But Down Over 50% Annually 

“While the public health and economic concerns surrounding COVID-19 continue to impact the housing market, the May sales result represented a marked improvement over April,” noted Michael Collins, TRREB President. Sales improved on a m-o-m basis in the strong double digits in every region. While still substantially lower compared to the same period in 2019, the monthly improvement provides some signal with respect to the direction of market activity.

In the City of Toronto, sales across all housing types were up 44% m-o-m, but down a striking 60% annually. The strongest m-o-m improvement was noted in condominium property types, with the condo townhouse sales up 70% from April, followed by condo apartments that noted a 51% monthly increase with 727 sales taking place in May 2020. On an annual basis, condo townhouse sales were least impacted, with a 53% annual decline, followed by the condo apartment segment that noted a 58% year-over-year (y-o-y) decline from May 2019. 

Toronto Region Housing Market Remains in Balanced Territory, Apart from Durham Region

New listings followed a similar annual decrease as sales with 9,104 new listings hitting the market in May. This marked a 51% annual drop, but an increase of 48% m-o-m.  

As such, the housing market maintained steady and balanced market conditions for the second month in a row, with a sales-to-new-listings (SNLR) ratio of 51%. An SNLR figure between 40% – 60% indicates that market competition is balanced, while above and below that threshold reflect sellers’ and buyers’ markets, respectively. 

These balanced market conditions were consistent across specific regions, with the exception of Durham Region. The City of Toronto (45%) York Region (43%), Peel Region (53%), and Halton Region (59%) all maintained balanced market competition conditions in May. Durham Region on the other hand inched back into sellers’ market territory with an SNLR of 68%. There were 770 sales in Durham Region in May compared to 1,138 new listings that month. In May 2019, all these were in balanced market territories.

Average Toronto Region Home Price Dropped 5%, or $46,491, From February 2020 

Across the Toronto Region, average prices remain lower than February 2020, which was the last full month before COVID-19 health and safety measures were introduced. 

As noted, while the average home price across the Toronto Region of $863,599 was up 3% annually, it marked a 5% decrease from February’s value of $910,290. Condo townhouse prices were most affected, with average prices declining 8% since February to $618,532. This was followed by detached houses and condo apartments where average prices declined 7% and 6% respectively. Semi-detached houses noted a slight 1% decline in average prices since February to $867,717. 

For the City of Toronto, average sold home prices across all home types improved on an annual basis by 2%, but declined by 3% since February 2020 to $955,273. Within the city, the condo segment led the declines since February; average home prices for condo townhouses dropped 8% to $715,572 followed by condo apartments by 7% to $674,028. Both segments noted annual average price increases of 3% and 5% respectively. 

The average City of Toronto detached house price rose 3% annually but declined 4% since February to $1,422,273. Semi-detached properties noted a 5% decline since February, but climbed 9% y-o-y to $1,143,322. 

Check out the infographics below to see how sales and average prices have changed by home type for TRREB and the City of Toronto in May.

© 2015 – 2020 Zoocasa Realty Inc., Brokerage

The BCREA Commercial Leading Indicator (CLI) was down sharply

BCREA

The BCREA Commercial Leading Indicator (CLI) was down sharply in the first quarter of 2020 from 134.2 to 123.2, reflecting the slowdown prompted by the COVID-19 pandemic. Compared to the same time last year, the index was down by 4.8 per cent.

The pandemic-induced shutdown of the economy in the last two weeks of the first quarter of 2020 had a notable impact on the CLI, turning all components negative. On the economic activity component, manufacturing sales led the decline. On the employment component, a fall in key commercial real estate sector jobs was the primary driver. Meanwhile, the financial component had the largest negative impact on the CLI, as REIT prices tumbled and risk spreads widened in March. The underlying trend in the CLI was relatively flat in the previous six quarters, but has taken a sudden downward turn due to the pandemic. This suggests that going forward, the environment for commercial real estate activity in the province will be weak as the economy gradually re-opens, and temporarily unemployed individuals slowly return to work.

BC’s economy was beginning to slow in the last quarter of 2019, but the rate of slowing was exacerbated by the pandemic in the first quarter of 2020. A fall in manufacturing sales of both durable and nondurable goods were the main drag on economic activity.

Also contributing to the drag, but to a lesser extent, were lower wholesale trade sales in motor vehicles, and building material and supplies. Meanwhile, although growth in retail sales was positive in the first two months of 2020, it was not enough to offset the 10 per cent monthly decline in March, as retail stores across the province were shut down halfway through the month due to the pandemic.

Employment growth in key commercial real estate sectors such as finance, insurance, real estate and leasing was negative for the first time since the summer of 2018, down by about 13,500 jobs in the first quarter. Additionally, manufacturing employment fell by about 1,830 jobs from the previous quarter.

The CLI’s financial component was negative in the first quarter of 2020 as growing fears of the potential impact of the pandemic resulted in a full market meltdown in late February, sending equity markets into free fall and government bond yields plummeting. However, private borrowing costs rose sharply due to elevated risk premiums, causing a tightening of credit conditions.