Toronto-based brokers warn of a rise in bad-faith buyers

Ephraim Vecina
Mortgage Broker News

A disturbing trend of would-be home buyers not pushing through with their transactions after making offers is becoming apparent in Toronto and other large markets.

Marvin Alexander, president of the GTA-based Keller Williams Realty Centres, lamented the growing number of these flakers, who came into vogue amid the near-omnipresence of exclusively online transactions.

“Buyers are submitting offers, often in multiple offer situations, and then not showing up with the deposit cheque,” Alexander said, adding that these bad-faith players take advantage of these offers to shop around for the cheapest deals – even if many of these offers are “firm” and would-be buyers can’t back out.

Alexander said that in September alone, his brokerage encountered “nearly 30” such cases. He said that this is placing sellers in a grave position, as while they can pursue legal remedies against bogus buyers, they would have to wait until the offer’s closing date before they can even begin their court actions.

The remote transaction environment brought about by the COVID-19 pandemic has made fraud detection even more important. Brokers need to be particularly careful of application scams, especially when it comes to overstated income and other exaggerated qualifications.

“There’s a correlation between income and employment levels and the ability for one to qualify for a mortgage,” said Mitch Stolarchuk, vice president at Canadian Western Bank (CWB) Optimum Mortgage. “And especially as we all go through very trying times amidst the COVID-19 crisis with employment and income levels impacting a lot of people, there will be some who may be  just a bit more desperate feeling the need to embellish their income or employment status, in order to qualify for that mortgage.”

Stolarchuk said that brokers must be eagle-eyed for any gaps and basic mistakes such as typographical errors or mismatched/unusual fonts on job letters.

 

Copyright © 2020 Key Media

Canadian tech company uses machine learning to assess your home?s market value

Michelle McNally
Livabl

 An Edmonton-based tech company is rolling out a suite of online tools to help home buyers and sellers navigate the market as the pandemic continues to alter the country’s housing landscape.

HonestDoor is a free online service that combines realty intelligence and data science to produce in-depth information about residential and commercial properties, such as price assessments and neighbourhood analytics — information that’s typically difficult and time-consuming to collect. Last month, the platform launched in British Columbia, its third province since the company was founded in 2019.

“The company started because we thought there was a need for transparency in real estate and that was our main mission at the time,” said Dan Belostotsky, founder and CEO of HonestDoor. “We still have that mission today, and we’re trying now to do it across the country.”

 

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In addition to its live database with detailed information on three million Canadian properties, HonestDoor gives users a data-backed price assessment of their property using a machine learning system, known as the HonestDoor Price. The company recently integrated its own listing service, which allows homeowners, developers and real estate agents alike to list their properties on HonestDoor.

“I think HonestDoor has been a nice supplement to have when [homeowners] are going to buy or sell their property, to find out, ‘Hey, what’s my home worth?’ or ‘Hey, what are the details of this property?’ or any other red flags that they can find about a particular property, or just give them peace of mind,” said Belostotsky.

“For that reason, I think we’ve seen our traffic grow considerably because maybe more people are at home or people are actually really interested in moving,” he added.

Unlike MLS-based websites, which tend to share the same information across multiple sites, HonestDoor listings are unique to the platform. They also don’t require the lister to be an agent. Traditionally, listing your property for sale could be a drawn-out process with multiple meetings involved. Belostotsky explained that adding a listing on HonestDoor can be done quickly from your living room couch.

 

Image: HonestDoor

“In the smaller markets, it’s kind of like a risk-free way to determine the attractiveness of your home without necessarily getting an agent,” added Nicole Dong, a senior manager at HonestDoor. “You can get an agent at any point, but by listing your home on HonestDoor you’re sort of sussing out the demand for it.”

“We’re in a strange time for real estate, so I think that being able to offer that platform is a nice way to gain interest from people who are hoping to sell,” she said.

By the end of the year, HonestDoor plans to capture data for another two million properties on the platform for a total of five million properties site-wide. The company is looking to expand its operation to the Maritimes, Quebec and Ontario.

“I think the key for us is we want to be front and centre when someone is interested in buying or selling a home, or even earlier than [that],” said Belostotsky. “It would be a year or five years before they decide to move, so they’re always checking sold prices, they’re always checking on what’s happening in their neighbourhood.”

 

© 2020 BuzzBuzzHome Corp.

Vancouver’s housing market breaks sales record in September

Sean MacKay
Livabl

With 3,643 homes changing hands last month, the Vancouver housing market broke the all-time record for sales in September.
The total for September meant sales rose a remarkable 56.2 percent over the previous year and were 44.8 percent above the 10-year average for the month. Last month’s tally also firmly beat out August’s total by nearly 20 percent.
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The Real Estate Board of Greater Vancouver (REBGV), which released the data on Friday, said that low interest rates and changing housing needs during the pandemic are the primary drivers of the increase in activity.
Notably absent from REBGV’s commentary on what’s driving the high flying market’s performance was mention of pent-up demand held over from the spring shutdown.
Kevin Skipworth, a partner at Dexter Realty in Vancouver, said pent-up demand appears to have run its course through the summer and market momentum is now being carried by other factors.
“It is safe to say we are well beyond COVID-19 pent up demand; this is a housing market that is carrying itself and there are many factors to consider in looking at what the future holds for it,” he wrote in an email.
New listings also rose significantly in September both when compared to the previous year and to listings brought to market in August, but the pace of sales has been so dizzying that prices continued to rise despite the substantial new supply available.
“While the pace of new MLS® listings entering the market is increasing, the heightened demand from home buyers is keeping overall supply levels down,” said REBGV Chair Colette Gerber. “This is creating upward pressure on home prices, which have been edging up since the spring.”
REBGV’s benchmark home price for all property types rose 5.8 percent over the previous year to $1,041,300. The benchmark price for detached homes was $1,507,500, up 7.8 percent over last September. Meantime, the benchmark price for condos was $683,500, up 4.5 percent from last year.
In keeping with recent trends observed in Vancouver and other major Canadian markets, condo sales volume was higher than detached homes, but the former recorded “only” a 36.9 percent year-over-year increase in sales, while the latter saw a 76.8 percent rise.
“Working at home and the desire for space has led to some owners wanting to make a move outside the downtown core, but the number of [condo] transactions have increased since the spring,” said Skipworth.
“Buyers are still active and taking advantage of an increase in choice. Market cycles do happen, and a shift to detached homes is one of them, especially in light of price declines in recent years in the detached market,” he added.

© 2020 BuzzBuzzHome Corp.

Op-Ed: Why all the fear mongering by the CMHC over Canadian home prices?

Christopher Alexander
Mortgage Broker News

The strength of the Canadian real estate market has proven itself time and again during the pandemic. While we’re not out of the woods yet, we are expecting continued growth for the duration of 2020, with an active market for the foreseeable future and balanced conditions at the national level into 2021. This is great news for Canadians.
So why all the fear mongering by the CMHC?
The Canada Mortgage and Housing Corporation’s Chief Economist Bob Dugan told reporters at a press conference recently that the agency stands by its previous forecast in May that warned of a decline in Canadian house prices between nine and 18%.
“I’m not convinced that we have a sustainable basis for housing demand in the economic disturbance that’s going on related to COVID-19,” Dugan said. “That’s why I say I stand by the forecasts.”
We expressed our concerns over CMHC’s predictions in the spring, and Dugan’s latest statement continues to raise eyebrows – ours, and other industry insiders as well, as the Canadian housing market stays on its upward course.
While I can appreciate some of the reasoning that went into CMHC’s prediction, especially in the spring when so much was still unknown, the market data doesn’t support such a steep price decline, especially with the two largest real estate markets of Toronto and Vancouver continuing their upward momentum. The Prairies are facing different circumstances and challenges due to the resources sector, but Ontario and BC are expected to offset slower activity in Saskatchewan and Alberta.
Home prices so far resistant to recession
Nobody could have predicted the success of the Canadian real estate market in the wake of COVID-19. The height of the pandemic, March and April 2020, saw dramatic declines in activity, but transactions quickly resumed across the country as real estate professionals and consumers alike adapted to social distancing measures and embraced technology to continue transacting, despite disruptions to the economy and every facet of daily life.
Last month, RE/MAX Canada revised our forecast for growth in the national average house price in 2020, increasing it to 4.6 percent from our original expectation of 3.6 percent at the end of last year.
In terms of declining prices, “the impact was on rent as opposed to home ownership,” said Benjamin Tal, Chief Economist at CIBC World Markets. His optimism in the Canadian housing market was due to continued low interest rates and strong pent-up demand. “Eighty per cent of jobs lost were in the service sector. Many of them were low-income and many of them were renters. So, the impact was on rent as opposed to home ownership,” he noted.

Economists believe in Canada’s housing market
RBC Economics recently reported that a large-scale decline was unlikely. “The pandemic completely disrupted normal seasonal patterns by shifting activity from the spring to summer,” wrote RBC chief economist Robert Hogue. “With pent-up demand now largely exhausted, we see activity cooling later this fall. This should let some of the steam out of prices though not to the point of causing outright declines on a large scale.”
TD’s Beata Caranci also commented on Canada’s “swoosh” economic recovery and the housing market. The level of unemployment, she says, suggests the housing market should not be as active as it is. However, when you look at income levels, it all makes sense. Incomes today aren’t behaving like we’re in a recession, and incomes are being supported at the same or at higher levels than in previous recessions. The complete disconnect between the employment rate and income levels is adding fuel to the housing market.
So, if the real estate industry disagrees and economists disagree, just where is the CMHC getting its insight to support such a steep decrease in home values?
Recently the Ontario Real Estate Association surveyed Ontarians, finding that a strong majority think housing is an important (60%) or somewhat important (32%) contributor to the provincial economic recovery. They are now pushing governments to help stimulate the market with incentives like a land transfer tax holiday to help get more homes on the market and address some of the supply issues the province in currently facing.
I do think we may see a “hangover” from the busy market we’re experiencing right now, but as we head into 2021, I think a prediction of more balanced conditions across Canadian housing markets is warranted. But an 18 percent decline in prices is highly unlikely.
Christopher Alexander is executive vice president and regional director of RE/MAX INTEGRA’s Ontario-Atlantic Region.

Copyright © 2020 Key Media

Northview REIT takeover closes at $4.5 billion

Frank O?Brien
Western Investor

Calgary-based Northview Real Estate Investment Trust (REIT), a major multi-family landlord, has been acquired by Starlight Group Property Holdings Inc. a major shareholder, and Kingsett Capital Inc.

The all-cash transaction, which Northview said was based on an unsolicited approach a year ago, has an equity value of $2.5 billion. Including debt, the total deal value reaches $4.8 billion.

The purchasers will acquire Northview units at $36.25 per trust unit. The deal is scheduled to close the week of November 2, according to information released October 1.

Northview has a portfolio of approximately 27,000 residential units and 1.2 million square feet of commercial space in over 60 markets across eight provinces and two territories. Northview is known for acquiring and developing multi-family properties in secondary markets, including Nanaimo B.C., Fort McMurray and other smaller cities in Alberta and, recently, in New Brunswick.

The purchasers have waived material closing conditions, including consents from Canada Mortgage Housing Corporation and lenders. Northview has suspended its October distribution payable to unit holders, making the September 2020 distribution in the amount of $0.1358 per trust unit – payable on October 15, 2020 to holders of trust units of record at September 30, 2020 – the final regular monthly distribution.

“We look forward to building on Northview’s tenant focus by maintaining high-quality, well-operated and sustainable buildings,” said Starlight President and CEO Daniel Drimmer, who ranks as Northview’s top shareholder with a 13 per cent stake, in a release.

“This transaction is a testament to the business Northview has built, both through its original incarnation as Northern Property REIT,” said Northview CEO Todd Cook in a release. “We have successfully executed on our strategic priorities to build the portfolio in strong and growing markets, and to create value for unitholders through organic growth and Northview’s development platform.”

 

© Copyright 2020 Western Investor

Northview REIT takeover closes at $4.5 billion

Frank O?Brien
Western Investor

Toronto is the only North American real estate market considered in bubble territory

Rachelle Younglai
The Globe and Mail

 Toronto home prices are overvalued, making it the only North American city at high risk of being in a bubble, according to a new report on global real estate conditions by UBS.

The bank ranked Toronto as No. 3 in its annual bubble index, following Munich and Frankfurt. Seven of the 25 global cities assessed were in the high-risk category. Hong Kong, Amsterdam and Paris were below Toronto.

The report defines a bubble as being a period of a substantial and sustained mispric­ing of homes.

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On the flip side, Chicago had the lowest ranking and was labelled undervalued, while Madrid, Warsaw and Milan were considered fair valued.

UBS real estate analyst, Jonathan Woloshin, said “there is a greater chance of price stagnation or price decline” in cities like Toronto than in places like Chicago. “Does that mean it will happen? No. But the risk is certainly greater,” he said.

The UBS report stressed that it was not predicting when a bubble would burst. “Overvaluation and undervaluation can go on for quite a long period of time,” Mr. Woloshin said.

But the report said a change in the economy, investor sentiment or a major increase in housing supply could trigger a decline in home prices.

The report looks at imbalances in real estate markets, including the relationship between home prices and household income. This is the fourth straight year that Toronto has been in the bank’s bubble zone, taking the top spot in 2017. Vancouver also made it to the No. 1 spot in 2016, but this year the UBS index did not classify the city as being in the highest risk zone.

Toronto’s home prices have increased, “yet affordability is already stretched,” the report said. It also said the “expected appreciation of the Canadian dollar will curb the appeal of Toronto’s property to foreign buyers when travel restrictions are lifted.”

Toronto is Canada’s second-priciest real estate market after Vancouver. After an eight-week slowdown during March, April and May, home resales and prices in Toronto have reached record highs. In August, the average prices for detached houses and semidetached houses in the city jumped more than 20 per cent to $1,505,100 and $1,166,226, respectively, compared with August of last year.

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Although home resales and prices across most of the country have rebounded to prepandemic levels, the Canada Mortgage and Housing Corp. has forecast that a correction in the market could see home prices fall between 9 per cent and 18 per cent.

 

© Copyright 2020 The Globe and Mail Inc

Canadian Cities Where It?s Cheaper to Buy a Home Today Vs. 5 Years Ago: REPORT

Jannine Rane
other

National home sales and listings continued to climb in housing markets across the country this August, as some of the pressure from pent-up demand was released this summer when pandemic restrictions eased. Buyers returning to the market did so with refocused housing priorities; a growing number began looking to suburban and rural markets in search of greater square footage relative to what’s available in denser urban centres.

Despite the surge in demand, the Canada Housing and Mortgage Corporation (CMHC) recently reiterated their forecast that home prices are likely to dip in the coming months; citing pandemic-induced unemployment and slower in-bound migration weighing on demand, particularly in metropolitan cities like Toronto and Vancouver. 

To understand how current home prices compare to the past, Zoocasa used data from the Canadian Real Estate Association (CREA) to highlight trends in benchmark home prices for apartments and single-family houses in 15 Canadian regions over the past 5 years. We highlight the extent to which benchmark home prices grew or contracted in each region, offering a glimpse at regions where housing is more or less affordable today than it was 5 years ago. 

Overall, the Canadian benchmark apartment price rose a staggering 52% in 5 years, from $315,600 in August 2015 to $478,700 in August 2020. The benchmark price for single-family houses across Canada rose 40% from $486,800 to $683,400. That being said, a closer look at each area included in our analysis reveals that certain housing markets faced a much higher pace of price growth than others, with others noting benchmark price declines that resulted in housing becoming more affordable today than it was 5 years ago. 

 

 

 

 

 

Prairie Markets Including Calgary and Edmonton More Affordable Today Than 5 Years Ago

Overall, Prairie cities offer first-time home buyers some of the best affordability in the country, with benchmark prices under $250,000 for apartments and under $500,000 for single-family houses this August. In fact, the Prairies are one of the few regions where a benchmark apartment and single-family house is more affordable today than it was 5 years ago. 

In Calgary, Canada’s third most populous city, the benchmark apartment price was $248,500 in August 2020, dropping 14% or $41,900 since 2015. The benchmark single-family house in Calgary is now $466,000, which is 6% or $30,800 cheaper than the price 5 years ago. Similarly, in Edmonton, the benchmark apartment is 17%, or $37,300, cheaper than it was 5 years ago at $183,900 and the benchmark single-family house cost $377,300 in August this year, vs. $396,800 in August 2015, a drop of 5% or $19,500. 

Given their proximity to the Canadian Rockies, both Calgary and Edmonton offer good opportunities for buyers with remote-working flexibility seeking greater square footage and green space. Comparatively, the benchmark apartment price in Toronto is nearly double the price of the benchmark apartment in Calgary, and the benchmark single-family house in Toronto is more than double Calgary. Additionally, both Calgary and Edmonton have a much lower population density at approx. 1,900 people per square kilometer in Calgary and 1,400 people per square kilometer in Edmonton versus 4,700 people per square kilometer in Toronto.  

Elsewhere in the Prairies, compared to 5 years ago, the benchmark apartment price is 21% lower in Regina ($174,800), 13% lower in Saskatoon ($180,200), and 3% lower in Winnipeg ($196,800). Compared to 5 years ago, single-family house prices are 3% lower in Regina ($286,900) and Saskatoon ($319,400), but up 17% in Winnipeg to $300,500.

Benchmark Apartment Prices Rose Over 50% in 7 Markets Over the Past 5 Years 

Of the 15 markets included in our analysis, the benchmark price for apartments rose by more than 50% in 7 markets. Fraser Valley, BC, where the benchmark price increased 104% to $437,300, led the country in terms of the increase in benchmark prices for apartments over the past 5 years. 

Fraser Valley  was followed by a number of markets in Southern Ontario. Niagara Region led price growth in the area, with the benchmark price growing 87% to $354,400. This was followed by Greater Toronto where the benchmark price rose 78% to $592,900, Hamilton-Burlington where the price rose 74% to $471,100 and Guelph where there was a 73% increase in the benchmark apartment price to $379,000. 

This was followed by Victoria, where the benchmark apartment price grew 65% to $504,900 and Greater Vancouver where it rose 63% to $685,800. Although Greater Vancouver didn’t see the highest percentage growth in benchmark apartment price, it experienced the largest increase in dollar amount at +$265,100. 

Ottawa and Montreal also saw gains in the benchmark apartment price since five years ago, but at 46% and 35%, respectively.

Benchmark Prices for Single-Family Houses Grew 50% or more in 7 Regions Over the Past 5 Years 

7 out of 15 markets included in our analysis also noted a 50% or higher increase in the benchmark price for single-family houses. 

Niagara Region experienced the highest growth, with the benchmark price for single-family houses almost doubling, with a staggering 95% increase in 5 years to $490,500. This was followed by Hamilton-Burligton (71%), Guelph (63%), Fraser Valley (62%), Ottawa (53%), Greater Toronto (51%), and Victoria (50%). 

Montreal, Greater Vancouver and Winnipeg single-family benchmark prices also rose, but at 46%, 28% and 17% respectively. 

Our infographic below maps and compares benchmark prices for apartments and single-family houses for each region included in our analysis in August 2020 and August 2015, noting the extent to which prices changed in each region. Further below, find a list of the top regions where it is cheaper to buy an apartment and a single-family house today than it was 5 years ago, and a list of the regions where benchmark prices for apartments and single-family houses have risen the most since August 2015.

 

 

 

 

 

 

 

Top 3 Regions Where it’s Cheaper to Purchase the Benchmark Apartment Today vs. 5 Years Ago (Based on %)

1. Regina  

Benchmark Apartment Price, August 2020: $174,800

5-Year % Difference: -21%

5-Year $ Difference: -$46,900

2. Edmonton

Benchmark Apartment Price, August 2020: $183,900

5-Year % Difference: -17%

5-Year $ Difference: -$37,300

3. St. John’s 

Benchmark Apartment Price, August 2020: $236,200

5-Year % Difference: -16%

5-Year $ Difference: -$43,700

 

Top 3 Regions Where it’s Cheaper to Purchase the Benchmark Single-Family House Today vs. 5 Years Ago (Based on %)

1. Calgary 

Benchmark Single-Family House Price, August 2020: $466,000

5-Year % Difference: -6%

5-Year $ Difference: -$30,800

2. St John’s

Benchmark Single-Family House Price, August 2020: $271,600

5-Year % Difference: -6%

5-Year $ Difference: -$17,600

3. Edmonton

Benchmark Single-Family House Price, August 2020: $377,300

5-Year % Difference: -5%

5-Year $ Difference: -$19,500

 

Top 3 Regions Where it’s More Expensive to Purchase the Benchmark Apartment Today vs. 5 Years Ago (Based on %) 

1. Fraser Valley

Benchmark Apartment Price, August 2020: $437,300

5-Year % Difference: +104%

5-Year $ Difference: +$223,400

2. Niagara Region

Benchmark Apartment Price, August 2020: $354,400

5-Year % Difference: +87%

5-Year $ Difference: +$165,100

3. Greater Toronto

Benchmark Apartment Price, August 2020: $592,900

5-Year % Difference: +78%

5-Year $ Difference: +$259,800

 

 

 

Top 3 Regions Where it’s More Expensive to Purchase the Benchmark Single-Family House Today vs. 5 Years Ago (Based on %) 

1. Niagara Region

Benchmark Single-Family House Price, August 2020: $490,500

5-Year % Difference: +95%

5-Year $ Difference: +$239,300

2. Hamilton-Burlington

Benchmark Single-Family House Price, August 2020: $751,300

5-Year % Difference: +71%

5-Year $ Difference: +$311,300

3. Guelph

Benchmark Single-Family House Price, August 2020: $651,600

5-Year % Difference: +63%

5-Year $ Difference: +$251,000

 

Sources

Benchmark apartment and benchmark single-family house prices were sourced from the Canadian Real Estate Association. 

Data use to calculate population density was sourced from Calgary Economic Development, City of Edmonton and City of Toronto.  

 

 

© 2015 – 2020 Zoocasa Realty Inc., Brokerage

Sublease bulge pushes office vacancy rates higher

higher Frank O’Brien
Western Investor

With a spike in sublease space shoved back onto the market in the third quarter, Vancouver’s downtown office vacancy rate has risen to 4.7 per cent, up from 3.3 per cent in the preceding quarter, reports CBRE Ltd., but still tied with Toronto with the lowest downtown vacancy rate in North America.

Sublease space of 481,000 square feet now accounts for nearly 40 per cent of all the offices vacant in Vancouver’s core, the highest per centage among the four largest cities in Western Canada where total subleases now total nearly four million square feet.

Jason Kiselbach, managing director of B.C. for CBRE,. said a portion of the subleases coming to market can be attributed to companies cutting down on leased offices as a result of COVID-19. He said it remains to be seen how the work-from-home narrative plays out, and whether it will meaningfully result in depressed demand for office space.

“I think it is a bit of a transitionary period, and we’re seeing that create a lack of urgency right now for people to make big decisions.”

The bulge in subleases – space resulting from office  tenants downsizing or unable to take possession of previously leased offices – has grown to more than 3.8 million square feet in the four western cities, with the vast bulk of it in Calgary.

Downtown Calgary has the highest vacancy rates in North America, at 28.7 per cent, as the fully-vacant 600,000 square-foot Nexen tower was put back into the market in the third quarter. All told, Calgary now has three million square feet of sublease space downtown, representing a quarter of all the empty space in the city.

CBRE noted that Calgary’s sublease bulge is expected to swell as “oil and gas companies begin to evaluate the prospects of mergers and acquisitions.”

The Nexen is an example. Oil and gas company Nexen, a subsidiary of Hong Kong-based CNOOC Limited, moved out of the 37-storey namesake tower at the end of last year and the building has been vacant ever since. Nexen transferred its headquarters to the 58-storey Bow building, where it took 290,000 square feet of sublease space from Cenovus Energy.

Edmonton’s downtown office vacancy rate rose marginally to 19.7 per cent in the third quarter after posting negative absorption of 51,000 square feet during the three-month period. Alberta’s capital city now has 381,000 square feet of sublease space on the market, down about 8 per cent from the second quarter.

Winnipeg’s downtown office vacancy rate increased to 12.1 per cent in the third quarter, up from 11.7 per cent in the second quarter, due to a combination of lower demand and an increase in sublease space. CBRE found the city had 74,000 square feet of sublease space available, representing 6 per cent of the total downtown vacancies.

 

© Copyright 2020 Western Investor 

Record $8.4 million sale shows legs of luxury market

Frank O’Brien
Western Investor

Sales of luxury resort properties show portion of population have been largely unaffected by pandemic-caused recession

 

A record sale of an $8.4 million property at Pemberton shows the strong legs of Canada’s luxury resort market, part of a quick estate pace that has set high sales and rising prices despite the COVID-19 pandemic.

“Since the economy has opened, we have seen unprecedented interest in properties with more land and more privacy,” said John Ryan, an agent with Whistler Real Estate Co.

Ryan’s recent record-breaking sale is a 41-acre, luxury property in Pemberton, located just 30 minutes from Whistler, B.C.’s top ski resort. The sale is the highest residential real estate price that Pemberton has ever seen, selling for $8,475,000 within weeks. This residence features more than four acres of lawns, gardens, a pond, an orchard, farmland, outbuildings, and dirt bike courses

“These large luxury properties are a hot commodity right now and are selling quickly and for more money,” Ryan said. “In Whistler and Pemberton alone, we have seen 13 sales over $5 million this year.”

Overall, within the Whistler and Pemberton real estate market, in the first two quarters of 2020, the average sale price has increased by 54 per cent from $1.9 million in 2019 to $2.4 million in 2020, resulting in a total dollar volume increase of 22 per cent. The unit volume has also grown 52 per cent with 21 sales in 2019 versus 32 sales in 2020, according to local real estate sources.

It is not only Whistler-area luxury resort homes that are selling well during the pandemic.

On July 3, a new property development in the mountain resort Canmore, Alberta, sold out more than $10 million in investor condos in less than three hours. Some apartments in the Highland Peaks development were priced to $696,000, according to Century 21 Nordic Realty team that brokered the deals.

In West Vancouver – considered a resort location by some well-heeled international investors – the new Sentinel, 122-unit luxury condominium tower pre-sold 54 condos in June alone, including a $6 million penthouse, reports Cameron McNeill, a partner in MLA Canada

Figures show that some Canadians have seen their net income increase during the pandemic, despite its recessionary affect, due to a surge in financial markets and in real estate values. For example, according to a study by the Canadian Centre for Policy Alternatives’ B.C. office, Canada’s top 20 billionaires amassed an average of nearly $2 billion each in wealth in the six months ending this September, for a combined total of $37 billion.

“Canada’s overall luxury market has remained strong throughout the pandemic, with market conditions unchanged from the beginning of the year in most regions,” according to a second-quarter 2020 report from Re/Max Canada.

 

© Copyright 2020 Western Investor