Real eState

New normal: Habitat for Humanity thrives despite challenges of real estate market – The Sheridan Press

Published

3 years ago

October 9, 2021

SHERIDAN — Carla Trier moved into her house, constructed by Habitat for Humanity of the Eastern Bighorns, on March 3, 2020. A week later, she was working from home because of the COVID-19 pandemic.

Trier was moving out of an apartment that was cold and moldy and recovering from an abdominal hysterectomy while operating a local nonprofit in the middle of a pandemic. During this time of chaos, the home was — and continues to be — “a nice refuge for me,” Trier said.

“It was a huge blessing to me, to be in a safe place that was comfortable and new with nothing going wrong,” Trier said. “There is just huge value in it.”

Now more than ever, Habitat has received inquiries from people like Trier in need of a safe, affordable place to live, according to Executive Director Christine Dietrich. The work of the organization is continuing at a steady clip, but the nonprofit is also facing a barrage of challenges related to a low supply of available lots and high demand for new construction.

The pandemic has brought a “consistent flow” of new residents to Sheridan from Colorado and the West Coast, according to Bruce Garber, broker with and owner of Century 21 BHJ Realty. This has led to a high demand for housing, which has driven up local real estate prices and increased local construction. The high demand for construction materials — coupled with a low supply due to a shutdown of factories in the early days of the pandemic — has increased construction materials costs substantially.

In other words, it has never been more expensive to construct a house, Dietrich said, and for Habitat, that means more fundraising than ever before.

“At Habitat, anything beyond what is affordable for our partner families is what we have to fundraise for each house,” Dietrich said. “As that gap continues to get bigger, it puts more pressure on me to cover that difference. At a certain point, it’s not sustainable anymore, and we have to make hard decisions. The first and most practical one is to slow down production, but that’s also the last one we want to do. Our goal is to ramp up production, not scale it down.”

Habitat for Humanity of the Eastern Bighorns addresses the need for affordable housing by providing home ownership opportunities for Sheridan families in need. The organization serves families whose income is between 30% and 60% of the current median income, as defined by the U.S. Department of Housing and Urban Development for Wyoming.

Habitat currently constructs three houses a year, Dietrich said. Currently, 95% of the loans they originate for those houses have to be subsidized by Habitat dollars in some shape or form with the organization raising an average of $80,000 per house.

“So we’re looking at around $240,000 a year just to cover the subsidy,” Dietrich said. “That doesn’t include operational expenses or ReStore expenses or any of our other programs. Just the subsidy.”

Habitat covers these expenses through fundraising efforts and, while events like the recent Wolf Creek Wrangle help, the bulk of the dollars come from private individuals and businesses.

Dietrich thanked the community for “carrying Habitat through the last two years of COVID” but also noted Habitat wasn’t the only nonprofit needing additional help, which has put a strain on private giving.

“We have seen long-time donors not make a gift this year, but we have also recruited new ones,” Dietrich said. “We just have to be proactive.”

The organization has to be similarly proactive when finding lots to build on, according to board member Bob Utter. Utter, a longtime realtor who retired at the beginning of the COVID pandemic, said he has never seen lots in as high demand as they are now, which has required Habitat to change its tactics a bit.

“As a general rule, a nonprofit does not compete well in the open market,” Utter said. “And now we find ourselves in a very competitive market where a lot will sell almost immediately. So I’ve taken it on myself to look for other properties and contact people directly, and that’s worked well for us.”

Most recently, Habitat purchased eight lots in Ranchester for future development, Utter said. Habitat is also developing properties at the Trailside and Poplar Grove subdivisions in Sheridan.

In addition to increased construction costs and lower availability of lots, the organization is also facing supply chain issues — particularly for appliances — that are delaying construction, Dietrich said.

“In construction, time is money, and the faster I can turn around a house build, the faster I can put a homeowner into it,” Dietrich said. “But the supply chain issues are slowing down our timeline to build a home, which impacts our ability to host volunteers because we don’t know when the supplies will arrive. We’re not the only business seeing that, but it definitely impacts us.”

One thing that is not in short supply is aid from the community, both financially and in volunteer hours, Dietrich said. And that support is key to the organization’s continued success, Utter said.

“Be a Habitat supporter,” Utter said. “That could mean participating in fundraisers or working with Habitat on acquisition of land or volunteering for builds to keep our cost of construction down. Every act of generosity matters, now more than ever.”

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Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

4 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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