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Suburban real estate vulnerable if demand shifts post-pandemic, Bank of Canada warns – CBC News

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The gap between downtown real estate and houses in the suburbs narrowed significantly during the COVID-19 pandemic, a development that may make markets outside big cities even more vulnerable to a slowdown.

That’s one of the main takeaways from a recently released analysis by the Bank of Canada that looked at housing valuations in 15 cities across the country, both before the pandemic and now.

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Historically, real estate in downtown cores tends to be more expensive because people want to live close to city services and amenities, and more vibrant job markets. “But this pattern may have shifted during the COVID‑19 pandemic,” Louis Morel, a policy adviser at the central bank, said in an analytical note released Monday.

The cost and inconvenience of commuting is typically a downside to suburban living, but the mass movement toward working from home during the pandemic flipped that old adage on its head, as downtown dwellers flocked en masse to the suburbs for more space.

Morel notes that many of the services that downtown residents enjoy about life in cities, such as concerts, restaurants and live entertainment, were shut down in one form or another.

“Between working or studying from home and the public health restrictions, people were spending more time at home than ever before,” he said. “A desire for more living space may have encouraged many Canadians to seek properties in the suburbs, where lots and houses are typically larger and more affordable.”

House prices took off just about everywhere during the pandemic, but the gains were especially big in the suburbs, which has made them less affordable today than they’ve ever been.

WATCH | How some suburbs are dealing with urban sprawl: 

Ontario’s Peel Region grapples with urban sprawl

1 month ago

Duration 4:31

In Peel Region, west of Toronto, officials have adopted a plan to expand urban development to accommodate a growing population, putting them at odds with advocates who argue for the need to conserve green spaces.

In 2016, a house in the suburbs 50 kilometres outside of downtown would typically be worth about 33 per cent less than a similar home in the city. Even in 2019, before the pandemic, that gap had narrowed to 26 per cent, but by the bank’s calculations, the average cost benefit had shrunk to just 10 per cent last year.

Randall Bartlett, an economist with Desjardins, described the phenomenon causing suburban house prices to boom succinctly: “Drive until you qualify.”

“The increase in remote work during the pandemic encouraged migration within and across provinces in a way which was unprecedented in history,” Bartlett said in a separate report last week. “Where families once left city centres in the pursuit of more space once kids came along, they could now move much further afield, including to rural communities and provinces with better affordability”


But that trend may already be starting to change, as many workplaces that had previously embraced working from home have returned to a hybrid working model that will see most staff return to the office at least part of the time.

The trend is already showing up in the housing market, as suburban markets that saw outsized gains during the pandemic are now seeing price declines, even as major city centres are mostly holding steady.

“It’s difficult to envision the housing markets of some smaller communities maintaining their unprecedented pandemic price gains as people return to in-person work on a more regular basis,” Bartlett said.

He says areas outside of Toronto, some of which saw average prices double during the pandemic, are most vulnerable to a slowdown.

“As we look ahead to how the national housing market correction will play out at the provincial level, in some ways it’s expected to be the inverse of what we saw during the pandemic.”

While the Bank of Canada stops short of speculating on the cause or making any predictions, it does warn that the narrowing price gap between the suburbs and downtowns could become a problem if preferences shift back toward how things used to be.

“If this preference shift is temporary, the proximity premium could return partly toward its pre-pandemic level,” the bank said.

“Such a shift in relative prices could be especially problematic if housing supply in more suburban areas were to respond strongly in anticipation of local demand continuing to increase.”

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Politicians must be promptly advised of cyberthreats, Conservative MP tells inquiry

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OTTAWA – Conservative MP Garnett Genuis told a federal inquiry today that parliamentarians who were targeted by Chinese hackers could have taken immediate protective steps if they had been informed sooner.

It emerged earlier this year that in 2021 some MPs and senators faced cyberattacks from the hackers because of their involvement with the Inter-Parliamentary Alliance on China, which pushes for accountability from Beijing.

In 2022, U.S. authorities apparently informed the Canadian government of the attacks, and it in turn advised parliamentary IT officials — but not individual MPs.

Genuis, a Canadian co-chair of the inter-parliamentary alliance, told a federal commission of inquiry on foreign interference today that it remains mysterious to him why he wasn’t informed about the attacks sooner.

Liberal MP John McKay, also a Canadian co-chair of the alliance, said there should be a clear protocol for advising parliamentarians of cyberthreats.

Several weeks of public inquiry hearings will focus on the capacity of federal agencies to detect, deter and counter foreign meddling.

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

The Canadian Press. All rights reserved.



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Toronto FC promote forward Charlie Sharp, wingback Nate Edwards to first-team roster

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TORONTO – After being drafted in the third round (61st overall) of the 2023 MLS SuperDraft, forward Charlie Sharp decided to put his dream of playing professional football on hold.

He spent a couple of weeks training with Toronto FC that summer and then returned for a fifth year at Western Michigan University.

“It was a really tough decision for me,” Sharp recalled. “Because I knew that going back to school, nothing was guaranteed. I could get injured or not perform well, but it seemed to really work out for me.”

Sharp scored 19 goals and added eight assists as a senior, leading the Broncos to a 17-2-3 record and a third-round appearance in the NCAA tournament where they eventually lost to national runner-up Notre Dame on penalty kicks. Sharp, who scored or assisted in nine of his last 10 matches, ranked first in the NCAA with 0.95 goals per game and 2.30 points per game and was tied for second with seven game-winning goals.

The 23-year-old Sharp, whose rights were retained by Toronto, spent time with the TFC first team in this year’s pre-season and signed with Toronto FC II in February. On Tuesday, he joined TFC 2 teammate Nate Edwards, a wingback from Brampton, Ont., in signing a first-team contract.

“We are happy to officially elevate Charlie at this time,” Toronto GM Jason Hernandez said in a statement Tuesday. “His strong mentality and mature playing style will be a welcomed addition to our young player group in the first team.”

Both players signed contracts that run through 2025 with club options for 2026 and 2027.

The deals were completed in advance of Friday’s MLS roster freeze but took their time working their way through the league office.

“A bit of unorthodox path that I chose,” said Sharp. “But I think you’re seeing it more now with players that get drafted.”

“I’m super-happy,” he added. “I think I made the right decision.”

As a senior, Sharp was one of three finalists for the 2023 MAC Hermann Trophy, which honours the top NCAA soccer player. The award eventually went to Clemson senior forward Ousmane Sylla.

The six-foot-five 185-pounder from Brighton, Mich., finished his collegiate career with 42 goals 22 assists, and 106 points in 89 games. He ranks first in career goals and games and tied for fourth in assists for Western Michigan.

In returning to Kalamazoo for a fifth year, Sharp also succeeded off the pitch by completing his degree in computer information systems.

Despite some niggling injuries, Sharp has five goals and two assists in 16 appearances with TFC 2 this season. He made his first-team debut off the bench May 15 against Nashville.

“I had a lot of friends and family watching,” he said.

“It’s been a journey,” Sharp added. “I’ve been thankful for every step of the way.,”

The 21-year-old Edwards has one goal and two assists in 23 games with TFC’s MLS Next Pro team.

“He has been a top performer with TFC II this season and we look forward to his continued growth within our environment,” said Hernandez

Edwards, who also joined TFC 2 in February, made his first-team debut May 21 in Canadian Championship play against Ligue1 Quebec champion CS Saint-Laurent.

The five-foot-eight 167-pounder split his college career between Syracuse University and Purdue University Fort Wayne. As a senior in 2023, he had one goal and four assists for Syracuse and was named to the 2023 All-Atlantic Coast Conference (ACC) Academic Team and College Sport Communicators (CSC) Academic All-District Team.

At Purdue University Fort Wayne, he had two goals and an assist in 40 appearances across three seasons (2020-2022) with the Mastodons.

Follow @NeilMDavidson on X platform, formerly known as Twitter

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

The Canadian Press. All rights reserved.



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Calgary man sentenced to six years in prison for sharing terrorism videos on TikTok

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CALGARY – A Calgary man who pleaded guilty to sharing Islamic State recruitment videos and propaganda on TikTok will spend the next six years behind bars.

Zakarya Rida Hussein was sentenced during a court appearance on Friday after he pleaded guilty to one of four terrorism-related charges.

Hussein admitted that he owned social media accounts that posted ISIS recruitment videos and propaganda.

He also admitted to sharing a bomb-making video online.

The man was arrested in June 2023 after a joint investigation led by the RCMP and the Calgary Police Service.

Hussein will need to submit DNA results and will be under lifetime ban from owning firearms after he’s released.

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

The Canadian Press. All rights reserved.



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