Real eState

Posthaste: What downturn? Canadians across all generations still bullish on real estate

Published

2 years ago

March 15, 2023

Real estate signs in Calgary. Photo by Azin Ghaffari/Postmedia

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Dropping home prices and economic uncertainty hasn’t turned Canadians off the housing market, with people across all age groups bullish on real estate, new research suggests.

Members of the baby boomer, generation X, millennial and generation Z cohorts are confident owning a home is a good financial investment, and 49 per cent think a home purchase will produce a similar or better return than other investments over the next 12 months, according to a generational trends report released March 15 from Mustel Group and Sotheby’s International Realty Canada. People are even more bullish about real estate’s performance in the long term, the survey said, and 60 per cent think property will match or exceed other financial investments in the next 10 years.

As a result, Canadians of all ages are eager to get into the housing market, and the survey suggests the pandemic may have helped accelerate homeownership dreams. Across all generations, 35 per cent say they are more likely to buy a house than they were in January 2020. Homeowners are also more eager to sell. One-third say they are more likely to put their house on the market within the next five years than they were before the pandemic started.

Those findings come amid a housing market that has cooled significantly from its peak as elevated inflation and resulting higher interest rates weighed on prices. The average price of a home fell 12 per cent in 2022, and is expected to fall another six per cent this year, according to the Canadian Real Estate Association. The economy is also softening, and many economists predict the country will tip into a recession sometime this year. To add to that, a rising cost of living is boosting every-day expenses, and many people are taking on more debt to help make ends meet. Higher interest rates have also made the prospect of paying down a mortgage much more expensive, putting homeownership out of reach for many.

Still, that’s not enough to put people off wanting to buy real estate, Sotheby’s Canada said.

“Confidence in our real estate market remains high,” Don Kottick, chief executive of Sotheby’s Canada said in a press release, adding, “Demand for housing and housing mobility across every generation is more pressing than ever.”

The pandemic played a key role in stoking the desire to own a home. While lockdowns during the pandemic initially pushed people to seek out more space, fuelling sales and prices, the pandemic also highlighted the value of including property in a financial plan. Stock market volatility during the pandemic made real estate an attractive alternative to traditional investments, Sotheby’s Canada said.

“One of the most transformative and enduring social and economic outcomes of the pandemic is that Canadians now place a heightened importance on primary home ownership,” Kottick said, “not only as an investment in their lifestyle and personal security, but as an investment in their financial future.”

Baby boomers are the most bullish on owning property, the survey found, and 28 per cent think real estate will outperform other investments within the next 12 months. Forty-four per cent also think homeownership will bring higher returns than other investments over the next decade. In comparison, 34 per cent of gen X-ers, 32 per cent of millennials and 30 per cent of gen Z-ers expect the same in the long term.

And while a third of Canadians say they’re more likely to buy a house in the next five years than they were pre-pandemic, intentions differ among generations. Baby boomers say they’re 29 per cent more likely to buy a house, but 23 per cent say they’re less likely. Among gen X, 35 per cent are more likely to make a home purchase, with 23 per cent less likely. Millennials are a bit more eager to get in on homeownership, and 36 per cent say they’re now more likely to buy a house. Similarly, gen Z-ers say they’re 40 per cent more likely to become homeowners.

However, some members of the younger generations are also more turned off homeownership, the survey said. A “notable” 31 per cent of millennials and 33 per cent of gen Z-ers say they’re less likely to buy a house than they were pre-pandemic, much higher than baby boomers and generation X-ers.

Mustel Group and Sotheby’s Canada polled 2,000 people aged 18-77 living in Vancouver, Calgary, Toronto and Montreal.

The yield on short-term Canada bonds is falling at the fastest rate in decades, as investors bet the Bank of Canada will cut rates in coming months to counter fallout from the collapse of United States regional banks.

Canada’s two-year benchmark yield tumbled 42 basis points Monday to 3.532 per cent, bringing its total decline since Wednesday to about 77 basis points. The last time the benchmark dropped that much over three trading sessions was in May 1995, according to data compiled by Bloomberg.

Traders in overnight interest swaps are now pricing in rate cuts from the Bank of Canada by June. Last week, traders were expecting the next move to be a hike.

— Bloomberg

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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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Real eState

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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B.C. voters face atmospheric river with heavy rain, high winds on election day

Published

3 weeks ago

October 17, 2024

Anne Joseph

VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.

Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.

The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.

Wednesday was the last day for advance voting, which started on Oct. 10.

More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.

Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.

An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.

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

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