Real estate sales in B.C.’s Bulkley-Nechako and northwest regions have weakened in the first half of 2020 compared to the same time frame last year according to a report released by the B.C. Northern Real Estate Board (BCNREB) on July 7.
“The first half of 2020 saw a significant decline in housing demand in the region, with sales in April reaching a low not seen since January 1988,” said BCNREB President Shawna Kinsley.
Burns Lake area has seen sale of 17 properties worth $2.7 million through Multiple Listing Services (MLS), compared to 37 properties worth $5.6 million in the same period last year. By June end, a total of 81 properties were available through MLS in the area.
Houston area had 14 properties worth $2.5 million changing hands so far this year, compared to 28 properties worth $5.2 million in 2019. There were a total of 34 properties of different types available by the end of June in the area.
Smithers area reported 90 sales with a value of $28.1 million in the first six months of 2020; a drop from 113 sales worth $35.3 million at this time last year. Half of the 39 single-family homes sold so far this year, went for less than $311,000 and took, on average, 66 days to sell. 10 parcels of vacant land and 17 homes on acreage also changed hands since January. As of June, there were 112 properties of all types available for sale in Smithers.
Vanderhoof area realtors reported 56 sales worth $13 million in the first six months of the year, compared to 61 sales worth $19 million last year. As of June 30, there were 103 properties for sale in the Vanderhoof area.
Fort St. James hasn’t seen a significant fall in sales with 27 properties worth $5.3 million sold this year, compared to the 26 properties worth $4.6 million sold last year in the same time frame. By June end, there were 50 properties available for purchase in the Fort St. James area.
In the northwest region, Prince Rupert has sold the same number of properties this year so far, at 89 sales compared to the same time frame last year. The properties sold at $29.9 million, a higher price point compared to last year’s $23.5 million. Terrace area realtors have sold 105 properties in the first half of 2020, worth $34.1 million compared to 134 properties worth $45.6 million in the same period last year. By June end, there were 253 properties available for sale in the Terrace area.
Kinsley also indicated that despite the region’s struggling forestry, and mining and oil sectors, “the decline in the second quarter was primarily due to the state of emergency declared by the province that implemented physical-distancing measures. This halted real estate activity across the province, which is highly reliant on in-person interactions.”
The British Columbia Real Estate Association (BCREA) are predicting that the downward trend for sales throughout B.C. would continue and sales would fall by almost 18 per cent in 2020.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
