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Palm Beach Can Learn Something From Aspen's Real Estate Boom – BNN

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(Bloomberg) — Compared to last year, Aspen’s luxury real estate market had a spectacular September.

New signed contracts for homes from $10 million to $19.99 million were up 800% (nine were signed compared to last September’s one), while new listings in the same price range were up 600% year-over-year, according to a new report by Douglas Elliman.

These numbers come hot on the heels of a booming August (75% year-over-year increase for that price range) and a truly unprecedented July in which a staggering 23 new contracts were signed in that range—a 1,050% year-over-year increase.

“This summer was—the word’s been overused now, but it was unprecedented,” says Andrew Ernemann, a broker at Aspen Snowmass Sotheby’s International Realty. “We went from no activity in April and the early part of May—when I think, at one point, we had a total of 12 contracts in all of Aspen. And then we went to setting records, with over 120 properties under contract.”

But in the midst of this euphoria, there are signs the momentum is fading. Aspen’s September numbers are down 40% from August to September, and the number of new listings also slid 72%, from 39 to 11, which could impact sales volumes in the coming months.

That’s not necessarily bad news.

“I don’t really look at the sharp drop as a negative” says Jonathan Miller, the president and chief executive officer of appraiser Miller Samuel Inc., which  prepared the Elliman report. “It’s self-correcting. You have the pent-up demand aspect, which has been satiated, and now the question mark is how elevated sales will remain going forward, given this new, post-Covid world.”

Considering that Aspen’s real estate market opened in May, nearly a month ahead of comparable real estate markets (in-person showings in New York’s Hamptons were permitted only in mid-June), its slow-but-better-than-average performance could be seen as a bellwether for high net worth markets, including the Hamptons, Palm Beach, Fla., and Greenwich, Conn., all of which had bonanza summers.

“I look at these multiple boutique—or very small luxury—submarkets as [ones that] enjoyed a rapid, sharp burst as they became ‘co-primary’ markets,” Miller says, meaning that houses in vacation destinations are becoming year-round domiciles. “That is what is keeping them substantially above levels from a year ago. Now they’re all plateauing, not unlike most markets, because the demand from the lockdown has been fulfilled.”

“Let’s Go for It”

It’s hard to overstate how quickly Aspen’s market exploded.

“There were two things driving the market this summer,” says Jennifer Banner, a broker with Christie’s International Real Estate Aspen. “One, because of Covid and some of the other things happening around the country, people were looking to get out of the cities and come to a small town where they felt a bit safer.”

“And two, I think we had a large contingent of buyers who’d been sitting on the sidelines, waiting to see if there was a dip in the market,” she explains.

When they saw there wouldn’t be one, Banner continues, “they said: ‘Let’s go for it and make the purchase—maybe I’ll pay more than I hoped, but I’ll be in Aspen.’”

Other brokers agree that’s how it played out. “We weren’t allowed to show property between the first week of March and May 9,” says Galen Bright, of the Aspen real estate broker Setterfield & Bright. “And on May 9, I was surprised with buyers called me, telling me that they wanted to see properties ‘right now.’”

By mid-June, he continues, “It was clear that it was going to be a very busy summer. That was when buyers realized that prices weren’t going to drop.”

A One-Bedroom for $5 Million

The frenzy of home buying extended beyond the traditional Aspen borders, brokers say. “For years, it was all about the core and the West End and then Red Mountain,” says Banner, describing areas that were walkable—or, at the very least, a short drive to downtown Aspen.

“Now we’ve  seen a definite increase in demand in properties that are more out[side]” of town,” Banner says. “McClain Flats, Woody Creek—people looking for more elbow room within striking distance of town. Those numbers are [way] up.”

Unsurprisingly given the pandemic-inspired boost, buyers want houses they can move into immediately.

“Most buyers want turnkey,” says Ernemann. “They’re ready to go and ready to move in. It’s less common for someone to take on a remodel project that can take two-plus years.” 

“We’re seeing it across the board,” says Michael Latousek, a broker with Douglas Elliman. “I sold a $5 million one-bedroom condo before it came to market.”

No More Listings

Now, brokers say, two factors could dent the market: sellers with wild expectations and a lack of new, move-in-ready homes.

“If anything is going to slow the train down, other than seasonality, it’s that the newer inventory is at premium prices,” says Ernemann.

“New listings are definitely now aspirational pricing,” says Latousek. “I’m hearing from sellers they want to put their houses on the market—but they want crazy prices, and I’ve turned down a few listings by saying, ‘This is just too much,’” he continues. “But for me personally, I’m just about out of listings.”

That, Bright says, is his problem, too: “Except for two listings, I think I’ve sold all of mine.”

“I’ve been in contact with a lot of my clients to see if they’d be willing to sell,” he continues. “These people have built incredible homes worth $20 million or $30 million, and buyers are looking for those homes, but people just aren’t interested in selling.”

©2020 Bloomberg L.P.

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Two Quebec real estate brokers suspended for using fake bids to drive up prices

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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.

The Canadian Press. All rights reserved.

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Montreal home sales, prices rise in August: real estate board

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MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.

The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.

The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.

The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.

QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.

Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.

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

The Canadian Press. All rights reserved.

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Canada’s Best Cities for Renters in 2024: A Comprehensive Analysis

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In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.

Here are the top 10 cities that emerged as the best for renters in 2024:

St. John’s, NL

St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.

 

Sherbrooke, QC

Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.

 

Québec City, QC

Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.

Trois-Rivières, QC

Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.

Saguenay, QC

Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.

Granby, QC

Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.

Fredericton, NB

Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.

Saint John, NB

Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.

 

Saint-Hyacinthe, QC

Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.

Lévis, QC

Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.

This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.

Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.

Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.

For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.

While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.

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