Canada News Media
  • Home
  • News
  • Media
  • Politics
  • Business
  • Sports
  • Tech
  • Art
  • Economy
  • Health
  • Investment
  • Real eState
  • Science
Connect with us
Canada News Media Canada News Media

Canada News Media

Around the world, luxury real estate poised to (mostly) strengthen – BNNBloomberg.ca

  • Home
  • News
  • Media
  • Politics
  • Business
  • Sports
  • Tech
  • Art
  • Economy
  • Health
  • Investment
  • Real eState
  • Science

Real eState

Around the world, luxury real estate poised to (mostly) strengthen – BNNBloomberg.ca

Published

1 year ago

 on

December 27, 2019

By

Harry Miller
  • Share
  • Tweet


Rich homebuyers laid low in 2019 as economic uncertainties turned global cities into risky propositions.

But don’t be surprised next year to spot the world’s wealthiest people beginning to spend money again as home prices in relatively stable economic areas continue to sink into bargain territory.

In a few cities, prices are even set to rise, according to global property consultancy Knight Frank.

Paris leads the agency’s 2020 forecast, with a  seven per cent luxury price increase, followed by Miami and Berlin, where luxury units are also relatively affordable and in short supply. 

Political and economic question marks still abound, from trade wars to next November’s U.S. presidential election. And taxes on the rich instituted by cities such as Vancouver, London, and New York will continue to weigh on sales, says Kate Everett-Allen, a Knight Frank partner in London.

“Most markets will still see prime prices increase but by smaller margins than previously,” she says.

New York’s still a buyer’s market

New York City prices will fall three per cent next year, a continuation of this year’s trend. (In the third quarter of 2019, prices were down 4.4 per cent from the same period the previous year, according to Knight Frank.) To sell all the newly built condos in Manhattan at the current sales pace, it would take nine years. And the uncertainty of the presidential election will likely keep buyers on the sidelines, according to Jonathan Miller, president of appraiser Miller Samuel Inc.

Demand has also slipped because real estate investors have fled the market, spooked by a legislative environment that’s targeted them via more onerous rent regulations and an increased mansion tax, which leaves buyers of luxury property with higher closing costs.

“The luxury market on the sales side is the weakest segment of the housing market,” Miller says.

And without foreigners, Vancouver’s stuck, too

Sellers of pricey properties in Vancouver next year will likely still be feeling the hangover from the drawback of Chinese buyers and foreign buyer tax measures that were introduced in 2016 to cool runaway prices. Luxury values in the city will fall five per cent next year, according to Knight Frank’s forecast.

On the positive side, there’s a new opportunity for domestic buyers, says Kevin Skipworth, partner and managing broker with Dexter Realty in Vancouver.

“The government has put properties on sale for those who otherwise couldn’t afford it,” he says, meaning that the tax has effectively made high-end properties cheaper for locals.

Hong Kong will deflate

The political unrest in Hong Kong has hurt the luxury market, but it’s still unlikely to crash in 2020, according to Knight Frank, which projects a two per cent drop for luxury prices next year.

Philip White, president and chief executive officer of Sotheby’s International Realty, says buyers are putting purchases on hold while they watch to see what happens with the pro-democracy protests. In the meantime, they’re starting to look for opportunities elsewhere in cities such as in Vancouver, Los Angeles, San Francisco, and London.

“Real estate buyers look for a stable political system, and they’re not finding that right now in Hong Kong,” he says.

Miami will have a comeback

Miami’s high-end condo market, on the other hand, is poised for something of a comeback in 2020, helped by President Trump’s tax overhaul, which capped federal deductions on state and local taxes, according to Knight Frank.

While South Americans pulled away in recent years as the strengthening dollar added to the cost of buying in the U.S., domestic buyers are making up for it: Florida, which has no income tax, is drawing wealthy buyers from high-tax states like New York and New Jersey. Those buyers will push up Miami high-end prices by five per cent in 2020, Knight Frank says.

Los Angeles’ bright spot is in the US$2 million to US$10 million range

Los Angeles’ market, from Beverly Hills to Bel Air, will show moderate price increases in 2020—amounting to about two per cent. It might have been higher but for a pullback of foreign buyers, particularly Chinese who face restrictions on moving money abroad. That’s tended to weaken the highest end of the market.

California’s wildfires, including one in 2018 that tore through Malibu, have also hurt by pushing up the cost of insurance, according to Sotheby’s White. Demand has been particularly weak for properties above US$10 million. Homes priced below US$10 million have a more bullish outlook, according to Knight Frank.

“L.A., at present, is more of a domestic market,” White says.

And Central London will have modest success across the board

Central London, where prices fell three per cent in the 12 months through November, will stabilize slightly next year as the fate of Brexit becomes clearer, says Tom Bill, Knight Frank’s head of London residential research. Prices are likely to rise by about one per cent next year, according to Knight Frank research, now that Conservatives have won in a landslide.

“Once the Brexit deal is completed, we forecast rising momentum across all markets, with price growth reflecting this from 2021 onwards,” the company’s 2020 forecast report says. 

The ratio of shoppers to available listings reached a decade high in September, a sign of rising demand. The decline in the British pound combined with years of decreases in property prices are attracting foreign buyers again, Bill says. “Next year we could see the disorderly Brexit risk recede,” he says. “If that is the case, there’s an awful lot of pent-up capital ready to buy in London, and that will translate into higher levels of activity.”

Let’s block ads! (Why?)



Source link

facebook Share on Facebook
Twitter Tweet
Follow Follow us
custom Share
custom Share
custom Share
custom Share
custom Share
Related Topics:
Up Next

Using commercial real estate for the social good – The Globe and Mail

Don't Miss

Conversions won't solve Calgary's office vacancy issue: Experts – Real Estate News EXchange

Continue Reading

You may like

Real eState

Atlantic Canada real estate closes out 2020 with strong performance – Mortgage Broker News

Published

38 mins ago

 on

January 25, 2021

By

Megan Johnson



Atlantic Canada real estate closes out 2020 with strong performance

Despite its tradition of being home to some of the nation’s quieter real estate markets, Atlantic Canada generally followed the trends set by the Canadian housing sector, both in December and for the whole of 2020.

Latest numbers from the Canadian Real Estate Association indicated that on the national level, home sales saw a 12.6% annual increase, reaching a total of 551,392 transactions throughout 2020. The actual (not seasonally adjusted) national average home price was at $607,280 in December, representing a 17.1% year over year gain.

Newfoundland and Labrador

Home sales completed through Newfoundland’s MLS System totalled 4,684 units over the course of 2020, up by 14.7% annually and falling short of the record set in 2008 by less than 30 sales. A significant 54.4% annual surge in December helped propel the market.

Active residential listings declined by 21.1% annually, while the benchmark price for single-family homes rose by 6.5% year over year to $284,800. The benchmark price for townhouse/row units ticked up by 2.4% to $260,900, while the benchmark for apartments fell by 3.7% annually to $226,000.

New Brunswick

New Brunswick’s market saw a total of 9,963 homes sold from January to November 2020 (December data was not publicly available at time of writing), increasing by 11.2% annually.

“With one month still to be counted in 2020, MLS home sales in New Brunswick have already surpassed 2019’s full year totals by more than 500 units,” according to the province’s real estate association.

The average price of homes sold in November grew by 11.8% year over year to $203,907, while new listings went up by 8.3%. In contrast, active residential listings dropped by 37.8% to 2,895 units as of the end of November, levels not seen since 2001.

Nova Scotia

As reported by the Nova Scotia Association of Realtors, sales activity intensified by 13% annually, rising to a total of 13,923 transactions over the course of 2020, the highest level ever recorded in the province.

The annual average sale price, $291,224, was 13.8% higher than in 2019. New listings increased by 25.3% year over year, while active residential listings slid by 38.9%, hitting 2,676 units for sale as of the end of December.

Prince Edward Island

The number of homes sold through the MLS System of the PEI Real Estate Association totalled 1,972 units over the first 11 months of 2020 (PEI’s December data was also unavailable at time of writing), up 8.8% year over year.

The average price of homes sold in November grew by 21.2% annually to reach a new record high of $309,031. This marked the first time that the average sales price in PEI exceeded the $300,000 mark.

New listings had a 27.4% annual gain, while active residential listings as of the end of November were down 29.6% year over year, a level not seen since 2004.

Let’s block ads! (Why?)



Source link

facebook Share on Facebook
Twitter Tweet
Follow Follow us
custom Share
custom Share
custom Share
custom Share
custom Share
Continue Reading

Real eState

Best Real Estate Investment App For US Investors To Manage Assets Launched – GlobeNewswire

Published

3 hours ago

 on

January 25, 2021

By

Megan Johnson



Cupertino, United States, Jan. 25, 2021 (GLOBE NEWSWIRE) —

BetterCapital.US has announced the launch of its latest real-estate investment app. The new app is designed to provide an easy-to-use platform for real estate investors to help them better manage and track their assets and find opportunities to maximize their capital from one dashboard.

More information is available at https://www.bettercapital.us

The newly launched real estate investment platform aims to eliminate the hassles and bottlenecks associated with managing a real estate portfolio. Many retail real estate investors face a wide range of challenges regarding tracking their investment performance and getting accurate, up-to-date information about market trends.

BetterCapital has launched its latest investment platform for real estate investors to help simplify the asset management process. The app features a real-time market trend update that allows users to receive up to date market news to help them make informed decisions.

The BetterCapital real estate investment app has an asset tracking feature that enables users to conveniently track important information, including rents, invoices, payments, equity, ROI, and more.

In addition, the app features Deep Dive sessions, an innovative training course that teaches users how to become financially independent and retire early. The Deep Dive sessions are also an opportunity for investors to learn from industry experts.

The Deep Dive sessions, in addition, offer users a chance to learn more about the various investment opportunities available on the platform. BetterCapital’s partners utilize the Deep Dive sessions to explain further what their business is about, ensuring users are well-informed before investing with them.

Other benefits users can get from the app include the chance to maximize their investment performance. Investors are introduced to a wide range of cash flow real estate-focused investments other than rentals, including syndication, flip, private money lending, among others, to help them grow their capital.

The company states: “The BetterCapital.US is a real estate investment app that was built by and for real estate investors who wants a better way to manage their assets, keep up-to-date with market trends and find ways to maximize their capital.”

Interested real estate investors can find more details by visiting the website mentioned above.

Contact Info:
Name: Ram Vaidyanathan
Email: Send Email
Organization: BetterCapital.us
Address: 6652 Clifford Ct, Cupertino, California 95014, United States
Website: https://bettercapital.us

Name: Ram Vaidyanathan
Organization: BetterCapital.us
Address: 6652 Clifford Ct, Cupertino, California 95014, United States

Let’s block ads! (Why?)



Source link

facebook Share on Facebook
Twitter Tweet
Follow Follow us
custom Share
custom Share
custom Share
custom Share
custom Share
Continue Reading

Real eState

2021 Could See the Tightest Muskoka Real Estate Market in Years – Toronto Storeys

Published

8 hours ago

 on

January 24, 2021

By

Megan Johnson


“We had a [property on a] small — tiny — spring-fed lake in Muskoka, where the list-price was $599,000, and it sold in two days for $875,000,” says Ross Halloran of Sotheby’s International Realty, reflecting on the first few weeks of the year.

That’s $276,000 over list price for a two bedroom, one bathroom, “teardown” cottage. Welcome to the current Muskoka real estate market in 2021.

Closing the year on-trend with what the last several months presented, the region’s real estate scene saw record-breaking sales in both its residential non-waterfront and waterfront property categories in December.

And looking forward, Halloran — alongside Maryrose Coleman, also of Sotheby’s International — doesn’t anticipate a decline in buyers’ desires to snag space in Muskoka.

READ: Muskoka Real Estate Closes Out Year with Record-Breaking Activity

What the pair does foresee, however, is supply struggling to keep up with demand.

A Market as Tight as Ever

“I never like to let my listing inventory drop below 30,” Halloran says. “We’re now at seven.”

Coleman reinforces the sentiment, stressing the issue their team continues to face is supply. At the present moment (and for months leading up to the present moment, too) demand is holding its own.

“It’s a really tight market,” Coleman says. “There’s very little available. And there are a ton of buyers out there trying to find the right property.”

In fact, Halloran goes so far as to call the current situation “a bit of a quandary.” Typically, considering cottage country as a whole — from Parry Sound to Lake Simcoe, and down to Bancroft, inclusive of Muskoka, the Kawarthas, Haliburton, and the like — he and Coleman will see about 100 new listings in a given week.

Lately, though, Halloran says they’re seeing far fewer hit the market.

“It was 13 listings last week… as we end this week, 22 new listings have come up,” he says. “We’ve got a stockpile of buyers, because we had so many listings we were able to engage and begin discussions with a number of buyers that had begun their journey… we’ve got what we would normally have in property inventory in buyer briefs.”

In other words, the numbers have essentially reversed themselves, leaving this Sotheby’s team spread thin.

As a result, Halloran and Coleman say they’ve needed to develop new policies for navigating working relationships with buyers. With so many people requesting their time, asking for research to be done on prospective properties, they’ve found themselves going through that whole processes only to find out — as they’re preparing to move forward with an offer — they’re actually in a multi-offer situation.

And let’s be clear: this mad dash for cottage country real estate isn’t just for multi-million dollar, move-in ready properties (though, of course, those are always a sought-after treat). Coleman says that there are “a whole bunch of people” who are looking for tear-downs or lots they’ll be able to build on, and typically, these buyers are hoping to snag spaces like this at prices much lower than those of move-in ready lake houses.

“Part of the challenge is, there are a lot of people who are very specific about what they want,” Coleman explains. “They want to be close to Port Carling, but not right in Port Carling. They want to be on Lake Rosseau or Lake [Joseph], they don’t want to be on any other lake. They need privacy, they want a boathouse.”

If these desires sound familiar, don’t fret. But also, don’t start packing up your boxes just yet.

“There are only so many properties like that,” Coleman says, “but there are a great number of people looking for them.”

Halloran says that, as such, they’re working to do whatever they can to obtain listings as spring approaches. “You are a function of how many listings you have,” he stresses.

Owners Holding On Tight

Halloran says that going forward, he expects a sellers’ market for the foreseeable future. In order to be able to participate in the year ahead, attaining more product is necessary.

“Usually in the spring — come the beginning of March — we’re usually seeing an average of 200 new listings a week leading up to the Spring Cottage Life Show. Then there’s a drop-off, after the Spring Cottage Life Show, and then probably by late-April we’re back up to 200. I think by the time the end of May rolls around … I’d see about 300 listings [across all of cottage country].”

But right now, the region is seeing about 22 listings per week, on average, while days-on-market stats are dropping and sale-to-list averages are increasing. In fact, at the moment, the Lakelands region is looking at less than 0.6 months of inventory — a record low.

As a result of all these changes, Halloran says he expects to see both individual agents and teams alike presenting with less than half their normal inventory. His personal goal? Attaining between 20 and 30 listings before spring hits.

“We’ve got a lot of work to do over the winter,” he says.

But, with ongoing queries, listing proposals, market analyses, direct correspondence, and new product continually being added, it’s safe to say the team has already hit the ground running.

Still, it’ll be “a grind” to get ahold of sustainable inventory, because people are hanging onto their properties… or perhaps they’ve just recently acquired them, and they’re still just settling in! Never mind considering leaving. After all, the last year has proven a flexibility in day-to-day navigation that many may not have considered before, which, in many cases — with consideration to working from home and online schooling — means more room for cottage country to fit in. Whether someone’s long been in the region or only just arrived, it’s understandable that Muskoka living is an experience any owner would want to hold onto.

“[What] the people that own are telling us now is: ‘Sure, I can make a huge profit, but how am I going to be able to buy back in?’” Halloran reports. “‘I may as well just sit tight for now and enjoy what I have… or renovate what I have.’”

Selling your property suddenly becomes less appealing when there’s nothing else left to buy.

Renting as an Impermanent (but Still Competitive) Option

Meanwhile, those struggling to find their perfect property in the resale market — or those simply looking for a less permanent cottage country experience — tend to turn to the region’s rental market. But Coleman, who captains Muskoka District Rentals alongside her Sotheby’s role, says the sector is facing similar supply-and-demand struggles.

“There are a lot of people who aren’t renting who traditionally have rented, when they’ve gone on European vacations [and the like],” she explains. “They might have done the summer — they would rent their cottage for the two, three, four weeks they were going to be away. And that’s not happening now.”

While Coleman says there have been some recent buyers who are open to renting, there have also been properties that used to be on the rental market that have now been sold. In essence, the newly-purchased properties will merely replace those prior rentals, instead of adding to them.

There are also places that may typically be in the rental sphere, but because their owners are currently living or working there, those spots aren’t available these days. What’s more, an air of uncertainty hangs over the summer, leaving cottage-owners unsure of how they’re going to navigate 2021’s warm months. So many unknowns linger, including whether summer camps will be closed or if international travel will be permitted.

Many people who felt the pinch of these scenarios last summer, and who didn’t have a rental option, learned from the experience and booked early. In August and September of 2020, eager summer-lovers reserved their rentals to ensure they’d have something to look forward to when the warmth rolled back around.

Now, Coleman says, others are scrambling, trying to find their own place to stay.

And sure, someone really hankering for a summertime escape could hop on any given rental site to book, but what Muskoka District Rentals offers is different.

“Part of the reason people like to work with a company like ours,” Coleman says, “is they know they’ll get a higher quality of cottage, and they’re going to have available to service them, if anything goes wrong.”

Also, there’s a benefit to the relationships that are built through use of a reliable, human-centred service such as MDR. For example, if someone isn’t able to find a rental option online, a phone call with a listing agent may result in them learning that in just a couple days, the perfect property will be going live.

Ultimately, it’s looking like Muskoka’s wild ride isn’t slowing down anytime soon, regardless of whether the topic of focus is resale or rental. And, if the region’s market has reinforced any universal truth over the last several months, it’s that the more people can’t have a thing, the more they seem to want it.

But another universal truth is this: anything worth having is worth fighting for.

If you’re gunning for a place with a Lake Jo view, or one that’s perfectly poised just minutes from Port Carling, we suggest the latter mantra as the one to keep in mind.

Let’s block ads! (Why?)



Source link

facebook Share on Facebook
Twitter Tweet
Follow Follow us
custom Share
custom Share
custom Share
custom Share
custom Share
Continue Reading
  • Latest
  • Trending
  • Videos
Tech17 mins ago

Redmi Note 10 series likely to come without a charger in the retail box – gizmochina

Health19 mins ago

Ontario reports 2417 new cases of COVID-19 and 102 more deaths related to the virus – Bowen Island Undercurrent

Science24 mins ago

Edmundston area of New Brunswick enters lockdown due to COVID-19 surge – Burnaby Now

Investment9 months ago

Silver investment demand jumped 12% in 2019

Media1 year ago

Iran anticipates renewed protests amid social media shutdown

Tech6 months ago

Galaxy M31 July 2020 security update brings Glance, a content-driven lockscreen wallpaper service

Business8 months ago

US businesses take COVID-19 preventive measures ahead of reopening

Trending

  • Sports13 hours ago

    Dana White reveals fate of internet pirate he targeted for threatening to illegally stream UFC 257

  • Sports12 hours ago

    Nate Diaz reacts to Conor McGregor’s KO loss to Dustin Poirier at UFC 257 – MMA Fighting

  • Sports7 hours ago

    Justin Poirier and Conor McGregor show mutual admiration during backstage meeting following UFC 257

  • Sports3 hours ago

    Player grades: Jesse Puljujarvi has game of his life as Edmonton Oilers beat Winnipeg Jets in a thriller – Edmonton Journal

  • Tech10 hours ago

    You can unlock this secret Isu weapon in Assassin’s Creed Valhalla just by whacking a pile of rocks

  • Politics8 hours ago

    Parliament resumes amid heightened political pressure on pandemic, vaccines

  • car insurance car insurance
    Tech10 hours ago

    Canada Car Insurance Quote – How Anti-Theft Devices Help Reduce Premiums

  • Investment8 hours ago

    Post-pandemic investment idea with a better chance of success

Canada News Media
  • About Us
  • Privacy Policy
  • Contact Us
  • Cookie Policy
  • Terms of Service
  • Twitter

Copyright © 2020 Canadanewsmedia

Canadanewsmedia uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.