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Calgary real estate caps record year with strong December finish – Calgary Herald

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There were 27,868 units sold in the last 12 months in Calgary, a 72 per cent increase over 2020m 44 per cent higher than the 10-year average.

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A strong final month of 2021 capped off a record year of home sales, according to the Calgary Real Estate Board’s monthly report released on Tuesday morning.

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There were 27,686 units sold in the last 12 months in Calgary, a 72 per cent increase over 2020, 44 per cent higher than the 10-year average.

Ann-Marie Lurie, chief economist for CREB, said they were expecting a strong year of sales, building off of 2020, but this surpassed any prediction they had for the year.

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“One thing that was not factored into the pandemic is not just that we have low rates, but the amount of savings that people were having by really not spending on other goods, at least for those that weren’t impacted by COVID,” she said. “A lot of that translated, I think, into people getting into the housing market.”

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The previous high water mark for sales in a year was 27,192 set in 2006, amidst an oil boom. Meanwhile total volume sales almost doubled from $7.4 billion to $13.6 billion.

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Lurie said that due to the five years of recession that pre-dated the pandemic, there was a pent up demand on the real estate market and when interest rates dropped, the flood gates opened.

The benchmark price rose one per cent over November to $451,567, eight per cent higher than last year’s final benchmark. This was just below 2015’s record high.

In December alone, there was 1,737 sales, up from 1,199 in December 2020, with sale volume up 55 per cent to $830,245,656 from $535,619,133 from the same month the previous year.

The two most impacted sectors on price were detached and semi-detached houses, but there was growth across all four types of units.

Calgary finished just below 2005’s record sales for detached housing sales with 17,038, but this was still 40% higher than long-term averages. The report said a lack of supply on the market likely contributed to the previous record still standing. There are only 898 units in inventory at the beginning of 2022, a historical low.

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There were 2,571 semi-detached sales in 2021, a gain of 55 per cent year-over-year and 47 per cent above long-term trends. This sector took off as the inventory in the detached market dried up and presented as a more affordable option. Benchmark prices in this sector jumped by 9.86 per cent year-over-year in December, alone, to $432,400 for the month.

Row houses continued to show strong growth. Total sales increased to 3,936 in 2021, up from 2,145 in 2020 with benchmark prices finishing up 6.05 per cent year-over-year at $294,983, but this was still nine per cent below the previous high watermark.

Apartment condominiums saw the slowest growth due to inventory remaining saturated. But there was still progress made on this front. Total sales increased to 4,141 units from 2,393 while benchmark prices increased 2.47 per cent to $251,358, but remain 14 per cent below the record prices set in 2014.

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Location still plays a critical role in price in Calgary’s real estate market. For a detached house, the east is about half the price as the west at $367,000 compared to $738,200. A semi-detached house in the city centre will run $751,400 but cost $302,900 in the east.

Lurie said what will happen in 2022 all depends on how much new stock comes into the market, because that will influence price.

“We went through a period of almost six years where, depending on when you bought, for some people prices had really been trending down for most of that time frame,” she said. “Our market is an opportunity for many people who can take advantage now of those price gains we have finally seen, especially as price gains have recovered for most product types.”

Prices have also increased in surrounding areas as well, but stock is becoming harder to find. In Airdrie, prices increased by 13.2 per cent to a benchmark of $398,100 but inventory is down to 82 units to start the new year. Cochrane is up to a benchmark of $460,300 up 9.5 per cent and Okotoks is at $476,300 up 5.9 per cent.

jaldrich@postmedia.com

Twitter: @JoshAldrich03

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New analytics tool helps companies take the guesswork out of their real estate needs – Business in Vancouver

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New analytics tool helps companies take the guesswork out of their real estate needs – Real Estate | Business in Vancouver


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Impaired Aging Parents Managing Real Estate – Forbes

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Who’s Minding the Store?

We’re seeing it more and more now at AgingParents.com: elders as landlords who can’t do the management job any longer. Sometimes it’s the adult children who bring the issue to our attention. They see Dad failing maintain those rental houses he has had for decades. If tenants complain, he does not do anything. They see Mom fail to collect rents from her commercial enterprise, a small shopping center. They realize that rentable spaces are vacant and have been for some time. No effort to lease them is underway. The kids are alarmed. It may be a single rental home, a commercial building, a vast portfolio or anything the elder owns. Cognitive decline was not anticipated. No one was paying attention and things go wrong.

Financially successful people often invest in real estate, but for those who manage the properties themselves, we see a lack of planning about how to ease out of the management role. The same problem can occur when a property owner has a long time management company which is not held accountable for its work due to the cognitive impairment of the owner. Again, no one is watching management. It is a perfect opportunity for theft from the owner.

Real Life Examples

In one case a wealthy man owned a rental apartment next to his house. The long time tenant took ruthless advantage of the 85 year old owner and simply stopped paying rent. He lived for free and manipulated the owner into thinking the tenant was giving him help in exchange for use of the apartment when no such exchange actually took place.

In another case the 87 year old owner of an office building with long-term tenants in it did not take steps to terminate a very problematic tenant who had been there for 20 years. The landlord hated her but failed to exercise his rights to simply not renew her lease. Instead he waited for her to give notice that she was going to vacate. He had another person interested in the space, willing to lease it but he seemed confused about what to do to secure that new lease. He managed the property by himself.

Both of those elders who were landlords had adult children who could have stepped up. In the first matter, the rental apartment, the elder resisted the son’s attempts to intervene. The elder did have dementia but functioned rather well in other things. He angrily fought his son’s attempts to take over his financial affairs. He had previously appointed his son to do this very thing. The freeloading tenant manipulated the elder into signing an agreement to give the tenant free rent for five years.

In the office building matter, the daughter of the 87 year old was clearly not close to her father and was not paying attention to his confusion. She may have been stopped from getting involved by her father, who was stubborn and unwilling to admit that he was having trouble with managing the investment. In both cases, the only way to prevent abuse and manipulation was for someone appointed earlier to step in and assume responsibility for property management. That works smoothly when the elder is cooperative. It creates a legal mess when the elder resists.

Cognitive Decline and Money Management

Research tells us that even in the earliest stages of dementia or other cognitive impairment, financial judgment is impaired. It is, in a way, the first ability to decline and it is hard to see at first. The older person with impairment for financial judgment can carry on a normal conversation, sound and look okay. But if you asked them about the bookkeeping or accounting, they likely can’t keep it straight. Decline is subtle at the beginning and gets worse over time. Something is amiss before any family member may notice it. Sometimes this leads to loss of value in the property as well as lost income.

What family members can do is to be aware that as a person ages, their sharpness for financial management of property (and other matters too) can slide downhill. If you are aware of aging parents’ real estate investments, it is helpful to educate yourself about them, and to offer to help “in case of any emergency”. Ask your aging parent to teach you about them, even if you know plenty already. This approach can appeal to one’s ego: asking for advice. Do this before you see any sign of a problem and you are likely to be successful in preventing loss of income and value of any real estate they own.

If you simply assume that if Mom or Dad has been managing the family real estate investments for decades and it’s all just fine, you are taking too much chance that it will stay fine. Aging takes its toll. Most of us need some sort of help as we age, especially as we reach 85. By that time, one in three people will have Alzheimer’s disease. If you don’t like those odds, make your best effort to get involved in the real estate they have before the investment loses its value for lack of attention. Fraud is all too common. Predatory real estate brokers, crooked management companies and dishonest tenants can take ruthless advantage of vulnerable elders. Don’t let it happen in your family. If you see your aging parent declining in ability to manage real estate and they fight you on stepping in, it is time to seek legal advice so you can learn what options you have.

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Montreal real estate: Sellers market remains as prices increase by record levels | CTV News – CTV News Montreal

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MONTREAL —
Jacques Leclerc moved to Montreal from Detroit in 2019 with a simple plan.

He and his fiance Emily Ciccia planned to rent for a year and then buy a place with a 20 per cent down payment in Montreal.

It’s 2022, and the couple is still renting in Pierrefonds, frustrated, and starting to think a house purchase is not going to happen.

“Honestly, I never think we’ll be able to afford anything on the island, not at this rate,” said Leclerc.

ISLAND OF MONTREAL OUT OF REACH

The couple recently put in a bid over asking price on a house in St. Lazare, but they were outbid. It was a result they had already experienced a number of times on the island and were now having to deal with in the suburbs.

Leclerc is one among many potential home buyers seeing record increases in house prices influence where they can afford to purchase, if they can at all.

Royal LePage’s recent House Price Survey for the Greater Montreal Area showed almost a 20 per cent increase in the aggregate house price, which is now $532,600.

The median price for a single-family detached home also increased by 20 per cent and is $595,500, while a condo’s median price is $428,900 (up 18.2 per cent).

The company expects prices to continue to increase in 2022 due to a shortage of housing and continuing demand.

Royal LePage general manager Georges Gaucher said Montreal is seeing what Vancouver and Toronto have been witnessing for decades.

Montreal is about 40 per cent of Vancouver’s prices and 44 per cent of Toronto.

“We were historically behind,” said Gaucher.

Gaucher said with Quebec’s improved economy and job opportunities, investors entered the market ready to buy. The pandemic has added to the price increase causing buyers to go farther afield to find a place, a new trend.

“What we were not used to is going out really far away into the suburbs or cottage country to get a first house,” said Gaucher. “That is something that is unknown in Montreal.”

In addition, areas once considered less attractive – Hochelaga-Maisonneuve, East Montreal, Rosemont, North Montreal – are being looked at.

The situation is exactly what happened to Leclerc and Ciccia. The couple wanted to purchase on island, but are resigned to the fact that it might not be possible.

The house in St. Lazare the couple was outbid on needed a new roof, water heater and other repairs and they still could not meet the price someone else offered.

“What I want to know is who’s buying these houses way over asking price?” said Leclerc.

At the rate the market is going, the couple, who both have decent paying jobs with no children or other major financial obligations, feels they are in a race in which they can’t keep pace.

“Either like I need to be able to just borrow money I’ll never be able to pay back to buy this house or like I need a government subsidy to purchase this,” said Leclerc. “The cost of everything now, it’s like I’ll never be able to catch up at this rate.”

PANDEMIC EFFECT

Gaucher said the conditions in 2022 are the same as in 2021.

“Where we have this explosion of buyers,” he said. “Jobs, interest rates, which brings consumer confidence, and then the flexibility of working from home. These were three major elements that created the market last year.”

In addition, Gaucher said the trend of empty nesters selling their houses and moving to a condo or seniors’ residence did not continue during the pandemic.

“People were scared of doing that, so that didn’t happen,” said Gaucher.

Even with the expected interest rate hike in 2022, real estate agents feel the market will remain a sellers’ market.

“There’s a lot of pent-up demand out there,” said Gaucher. “The problem we have is inventory, and we’ve known that for years and years.” 

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