Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.
Real eState
Calgary’s homes market expected to see strong price growth
Article content
Calgary’s already hot resale real estate market is forecast to keep booming for the rest of the year, a new report on price growth suggests. The recent Royal LePage report predicted that the average price of a home in Calgary will jump eight per cent by year’s end, capping off another year of strong growth.
Yet the current real estate boom is different from past ones, says a local realtor.
While short supply is not all that different from past boom markets, a key reason for low inventory is, she adds.
“Interest rates having increased in the last two years negatively affected homeowners,” Lyall says.
Typically as prices rise, move-up buyers list their home, but that is not happening to the same extent this time.
“Many may not want to move because they may still be holding onto a low interest rate for their mortgage,” Lyall adds.
Many are likely reluctant to sell because they are locked into fixed-rate mortgages at about two per cent compared with the current market fixed rates at about five per cent.
In turn, they have low motivation to move until rates move lower, she notes.
The overall low supply paired with rising demand from record migration to the city factor into Royal LePage’s prediction that the average price could reach $716,580 by the end of 2024. Already, the average price has grown nearly 10 per cent by the end of March, versus the same time last year, to about $674,000.
Other segments are seeing rising demand, too, in part because single-family homes are increasingly pricey, and affordable ones are in short supply, Lyall says.
To that end, the Royal LePage study notes the average condominium price by the end of March was $264,800, up nearly nine per cent from the same time last year. Calgary Real Estate Board statistics from March also reflect rising demand for apartment and row. Both saw the highest percentage gains in benchmark price year over year.
Apartments grew more than 17 per cent to $337,700, while row increased more than 20 per cent to reach $448,700.
All segments are seeing higher prices amid dwindling supply and high demand, marking a shift in focus on affordability amid higher borrowing costs, Lyall says.
Still, single-family detached homes remain the most active segment, accounting for about 44 per cent of all sales in March. Its share is decreasing as prices rise. As of mid-April, for example, the average price was $793,713, up 10 per cent year over year, according to CREB.
Inventory is low because of high demand, but it is not increasing because sellers worry about being able to find a home due to low inventory, he further explains.
New listings have been rising, up nearly 13 per cent for all housing types, CREB mid-April numbers show, but active listings have fallen 17 per cent.
Notably in March, housing supply fell 29 per cent to less than one month, the lowest level in more than a decade. Although far below the all-time record of 4,107 transactions in March 2022, the 2,664 resales this year still were the fourth highest strongest for March since 2010.
Yet even amid a strong seller’s market, price still matters because borrowing costs remain elevated, Neustaedter notes.
“Over-priced homes will still not sell, even in this hot market.”
Real eState
Unlock Reliable U.S. Real Estate Opportunities with Oak Street Partners
OAK STREET PARTNERS UNLOCKING OPPORTUNITIES FOR CANADIAN INVESTORS IN THE U.S. RENTAL HOUSING MARKET
Oak Street Partners is leading the way in cash-flow-focused U.S. affordable housing investments
TORONTO, ON | NOVEMBER 18, 2024 – With the Canadian real estate market facing challenges and declining opportunities for investors, Oak Street Partners, a Toronto-based private real estate investment firm, is offering a new avenue for Canadian investors to diversify into the U.S. rental housing market. Oak Street Partners enables investors to passively invest in U.S. affordable housing, providing them with stable, cash-flow-focused returns while helping meet the growing demand for quality, affordable housing in the United States.
“Market conditions in Canada have made it more difficult for investors to find reliable, income-generating opportunities,” says Parker Christie, Founder & CEO of Oak Street Partners. “By turning to the U.S. affordable housing market, we’ve been able to create consistent, cash-flowing investments that benefit both our investors and local communities.”
Building on this approach, Oak Street Partners facilitates investment by strategically acquiring and managing properties in the U.S., particularly in the Midwest and Southeast regions. Investors provide capital, while Oak Street handles all aspects of property ownership and management. Similar to a Real Estate Investment Trust (REIT), but privately structured, Oak Street ensures investors receive stable, cash-flow-driven returns without the need for direct involvement.
A key part of Oak Street’s approach is leveraging the Section 8 Housing Choice Voucher Program, America’s largest federal rental subsidy program that pays private landlords rent on behalf of low-income tenants. This guarantees a reliable, high cash flow income stream, even when real estate markets are challenged with high interest rate environments. By leveraging this program, Oak Street is not only able to provide consistent returns to its investors, but it also enhances lower-income communities, creating sustainable, quality homes for residents.
“It’s a win-win situation,” explains Trumbull Fisher, Director of Oak Street Partners. “Tenants are able to secure and enjoy quality, affordable housing, while investors benefit from reliable, government-backed rental payments that ensure steady cash flow.”
By investing in these properties, Oak Street is able to support the demand for affordable housing, while also contributing to the broader social good by addressing housing shortages and improving community infrastructure. This dual focus on financial return and social impact is what makes Oak Street’s approach stand out in today’s real estate investment landscape.
In its first year of operation, Oak Street has acquired over 100 units in Ohio. With $10 million in assets under management, the company has been able to offer its investors a 10 per cent cash dividend, which was distributed nine months into its operation. This is a rare milestone for companies in their first year, as many real estate investment firms operate at a loss in their early stages.
“As we look to the future, our goal is to expand Oak Street’s portfolio in high-demand areas across the Midwest and Southeast,” adds Christie. “Our focus will remain on sourcing properties that deliver strong, stable returns while positively impacting local communities.”
For more information on Oak Street Partners visit oakstreetgp.com/.
ABOUT OAK STREET PARTNERS
Oak Street Partners is a real estate investment firm focused on creating diversified and stable opportunities for investors in the U.S. rental housing market. We offer a unique pathway for investors to build and expand their portfolios by investing in affordable housing opportunities, improving the quality of life for tenants while delivering consistent returns for investors.
Website: https://oakstreetgp.com/
LinkedIn: https://www.linkedin.com/company/oak-street-partners-gp
Instagram: https://www.instagram.com/oakstreetgp/
Email: info@oakstreetgp.com n
Real eState
‘The Bidding War’ taps into Toronto’s real estate anxiety
‘The Bidding War’ is a play skewering Toronto’s real estate market via a story about a one-day bidding war over the city’s last affordable home. The cast and crew say it exposes how the housing crisis brings out “the worst in people.” (Nov. 12, 2024)
Real eState
Greater Toronto home sales jump in October after Bank of Canada rate cuts: board
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
The Canadian Press. All rights reserved.
-
News21 hours ago
Estate sale Emily Carr painting bought for US$50 nets C$290,000 at Toronto auction
-
News21 hours ago
Class action lawsuit on AI-related discrimination reaches final settlement
-
News21 hours ago
Canada’s Hadwin enters RSM Classic to try new swing before end of PGA Tour season
-
News22 hours ago
All premiers aligned on push for Canada to have bilateral trade deal with U.S.: Ford
-
News21 hours ago
Trump nominates former congressman Pete Hoekstra as ambassador to Canada
-
News21 hours ago
Ex-student pleads guilty to fatally shooting 3 University of Virginia football players in 2022
-
News21 hours ago
Former PM Stephen Harper appointed to oversee Alberta’s $160B AIMCo fund manager
-
News21 hours ago
Comcast to spin off cable networks that were once the entertainment giant’s star performers