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Canada’s Largest Real Estate Markets See A Big Drop In New Permanent Residents – Better Dwelling

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Canada’s immigration has slowed due to the pandemic, at least for a few months. Immigration, Refugees and Citizenship Canada (IRCC) data shows a steep decline in the number of new permanent residents in April. The drop is one of the sharpest in recent history, with large real estate markets most impacted.

Fewer Permanent Residents Admitted To Canada

The pandemic didn’t quite halt new permanent residents, but it came pretty close over the past few months. Canada saw just 4,140 permanent residents admitted in April, down 78% from the month before. This is an 85% decrease compared to the same month last year. The drop over the past few months has put Canada significantly behind its target.

Canadian Permanent Resident Admissions

The monthly number of permanent residents admitted to Canada.

Source: IRCC, Better Dwelling.

The year to date (YTD) numbers aren’t quite as bad, but are down significantly from last year. In the first four months there were 73,920 newly admitted permanent residents, down 20% from last year. The sharp decline is due almost entirely to a drop in March and April numbers. As you may have guessed, some real estate markets will be impacted more than others with this shift.

Toronto Sees 84% Fewer Permanent Residents In April

Newly admitted permanent residents moving to Toronto saw a big drop. There were just 1,520 in April, down 77% from a month before. This is an 84% decline compared to the same month last year. For the month of April, this movement is pretty much in line with the national average.

Canadian Permanent Resident Admissions Change

The year-over-year percent change in monthly permanent residents admitted to Canada.

Source: IRCC, Better Dwelling.

The YTD numbers also show a substantial decline for the first third of the year. Toronto added 26,080 new permanent residents April YTD, down 22% compared to the same period last year. This is a very big drop due entirely to declines in March and April, with the other two months higher than last year. The decline is inline with the national average.

Vancouver Sees 91% Fewer Permanent Residents In April

Just a handful of permanent residents settled in Vancouver in the most recent month of data. The region saw 270 new permanent residents in April, down 88% from a month before. This works out to a 91% decline compared to the same month last year. For those keeping track, that’s worse than the national average.

Canadian Permanent Resident Admissions By Market

The monthly number of permanent residents admitted to Canada, , by major real estate market.

Source: IRCC, Better Dwelling.

When looking at YTD numbers, Vancouver is actually seeing smaller declines than most regions. There were 9,370 new permanent residents in April YTD, down 6.6% from last year. This is one of the smallest declines for the first third of the year, and is due to much higher growth in January and February than the rest of the country.

Montreal Sees 94% Fewer Permanent Residents In April

Montreal is seeing one of the biggest declines of any major city across Canada. The region saw just 165 new permanent residents in April, down 89% from a month before. This works out to a decline of 94% when compared to the same month last year. This is worse than the national average, but generally Montreal has been seeing a decline of permanent residents over the past year.

Canadian Permanent Resident Admissions Change By Market

The year-over-year percent change in monthly permanent residents admitted to Canada, by major real estate market.

Source: IRCC, Better Dwelling.

Montreal’s YTD permanent resident numbers show one of the biggest declines in the country. The region added 6,615 new permanent residents this year ending in April, down 31% compared to the same period last year. This is a much bigger decline than the national average. Once again, these numbers have been declining since last year. The pandemic accelerated these declines.

Immigration is cyclical, and tends to move with employment trends. National Bank of Canada has even forecasted a decline later this year. However, the decline we’re currently seeing is likely due to the direct impact of the pandemic. The additional forecasted declines aren’t expected to arrive until later this year, or early next year.

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Toronto's real estate market is rebounding fast as pandemic restrictions lift – blogTO

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Home sales are surging in Toronto once again this summer after a brief yet steep drop due to COVID-19, and prices are following suit despite holding steady (if not increasing in most parts of the city) amid the pandemic.

The Toronto Regional Real Estate Board (TRREB)’s latest Market Watch Report, released on Tuesday, indicates that GTA realtors made 8,701 residential sales in June of 2020 — a whopping 89 per cent jump from the previous month’s figures.

“This result represented a very substantial increase over the May 2020 sales result, both on an actual (+89 per cent) and seasonally adjusted basis (+84 per cent), and was only down by 1.4 per cent compared to June 2019,” the report reads.

Considering that sales were down 53.7 per cent year over year in May, and 69 per cent in April, that’s not a bad data point at all.

Some GTA market segments and regions even saw growth in June, most notably detached homes and townhouses in parts of the GTA “surrounding the City of Toronto.”

Detached and townhouse sales were up 10.4 per cent and 7.8 per cent respectively in the 905, according to TRREB. Home prices were up across the board for all market segments and parts of the GTA.

“The average selling price for all home types combined was $930,869 – up by 11.9 per cent compared to June 2019,” reads the report. “The actual and seasonally-adjusted average selling price was also up substantially compared to May 2020, by 7.8 per cent and 9.8 per cent respectively.”

New listings are up slightly, year over year, by 2.1 per cent, but TRREB reports that “active listings” are down by about 28.8 per cent.

“It will be important to closely monitor housing market conditions as economic recovery continues in the second half of 2020 and into 2021,” said TRREB CEO John DiMichele.

“The persistent lack of listing inventory in the GTA understandably took a back seat to COVID-related issues in the short term, but supply should once again be top-of-mind once the recovery takes hold, in order to ensure long-term affordability in the GTA.”

Hey, at least rent prices are down.

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Zara Founder Unveils $17.2 Billion Global Real Estate Empire – Financial Post

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(Bloomberg) — After making a fortune in clothing, Amancio Ortega turned his attention to real estate.

The Spanish billionaire’s property holdings have soared to 15.2 billion euros ($17.2 billion), his firm revealed Tuesday for the first time, giving him the largest real estate portfolio among Europe’s super-rich.

Ortega, 84, the founder and owner of fashion label Zara, invested 2.1 billion euros in real estate last year through various subsidiaries of his holding company Pontegadea, according to an emailed statement. Pontegadea, which owns 59.3% of Zara parent Inditex SA, had a net income of 1.8 billion euros for 2019, including 1.64 billion euros in Inditex dividends and 621 million euros from real estate assets.

Ortega, Spain’s richest man, has diversified his fashion fortune to preserve his sizable wealth, investing more than $3 billion in U.S. real estate in recent years.

Acquisitions include landmark properties like Manhattan’s historic Haughwout Building and Miami’s tallest office tower. Last year, his investment firm completed a $72.5 million deal for a downtown Chicago hotel, which followed purchases of a building in Washington’s central business district and two Seattle office buildings.

As well as being landlord to tech giants such as Amazon.com Inc and Facebook Inc, Pontegadea also counts Inditex rivals Hennes & Mauritz AB and The Gap Inc as tenants.

The son of a railroad worker, Ortega has a net worth of $58.5 billion, according to the Bloomberg Billionaires Index, the bulk of which comes from his majority stake in Inditex. His fortune has slumped more than a fifth this year in the wake of the coronavirus pandemic, which has forced Inditex to close stores. The company’s shares have fallen 22% this year.

Aside from real estate, Ortega has also invested in energy and telecommunications, buying a 5% stake in Enagas last year. In 2018, Pontegadea bought a 9.99% stake in Telefonica SA’s tower unit for 378.8 million euros.

Pontegadea said it expects to receive 646 million euros in dividends from Inditex in 2020.

©2020 Bloomberg L.P.

Bloomberg.com

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Fraser Valley real estate sales surges in June after COVID-19 slump – CBC.ca

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Property sales in the Fraser Valley bounced back in June as buyers and sellers adapted to COVID-19 measures, according to the region’s real estate board.

The Fraser Valley Real Estate Board says it had 1,718 sales in June, more than double the number of sales in May.

Over the last few months, the pandemic nearly brought the real estate market in the Fraser Valley to a standstill.

“It’s never happened in the board’s history that we’ve had an increase of that much from one month to another, from one May to one June,” said Chris Shields, president of the Fraser Valley Real Estate Board.

Daniel Planko is finally ready to sell his mother’s large Cloverdale home now that some COVID-19 restrictions have been lifted for weeks. (Mike Zimmer/CBC)

According to Shields, there are three factors at play: historically low interest rates, pent up demand, and buyers and sellers who are feeling a bit more comfortable operating in a post COVID-19 market.

“During the lockdown period with COVID-19, there were a lot of people who were planning on buying or selling and put their plans on hold,” Shields said.

“Because we’re deemed an essential service, only the people who had to buy and sell were coming out during those months.”

The president of the Fraser Valley Real Estate Board Chris Shields is cautiously optimistic that the market is stabilizing under the new normal of COVID-19. (Mike Zimmer/CBC)

Daniel Planko is one of those people who put plans on hold when the pandemic began, but he’s finally ready to sell his mother’s house.

“When we were ready it was the middle of the lockdown,” he said. “Stay at home was the messaging we were getting, so we just stayed at home.”

Surrey Realtor Lucky Gill agrees the real estate market has completely turned around since the beginning of the pandemic.

“It’s definitely a seller’s market right now. We’re seeing a lot of demand on the buyers end so we have a lot of organic, multiple offers happening.”

However, Gill is still urging some caution.

“Any buyer that’s entering into the market needs to do all their homework and make sure that the financial stability, job security, everything’s there. They need to do their due diligence before entering. It’s a calculated risk.”

Surrey Realtor Lucky Gill is warning buyers to make sure their finances are in order before venturing into the real estate market. (Mike Zimmer/CBC)

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