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Canada’s recreational real estate rush comes to a close: Prices expected to soften amid waning activity

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National aggregate house price forecast to dip 4.5% in national recreational market in 2023 as sidelined buyers wait for more inventory, economic stability

Highlights:

  • The aggregate price of a single-family home in Canada’s recreational property market increased 11.7% year-over-year to $619,900 in 2022
  • Nationally, the aggregate price of a single-family waterfront and condominium property increased 9.5% and 16.6% year-over-year, respectively, in 2022
  • Condominiums in Quebec’s recreational property market recorded the highest provincial year-over-year aggregate price appreciation in 2022, rising 22.3%
  • Alberta is the only provincial recreational market expected to see price appreciation in 2023 (+0.5%)
  • Quebec and Ontario expected to see the largest recreational property price decreases in 2023, with forecasted declines of 8% and 5%, respectively, compared to 2022
  • More than half (57%) of recreational property experts across the country reported lower inventory than last year in their respective regions, and 65% reported reduced inventory compared to typical pre-pandemic levels

TORONTO, March 28, 2023 /CNW/ – According to Royal LePage, the aggregate price of a single-family home in Canada’s recreational regions is forecast to decrease 4.5 per cent in 2023 to $592,005, compared to 2022, as activity in the market wanes. This is due to reduced demand as a result of economic uncertainty and a lack of available housing stock, which has helped to keep prices stable. Despite a modest decrease expected this year, the national aggregate price would remain more than 32 per cent above 2020 levels, after two years of double-digit price gains in the country’s recreational real estate market.

With the exception of Alberta, which is expected to see a 0.5 per cent increase, all of Canada’s provincial recreational markets are forecast to see a decrease in single-family home prices in 2023. The province of Quebec is forecasting the greatest price depreciation, at -8.0 per cent.

In 2022, the aggregate price of a single-family home in Canada’s recreational property regions increased 11.7 per cent year-over-year to $619,900. This follows year-over-year price gains of 26.6 per cent in 2021. When broken out by housing type, the aggregate price of a single-family waterfront property increased 9.5 per cent year-over-year to $736,900 in 2022, and the aggregate price of a condominium rose 16.6 per cent to $432,000 during the same period.

“After two years of relentless year-round competition, Canada’s recreational property markets have slowed and returned to traditional seasonal sales patterns,” said Phil Soper, president and CEO, Royal LePage. “While interest rate hikes have less of an impact on the recreational market than homes in urban settings, because families typically put more money down and borrow less, general consumer inflation combined with a severe lack of inventory has dampened sales activity. Buyers who are active in today’s market appear willing to wait for the right property – a sharp contrast to what we experienced during the pandemic.”

While low inventory poses a challenge for buyers looking for that special cabin or lakeside cottage, the coinciding contraction in demand has resulted in a return to more normal market conditions.

Return to balance: Supply and demand decline in recreational regions

According to a survey of more than 200 Royal LePage recreational real estate professionals across the country,1 57 per cent of respondents reported less inventory this year, compared to last year. At the same time, 51 per cent of respondents said they have witnessed less demand for recreational properties in their region, compared to this time last year. When compared to typical pre-pandemic levels, 65 per cent of recreational property experts nationally reported less inventory, while a majority reported similar (38%) or more (38%) demand.

“Recreational homebuyers tend to purchase for leisure and life-enriching purposes. Call it a want versus a need,” added Soper. “Unlike many city buyers who may need to acquire a principal residence quickly, secondary home purchasers often have the benefit of time to find the right property for their specific needs.”

Nationally, 28 per cent of recreational property experts surveyed said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic is somewhat common; 56 per cent of experts reported this trend was not common in their market. Atlantic Canada, a pandemic relocation hotspot, recorded the highest percentage of experts who said the return to urban or suburban areas is somewhat common in their region, at 46 per cent.

“During the pandemic, with offices closed and people working from home, Canadians discovered that a recreational property could double as a principal residence, complete with capital gains exempt status,” added Soper. “With high-speed internet now readily available in many rural markets, families flocked to recreational regions to put extra space between themselves and their neighbours and to take advantage of nature; particularly when cultural and sporting venues, shops and restaurants in cities were closed. Many urban businesses now require employees to be in the office at least a few days a week, making long commutes challenging. For many, living in cottage country full-time has lost its romantic shine, meaning we are back to viewing the cottage, cabin and chalet as a weekend and summer escape from urban living.”

1 A national online survey of 202 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions. The survey was conducted between March 1, 2023 and March 18, 2023.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Atlantic Canada

In 2022, the aggregate price of a single-family home in the East Coast’s recreational property market increased 17.2 per cent year-over-year to $279,900, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 9.1 per cent to $388,500, while the aggregate price of a condominium increased 18.6 per cent to $345,000.

According to a Royal LePage survey of recreational property experts, 62 per cent of respondents in Atlantic Canada reported less inventory this year compared to last year, and 69 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Forty-six per cent reported less demand this year than last year.

“Parties on both sides of the transaction are waiting for a better deal – recreational buyers are sitting on the sidelines waiting for more inventory to become available, while sellers are holding out for higher offers and competitive bids. But, the multiple-offer scenarios and homes selling over-asking are not as common today as they were during the pandemic boom,” said Corey Huskilson, sales representative, Royal LePage Atlantic in South Shore, Nova Scotia. “As we enter the spring market, I expect activity to pick up but prices to stay stable, as supply and demand remain relatively balanced.”

During the pandemic, Canadians from all across the country who were forced to work remotely flocked to Atlantic Canada for the opportunity to enjoy the Maritime lifestyle and own a home at a much more affordable price point than in major cities. According to the survey, 46 per cent of recreational property experts in Atlantic Canada said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was somewhat common; an additional 8 per cent said it was very common. Meanwhile, an equal number of respondents (46%) said that this trend was not common in their area.

“The majority of recreational property buyers in Avalon Peninsula are either looking for a retirement property, or are locals moving back from other parts of the country who want a secondary property to enjoy in their downtime,” said Tim Crosbie, broker and owner, Royal LePage Property Consultants in St. John’s, Newfoundland. “Home prices have risen here over the past year, as have interest rates, which has given some buyers reason to halt their purchase plans. While most secondary homebuyers looking in the region are motivated to find a property that fits their specific needs, they are prepared to wait for the right home to fall within their financial reach.”

Crosbie noted that the reduced buyer demand is a result of higher interest rates, and that a reduction in borrowing costs would likely encourage more purchasers back into the buying pool.

The aggregate price of a single-family home in Atlantic Canada’s recreational regions is forecast to decrease a modest 3.0 per cent in 2023 to $271,503.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport 

Quebec

In 2022, the aggregate price of a single-family home in Quebec’s recreational property market increased 16.1 per cent year-over-year to $373,400, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 17.3 per cent to $480,200, and the aggregate price of a condominium increased 22.3 per cent to $341,900.

According to a Royal LePage survey of recreational property experts, 53 per cent of respondents in the province of Quebec reported less inventory this year compared to last year, and 79 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Seventy-six per cent reported less demand this year compared to last year, and 35 per cent reported less demand than a typical pre-pandemic year.

“We are in a two-speed market with sharply contrasting scenarios,” said Éric Léger, chartered real estate broker, Royal LePage Humania. “On one hand, the inventory of properties for sale is steadily increasing and so is the number of motivated sellers willing to lower their asking price. But on the other hand, we’re seeing multiple-offer scenarios with properties that are ideally located, well-maintained and listed at a fair price,” he continued. “It can be challenging for consumers to stay on top of the market trends because we’re still in a transition. Over the next few months, owners of secondary homes in the region may need to rethink their priorities as their mortgages come up for renewal at substantially higher interest rates.”

Léger noted that the spring market in the area may be less buoyant this year because of current economic uncertainty. However, demand in the lower price ranges will remain strong.

According to the survey, 26 per cent of recreational property experts in Quebec said that they have witnessed a slight increase in buyers who intend to use their recreational property for rental purposes in their region compared to last year, while 18 per cent of respondents reported a significant increase in this trend.

“The real estate market in the Eastern Townships today is vastly different from what we saw during the past three years,” said Véronique Boucher, residential real estate broker, Royal LePage Au Sommet. “Buyers are more patient; they’re negotiating and they’re taking time to carefully assess their needs and their financial capacity before taking the plunge. Conditional offers to purchase, which were practically unheard of during the pandemic real estate boom, made a big comeback in the latter half of 2022, a sign of a much more balanced and fair market.

The aggregate price of a single-family home in Quebec’s recreational regions is forecast to decrease 8.0 per cent in 2023 to $343,528.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Ontario

In 2022, the aggregate price of a single-family home in Ontario’s recreational property market increased 7.3 per cent year-over-year to $634,800, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 8.9 per cent to $1,006,600, while the aggregate price of a condominium increased 15.1 per cent to $510,900.

According to a Royal LePage survey of recreational property experts, 61 per cent of respondents in Ontario reported less inventory this year compared to last year, and 59 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Fifty-two per cent reported less demand this year compared to last year, however 39 per cent said demand was higher than a typical pre-pandemic year.

“After two years of historically high pandemic-driven sales, activity in the recreational market came to a comparative standstill in the last half of 2022. Rising interest rates, buyer fatigue, and lack of inventory all played a role,” said John O’Rourke, broker, Royal LePage Lakes of Muskoka. “Early signs this spring point to a more balanced market where inventory levels and sales are trending in line with historical norms. Traditional cottage buyers – end users that plan on enjoying their property – are still engaged and seem eager to jump back into a market in which they are not competing with the investment-focused buyer; a prominent player during the pandemic boom.”

According to the survey, 35 per cent of recreational property experts in Ontario said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was somewhat common. Forty-nine per cent of respondents said this trend was not common in their area.

“Buying a recreational property is like a marathon, not a sprint. Secondary homebuyers in Rideau Lakes have the luxury of time and are looking for a very specific lifestyle property. A shortage of recreational homes makes this process even more difficult,” said Pauline Aunger, broker of record, Royal LePage Advantage Real Estate. “Due to the high demand for renovation services, recreational buyers today are looking for a move-in ready property that requires less work. This includes high-speed internet and good cell service for those who want peace of mind or the option to work remotely. As we head into the spring months, we are expecting market activity to pick up, although not at the levels experienced over the last two years.”

While home prices in a select few recreational markets in Ontario, including the ever-popular Southern Georgian Bay area, may increase marginally over the next year, a decline in activity overall is expected to dampen price growth.

The aggregate price of a single-family home in Ontario’s recreational regions is forecast to decrease 5.0 per cent in 2023 to $603,060.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Prairies

In 2022, the aggregate price of a single-family home in the Prairie provinces’ recreational property market increased 6.0 per cent year-over-year to $271,300, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 5.6 per cent to $507,000.

According to a Royal LePage survey of recreational property experts, 56 per cent of respondents in the Prairies reported less inventory this year compared to last year, and more than three quarters (78%) of respondents said that demand levels are comparable to last year.

“Business is faring as usual in our recreational markets. Demand and inventory are proportional to one another, creating balanced market conditions. Reduced supply has kept recreational property prices buoyant,” said Lou Doderai, broker and owner, Royal LePage Icon Realty, in Prince Albert, Saskatchewan. “The North Central recreation areas are only a couple hours drive from two of the province’s major urban areas, meaning many of our buyers are locals looking for secondary residences that provide an escape for the weekend. Although higher interest rates have halted some purchasers’ decisions to buy a property – at least temporarily – I expect we’ll see a modest pick up in market activity once the warmer weather arrives.”

According to the survey, 44 per cent of recreational property experts in the Prairies said that they have witnessed a significant increase in buyers who intend to use their recreational properties for rental purposes in their region, compared to last year. An additional 33 per cent of respondents reported a slight increase in this trend.

“The recreational market in Lac du Bonnet is the healthiest it’s been in 15 years. The pandemic caused more Manitoba buyers to purchase recreational properties in-province as opposed to south of the border; a level of demand that has caused the average days on market to shrink considerably,” said Rolf Hitzer, broker and owner, Royal LePage Top Producers Real Estate, in Winnipeg, Manitoba. “More than ever, buyers crave a getaway to the countryside, a desire that was intensified by the pandemic and increased demand for all-season properties. As market conditions continue to normalize, I expect to see an active, but not overheated, spring and summer recreational buying season.”

The aggregate price of a single-family home in the Prairies’ recreational regions is forecast to decrease a modest 3.0 per cent in 2023 to $263,161, as sidelined buyers remain cautious amid evolving economic conditions.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Alberta

In 2022, the aggregate price of a single-family home in Alberta’s recreational property market increased 13.3 per cent year-over-year to $1,165,500, compared to 2021. During the same period, the aggregate price of a single-family waterfront property decreased 5.0 per cent to $641,900, while the aggregate price of a condominium increased 17.7 per cent to $646,000. As a large and popular recreational destination, Canmore’s real estate market has a significant impact on prices in Alberta, with its proximity to Banff National Park and luxury properties.

According to a Royal LePage survey of recreational property experts, 59 per cent of respondents in Alberta reported less inventory this year compared to last year, and 71 per cent reported less inventory compared to typical pre-pandemic levels. Meanwhile, demand for recreational properties in the region has remained stable. Thirty-five per cent of respondents reported similar demand this year compared to last year, and an additional 35 per cent reported more demand.

“Buyer demand for recreational properties in Canmore continues to be driven by retirees and Albertans living in the surrounding cities, as well as residents from Ontario and Quebec. As Canmore attracts many cash buyers, higher interest rates have had little impact on this market, a factor that has kept prices stable,” said Brad Hawker, associate broker, Royal LePage Solutions. “Low supply continues to be a challenge, an issue that has been underscored by the lack of new construction projects. This has caused many buyer hopefuls to sit on the sidelines, waiting for their ideal property to become available.”

According to the survey, 65 per cent of recreational property experts in Alberta said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was not common, another factor contributing to the supply shortage.

“We are experiencing a lack of turnover in the Wabamun Lake and Lac Ste. Anne markets. Coveted recreational homes, especially those on the water, are more likely to be passed down through the generations, a trend that is exacerbating the region’s low level of supply,” said Tom Shearer, broker, Royal LePage Noralta Real Estate. “Those shopping for a recreational home are often locals from nearby cities who already have a personal connection to the area and are looking for a retreat to enjoy with family on the weekends and in the summer months. Unlike a primary residence, most buyers shopping for a vacation home can afford to wait for the perfect property to present itself.”

The aggregate price of a single-family home in Alberta’s recreational regions is forecast to increase modestly by 0.5 per cent in 2023 to $1,171,328. This is the only region in Canada forecasting price growth over the next year.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

British Columbia

In 2022, the aggregate price of a single-family home in British Columbia’s recreational property market increased 12.9 per cent year-over-year to $1,071,300, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 5.6 per cent to $1,065,000, while the aggregate price of a condominium increased 14.3 per cent to $441,400.

According to a Royal LePage survey of recreational property experts, 49 per cent of respondents in British Columbia reported less inventory this year compared to last year, and 71 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Forty-nine per cent reported less demand this year compared to last year.

“Like many recreational markets across the country, Pemberton and Whistler continue to experience low inventory. Come springtime, I anticipate that supply levels will rise as more sellers move into the market, but I don’t expect there to be a huge wave of relief,” said Frank Ingham, associate broker, Royal LePage Sussex. “Many buyers continue to wait on the sidelines for prices to fall or for borrowing costs to become more affordable, especially those purchasers who are buying for their retirement or for their adult children to enjoy. This trend is creating more pent-up demand on the sidelines, and is causing properties to stay on the market twice as long as last year. However, as the spring market gains momentum, I expect more homes that have been sitting on the shelves will start to move into the hands of buyers.”

According to the survey, 54 per cent of recreational property experts in British Columbia said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was not common, a factor contributing to the supply shortage.

The aggregate price of a single-family home in British Columbia’s recreational regions is forecast to decrease a modest 2.0 per cent in 2023 to $1,049,874, as moderate activity is expected while buyers wait for more product to come onto the market.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

About the Royal LePage Recreational Property Report

The Royal LePage Recreational Property Report compiles insights, data and forecasts from 50 markets. Median price data was compiled and analyzed by Royal LePage for the period between January 1, 2022 and December 31, 2022, and January 1, 2021 and December 31, 2021. Data was sourced through local brokerages and boards in each of the surveyed regions. Royal LePage’s aggregate home price is based on a weighted model using median prices. Data availability is based on a transactional threshold and whether regional data is available using the report’s standard housing types. Aggregate prices may change from previous reports due to a change in the number of participating regions.

About the Royal LePage Recreational Property Advisor Survey

A national online survey of 202 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions. The survey was conducted between March 1, 2023 and March 18, 2023.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.

List of Royal LePage recreational property experts:

Atlantic Canada

Annapolis Valley, NS
Logan Morse, Sales Representative
Royal LePage Atlantic
loganmorse@royallepage.ca
902-680-5752

Cape Breton, NS
Ian Hamilton, Owner
Royal LePage Anchor Realty
ianhamilton@royallepage.ca
902-225-0344

South Shore, NS
Corey Huskilson, Sales Representative
Royal LePage Atlantic
coreyh@royallepage.ca
902-680-5752

Avalon Peninsula, NL
Tim Crosbie, Broker/Owner
Royal LePage Property Consultants
tim@timcrosbie.ca
709-682-6609

Central Newfoundland, NL
Mike Turner, Manager/Owner
Royal LePage Turner Realty
miketurner@royallepage.ca
709-424-6517

Shediac, NB
Heather Fitzgerald, Sales Representative
Royal LePage Atlantic
heatherfitzgerald@royallepage.ca
506-875-3600

St. Stephen & St. Andrews, NB
Misty Flynn, Sales Representative
Royal LePage Atlantic
misty@royallepage.ca
506-866-8832

Quebec

Antoine-Labelle
Jessica Vaillancourt, Residential Real Estate Broker
Royal LePage Humania
jvaillancourt@royallepage.ca
819-808-9807

Argenteuil
Pierre Vachon, Residential and Commercial Real Estate Broker
Royal LePage Humania
pvachon@royallepage.ca
514-512-1598

Baie-St-Paul
Jean-François Larocque, Residential and Commercial Real Estate Broker
Royal LePage Inter-Québec
jfl@royallepage.ca
418-635-1191

Gaspé
Christian Cyr, Residential and Commercial Real Estate Broker
Royal LePage Village
christian.cyr@royallepage.ca
418-392-9927

La Jacques-Cartier and Côte-de-Beaupré
Marc Bonenfant, Residential and Commercial Real Estate Broker
Royal LePage Inter-Québec
marcbonenfant@royallepage.ca
418-561-3918

Les Appalaches
Mélissa Roussin, Residential and Commercial Real Estate Broker
Royal LePage Pro
mroussin@royallepage.ca
418-333-2214

Laurentides and Pays d’en Haut
Éric Léger, Residential and Commercial Real Estate Broker
Royal LePage Humania
eric@ericleger.com
514-949-0350

Matawinie and Montcalm
Éric Fugère, Residential and Commercial Real Estate Broker
Royal LePage Habitations
ericfugere@royallepage.ca
514-799-2847

Memphrémagog and Bromont
Véronique Boucher, Residential Real Estate Broker
Royal LePage Au Sommet
veroniqueboucher@royallepage.ca
450-525-2318

Papineau
Annick Fleury, Residential Real Estate Broker
Royal LePage Vallée de l’Outaouais
annick@equipefleury.ca
819-592-5152

Ontario

Bruce Peninsula
Chris Amyot, Sales Representative
Royal LePage RCR Realty
chrisonthebruce@gmail.com
519-649-8081

Haliburton County
Anthony vanLieshout, CRA, Broker of Record
Royal LePage Lakes of Haliburton
anthony@royallepage.ca
705-935-1000

Honey Harbour
Laurie Belsey, Broker
Royal LePage In Touch Realty
lauriebelsey@gmail.com
705-715-2010

Kawartha Lakes
Guy Masters, Broker of Record
Royal LePage Kawartha Lakes Realty
gmasters@royallepage.ca
705-328-4234

Lake Erie Shoreline
Deanna Gunter, Branch Manager
Royal LePage NRC Realty
deanna@royallepage.ca
905-688-4561

Land O’Lakes and Tweed
Diana Cassidy-Bush, Sales Representative
Royal LePage ProAlliance Realty
dianacb@royallepage.ca
613-966-6060

Mid Lake Huron/Huron & Perth County
Jeff Bauer, Broker/Owner
Royal LePage Heartland Realty
jeffbauer@royallepage.ca
519-525-7448

Muskoka
John O’Rourke, Broker/Owner
Royal LePage Lakes of Muskoka
john@rlpmuskoka.com
705-645-5257

The North Channel (Echo Bay, Desbarats, Bruce Mines, Thessalon, Iron Bridge, North Shore, Huron Shore, Blind River, Algoma Mills, Elliot Lake, Splanish)
Mariola Morin, Sales Representative
Royal LePage Northern Advantage
mariola@royallepage.ca
705-206-3110

Orillia
Anastasia Langiano, Broker of Record/Owner
Royal LePage Real Quest Realty
stasia@royallepage.ca
705-309-2541

Ottawa Valley
Aaron Cope, Broker/Manager
Royal LePage Team Realty
acope@royallepage.ca
613-552-4436

Peterborough County (Peterborough and The Kawarthas)
Gail Burton, Sales Representative
Royal LePage Frank Real Estate
gburton@nexicom.net
705-761-3165

Rideau Lakes
Pauline Aunger, Broker of Record
Royal LePage Advantage Real Estate
paulineaunger@royallepage.ca
613-285-9158

Southern Georgian Bay (Meaford, Thornbury, Wasaga Beach, Collingwood)
Desmond von Teichman, Broker
Royal LePage Locations North
teichman@royallepage.ca
705-444-7063

St. Joseph Island
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team
jonathan@stewartteam.ca
705-253-7105

Prairies

Interlake, MB
Tyler Bucklaschuk, Sales Representative/Broker
Royal LePage JMB & Associates
tylerb@royallepage.ca
204-642-8576

Lac du Bonnet, MB
Rolf Hitzer, Broker/Owner
Royal LePage Top Producers Real Estate
hitzer@mymts.net
204-960-2159

North Central Saskatchewan (Christopher Lake, Emma Lake, Candle Lake, Waskesiu Lake & Elk Ridge), SK
Lou Doderai, Broker/Owner
Royal LePage Icon Realty
lou@royallepagepa.ca
306-960-7925

Alberta

Canmore
Brad Hawker, Associate Broker
Royal LePage Solutions
info@canmorerealestate.com
403-678-7557

Pigeon Lake
Barbara Howey, Broker/Owner
Royal LePage Parkland Agencies
barbarahowey@royallepage.ca
780-361-7882

Wabamun Lake and Lac Ste. Anne
Tom Shearer, Broker/Owner
Royal LePage Noralta Real Estate
tomshearer@royallepage.ca
780-993-1515

British Columbia

Central Okanagan
Francis Braam, Broker/Owner
Royal LePage Kelowna
francis@kelowna.royallepage.ca
250-860-1100

Comox Valley, Denman Island, Hornby Island, Mt. Washington
Gregg Hart, Broker/Owner
Royal LePage In The Comox Valley
gregghart@royallepage.ca
250-334-7864

Invermere
Barry Benson, Broker/Owner
Royal LePage Rockies West Realty
barrybenson@royallepage.ca
250-342-5809

East Kootenays (Cranbrook, Kimberley, Fernie, Sparwood, Creston, Elkford)
Gavin Thomas, Managing Broker
Royal LePage East Kootenay Realty
gavinthomasrealtor@gmail.com
250-919-5533

Pemberton and Whistler
Frank Ingham, Associate Broker
Royal LePage Sussex
frank@frankingham.com
604-230-8167

SOURCE Royal LePage Real Estate Services

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Real eState

Former B.C. Realtor has licence cancelled, $130K in penalties for role in mortgage fraud

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The provincial regulator responsible for policing B.C.’s real estate industry has ordered a former Realtor to pay $130,000 and cancelled her licence after determining that she committed a variety of professional misconduct.

Rashin Rohani surrendered her licence in December 2023, but the BC Financial Services Authority’s chief hearing officer Andrew Pendray determined that it should nevertheless be cancelled as a signal to other licensees that “repetitive participation in deceptive schemes” will result in “significant” punishment.

He also ordered her to pay a $40,000 administrative penalty and $90,000 in enforcement expenses. Pendray explained his rationale for the penalties in a sanctions decision issued on May 17. The decision was published on the BCFSA website Wednesday.

Rohani’s misconduct occurred over a period of several years, and came in two distinct flavours, according to the decision.

Pendray found she had submitted mortgage applications for five different properties that she either owned or was purchasing, providing falsified income information on each one.

Each of these applications was submitted using a person referred to in the decision as “Individual 1” as a mortgage broker. Individual 1 was not a registered mortgage broker and – by the later applications – Rohani either knew or ought to have known this was the case, according to the decision.

All of that constituted “conduct unbecoming” under B.C.’s Real Estate Services Act, Pendray concluded.

Separately, Rohani also referred six clients to Individual 1 when she knew or ought to have known he wasn’t a registered mortgage broker, and she received or anticipated receiving a referral fee from Individual 1 for doing so, according to the decision. Rohani did not disclose this financial interest in the referrals to her clients.

Pendray found all of that to constitute professional misconduct under the act.

‘Deceptive’ scheme

The penalties the chief hearing officer chose to impose for this behaviour were less severe than those sought by the BCFSA in the case, but more significant than those Rohani argued she should face.

Rohani submitted that the appropriate penalty for her conduct would be a six-month licence suspension or a $15,000 discipline penalty, plus $20,000 in enforcement expenses.

For its part, the BCFSA asked Pendray to cancel Rohani’s licence and impose a $100,000 discipline penalty plus more than $116,000 in enforcement expenses.

Pendray’s ultimate decision to cancel the licence and impose penalties and expenses totalling $130,000 reflected his assessment of the severity of Rohani’s misconduct.

Unlike other cases referenced by the parties in their submissions, Rohani’s misconduct was not limited to a single transaction involving falsified documents or a series of such transactions during a brief period of time, according to the decision.

“Rather, in this case Ms. Rohani repetitively, over the course of a number of years, elected to personally participate in a deceptive mortgage application scheme for her own benefit, and subsequently, arranged for her clients to participate in the same deceptive mortgage application scheme,” the decision reads.

Pendray further noted that, although Rohani had been licensed for “a significant period of time,” she had only completed a small handful of transactions, according to records from her brokerage.

There were just six transactions on which her brokerage recorded earnings for her between December 2015 and February 2020, according to the decision. Of those six, four were transactions that were found to have involved misconduct or conduct unbecoming.

“In sum, Ms. Rohani’s minimal participation in the real estate industry as a licensee has, for the majority of that minimal participation, involved her engaging in conduct unbecoming involving deceptive practices and professional misconduct,” the decision reads.

According to the decision, Rohani must pay the $40,000 discipline penalty within 90 days of the date it was issued.

 

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Real eState

Should you wait to buy or sell your home?

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The Bank of Canada is expected to announce its key interest rate decision in less than two weeks. Last month, the bank lowered its key interest rate to 4.7 per cent, marking its first rate cut since March 2020.

CTV Morning Live asked Jason Pilon, broker of Record Pilon Group, whether now is the right time to buy or sell your home.

When it comes to the next interest rate announcement, Pilon says the bank might either lower it further, or just keep it as is.

“The best case scenario we’re seeing is obviously a quarter point. I think more just because of the job numbers that just came out, I think more people are just leading on the fact that they probably just gonna do it in September,” he said. “Either way, what we saw in June, didn’t make a big difference.”

Here are the pros of buying/ selling now:

Pilon suggests locking in the rate right now, if you don’t want to take a risk with interest rates going up in the future.

He says the environment is more predictable right now, noting that the home values are transparent, which is one of the benefits for home sellers.

“Do you want to risk looking at what that looks like down the road? Or do you want to have the comfort in knowing what your house is worth right now?” Pilon said.

And when it comes to buyers, he notes, the competition is not so fierce right now, noting that there are options to choose from.

“You’re in the driver seat right now,” he said while noting the benefits for buyers.

Here are the cons of buying/ selling now:

He says one of the cons would be locking in the rate right now, then seeing a rate cut in the future.

The competition could potentially become fierce, if the bank decides to cut the rate further more, he explained.

He notes that if that happens, the housing crisis will become even worse, as Canada is still dealing with low housing inventory.

An increase in competition would increase the prices of houses, he adds.

Selling or buying too quickly isn’t the best practice, he notes, suggesting that you should take your time and put some thought into it.

Despite all the pros and cons, Pilon says, real estate remains a good investment.

According to the latest Royal LePage House Price Survey for the second quarter of this year, the average home price in Canada is $824,300. That’s up 1.9 per cent from the same time last year, and up 1.5 per cent from the first quarter of 2024.

In the Ottawa Housing Market Report for June 2024, the average price of a home was up 2.4 per cent from this time last year to $686,535, but down 0.6 per cent from May 2024.

Experts believe many potential buyers are still hesitant of jumping into the housing market and waiting for another interest rate cut of 50 to 100 basis points.

“I don’t think it’s going to be the rush that we see in the past, because people are used to more of a conservative approach right now,” said Curtis Fillier, president of the Ottawa Real Estate Board. “I think there’s still a bit of a hold back, but I definitely do think with another rate cut, we’ll probably see a very positive fall market.”

With files from CTV News Ottawa’s Kimberly Fowler

 

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Real estate stocks soar to best day of year on rate cut bets

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(Bloomberg) — The stock market’s worst group notched its best day of the year as a cooler-than-expected inflation report stoked bets that the Federal Reserve will start cutting interest rates in September.

Shares of real estate companies jumped 2.7% Thursday for their biggest gain of 2024, climbing to their highest level since March as investors snapped up homebuilder, digital and commercial real estate stocks alike. Real estate also was the best-performing group in the S&P 500 Index Thursday, with volume that was around 30% higher than the 30-day average, according to data compiled by Bloomberg.

Arguably the most significant news to come from the latest consumer price index reading was a pullback in housing-related inflation. Shelter costs rose just 0.2% for the slowest monthly increase in three years. Homebuilders, which have risen 7.1% this year, were up 7.3% for the session, the most since 2022. Shares of D.R. Horton Inc., which is scheduled to report earnings next Thursday, gained 7.3%.

“Housing has really been the last shoe to drop in terms of winning the battle against high inflation,” Preston Caldwell, chief U.S. economist at Morningstar wrote in a note to clients Thursday. “Leading-edge data has strongly indicated for some time now that a fall in housing inflation was in the works.”

A rally in real estate stocks is bad news for short sellers who have been piling into the group, which is the worst performer in the S&P 500 this year. To start the week, short interest as a percentage of float hovered near 49% in the SPDR Homebuilders ETF, the highest level since February for the exchange-traded fund, according to data from S3 Partners.

Property owners are rallying as well. Real estate investment trusts, which were brutally penalized during the two-year run up in borrowing costs, advanced by as much as 3%. And the outlook for the group appears to have turned a corner, according Rich Hill, senior vice president and head of real estate strategy and research at Cohen & Steers Capital Management.

“We think this is a compelling backdrop for listed REITs especially as fundamental growth remains on solid footing,” he said, referencing the latest inflation data and rate outlook. “The rally that started in October of 2023 pushing returns more than 20% above their trough looks set to continue if inflation cools and interest rates continue to decline.”

Shares of industrial REIT Prologis Inc., which reports second-quarter results on Wednesday, rose 3.3% to hit their highest level since April. U.S. Treasury yields tumbled, with the 10-year bond falling to 4.2% and the policy-sensitive two-year note slipping to 4.5%.

(Updates indexes and stock prices for market close.)

 

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