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Cold market: Real estate prices continue to decline in Fort McMurray

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Fort McMurray’s housing market, once among the hottest in the province, has seen prices decline in a big way.

Since the spike brought about by an oil boom in early-2010s, when a single-family home in the northern community would cost over $700,000, the prices have dropped by hundreds of thousands of dollars, said Melanie Galea, a Fort McMurray real estate agent with RE/MAX.

“But it’s been now levelling out,” she said.

Compared to October 2022, the total residential average price in Fort McMurray went down by about 16 per cent, from about $336,000 in October 2022 to about $282,000 in October this year. The price of a single family home, which once was more than $700,000 about a decade ago is now $467,848.

Galea said she believes the price levels that the community has seen over the last few years is what’s truly normal for the region.

Galea said such market conditions are not new for her as a real estate agent, having observed a similar situation in 2015, before the 2016 wildfire.

“I would say the fire actually helped our economy here, and helped the housing industry, because sales definitely started to take off,” she said, as the community was being rebuilt.

Some condo apartments can be priced as low as $35,000, said Fort McMurray real estate agent Melanie Galea (Emilio Avalos/Radio Canada)

Today, Galea said, the hottest market in the is condo and townhouse apartments, as Fort McMurray always has a strong rental market.

“We’re seeing some prices as low as $35,000 for a condo apartment. That becomes appealing for investors.”

There are also a lot first-time home-buyers, she said.

The housing inventory in the community is steady, Galea said. “I would say right now we are in a buyer’s market.”

She said things really started to slow down when the Bank of Canada began raising interest rates last year and “buyers became a little bit more weary of the increased prices.”

Buying preferable to renting

For Kyle Wegner, 32, buying a home was preferable to renting. He’s an employee of Finning, an industrial equipment dealer that specializes in Caterpillar products, and works at one of the mine sites near Fort McMurray.

“Rent is very high here, so for me, even in the short term, it’s almost saving a little bit of money,” he said.

Wegner moved to Fort McMurray in August 2022. He bought a larger house in the community, before deciding to downsize.

“It’s just more fitting to my lifestyle and what I actually need,” he said.

A 32-year old Finning employee Kyle Wegner found buying a home preferable to renting (Emilio Avalos/Radio Canada)

His old house was still for sale when he got the keys for his new, smaller home.

He hopes not to incur a big loss on a sale of his old property.

“Our goal is to try and do our best to break even, and see how close we can get to that.”

Keeping a business alive

Suzette Nelson, an owner of flooring company Nufloors, is selling a plot on land where a three-storey townhouse the business used to rent to its employees once stood.

The townhouse burned down during the 2016 wildfire. Nelson said they wanted to rebuild the townhouse, but the 2020 spring flood destroyed Nelson’s business — and ended any rebuilding plans.

“Back in in the boom days here, accommodations were very, very difficult. Most businesses would have a place for employees,” she said. “It’s really sad to see it gone.”

Suzette Nelson, owner of Nufloors Fort McMurray, standing where a townhouse used by the business’s employees used to stand. The townhouse burned down during the Fort McMurray fire. (Emilio Avalos/Radio Canada)

The asking price for that plot of land is $75,000, Nelson said.

“We’re open to negotiations,” she said.

“We may or may not get it, but we have a bottom line that we won’t go below as well.”

 

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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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.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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