The Ottawa Real Estate Board says the “correction continues” from pandemic-era highs as its members sold 987 residential properties last month — a 41 per cent drop from 1,670 in October 2021.
October’s sales included 758 in the residential class, down 40 per cent from a year earlier, and 229 in the condo class, a decrease of 44 per cent.
The five-year average for total October sales is 1,554.
“After the volatility of the past two pandemic years, which was unsustainable, the market is correcting and adjusting,” Ottawa Real Estate Board president Penny Torontow said.
“The slowdown is compounded by Bank of Canada interest rate increases, which further exacerbates buyer hesitancy and weakens people’s purchasing power — especially first-time homebuyers.”
Demand is still high and inventory increasing, Torontow said. Buyers have more choices and time to shop but speculation about where both prices and interest rates are going has made some adopt a “wait-and-see approach.”
Meanwhile, homeowners looking to sell “may be understandably concerned about market fluctuations, which have been more drastic lately,” Torontow said, adding that “a longer-term perspective is important.
“The significant year-over-year gains of the last two years were not sustainable. If you have owned your property for any length of time, your equity has increased significantly and will buffer price corrections.
“If you buy and sell in the same market, it is all relative.”
There were 2,047 new listings in October, up four per cent from October 2021. The five-year average for new listings in October is 1,971.
The average sale price for a condominium-class property in October was $445,691, up nine per cent from 2021. The average sale price for a residential-class property was $677,873, down five per cent from a year earlier.
Year-to-date average sale prices were $780,390 for houses, up eight per cent over 2021, and $456,470 for condos, up nine per cent.
OREB members have also helped clients rent 5,186 properties so far this year — up from 4,012 last year at this time.
Ottawa’s September housing resale market still cool; down 33 per cent from 2021
‘Buyer uncertainty’ further slow sales in August: Ottawa Real Estate Board
Big White real estate values have spiked despite a slowdown in sales, report says – Okanagan | Globalnews.ca – Global News
The Royal LePage report indicates that the median price of a single-family detached home in Big White’s recreational property market for the first 10 months of the year increased 45.5 per cent year-over-year to $1,600,000, while the median price of a condominium increased 11.1 per cent to $500,000.
A house or condominium slope-side or at mountain base prices typically starts at $900,000 and $400,000, respectively.
That price jump for single-family detached home is the biggest in the province. In contrast, Sun Peaks saw a 13-per cent increase, Revelstoke saw a 13.3-per cent increase and Whistler saw a 14.9-per cent increase.
Royal LePage expects the upward price trajectory will continue into 2023 and estimates a rise by another seven per cent.
Big White Ski Resort opening day 2022-23
Despite the rising cost of a resort area home, total sales were down 33 per cent year-over-year in the region,
“Transactions at the upper end of the market are largely responsible for the dramatic price increases in the single-family segment, as Big White continues to attract luxury recreational property buyers,” Andrew Braff, sales representative, Royal LePage Kelowna said in a press release.
“However, demand has slowed over the last year as buyers adjust to the rising interest rate environment and sellers feel less urgency to list their properties.
“As activity moderates, we are seeing fewer multiple-offer scenarios compared to last year.”
Braff noted that luxury property owners are less impacted by changes in the market, and are more likely to keep their properties in the family long term, for several generations to enjoy.
In addition to local buyers, the world-renowned ski region attracts demand from across the border and around the globe. However, pandemic travel restrictions over the last two years have forced some international homeowners to visit their recreational properties less frequently.
‘We had 5.4 million rides on our lifts’: Big White Ski Resort looks back on busy season
Thirty-two per cent of U.S. citizens living in border states who currently own a recreational property in Canada have purchased a home in British Columbia. Of those who plan to purchase recreational property in Canada, 33 per cent say they intend to purchase in the province.
Big White is not the only resort seeing this kind of real estate increase.
Canada-wide popular ski regions have posted double-digit year-over-year home price appreciation since the beginning of 2022, despite rising interest rates and price declines in the residential market. Nationally, in the first 10 months of the year, the median price of a single-family detached home increased 15.1 per cent year-over-year to $1,042,700.
All recreational regions surveyed recorded double-digit declines in the number of homes sold during the first 10 months of 2022, compared to the same period last year, when demand for properties reached historical highs.
Royal LePage recreational property market experts across the country report more balanced conditions and an increase in inventory, compared to 2021.
How much are real estate prices going to drop in the GTA? – CP24
The average price of a house is forecasted to drop by nearly 12 per cent in the Greater Toronto Area (GTA) next year.
According to Re/Max Canada’s housing market outlook for 2023, the GTA’s currently balanced market is expected to continue next year.
As per the report, house prices rose 11 per cent from $1,086,155 last year to $1,203,916. But for 2023, average residential sale prices are expected to drop 11.8 per cent to about $1,061,854, which is a roughly $142,000 price difference.
As prices start to decrease, Re/Max says there will be three main trends that will carry on into the new year.
“Continued interest rate increases and associated price adjustments, rising unemployment due to an economic slowdown, and new opportunities to engage in the market for buyers and sellers because of improved affordability,” Re/Max Realtron Realty broker, Cameron Forbes, said
This could be good for prospective homebuyers, as Forbes says there will be fewer competitors to deal with, reduced prices and more options to choose from on the market.
“Meanwhile, sellers will have a trade-up advantage, reduced competition of listings, a stronger ability to re-locate to the suburbs, and have all of the advantages that buyers do, too,” Forbes said.
Currently, the most desirable neighbourhoods are based on location, affordability, and access to transit.
The continued rising interest rates, however, will still make it a slower real estate market for all in the GTA. Re/Max notes this will particularly impact first-time homebuyers, as many choose to put their dreams of owning real estate on the back burner due to a lack of affordability.
Toronto’s luxury real estate market is also expected to continue to cool down next year due to economic pressures.
“It’s important to also consider some key context for the GTA. The pandemic between Spring 2020 and early 2022 were outliers in terms of pricing and demand, and factoring out those years in assessing what lies ahead for the region is important as we slowly tilt back to a post-pandemic recovery,” Re/Max Canada President, Christopher Alexander, said in the report.
“This moderating market is an opportunity for homebuyers to take the time to consider their needs, assess opportunities patiently and ultimately make a wise purchasing decision and investment in the long run.”
On top of the GTA, Durham region, London, Kitchener-Waterloo, Barrie and the Georgian Bay area are expected to see average house prices decline between two to 15 per cent next year.
Hamilton, Burlington, Oakville, Brampton, Mississauga, Niagara, and Peterborough are among some of the regions where sale prices will actually increase between two to eight percent in 2023.
“Hamilton-Burlington, Brampton, Mississauga and Niagara are buyer’s markets, while Sudbury, Muskoka, Durham York Region, Haliburton, Ottawa and Peterborough and the Kawarthas favour sellers,” the outlook report reads.
How the new wave of proptech tools is reshaping commercial real estate
Proptech, short for property technology, is already a growing force in commercial real estate, and now a Toronto tech firm is making it easier for developers to determine where to locate their projects even before they assemble the land.
“Our company is like Google Maps, only it’s for commercial developers. We use technology to help people building projects such as high-rise, multifamily buildings identify new sites,” says Devin Tu, president of MapYourProperty.
MapYourProperty’s technology streamlines due diligence for developers. “It lets them look at issues such as zoning, land use and transit corridors at properties they’re considering buying. A typical developer will look at up to 200 properties per year and only buy one or two to develop; our tool lets them focus on those one or two sites they’ll likely choose,” Mr. Tu says.
“This is the kind of work that can take up to two weeks of research. Our proptech tool can shorten this to 30 seconds,” he adds.
MapYourProperty is part of a new wave of proptech apps and tech tools that are extending the use of technology beyond project management and building maintenance into every aspect of the commercial real estate sector.
“It’s an exciting new industry; it’s early stage,” says Benjamin Shinewald, president and chief executive officer of BOMA Canada, a national umbrella group for building and maintenance operators. “There are new applications and areas of use being created all the time.”
Different areas of the real estate sector are taking notice of proptech’s possibilities. In February, MapYourProperty received a $2.5-million award from Canada Mortgage and Housing Corp.’s data-driven funding program to help organizations – including Habitat for Humanity Canada, Rural Development Network and Toronto Metropolitan University (formerly Ryerson) Centre for Urban Research and Land Development (CUR) – identify affordable housing sites.
Another Toronto proptech company Lane Technologies, which enables building owners and office tenants to manage office life digitally, was acquired by U.S. firm VTS for US$200-million in October, 2021, one of the largest proptech deals to date.
This acquisition anticipates workers returning to offices after COVID-19. Lane’s proptech allows owners to manage leases, while tenants and office workers can use the app to book conference rooms, order food, get through security and connect with nearby restaurants, entertainment venues and other local businesses.
“In our experience, we’re seeing proptech expand to cover a lot of different aspects of the real estate sector,” Mr. Tu says.
“In our case it’s on the predevelopment side; we’re planning to expand our operation to cover areas representing 50 per cent of the population across Canada within the next 18 months. We’re also seeing other proptech being used more to manage office and retail space.”
He says proptech is expanding to areas with programs that use artificial intelligence (AI) to predict housing prices near a development, by factoring in variables such as transit access, nearby prices and infrastructure to come up with ballpark prices in a nanosecond. “But AI can be overhyped. You can use it to predict some things, but not everything,” Mr. Tu says.
Proptech is becoming more important to the circular economy, says Molly Westbrook, executive asset managing director at Cushman & Wakefield Canada. The goal of a circular economy is to minimize waste in every aspect of a business operation, by reducing waste and reusing and recycling materials.
“There are some [proptech] items that are really moving the needle on sustainability,” Ms. Westbrook says. Proptech is already used widely to help buildings increase energy efficiency, enabling operators to manage heating and cooling remotely and to better know exactly where and when maintenance is needed.
Managing waste is the next frontier, Ms. Westbrook says. “Recycling is really key to a building’s operation – how a building streams, diverts and reuses paper, cardboard and plastic can really make a difference to its operating cost and efficiency,” she notes.
“We’ve been introducing AI technology to increase the efficiency of these types of operations,” she explains. Algorithms determine which materials go where to be recycled or reused.
It’s a way to overcome the situation in Canada where, for example, only 9 per cent of plastic waste now gets recycled.
Proptech can also simplify low-tech tasks such as garbage collection, Mr. Shinewald adds.
“In the past waste haulers would remove garbage from the large bins in the ground floors of the buildings on a schedule, say every Tuesday. With proptech, you can put a sensor in the bin to send a message to the hauler when it is full,” he says.
“That way, haulers come on demand rather than on a fixed schedule when the bin may or may not be full. This is not only more cost efficient, but it is more sustainable; it will result in fewer trips to the building,” he says.
As proptech continues to grow in significance, it’s important to reach a common understanding of what it actually is, Mr. Shinewald adds.
“We’re piloting a program that will be the first smart buildings standard for the industry,” he says. This will help current proptech companies, new entrants and potential users know what tools to consider and watch for.
He says BOMA expects to announce the first certified buildings soon, followed by a larger and more public launch of certified smart buildings in the spring.
“This is a made-in-Canada program created by and for the commercial real estate industry,” he says. “It will bring transparency and standards to the sector.”
There’s ample opportunity for proptech to grow in Canada, Mr. Tu adds.
“The field is wide open. In the United States proptech is used more widely, but it’s spreading widely here fast, with new companies and new applications all the time,” he says.
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