Real eState

Flooded communities' real estate prices can take a significant hit – Calgary Herald

Published

3 years ago

February 25, 2022

Study by University of Waterloo shows an average reduction in home sale prices of 8.2 per cent

Calgary as been among the more proactive Canadian cities in recent years in implementing flood prevention and resilience initiatives. Photo by Gavin Young /Postmedia

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Communities in Canada experiencing catastrophic flooding can expect to see negative impacts on home resales and pricing, a new study shows.

The report from the University of Waterloo released this month examined major floods in five Canadian cities between 2009 and 2020 and found an average reduction in home sale prices of 8.2 per cent.

“Overall, there’s a stigma from floods that is financially impactful regardless of whether a home flooded or not,” says Kathryn Bakos, director of climate finance and science program at the Intact Centre on Climate Adaptation at the university.

“If you look at the average price of a Canadian home in December last year of approximately $713,000, that percentage reduction from a catastrophic flood translates to about $58,000 less on the sale of a home.”

Bakos says the study was limited to data from Gatineau, Que., Grand Forks, B.C., Burlington, Ont., Ottawa and Toronto — despite major floods affecting many other communities in the past decade.

“Overall, the relevant information is easy to analyse, but it wasn’t easy to get the data,” Bakos says, noting national and provincial realty associations declined to provide the relevant data for the study.

“As a result, we had to build good relationships with real estate agents in communities that experienced flooding, and that just so happened to be in those five municipalities.”

Besides the reduction in average price, other important findings were that flooded communities on average experienced a 44 per cent reduction in listings, and listed homes remained on the market for nearly 20 per cent longer than in similar regions, which had not experienced flooding.

To determine the impact, the study looked at real estate resale metrics six months prior to a flood and six months after a flood, Bakos says.

Despite not being part of the study even though its 2013 flood causes billions of dollars in damage, Calgary is noteworthy, she says.

The city has been among the more proactive Canadian cities in recent years in implementing flood prevention and resilience initiatives.

Bakos points to another University of Waterloo report from 2021 on flood preparedness as evidence of its progress, in which Calgary received a B-minus compared with the Canadian average of a C-plus.

“That’s really due to Calgary’s improved flood preparedness particularly when it comes to urban storm drainage assessments and critical infrastructure risk mitigation,” she adds.

Calgary realtor Barb Richardson says questions about flooding come up often when buyers are looking in neighbourhoods close to the Bow and Elbow rivers, such as Rideau, East Elbow Park and Bowness.

Sump pumps are “something buyers agents and (home) inspectors look for in all homes” in flood prone areas, he says.

Backwater valves are another feature buyers may want to prevent sewage backup in storms, but Richardson adds it’s not uncommon for sellers to not know for certain whether the home has one, “but I always recommend buyers ask.”

Bakos says greater awareness is important for homeowners and home buyers alike, but more support is needed to help assess risks and mitigate the costs of installing features like backwater valves.

“We have government incentive programs for energy efficiency in homes,” she says. “We need similar programs for flood protection, too.”

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Real eState

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

Published

2 days ago

November 6, 2024

Anne Joseph

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.

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

Published

2 weeks ago

October 24, 2024

Anne Joseph

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

Published

3 weeks ago

October 17, 2024

Anne Joseph

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.

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