The volume of local commercial real estate deals and their value both declined in the first half of 2023 when compared to the first six months of 2022, but the Windsor area is still on track for its second-best year on record.
There were 33 deals of $2 million or more completed, down 46.8 per cent, with a total value of $247 million, a decline of 24.8 per cent.
“The other division we see is between classes,” Collins said.
“Office space is not a large part of our market at the best of times, but those assets are facing challenges in terms of finding liquidity. You haven’t seen a pullback in industrial property.”
CRBE Windsor is forecasting year-end totals of 60 deals and $485 million, which would be second only to last year’s number of 112 deals and $727 million. That would represent an overall decline of 33 per cent.
The biggest deal of the first six months was the sale of LaSalle’s Town Centre Plaza, which is anchored by a FreshCo outlet, for $23.5 million.
The other two sales in excess of $20 million involved the former Lowe’s store turned RONA+ for $23 million and an apartment building at 8675 McHugh Street near the WFCU Centre for $21.4 million.
“The biggest factor driving the investment market is always interest rates,” Handysides said. “The rate of return is adjusted by the cost of financing.
“The impact on the volume of transactions is a pullback to 2021 levels.”
However, Handysides said he expects the Windsor commercial real estate market to ride out higher interest rates comfortably. Handysides pointed out London and the GTA are experiencing a much more noticeable slowdown currently and more volatility in land prices.
Handysides added local retail and land purchases for future residential and industrial development performed solidly in the first half of the year and accounted for 60 per cent of all transactions. Industrial properties accounted for just under 18 per cent of deals, but demand is outstripping supply and limiting the number of transactions.
“Regardless of the headwinds we’ve faced, there are such strong economic tailwinds for Windsor we see our region outperforming other markets across Canada,” Handysides said.
“The scary part of the market is office assets,” Collins said.
“There are few transactions downtown. The vacancy rate is 43.4 per cent of listed space, including sub-leased space active in the market.
“There’s action in the suburbs where it’s a little tighter.”
Collins said the downtown core is defined as the area north of Wyandotte and bounded by Dougall Avenue to the west and McDougall Avenue to the east.
Dwaddell@postmedia.com
Twitter.com/winstarwaddell
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.
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.
The Canadian Press. All rights reserved.
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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