Kingston’s hot housing market is proving challenging to buyers, and many are reporting having to purchase homes with no conditions to seal the deal.
According to the Kingston and Area Real Estate Association, the average price for a house in Kingston has set records for the last few months — hitting just under half a million dollars in September, a nearly 25 percent increase from the same month in 2019.
Real estate agents in the region say it’s supply and demand issue — there just aren’t enough homes available to keep up with buyers, pitting those search for a home against each other to make the most attractive offer.
For some, that means buying a house with no conditions.
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“There are always risks going in with no conditions,” said Callie Warren, a Kingston real estate agentwith Re/Max.
Depending on where the property is, conditions can range from financing and home inspection to checking the septic and wellwater.
Warren says right now, even buyers who offer much more than asking price are still not likely to get the home if another buyer has no conditions.
2:13 Peterborough house prices soar past the half-million dollar point but supply remains tight
Peterborough house prices soar past the half-million dollar point but supply remains tight – Sep 28, 2020
“When a seller looks at the offer (with no conditions), all they see is the price, a closing date, a deposit to hold the offer in place and that’s it,” Warren said.
She said financing is one of the main conditions that sellers are wary of, but home inspections have also been dropped in many instances.
Cameron Morrison, owner of Cozy Home Inspections, said his business has definitely taken a hit lately. He warns that buying a house without a home inspection could leave the buyers at a risk of serious work ahead.
“They need to know what’s involved, as far as the plumbing, the heating, the insulation in the house. With a home inspection you would have those answers. ”
Morrison said he’s seen his business drop about 20 per cent since this time last year.
Active listings for the Kingston region were at an all-time low for September.
Dave Pinnell Jr., president of Kingston and Area Real Estate Association, says the COVID-19 pandemic is one of the many factors that is hiking up home prices in the Kingston region.
“COVID has taught us is that we can work from anywhere. So we’re we are seeing people move from larger cities into our area where they can get a more cost-effective home,” Pinnell Jr. said.
He noted that although he has first-time homebuyers struggling to get into the market, he also has buyers in various price ranges that are struggling to purchase homes.
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In some cases, Pinnell Jr. said houses are getting 15 or more offers.
4:11 Real estate is one of the few sectors showing strong growth in Canadian economy
Real estate is one of the few sectors showing strong growth in Canadian economy – Oct 4, 2020
But Pinnell Jr. said it’s not just the Kingston region seeing record-breaking house prices.
According to the Canadian Real Estate Association, Canadian home sales climbed 0.9 per cent in September from August, raising them to a new all-time monthly record for the third month in a row.
The national real estate association said the largest price gains were in smaller Ontario cities and in the capital region of Ottawa, with further flung Toronto suburbs and Ontario cottage towns also showing very strong year-over-year gains.
Pinnell Jr. said currently, very low interest rates for mortgages are also encouraging people to buy when they might not have thought of buying before.
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His advice to local buyers? Patience.
“I’d say that if you’re looking for a home, then just to keep with it.”
(Bloomberg) — Compass, a SoftBank-backed company that’s among the largest real estate brokerages in the U.S., has selected underwriters for a potential initial public offering, according to a person with knowledge of the matter.
The New York-based startup is working with Goldman Sachs Group Inc. and Morgan Stanley ahead of a listing that’s slated for 2021, said the person, who requested anonymity because the information isn’t public.
Representatives for Compass and Goldman declined to comment. A spokesman for Morgan Stanley didn’t immediately have a comment.
Compass was founded in 2012 by Ori Allon and Robert Reffkin, a Goldman alum who was once Gary Cohn’s chief of staff at the bank. It positions itself as a real estate firm that uses technology to give its agents an advantage over rivals. The company has used capital from venture investors to expand by acquiring smaller brokerages across the U.S.
Low mortgage rates have fueled a housing rally in the U.S. as Americans seek more space to spread out in the pandemic. That’s boosted residential real estate companies, including Zillow Group Inc. and Opendoor, another SoftBank-backed company. Realogy Holdings Corp., which owns Compass competitor Corcoran Group, has seen its shares rally about 28% this year.
In addition to SoftBank, which participated in a $370 million funding round last year that valued Compass at $6.4 billion, investors include Goldman Sachs, Fidelity, Wellington Management, Founders Fund, Dragoneer Investment Group and Canada Pension Plan Investment Board, according to its website.
Former American Express Chief Executive Officer Ken Chenault and Salesforce.com CEO Marc Benioff are also investors.
Commercial Real Estate: Navigating Opportunities And Challenges Ahead (Video)
25 November 2020
To print this article, all you need is to be registered or login on Mondaq.com.
Uncertainties currently abound in many sectors and commercial
real estate is no exception. While the COVID-19 pandemic has caused
some level of distress in certain sectors of the commercial real
estate market, it has also opened doors for stakeholders and
presented opportunistic transactions with their own unique set of
risks and important structuring considerations, particularly in the
restructuring and insolvency space.
In this video, Graham Rawlinson and Charlene Schafer briefly
discuss what to expect in our upcoming webinar on December 3 on
commercial real estate. Some of the key topics to be explored
preparing for bankruptcy or insolvency opportunities that may
affect the Canadian real estate market, and what to consider when
dealing with assets going through some type of a debtor/creditor
funds focused on distressed and opportunistic real estate
assets, and whether the ongoing distress in the market will
continue to present new opportunities; and
distressed opportunities south of the border and unique
considerations affecting the U.S. commercial real estate
Play the short clip below and register for the webinar here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Real Estate and Construction from Canada
Montreal-based software company Nakisa is expanding into the real estate technology market with the acquisition of IMNAT Software, a cloud-based real estate management solution.
Nakisa CEO Babak Varjavandi said IMNAT’s real estate management technology will be added to Nakisa’s lease management solutions portfolio.
“By combining the breadth of our lease accounting knowledge with their real estate expertise, we’re poised to disrupt the corporate real estate market, which is currently reliant on outdated processes and proptech legacy software,” he told RENX.
IMNAT is also Montreal-based. The start-up has about a half dozen employees and has entered the sales phase for its platform, which it markets specifically at businesses which manage their real estate.
“Our reimagined corporate real estate solution will offer customers a complete modern end-to-end solution that leverages the Nakisa cloud platform and provides full ITGC (IT general controls), GDPR (General Data Protection Regulation), user management and more,” Varjavandi said. “We truly believe we can disrupt this market because I think we are much further ahead . . . of our competitors with the technology.
“At the end of the day, because of the technology that we have, we believe we can bring in all these other pillars to provide an end-to-end solution.”
He said IMNAT Software’s technology will complement and extend Nakisa’s existing lease accounting product line and address increasing demand for global corporate real estate management solutions.
The acquisition is set to close on Jan. 1, 2021.
Nakisa and IMNAT
Nakisa released the first version of its product in 2000. The company has two lines of business – one addressing human resources and the other in leasing. It will now expand to provide end-to-end lease management which will include real estate and lease accounting.
The company also has offices in Frankfurt, Singapore, Florida and Pakistan.
Varjavandi said the company name is also his mother’s name.
He said IMNAT Software, founded in 2011, has a core product, InfoSite, which is a leading edge corporate real estate management software designed to centralize and manage corporate real estate accounts.
The platform features databased reporting and dashboards, streamlines corporate lease operations and manages data for leases, taxation, payments and rent rolls.
“When we talked to our customers and looked at the market, what we found that was interesting is that the real estate software industry hasn’t really evolved,” said Varjavandi. “They’re still using very old technology and it’s very costly to implement.
“Even if they’re on the cloud, they’re really not what we call a native cloud application.
“We saw huge opportunity in that area. For us to enter that market, we had a choice of either building the whole real estate functionality, which is the operation day-to-day activity of maintaining your real estate.
“Or we had to acquire a company that already had a customer base, they already had the expertise and they could use their expertise and that’s what happened. We saw this made-in-Montreal company.”
IMNAT has some major clients
Nakisa became familiar with IMNAT because the companies share some of the same clients.
IMNAT’s customer base include large private corporations such as Dollarama, Transcontinental and Lowe’s Canada, as well as some of the largest public government institutions in Canada.
Nakisa and IMNAT will combine their technology and networks. They will also combine their company-level data to generate a more accurate financial planning repository of information for trends and projections.
Varjavandi said InfoSite will be integrated into Nakisa’s product line and branded under the Nakisa umbrella. In January, IMNAT’s team, including CEO and co-owner Alexis Dénommée-Godin and co-owner Jean-François Bechard, will join Nakisa.
“I’m extremely proud of the quality software our team has built over the years and it’s an honour to be recognized and chosen by an established lease accounting brand that serves Fortune 500 companies around the world,” said Dénommée-Godin in a statement announcing the sale.
“Joining Nakisa allows us to take our real estate expertise to the global market and fulfill a need that has a tangible impact on both businesses and people.”
Unify divergent software products
Varjavandi said Nakisa serves more than 900 enterprise customers and over one million subscribers in 24 industries. Its client base includes a number of different industries, including retail, pharmaceutical and airlines. It has users in over 120 countries and supports 18 languages.
He said the acquisition of IMNAT presents a huge opportunity for Nakisa to both better serve existing customers and attract new ones.
“We are seeing companies having multiple software and we think we can actually unify the whole leasing, both for accounting and operations side, under one umbrella,” Varjavandi said. “From our perspective, any kind of asset you have we can provide an end-to-end solution.
“On the real estate side, we have a few customers who are interested in expanding on that to things like facility management and project management. Those are areas we’re also working with them. The beauty of the customers that we have, because these are very large customers, they’re actually willing to engage with us . . .
“From a customer perspective, the whole implementation and management is already done for them because it falls on the same platform.”
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