Ever since the covid 19 pandemic began we have seen people retreat to there homes as new layers of lockdowns are being imposed on people. Living in your home and not going out can be tough for most people. This has most certainly caused a shift in demand for tight condos to bigger more spacious living arrangements.
I mean if you are going to live your house protected you ought to think in term of long-term benefits as well. Therefore, the demand and the retail price of the whole market are screaming at the top of there lungs.
Initially when the march lock down began, we saw a dip in the market and well that was quick to sprung back up when the market was relax by letting ease of the social distancing protocol. That would allow for dealing to be carried out in a much cleaner fashion.
This resulted in an aggressive month for trading for the months of July- September Last year.
The Rental Market of Canada;
The rental market is beginning to play a role in the housing market as well. We have seen rents go down in the Toronto area which is the Canadas largest and least affordable city. It is important to understand that renters tend to earn less than home owners and after the corona pandemic things are not looking good in the job market as well. Therefore, a lot of people are skipping up on the heavy rents and shifting to alternative means hence reducing the demand of an already established market.
Selling out Condos:
The condo investor is looking to sell. Keeping mind, the size of condos and the new space requirements brought about by the pandemic condos are going out. While most people now are shifting towards the cottage country. To look for more larger spaces to live in.
Meantime, affordability issues are driving many Canadians further afield into smaller towns and cottage country, where larger living spaces are available. Clearly COVID-19 has lit a fire under cottage country real estate.
Bank of Canada Cutting Rates Over Night:
More or less, we cannot ignore a simple fact. That the covid 19 has allowed people to own new homes. And has made this very easy. With the Bank of Canada’s overnight rate cut to close to zero and sharp declines in bond yields mortgage rates have been pushed to their lowest levels on record. This slightly reduced mortgage payments on a home priced at market value despite prices continuing to rise at an accelerating pace in most of Canada. Generous government income support programs for households most affected by COVID-19 also made it easier to carry mortgage payments.
Immigration has Fallen:
We have seen the level of immigrations have fallen and this means that there would be less people generating demand for houses and accommodations in general. Which would show into the impact on price of a relatively lower demand. Meaning this would be looking great of the people who are planning on buying.
And well not as good for people looking into selling. With income being impacted by the virus as well. I would say that is going to put people in a position to put out there assets quickly to generate cashflows.
The home owners are expected to wait and watch this pass by if they can. That is.
PGIM Real Estate, Revera Affiliate Target UK Market in Newly Formed JV
PGIM Real Estate has been active in recent months providing capital to facilitate blockbuster senior housing acquisitions. Now the firm is looking to capitalize on demand for senior housing in the United Kingdom.
The Madison, New Jersey-based real estate investor and lender announced this week it is entering into a joint venture with Signature Senior Lifestyle, an affiliate of Revera, to develop and operate senior housing communities around greater London
Mississauga, Ontario-based Revera serves 20,000 older adults in long-term care homes and retirement residences in Canada. It is also the majority shareholder of Sunrise Senior Living, one of the largest senior housing providers in the U.S. The company operates a portfolio of 12 communities in the U.K. under the Signature Senior Lifestyle brand, with one community in development that is slated to open in autumn 2021.
The JV has one development underway — a senior housing community, or “prime care” home, in southwest London. PGIM worked with Elevation Partners, a London-based investor and asset manager in U.K. health care real estate, in sourcing, structuring and executing the venture. Additionally, PGIM will retain the firm to leverage its expertise.
PGIM and Revera did not respond to requests for comment from Senior Housing News regarding details about its development pipeline.
London is emerging as a future hotbed of senior housing development, spurred by favorable demographic growth trends and a lack of available supply, and the PGIM-Revera venture will find competition.
Maplewood Senior Living CEO Gregory Smith told SHN last month that demand for U.K. senior housing is comparable to major U.S. markets such as New York and San Francisco, where supply has historically been constrained.
Maplewood and its investment partner, Omega Healthcare Investors (NYSE: OHI) are looking to expand its luxury Inspir brand to the U.K., and identified five suburban markets around London with high barriers to entry that are favorable for the brand’s growth.
Revera CEO Tom Wellner sees similar untapped upside potential for senior housing in the U.K.
Source: – Senior Housing News
Where in Canada are house prices increasing the most? Maybe not where you think – CTV News
Canada saw a surge in housing prices over the past year due to COVID-19, a market trend experts say is caused by people working from home more often and moving to rural and suburban areas.
Data released by the Canadian Real Estate Association (CREA) shows that when comparing the average market prices from February 2020 to February 2021, Canada had a 25 per cent year-over-year increase. The average price rose from $542,484 to $678,091.
“One factor is that with work-from-home even more generalized, many people don’t have to live within commuting distance from their jobs,” Shaun Cathcart, senior economist at CREA, told CTVNews.ca. “That means that folks who own condos and smaller homes can take out built-up equity and move to a property that better meets their needs – as over the past year, home is not only where you eat a few meals and sleep, but also the office, your kids’ school, playground, gym, etc.”
The largest year-over-year percentage changes came from the Northwest Territories (48.1%), Nova Scotia (30.4%), Ontario (24.5%), Quebec (22.5%), and New Brunswick (20.9%).
Cathcart noted that the higher percentage change in Northwest Territories is likely due to the fact that in both February 2020 and February 2021, six homes were sold throughout the entire territory and the ones that were sold in 2021 were marked at a higher price.
When looking at the provinces and territories that had the largest upsurge in terms of price difference, Ontario sits at the top of the list with an increase of over $170,000. Northwest Territories came next, followed by British Columbia, Nova Scotia, and Quebec.
The data also shows that prices in suburban and rural areas were impacted the most and saw the biggest changes, with regions like Rideau-St. Lawrence and Sarnia-Lambton in Ontario averaging about a 50 per cent increase from the previous year.
“With people no longer having to live within commuting distance to their jobs, as long as suburban and rural areas have decent internet, they become even more attractive to families looking for more space,” said Cathcart.
Find your region and the year-over-year price and percentage change below.
Cathcart says that Canadians can expect to see sales and prices increase this year, but forecasts sales to slow down in 2022 while prices remain high.
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