Real eState
Investing in GTA Real Estate? Look at These Housing Markets – RE/MAX News
After flaunting impressive numbers in the aftermath of the of the coronavirus pandemic, it is safe to say that the GTA real estate market is rebounding, perhaps even better than what industry observers anticipated. It is not only the city of Toronto experiencing renewed sales activity and higher home valuations. From Durham to York regions, the housing market is rising after a temporary slump at the height of the virus outbreak. Does this translate to real estate investing opportunities in the GTA?
Because of the red-hot housing market in North America’s fourth-largest city, a lot of first-time real estate investors think they are priced out from the very beginning. This belief makes sense, considering the enormous amount of upfront capital required to put into your first property. Contrary to popular belief, investing in GTA real estate does not only need to be concentrated in Toronto. There are many housing markets across the GTA that can pad your bottom line.
Consider this: a RE/MAX report from earlier this year revealed that 75 per cent of Canada’s housing markets are undervalued. In Ontario alone, several markets are undervalued, affordable and present opportunities for entrepreneurs. Within the GTA, where are these opportunities? Below, we explore four municipalities in the Durham Region for hopeful real estate investors within the Greater Toronto Area.
Investing in GTA Real Estate? Look at These Housing Markets
In August, average housing prices across Durham Region advanced 3.5 per cent month-over-month and 19.5 per cent year-over-year to $734,136, according to the Durham Region Association of Realtors (DRAR). Transactions were also up 45 per cent year-over-year, with nearly 1,515 homes sold. New listings also rose 19 per cent to 1,839.
#1 Oshawa
The local Oshawa economy has endured through tough times over the last decade, mostly stemming from downturns impacting the automobile industry. The level of uncertainty in a sector so crucial to the local Oshawa economy is creating concern across the municipality. Despite this uncertainty, home prices within the city have not faltered, and real estate activity remains strong. According to DRAR, average home price in Oshawa was $613,000 in August, up from $607,000 in July and $517,000 last year. Despite this consistent climb, the Oshawa real estate market still presents commendable affordability for homebuyers and investors. With inventory levels sliding and demand growing, it might be a case of trying to get in before it is too late.
#2 Whitby
Whitby usually makes the list of one of Canada’s best places to live. Located just east of Toronto, Whitby mingles the small-town vibe with big-city amenities. According to DRAR’s latest figures, Whitby houses sold for an average of $798,000 in August, up from $750,000 in July and $688,000 in August 2019. What is impressive is that the median number of days a house stayed on the market was a mere 13 days. Active listings hit 178, while transactions reached 250, indicating a flourishing market.
With a lot of urban dwellers looking to flee the large city, there is booming demand in Whitby. This trend is a positive long-term one for the town of Whitby.
#3 Ajax
The Ajax real estate market has rebounded significantly since the province started to reopen the rest of Ontario. Not only have prices gone up to an average of $771,000 in August, but properties are also being scooped up within 11 days. The demand is increasing in Ajax, but there is a gaping problem: supply has flatlined. For real estate investors looking to build or flip a home, Ajax is a prime location, as the market is in desperate need of inventory to alleviate some of this demand-generated pressure.
#4 Pickering
Pickering is another GTA location that is seeing its inventories trend sideways while the number of sales steadily increase. The average sale price of a home in Pickering was about $838,000 in August, up from $686,000 year-over-year. Because Pickering is a desirable community in close proximity to Toronto, many families are looking to plant roots there, but this demand can’t be satisfied without new development. With a credit injection into the economy, developers will likely invest in building new properties.
Depending on your personal financial circumstances, this could be a great time to invest in GTA real estate than right now. The primary factor for real estate investing is credit, and money is cheap right now. The Bank of Canada slashed interest rates to 0.25 per cent in March and the central bank has indicated that it intends to maintain a near-zero rate to support the economic recovery. This makes borrowing less expensive and allows entrepreneurs to go all-in on their investment. The federal government and the big banks have highlighted their willingness to support the housing market, which bodes well for hopeful investors.
Overall, there are many factors that make investing in the GTA housing market an appealing, profitable opportunity….you just need to know where to look.
Real eState
Billions of dollars in commercial real estate loans are due; here’s why you should care – KARE11.com
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Billions of dollars in commercial real estate loans are due; here’s why you should care KARE11.com
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Illustration: Sarah Grillo / Axios
Office vacancies — plus the still simmering banking crisis — have us considering what a potential bust in the $6 trillion U.S. office property market might mean.
Why it matters: A deep downturn in property values is more than a problem for oligarchs, feuding billionaire clans and oil-rich foreign wealth funds.
State of play: Office utilization is still low compared to the before-times, with WFH and hybrid set-ups now standard for millions of former office drones.
By the numbers: Nearly 30% of companies still have remote or hybrid options — though that’s come down from 40% in 2021, the latest government data shows.
- Utilization — how many people actually use the offices that their companies rent — is down roughly 50% from pre-COVID levels, according to swipe-card systems operator Kastle Systems.
- Office building appraisal values were down 25% in February compared to a year prior, according to a Goldman Sachs note that cites research shop Green Street.
- Office rents — especially in large cities with lengthy commutes — have fallen, too.
The latest: Signs of stress are picking up, with delinquencies on commercial office mortgages touching 2.4% in February, up from 1.5% six months ago, according to Trepp. Defaults are starting to appear as well.
The impact: The value of commercial property produces anywhere between 20% and 40% of tax revenues for states and localities.
- If those revenues fall, governments will have to cut services, raise taxes, or both, making cities less attractive.
Meanwhile, smaller banks are big lenders to real estate developers, putting them at risk if office defaults spike.
- Goldman Sachs analysts estimate that banks hold roughly half of the $5.6 trillion in commercial property mortgages outstanding, with the overwhelming majority of that half held at small banks.
- Many of those same regional banks have been under pressure since Silicon Valley Bank failed. With deposits migrating to larger institutions — or simply to higher-interest accounts like money markets — they’ll have less capacity to refinance loans on office properties.
- Property loans typically need to be refinanced every five to seven years — and failure to refinance or pay off the loan can result in a default. When that happens, the debt gets renegotiated, and the lender often takes losses.
- If defaults pile up, it could worsen the pressure on office building values and make banks leerier of making office loans — exacerbating the defaults and the banks’ losses.
Finally, pension funds have also sunk billions into real estate in recent years. The top 200 institutional managers owned about a half-trillion worth of real estate in 2022, according to trade publication Pensions & Investments.
- “How those real estate portfolios of buildings are doing, will then affect, in the end, returns which these pension funds are getting. And that will also affect households which are dependent on these pension funds,” says Vrinda Mittal, a Ph.D. candidate in finance and economics at Columbia Business School who has studied private real estate investments.
The bottom line: We’re still in the early stages of the post-COVID era for offices, and how it will shake out is the trillion-dollar question.
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A pair of sprawling resort properties in B.C. – complete with a hotel, ski runs and lifts, lakefront cabins, a campground, and a pub – are on sale for less than the price of some Vancouver tear-downs.
Colliers has listed the Powder King Ski Resort and its “sister property” The Azouzetta Lake Resort for $8,250,000. It’s being billed as a “once in a lifetime opportunity” to purchase the two properties, which are located at the base of the Pine Pass in Northeastern B.C.
The properties are remote, located 67 kilometres east of Mackenzie and 195 kilometres north of Prince George.
This image from an online listing by Colliers shows a resort property for sale in Northeastern B.C. (Image credit: collierscanada.com)
The ski resort, according to the listing, has been rated number 1 for snow in Canada, getting an average of 12 metres of snowfall each winter. In total, there are 364 hectares of skiable terrain, comprised of 37 runs serviced by three lifts.
Accommodations at the ski resort include a 50-room hotel, two cabins for staff, a lodge with a licensed pub and a cafeteria. The possibility for expansion is built in, the online listing says, noting the resort has a master plan with the province.
“There is a three-phase development plan which allows for land acquisitions, real estate development, commercial development, ski runs, lifts, and summer recreation activities,” the realtor’s website says.
This image from an online listing by Colliers shows a resort property for sale in Northeastern B.C. (Image credit: collierscanada.com)
The second resort is roughly six kilometres away from the ski resort, situated on the “pristine,” 340-acre Azouetta Lake. The property includes several rustic but fully equipped A-frame cabins, RV sites, a campground, and on-site accommodations for a manager.
“The lake supports rainbow trout and an array of natural wildlife as well as numerous recreational opportunities such as kayaking, canoeing and boating as well as mountain biking, hiking, and other pursuits nearby,” the description from Collier’s says.
This image from an online listing by Colliers shows a resort property for sale in Northeastern B.C. (Image credit: collierscanada.com)
The property also has a gas station, a convenience Store and a restaurant called Café 97 which is open seven days a week, year-round.
A video tour of the property shows more of what it has to offer.
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