Vancouver, BC, Nov. 14, 2020 (GLOBE NEWSWIRE) — Contrary to a growing number of real estate market predictions, a new report by The Real Estate Investment Network suggests housing markets are falling deeper into slump despite increasing property prices.
According to The Real Estate Investment Network’s COVID-19 Special Edition: Real Estate Cycle Update report, all major real estate markets in British Columbia, Alberta, and Ontario have fallen further into the real estate slump phase driven mainly by the economic impacts of the COVID-19 pandemic.
These findings are based on many research methodologies including The Real Estate Investment Network’s Economic Turmoil Formula and Real Estate Cycle Scorecard. Both resources highlight rapidly evolving changes of the underpinning economic fundamentals affecting real estate markets, such as GDP, employment, and population. The report indicates the continued impact of COVID-19 on these driving indicators has moved most markets further into the slump phase.
The Real Estate Investment Network’s COVID-19 Special Edition: Real Estate Cycle Update produced real estate cycles for three provinces:
- British Columbia – Beginning of slump
- Alberta – Beginning to middle of slump
- Ontario – Beginning of slump
As well as five major cities:
- Vancouver – Beginning of slump
- Calgary – Beginning to middle of slump
- Edmonton – Beginning to middle of slump
- Toronto – Beginning of slump
- Ottawa – Beginning of slump
While others suggest hot markets in major Canadian cities, The Real Estate Investment Network research shows these may all turn out to be just hype.
“At first glance, it might look like the data is pointing towards a market boom because in many key cities, real estate values have been, and continue to, increase. But this is all smoke and no fire. This is is a common misconception since characteristics of the boom and slump phases of the real estate cycle sometimes overlap and can be confusing to many if not most people,” explains Jennifer Hunt, Vice President Research, The Real Estate Investment Network. “When looking ahead, the signals indicate markets are further entrenched in the early phases of the slump, so homebuyers and investors are wise to proceed with caution.”
The real estate cycle functions as a predictive tool to determine which phase a specific market is currently in based on driving indicators and market influencers. The report shows where specific markets are at in the real estate cycle including which investment tactics are best suited for each phase.
“It’s common to have rising real estate prices in the early stages of the slump phase. Even while prices in many markets are still rising, prices are not the only indicator. Most other data are now pointing at a slump,” added Hunt.
The report includes a new and expanded tactics table (of what to do and what to avoid during various phases of the cycle) featuring a total of 11 tactics:
- Buy and Hold
- Rent to Own
- Fix and Flip
- Fix, Flip, Refinance
- Agreement for Sale (Buy)
- Agreement for Sale (Sell)
- Option to Purchase (Entrance)
- Foreclosure (Availability)
- Vendor Take Back (Buy)
- Vendor Take Back (Sell)
According to Hunt, the new tactics table is meant to guide investors on how to respond to specific market conditions.
“Regardless of current market conditions, there are always good options available for real estate investors in every phase of the real estate cycle. What’s more important is to stay ahead of the curve, don’t get caught up by the hype, and quickly adapt to what the market gives you. It’s like making lemonade out of lemons. For example, when life gives you a market slump, towards the end is the optimal time to buy-and-hold, but now it’s early, so prepare for the end phase of the slump and ensure you invest wisely ” Hunt added.
About The Real Estate Investment Network
The Real Estate Investment Network is the sum of numerous parts. Founded in 1992, it has since been the most trusted, unbiased real estate investing resource for education, research, and investment strategies.
For over 28 years, The Real Estate Investment Network has been at the forefront to change the conversation about real estate investing. A vigorous combination of meticulous research and analysis, brass tack economic fundamentals, strategic investing systems, exceptional market specialists, and solid industry leaders all contribute to world class, relevant education and development, accessible to all real estate investors.
The dynamic and noteworthy team at The Real Estate Investment Network is a collective of game changers, empowering leaders, and successful entrepreneurs. Together, they collaborate with purpose to advance the community experience for new investors and seasoned professionals alike.
Decades of hands-on experience and real estate investing analysis allows them to effectively create and support an environment for investors to thrive in their business of real estate investing and achieve their financial security and certainty. You can count on The Real Estate Investment Network Team to deliver relevant, authentic, and meaningful resources, always with commitment and intention for an exceptional Member experience.
For more information:
You may access a copy of the report here
Jennifer Hunt The Real Estate Investment Network 604-449-6034 firstname.lastname@example.org
Steinbach Loses A Pioneer Of The Real Estate World – SteinbachOnline.com
Vancouver real estate: $2.5 million townhouse along Choklit Park, former home of Purdys, sells over asking price – The Georgia Straight
For its location and views, it’s not suprising that this Vancouver townhouse beats a lot of single-family homes in price.
These also likely explain why the strata property at 1089 West 7th Avenue didn’t stay long on the market.
As well, the property sold over its listing price, when a buyer picked it up for $2,505,000.
The Fairview Slopes townhouse is located along a storied and unique green space, Choklit Park.
The 0.07-hectare park is associated with the legacy of Purdys chocolates.
“This site was formerly the location of the Purdy’s Chocolate factory, hence the name!”, according to the online parkfinder from the City of Vancouver.
The park is “tucked into a steep slope”, and comprised by a “series of steps and terraces with a beautiful collection of trees and shrubs”.
“Although tiny, the park is expanded with its views to False Creek and downtown,” the city notes.
The Vancouver Heritage Foundation recalls online that Charles Flavelle, owner of Purdys, said that the choklit spelling was suggested by one of the “hippie” carpenter crew that built the park.
“That’s the way a kid would spell it,” Flavelle was reportedly told.
The heritage association reproduced online the plaque recalling the history of the park:
Charles Flavelle of Purdy’s Chocolates created Choklit Park in 1970 on the unused Spruce Street right-of-way at 7th Avenue, using a crew of six hired on an “Opportunities for Youth” grant. The chocolate factory at 1107 W. 7th needed an improved truck-loading facility and the children in the neighbourhood needed an adventure playground. The crew used the right-of-way and all the available space around the factory for the children’s park. Purdy’s made chocolates here from 1949 until 1982.
Purdys Chocolatier moved to Kingsway in East Vancouver, where it continues to make and sell chocolates.
Engels and Volkers Vancouver listed 1089 West 7th Avenue on November 24, 2020, for $2,298,000.
After six days on November 30, the townhouse sold for $2,505,000 or $207,000 over its original asking price.
The transaction was tracked by fisherly.com, an online real-estate information site.
The home features two bedrooms and three baths.
The listing describes it as an “architectural oasis that will capture those in search of privacy, beauty and incredible views”.
The three-level concrete and brick townhouse includes three private decks, including one on the rooftop, which offer “panoramic city views”.
“Large master retreat includes rare solarium, perfect art studio/office/shop + custom closets,” the listing adds.
Vancouver real estate: Shift on to big corporate landlords of apartment buildings
Article content continued
Goodman describes the market as being balanced between the supply of and demand for listings, even though he is seeing more rental buildings for sale than in the past.
“While private investors made up the majority of vendors and purchasers in the first half of 2020, real estate investment trusts, or REITs and institutions are likely to increasingly emerge as buyers, particularly on larger deals, in the back half of the year and into early 2021,” according to a fall 2020 report by Avison Young.
Rental apartment buildings are seen as a very attractive and reliable investment for REITs and other financial companies in these uncertain times, said John Bunting of PwC Canada’s B.C. region real estate practice.
“It’s called (investing in) ‘beds and sheds,’ or the first basic needs of safety, security, shelter and food,” he said.
Bidding opened Monday for a package of 10 apartment buildings, with over 400 rental suites across Vancouver.
A family-run, Vancouver-based company, Hollyburn Properties Ltd., is selling these properties, which it has owned for decades. They make up almost a third of the 33 multi-family, rental buildings it owns in the Vancouver area.
Coun. Jean Swanson had a motion on the agenda for Vancouver city council last week, which mentioned the Hollyburn listing, picking it as an example of “a portfolio that could be attractive to REITS” because of its large number of buildings and units and its likely higher dollar value, she said.
Source: – Vancouver Sun
High court to decide whether Nazi art case stays in US court – The Tri-City News
‘Massive undertaking’: Roadmap of Canada’s coronavirus vaccine roll-out – Global News
Canadian politicians won't get vaccine prioritization – CTV News
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Galaxy M31 July 2020 security update brings Glance, a content-driven lockscreen wallpaper service
Tech12 hours ago
Tips on how to find the Playstation 5 and XBox Series X, the hottest items this Christmas – CTV Edmonton
Tech8 hours ago
Tips on how to find the Playstation 5 and XBox Series X, the hottest items this Christmas – CTV News Ottawa
Tech18 hours ago
Sonos One Wi-Fi speakers are $40 off today – The Verge
Economy18 hours ago
Canadian economy added 62,000 jobs in November, Statistics Canada says – KitchenerToday.com
Politics13 hours ago
A Gathering Political Storm Hits Georgia, With Trump on the Way – The New York Times
Economy14 hours ago
A $900 Billion Plan Would Help the Economy, but Not Fix It – The New York Times
Politics17 hours ago
Biden wrestles with politics in effort to depoliticize the Justice Department – CNN
Art20 hours ago
Beyond words: Art therapy as a universal language – The Charlatan