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It's not just Toronto and Vancouver — Canada's housing bubble has gone national – CBC.ca

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When people picture red-hot real estate markets, they most likely think of soaring prices for the condos dotting Vancouver’s skyline. They might also conjure up the bidding wars for massive mega-mansions in and around Toronto. 

But they’re likely not thinking about properties Barb Armstrong’s quiet bungalow in picturesque Perth Ont., about an hour southwest of Ottawa.

Even so, Armstrong’s four bedroom, three-bath home was swept up into a bidding war worthy of any big city this month. It sold for $150,000 over her asking price of $529,900 —and the offer didn’t come with any conditions.

“It was quite a shock to see that that amount of money was coming our way for sure,” she said. “It was over our expectation and we were really blown away.”

Armstrong and her husband were lukewarm on selling at first, but a realtor friend explained how hot the local real estate market had become, with families from Ottawa and even as far away as Toronto drawn to Perth by its comparative affordability and bucolic lifestyle.

“We thought, ‘Well, jeepers, maybe we should go for it now,” Armstrong said. The couple listed their home in mid March. Thirty-five viewings later, they had 11 offers on the table. She says she feels like they won the lottery.

WATCH | Barb Armstrong describes the frenzy of offer night:

Barb Armstrong describes what it was like to sell her home in Perth, Ontario, recently, a frenzied process that ended up with here selling her home for $150,000 more than she was anticipating getting. 0:52

Half a country away, on Vancouver Island, Lars Reese-Hansen isn’t surprised to hear about buyers taking their best shot at getting into the market, however they can. He sold his 60s-era single family home in the Comox Valley last fall, and planned to buy elsewhere in B.C. this spring. 

He’s looking to downsize into something newer with less maintenance as he heads into retirement but he can’t find anything that fits the bill, even though he’s casting a wide net and is willing to compromise.

“Most of the places that I requested to view are sold before I actually get a foot out the door,” he said.

Reese-Hansen recently lined up four newly listed homes to see that he thought had potential. Just as he hopped in the car to drive down the highway to see them, his realtor called to say they were already gone.

Record high prices

Canada’s housing market is indeed flush with cash at the moment, with the national average selling price hitting an all-time high of $678,091 in February. That’s up more than 25 per cent from the same month last year, pre-pandemic.

Against all odds, the pandemic seems to have prompted a flurry of buying by Canadians spending more time at home than ever before.

While there’s a perception that high prices are mostly a problem in big cities like Toronto and Vancouver, sales are booming just about everywhere, with bully offers becoming the norm.

Paul Martin, president of the Rideau St Lawrence Real Estate Board that covers Perth, Ont., where the Armstrongs live, says “the market just took off,” last year.

“We’ve seen our property prices jump close to 50 per cent in the area,” he said.

About a third of the new buyers are from Toronto, he says, despite the region being about three hours from the city. About half are from Ottawa, which is closer but still up to an hour away.

Realtor Paul Martin, who has been selling homes in the corridor between Toronto and Ottawa for more than 30 years, says he’s never seen anything like what’s happening right now. (Brian Morris/CBC)

One of the area’s major draws is extra space as more people ponder permanently working from home.

Underpinning the frenzy are record low interest rates, which are lower than they’ve ever been, built on the back of Canada’s central bank slashing its lending rate to practically zero to stimulate the economy out of COVID-19.

Pandemic exacerbated pre-existing problems

Economist Mike Moffatt, senior director at the Smart Prosperity Institute, an Ottawa-based think-tank, says low mortgage rates are key to what’s happening, but they’re not the only factor.

If it were just cheap lending, markets should be heating up fairly evenly across the country. But they’re not. Some smaller towns an hour or more outside the orbit of large urban centres are faring better in real estate than some big cities.

Though he lives in Ottawa, Moffatt hails from southwestern Ontario and he says affordability issues were a problem there even before the pandemic because of supply and demand issues. The area’s population was increasing largely from new immigrants and foreign students, and now pandemic-era low rates have poured gasoline on those fires.

“Cottage country places in southwestern Ontario — Woodstock, Ingersoll, Tillsonburg — those are the places seeing the big price increases,” he said.

The numbers back that up. According to data from the Canadian Real Estate Association, prices in Owen Sound are up by 29 per cent in the year up to February 2021. They’re up 39 per cent in Tillsonburg, by 36 per cent in Woodstock, and by 26 per cent in Guelph. All those markets have fared better than the Greater Toronto Area, where CREA’s House Price Index has risen by about 14 per cent in the same time frame.

“It’s fuelled by that the coupling of white-collar professionals who have a lot of money right now and globally low interest rates.” 

WATCH | Mike Moffatt explains why a hot housing market is bad for the economy:

Economist Mike Moffatt says high house prices are great for existing owners, but could be bad news for Canada’s economy overall if new buyers are priced out. 0:26

Buyers in small towns are finding themselves priced out of their own markets because local salaries can’t compete with the buying power of out-of-towners.

“We’re going to have a lot of both political and economic problems if we price an entire generation of young families from ever owning a home,” Moffatt said.

Back in B.C., the frenzy is so great that some people are resorting to buying without ever setting foot in their new homes. That’s what happened to Ean Jackson and his wife Sibylle Tinsel. They recently sold their home in Vancouver and were looking to downsize somewhere farther afield.

The couple settled on the tiny community of Powell River, B.C., about 100 kilometres up the coast. They have friends in the area so it was always a long-term plan, but their home sale sped up their timeline.

There were few houses available when they started looking, and what was there was hard to see given pandemic restrictions. “We couldn’t get up there in time to even see the place,” Jackson said in an interview.

So they did what millions of Canadians did while shopping for consumer goods this year — they shopped online and hoped for the best.

Vancouverites Ean Jackson and Sibylle Tinsel recently sold their home and hoped to downsize to a smaller town, but were surprised by the lack of inventory and prices in a hot market. (Mike Zimmer/CBC)

Their realtor was able to give them a walkthrough of the interior and exterior via video, and they liked what they saw enough to put down an offer.

Though they are excited for this new chapter, it “all feels very awkward,” Jackson said.

“It feels really strange. And we look at each other at dinner time just about every night and say, ‘Did we do the right thing? … Did we get ripped off? Or is this going to work out?”

Ultimately Jackson says he knows the answer to that last question is yes because they love what the area has to offer, but he does feel for new young families trying to buy in at current levels.

“You save up for three or four years, you get the price that you think, and then the house just got twice as expensive,” he said.

“I can’t see this lasting, though. It’s got to end sometime.”

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My Boy Prince to race against older horses in $1-million Woodbine Mile

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TORONTO – He’s firmly among Canada’s top three-year-olds but My Boy Prince faces a stiff test Saturday at Woodbine Racetrack.

The ’24 King’s Plate runner-up will be part of a global field in the $1-million Woodbine Mile turf event. Not only will it be My Boy Prince’s first race against older competition but among the seven other starters will be such horses as Naval Power (Great Britain), Big Rock (France) and Filo Di Arianna (Brazil).

My Boy Prince will race for the first time since finishing second to filly Caitlinhergrtness in the Plate on Aug. 23.

“It’s his first try against older horses and it’s hard to say where he fits in,” said trainer Mark Casse. “This time of year running a three-year-old against older horses, it’s like running a teenager against college athletes.

“We’re doing it because we believe a mile on the turf is his preferred surface … we wanted to give him a shot at this. (American owner Gary Barber) is someone who likes to think outside the box and take calculated risks so we’re going to see where he fits in.”

Casse, 16 times Canada’s top trainer, is a Hall of Famer both here and in the U.S. He’s also a two-time Woodbine Mile winner with filly Tepin (2016) and World Approval (2017).

Sahin Civaci will again ride My Boy Prince, Canada’s top two-year-old male who has six wins and 10 money finishes (6-3-1) in 11 career starts. The horse will be one of three Casse trainees in the race with Filo Di Arianna (ridden by Sovereign Award winner Kazushi Kimura) and Win for the Money (veteran Woodbine jockey Patrick Husbands aboard).

Naval Power, a four-year-old, has finished in the money in eight of nine starts (six wins, twice second) and will race in Canada for the first time. He comes to Woodbine with second-place finishes in two Grade 1 turf races.

Big Rock, another four-year-old, makes his North American debut Saturday. The horse has five wins and five second-place finishes in 14 starts but has struggled in ’24, finishing sixth, 10th and fifth in three races.

Filo Di Arianna is a four-time graded stakes winner with nine victories, three seconds and a third from 17 starts. It was Canada’s ’22 top male sprinter and champion male turf horse.

Other starters include Playmea Tune, Niagara Skyline and Secret Reserve.

Playmea Tune, a four-year-old, is trained by Josie Carrol. The gelding has made three starts, winning twice and finishing second in the Grade 3 Bold Venture on Aug. 23.

Woodbine-based Niagara Skyline is a six-year-old with 13 money finishes (six wins, five seconds, twice third) in 24-lifetime starts. The John Charlambous trainee has reached the podium (1-1-1) in all three races this year.

Secret Reserve, also a six-year-old, has finished in the money in 15-of-26 starts (six wins, one second, eight thirds). The horse, at 44-1, was third in the Grade 2 King Edward Stakes over a mile on the E.P. Taylor turf course.

The Mile highlights a stellar card featuring six graded stakes races. Also on tap are the $750,000 E.P. Taylor Stakes (fillies and mares), $500,000 bet365 Summer Stakes (two-year-olds) and $500,000 Johnnie Walker Natalma Stakes (two-year-old fillies), all Grade 1 turf events.

The Mile, Natalma and Summer winners earn automatic entries into the Breeders’ Cup at Del Mar in November.

Casse has won all four races, earning his first E.P. Taylor title last year with filly Fev Rover, Canada’s horse of the year and champion female turf horse. Fev Rover will defend her title Saturday against a field that includes Moira, the ’22 King’s Plate winner and Canada’s horse of the year trained by Woodbine’s Kevin Attard.

“It (E.P. Taylor) was definitely on my bucket list because it had eluded us,” Casse said. “But I honestly hadn’t realized I’d won all four of them, hadn’t really thought about it.”

Casse will have horses in all four turf races Saturday. Arguably the most intriguing matchup will be between Moira and Fev Rover, who ran 1-2, respectively, in a photo finish Aug. 11 in the Grade 2 Beverly D. Stakes, a 1 3/16-mile turf race, at Virginia’s Colonial Downs.

“What’s funny is the two of them went all the way to Virginia and she beat us by a nose,” Casse said. “We could’ve done that at Woodbine.

“There’s two of the best fillies in the world both from Toronto and they’re going to be competing Saturday.”

Some question having so many solid races on a single card but Casse likes the strategy.

“I think it’s a good thing,” he said. “On Saturday, the main focus on horse racing in the world will be on Woodbine and that’s because it’s such a great card.

“It’s an international day, there’s horses coming from everywhere and we’re going to do our best to represent Canada.”

This report by The Canadian Press was first published Sept. 13, 2024.



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Former world No. 1 Sharapova wins fan vote for International Tennis Hall of Fame

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NEWPORT, R.I. (AP) — Maria Sharapova, a five-time Grand Slam singles champion, led the International Tennis Hall of Fame’s fan vote her first year on the ballot — an important part to possible selection to the hall’s next class.

The organization released the voting results Friday. American doubles team Bob and Mike Bryan finished second with Canada’s Daniel Nestor third.

The Hall of Fame said tens of thousands of fans from 120 countries cast ballots. Fan voting is one of two steps in the hall’s selection process. The second is an official group of journalists, historians, and Hall of Famers from the sport who vote on the ballot for the hall’s class of 2025.

“I am incredibly grateful to the fans all around the world who supported me during the International Tennis Hall of Fame’s fan votes,” Sharapova said in a statement. “It is a tremendous honor to be considered for the Hall of Fame, and having the fans’ support makes it all the more special.”

Sharapova became the first Russian woman to reach No. 1 in the world. She won Wimbledon in 2004, the U.S. Open in 2006 and the Australian Open in 2008. She also won the French Open twice, in 2012 and 2014.

Sharapova was also part of Russia’s championship Fed Cup team in 2008 and won a silver medal at the London Olympics in 2012.

To make the hall, candidates must receive 75% or higher on combined results of the official voting group and additional percentage from the fan vote. Sharapova will have an additional three percentage points from winning the fan vote.

The Bryans, who won 16 Grand Slam doubles titles, will have two additional percentage points and Nestor, who won eight Grand Slam doubles titles, will get one extra percentage point.

The hall’s next class will be announced late next month.

___

AP tennis:

The Canadian Press. All rights reserved.



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United Airlines will offer free internet on flights using service from Elon Musk’s SpaceX

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CHICAGO (AP) — United Airlines has struck a deal with Elon Musk’s SpaceX to offer satellite-based Starlink WiFi service on flights within the next several years.

The airline said Friday the service will be free to passengers.

United said it will begin testing the service early next year and begin offering it on some flights by later in 2025.

Financial details of the deal were not disclosed.

The announcement comes as airlines rush to offer more amenities as a way to stand out when passengers pick a carrier for a trip. United’s goal is to make sitting on a plane pretty much like being on the ground when it comes to browsing the internet, streaming entertainment and playing games.

“Everything you can do on the ground, you’ll soon be able to do on board a United plane at 35,000 feet, just about anywhere in the world,” CEO Scott Kirby said in announcing the deal.

The airline says Starlink will allow passengers to get internet access even over oceans and polar regions where traditional cell or Wi-Fi signals may be weak or missing.

The Canadian Press. All rights reserved.



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