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Kamloops real estate market plummets in wake of pandemic – Kamloops News – Castanet.net

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The impact of the COVID-19 pandemic was definitely felt in the Kamloops real estate market last month.

There were just 120 residential property sales last month, according to statistics from the Kamloops and District Real Estate Association. That’s a drop of 56 per cent compared to April 2019. Listings were also down by more than 50 per cent, which means supply and demand remained close, according to association president Wendy Runge.

“While demand for new homes undoubtedly slowed during April, the lack of supply kept home prices inching upward,” she writes in a media release  “The average sales price for a single-family home during April 2020 was $495,753 compared to $459,828 last year for a gain of 7.8 per cent.”

Because of the low supply, Runge expects buyers to continue to be challenged in the market.

“Once COVID-19 restrictions are eased and supply improves, we expect to see a significant jump in new sales as pent up demand paces the market,” she writes.

Sales by dollar amount are down by a similar amount in Kamloops, with $50.1 million worth of property sold in April 2020, compared to $118.8 million in April 2019.

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Commercial real estate won’t be a distressed asset: Marcus & Millichap CEO – Yahoo Canada Finance

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The novel coronavirus pandemic forced offices and retailers to shift operations online over the past three months — leading some to speculate that demand for commercial real estate will drop, sending prices plummeting.” data-reactid=”16″>The novel coronavirus pandemic forced offices and retailers to shift operations online over the past three months — leading some to speculate that demand for commercial real estate will drop, sending prices plummeting.

But most commercial properties will not be selling for massive discounts, according to Hessam Nadji, CEO of Marcus & Millichap, a California-based national commercial real estate brokerage.

“There’s a broad brush sentiment that commercial real estate is going to get distressed pricing across the board and that is just not the case,” Nadji told Yahoo Finance. Apartments and warehouses, in particular, are performing “very well.” 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As Americans shelter in place, demand for apartments and condos have remained stable. Some 41.4% of investors reported multifamily acquisitions in their market in May compared to 33.6% in April, according to a monthly survey of almost 500 members in the NAIOP (National Association of Industrial and Office Properties) Commercial Real Estate Development Association conducted May 18-20.&nbsp;” data-reactid=”19″>As Americans shelter in place, demand for apartments and condos have remained stable. Some 41.4% of investors reported multifamily acquisitions in their market in May compared to 33.6% in April, according to a monthly survey of almost 500 members in the NAIOP (National Association of Industrial and Office Properties) Commercial Real Estate Development Association conducted May 18-20. 

And a surge in online shopping during the pandemic has upped warehouse demand for last-mile delivery. Warehouse acquisitions increased to 58.7% in May from 54% in April, according to the NAIOP.

Commercial real estate has a history of resilience, said Nadji. The commercial market suffered for 18-24 months after September 11, 2001, as employers feared bringing employees into central business locations. But within a few years, office leasing behavior returned to normal, said Nadji, who expects the same resilience within two to three years, depending on the degree of economic growth.

Workstations in empty office
Workstations in empty office

“We’ve seen from many companies, including IBM, that experimented heavily with telecommuting, that they eventually want to bring people back at least a few times a week to work in groups and be in person and have collaborative functions that bring people together in office locations,” said Nadji.

<h3 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Hospitality and retail underperform” data-reactid=”34″>Hospitality and retail underperform

But properties that house hospitality or retail are a “whole different story,”  he said, and could offer some “opportunistic investment situations.” Led by a few of these underperforming asset classes, commercial real estate properties had a 2.29% delinquency rate on mortgage loans in April, up from 2.07% March — its largest jump in three years, according to New York-based Trepp Research’s CMBS Delinquency Rate, which measures mortgage ayments that are late for more than 30 days. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="With the country under lockdown, traveling virtually ceased during the pandemic. Hotel demand was down 42% in April compared to last year, prompting some 2.71% of hotels and motels to default on their loans in April, compared to only 1.53% in March. Commercial real estate suffered its highest jump in delinquencies in three years, but lodging had the highest uptick of all property types, according to Trepp Research.” data-reactid=”36″>With the country under lockdown, traveling virtually ceased during the pandemic. Hotel demand was down 42% in April compared to last year, prompting some 2.71% of hotels and motels to default on their loans in April, compared to only 1.53% in March. Commercial real estate suffered its highest jump in delinquencies in three years, but lodging had the highest uptick of all property types, according to Trepp Research.

The cities where commercial real estate will take the biggest hit are service-based hospitality economies, including Atlantic City, N.J., Myrtle Beach, S.C., Las Vegas, Nev., Fort Walton Beach, Fla. and Wilmington, N.C., according to MillionAcres, a real estate investing branch of the Motley Fool, an investing advice company based in Alexandria, Va. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="With less investor demand for retail space, opportunistic investors could also find deals on vacant storefronts. Some 13.4% of NAIOP members said they had witnessed retail deal activity in May, unchanged from activity in April but significantly down from before the pandemic, according to the NAIOP. Notably, retail spaces with grocery stores are proving resilient, according to CrowdStreet, a Portland, Ore.-based investing platform.&nbsp;” data-reactid=”38″>With less investor demand for retail space, opportunistic investors could also find deals on vacant storefronts. Some 13.4% of NAIOP members said they had witnessed retail deal activity in May, unchanged from activity in April but significantly down from before the pandemic, according to the NAIOP. Notably, retail spaces with grocery stores are proving resilient, according to CrowdStreet, a Portland, Ore.-based investing platform. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="While there will also be a short-term reduction in interest in city-based offices, suburban satellite offices may become more popular, said Nadji. Long-term, experts expect the office to remain an attractive investment.” data-reactid=”39″>While there will also be a short-term reduction in interest in city-based offices, suburban satellite offices may become more popular, said Nadji. Long-term, experts expect the office to remain an attractive investment.

“Those kinds of things [a shift toward decentralized locations], I think, will last, and will have a residual effect, but the demise of office space used as kind of a broad statement, I think, is over-exaggerated,” said Nadji.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Sarah Paynter is a reporter at Yahoo Finance. Follow her on Twitter&nbsp;@sarahapaynter” data-reactid=”45″>Sarah Paynter is a reporter at Yahoo Finance. Follow her on Twitter @sarahapaynter

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Read the latest financial and business news from Yahoo Finance” data-reactid=”46″>Read the latest financial and business news from Yahoo Finance

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;SmartNews,&nbsp;LinkedIn,&nbsp;YouTube, and&nbsp;reddit.” data-reactid=”47″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardSmartNewsLinkedInYouTube, and reddit.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More from Sarah:” data-reactid=”48″>More from Sarah:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The office apocalypse is not here, yet” data-reactid=”49″>The office apocalypse is not here, yet

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="People are still paying rent during the coronavirus pandemic” data-reactid=”50″>People are still paying rent during the coronavirus pandemic

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bidding wars start to heat up in some states as coronavirus lockdown eases” data-reactid=”51″>Bidding wars start to heat up in some states as coronavirus lockdown eases

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Real estate sales show signs of 'uptick' – Times Colonist

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The province’s phased-in approach to restarting the provincial economy seems to have had an effect on the Victoria real estate market.

Figures released Monday by the Victoria Real Estate Board show sales, inventory and some prices rose in conjunction with the second phase of the provincial restart plan.

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Last month, 457 properties changed hands in the region, and while that’s a 46 per cent drop from May of last year, it’s a big jump from the 287 homes sold in April.

“We are still down in terms of sales [year-over-year], but we were up from April, and we saw a real uptick after May 19, when Phase 2 was implemented,” said Sandi-Jo Ayers, president of the board. “We are feeling cautiously optimistic based on the numbers from last month. And our home prices have seen a slight increase from last month as well.”

There were 2,544 active listings for sale at the end of May, up from the 2,305 available at the end of April. That is still well off the more than 3,000 available in May last year.

The benchmark price of a single-family home in the Victoria core last month was $885,400, up from $884,600 in April. Year-over-year, however, the price was down from $863,000. The benchmark condominium price in the core last month was $534,300, up from $533,600 in April, and $516,400 in May 2019.

“I’d say we have seen a trickle of activity, not a tsunami. People are being cautious,” said Ayers, who noted buyers want to ensure they are employed and that they can qualify for the kinds of homes they want.

Indications are Victoria’s real estate market could avoid some of the pain other markets in Canada will face this year, she said. “We believe the way B.C., the Island and the community have responded to the health crisis and our market being local, [real estate] has responded in a healthy way as well here,” she said. “Victoria is such an attractive place to live, it’s safe and the way we responded to this health crisis is catching people’s eye and they may start to think this is a good place to retire or move.

“We firmly believe we are on the radar now.”

The short-term outlook is likely to remain cautious, but Ayers said they expect to see a lot of local movement ahead of the fall school opening, and with local buyers moving up and down in the market.

aduffy@timescolonist.com

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Dramatic drop in Greater Victoria real estate sales in May

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There aren’t as many for sale signs up and far fewer properties are selling, as the Greater Victoria real estate market sees the effects of the COVID-19 pandemic.
“Our real estate market is responding to the health crisis,” says Victoria Real Estate Board (VREB) president Sandi-Jo Ayers. “For the month of May, that was a very tough month and April was as well.”
May saw a dramatic drop in the number of sales, down a whopping 46 per cent from last May, with just 457 properties selling.
“It’s surprising it’s only 46 per cent,” says Tony Joe of RE/MAX Camosun. “That sounds strange but when you think about it, we were a 58 per cent reduction in the month of April and I think many people sort of wondered if real estate would go to zero or close to zero.”
Inventory was down 15.7 per cent compared to last May, but that had prices holding steady.
Condo prices only dipped 3.7 per cent, with an average price of just over $453,000.
Single-family home prices were actually up 2.3 per cent to almost $876,000.
“The other surprising thing too is we’re seeing cases of multiple offers or bidding wars out there, which you would never expect in a time like this,” says Joe.
With restrictions easing in the last two weeks, agents say viewing requests are increasing and they’re actually getting lots of interest from Lower Mainland and Toronto buyers.
“We really are trying to be optimistic,” Ayers says. “We see we have a lot of people that want to move here, they want to sell, they want to buy and realtors on the street are talking about how busy they are getting.”
If you’re buying or selling, it will look different in phase three, with more virtual open houses, online tours, and masks and gloves for in-person showings, as well as minimizing the surfaces that are touched as real estate tries to rebound.

Source: – CHEK

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Edited By Harry Miller

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