Manitoba experienced a record month for real estate sales in July, despite being in the middle of a global pandemic.
According to the Manitoba Real Estate Association, housing sales reached the highest number of sales in a single month for the second month in a row in July. The association added that housing sales have also surpassed the number of sales achieved over the same time-period last year.
Glen Tosh, president of the Manitoba Real Estate Association, said in a news release that the province has experienced an “extraordinary” rebound in residential property sales.
“Earlier this year, in March or April I don’t think anyone was anticipating this level of activity and better than expected results,” Tosh said.
In the month of July, 2,060 residential properties were sold in Manitoba. This exceeded the previous monthly record of 2,015, which was set in June of this year.
Manitoba also set a new record for total sales dollar volume.
In July 2020, residential property sales made up $637 million in total dollar volume, which is an increase of 38.1 per cent compared to July 2019.
The Manitoba Real Estate Association said sales activity for the first seven months of the year have also surpassed the number of sales within the same time-period last year. Year-to-date, there has been 9,183 residential properties sold in Manitoba, which is 2.7 per cent higher than 2019’s year-to-date sales of 8,939.
“Overall, 2019 was a good year for residential sales in Manitoba and considering the ongoing challenges of COVID-19, catching up to and surpassing last year’s totals at this time is quite an achievement,” said Tosh. “While there are more challenges to come in fighting the global pandemic, we believe owning a home in Manitoba can offer a safe haven in an uncertain world.”
What is Happening in the Fredericton Real Estate Market? – RE/MAX News
Across the country, the real estate market boasted record-breaking numbers all summer long. From the Vancouver housing sector to the Fredericton real estate market, sales activity and prices popped, despite the COVID-19 pandemic lingering in the background. The industry has found the developments remarkable. Canada slipped into a recession and many companies were decimated, but the Canadian real estate market has remained solid during this chaotic time. It is a testament to the superb work of real estate agents, as well as the strength of the nation’s overall housing market.
Before the virus outbreak, New Brunswick was becoming one of many noteworthy real estate hot spots in the country. Although it faced a slump at the height of the pandemic, it has witnessed a remarkable recovery. Sharon Watts, executive officer for the Real Estate Board of the Fredericton Area (REFBA), recently described the state of the market as “like no other” the industry has seen before, since the COVID-19 restrictions were lifted by the province.
Whether it is pent-up demand or limited stocks, there are many factors contributing to the boom of the Fredericton real estate sector. Could these bullish factors sustain the market over the next few months?
What is Happening in the Fredericton Real Estate Market?
According to the REBFA, residential sales rose one per cent in July, the second-best July on record. The average price of homes sold surged 16.8 per cent to $218,760. In addition to growing demand in Fredericton, overall supply has trended downward for the last five years. Today, inventory sits at a 20-year low, and this could continue to decline, as recent real estate trends favour smaller cities and suburban or rural markets.
Fredericton has turned into a seller’s market as bidding wars have become commonplace within this city of about 60,000 people. Homebuyers are placing bids as high as $60,000 over the asking price.
“Activity in Atlantic Canada was back to pre-COVID-19 levels by May 2020, and like many sellers’ markets in Canada, multiple offer scenarios continue to happen in these regions,” the RE/MAX Fall Market Outlook Report stated.
Could this impressive feat be sustained for the remainder of 2020 – and beyond?
With low borrowing rates expected to remain in place for the foreseeable future, money has never been cheaper. The Bank of Canada (BoC) has reduced its five-year mortgage rate to below five per cent, and there is no reason to dismiss the idea that the central bank would lower it again.
During the pandemic, realtors have been relying on technology and digital tools to conduct transactions and work with their clients. Online documents, virtual tours and detailed web-based advertisements – real estate agents have used digital mechanisms to their advantage. This has allowed people from all over Canada to confidently purchase houses or condominiums in other places, even without seeing these properties in person.
Immigration is another factor that the industry is paying attention to. This year, immigration levels have cratered due to border restrictions and changes in travel. In June, more than 19,000 new permanent residents entered Canada, down from the more than 34,000 immigrants who were welcomed the same time a year ago.
This trend might have an impact on the Canadian real estate market, including Fredericton. The New Brunswick capital is also considered a college town that typically attracts a large number of international students. But while this may not affect the buying and selling of homes, it is disrupting the rental market.
Should this trend continue, developers might think twice about constructing rental units. But Fredericton locals are confident that this renewed demand for houses could be enough to encourage investors to bring new supply to the market.
Is Atlantic Canada the Next Major Housing Market?
Could Fredericton join the broader Atlantic Canada real estate boom? Whether it is the sizzling market of Halifax or St. John’s, cities across the Maritimes are witnessing better-than-expected sales activity and residential prices. Many of these cities are becoming appealing destinations for homeowners due to a renewed focus upon urban development initiatives and more affordable housing options. Plus, with rates as low as they are and remote work policies prevalent throughout the labour market, many are taking advantage of the opportunity and considering other cities and towns across the Great White North.
Once the coronavirus pandemic is safely behind us and society attempts to return to normal, the permanent shift could turn out to favour Fredericton and its neighbours on the east coast. Atlantic Canada may not just be a vacation hotspot for families from Toronto or Montreal. Prince Edward Island, Newfoundland, and Nova Scotia could soon become top destinations for Canadian (and international) homebuyers.
Firm Capital Apartment Real Estate Investment Trust TSX Venture Exchange:FCA.U
Firm Capital Apartment Real Estate Investment Trust Announces Closing of Previously Announced 50% Interest in a 235 Unit, Multi-Family Residential Building for $37.5 Million in the Washington D.C. Metro Area
All amounts are in US Dollars unless otherwise stated.
TORONTO, Sept. 22, 2020 (GLOBE NEWSWIRE) — Firm Capital Apartment Real Estate Investment Trust (the “Trust”), (TSXV: FCA.U), (TSXV: FCA) is pleased to announce it has closed the previously announced joint venture with an unrelated third party to acquire a $37.5 million multi-family residential property located in the Washington D.C. Metro Area.
The Trust has closed the North Pointe Apartments (“North Pointe” or the “Property”), a 235-unit, multi-family residential property located in Hyattsville, Maryland. The joint venture purchased the property for $37.5 million or approximately $159,575 per unit ($217 per square foot), representing a 5.7% capitalization rate. The Property was financed with a new first mortgage for approximately $29.7 million with an approximate 3.0% interest rate. The terms of the financing include a four-year interest-only or I/O period, 30 year amortization and a twelve year term. The remaining capital requirement, including closing and working capital, is approximately $10.8 million and was funded through $6.8 million of common equity held 50% by the Trust and 50% by the unrelated third party, with the remaining $4.0 million funded as preferred equity at an 8% rate of return, held 100% by the Trust.
ABOUT FIRM CAPITAL APARTMENT REAL ESTATE INVESTMENT TRUST
Firm Capital Apartment Real Estate Investment Trust is a U.S. focused real estate investment trust that pursues multi-residential income producing real estate and related debt investments on both a wholly owned and joint venture basis. The Trust has ownership interests in a total of 2,308 apartment units diversely located in Florida, Connecticut, Texas, New York, New Jersey, Georgia and Maryland.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions.
Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Trust holds properties; volatility of real estate prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Trust to implement its business strategies; competition; currency and interest rate fluctuations and other risks. Additional risk factors that may impact the Trust or cause actual results and performance to differ from the forward looking statements contained herein are set forth in the Trust’s Annual Information Form under the heading Risk Factors (a copy of which can be obtained under the Trust’s profile on www.sedar.com).
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Except as required by applicable law, the Trust undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
|For further information, please contact:|
|Eli Dadouch||Sandy Poklar|
|President & Chief Executive Officer||Chief Financial Officer|
|(416) 635-0221||(416) 635-0221|
|For Investor Relations information, please contact:|
|Director, Investor Relations|
Vancouver real estate: homes priced $500000-$750000 lead most number of sales in two weeks – The Georgia Straight
A total of 132 homes sold in Vancouver in the last two weeks.
Real-estate site fisherly.com tracked the deals between September 7 and September 22.
The average price of the homes sold came to $1,261,420.
The most number of homes sold were those priced between $500,000 and $750,000.
An example is 3001-1009 Expo Boulevard, a one-bedroom and den condo in Yaletown.
Prompton Real Estate Services Inc. sold the 688-square-foot property for $690,000 after listing it for $699,000.
Some 35 homes within this price range of $500,000 to $750,000 sold in the city as of around 1 p.m. on September 22.
Second in terms of most sales were those priced between $1 million and $1.5 million. There were 28 transactions involving these homes.
Third in volume of sales were homes bought between $750,000 and $1 million. Some 20 properties in this category changed hands in the last two weeks.
One home in the price range of $5 million to $6 million found a buyer.
That was the six-bedroom, seven-bath, and three-car garage mansion at 4778 Trafalgar Street in the affluent MacKenzie Heights neighbourhood.
Luxmore Realty sold the luxury propert at $5,180,000 on September 11. It was the most expensive home sold in the last two weeks.
The property was listed for $5,498,000 on June 17, 2020.
Four homes in the price range of $250,000 to $500,000 sold.
In terms of neighbourhoods with the most sales, downtown and Kitsilano came ahead with 15 transactions each between September 7 and September 22.
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