“Montreal has truly become a global city. And when you have global cities, obviously, real estate tends to increase.”
Residential sales throughout the Okanagan saw an increase last December.
According to the Okanagan Mainland Real Estate Board (OMREB), in the Central Okanagan, there were 118 single-family sales, 45 townhouse sales and 74 condo sales. The December 2019 sales in the Revelstoke to Peachland region surpassed December 2018’s sales by 23 per cent, but was a decrease of 24 per cent from November 2019.
“While activity was subdued during the first half of the year, the last couple of months saw a strong push towards market recovery,” said OMREB president Michael Loewen.
“As we head into 2020, it’s great to see demand remains robust as market conditions have pulled ahead of previous forecasts.”
It took an average of 80 days in the Central Okanagan to sell a home, as opposed to the entire regions average of 102 days.
The overall listings for December 2019 came in down four per cent from December 2018, but the late push in the year helped balance the numbers across the region.
“The rebound in residential sales should help to mitigate the recent declines in property tax assessments experienced by many homeowners in centers across our region,” reads the OMREB press release.
Throughout the Central Okanagan in December 2019, the current inventory of single family residences dropped 6.7 per cent, townhouses dropped 10. 4 per cent and condos dropped 7.7 per cent.
Real estate: Montreal one of Canada’s hottest markets for luxury homes – Montreal Gazette
Montreal is emerging as one of Canada’s hottest markets for luxury real estate, according to two recent reports on the country’s top-tier property markets. Sales of multimillion-dollar homes are soaring — and more million-dollar condos are being sold than ever before.
For the first time, sales of these ultra-luxe condos topped 20 per cent of real estate sales valued over $1 million in Montreal, according to Sotheby’s International Realty Canada’s Top-Tier 2019 year-end report — a 39-per-cent increase in sales compared with the previous year.
Most Montreal luxury condo sales in 2019 were within the $1-million to $3-million range, and two units above $4 million sold in 2019 (only one unit sold at that price point in 2018).
According to Don Kottick, president and CEO of Sotheby’s International Realty Canada, low-maintenance condo living is often attractive to wealthy world travellers, whether they are based in Montreal or in search of a pied-à-terre.
“Montreal has truly become a global city. And when you have global cities, obviously, real estate tends to increase and, therefore, if you can’t build out, you build up,” Kottick said.
Sotheby’s credits strong economic fundamentals and the lack of foreign buyer taxes for the increase in luxury property sales. It also noted that Quebec experienced its largest population increase in three decades in 2018 and 2019.
A second report on the same theme produced by Engel & Völkers noted that the hottest Montreal luxury property markets in 2019 were the Plateau Mont Royal, Outremont and the Gay Village. The report singled out Mile-Ex and Mile End as emerging hot spots for million-dollar-plus property.
Little Italy and Villeray were also mentioned as areas with strong investment potential, and farther afield, the South Shore, North Shore, Eastern Townships, Tremblant and Quebec City are also becoming known as healthy markets for luxury property, the report noted.
In the past year, Montreal home prices rose faster than they have in almost a decade, and Engel & Völkers anticipates annual price growth of four to seven per cent in 2020 in both the Montreal and Mont-Tremblant markets.
In Montreal, the number of detached homes valued over $4 million sold increased 60 per cent, from 10 in 2018 to 16 in 2019, the Sotheby’s report noted. Interestingly, the number of sales of detached single family homes over $1 million decreased by three per cent in 2019 compared with 2018 to 423 homes sold. Yet Kottick said the lack of sales doesn’t reflect a lack of interest.
“Really, this is just a lack of inventory. If there were more homes available, I think you would see even more sales,” he said. “There’s definitely a shortage in the $1 (million)-$2 million range. Detached homes are just not coming on the market, and that’s obviously creating a bottleneck.”
In certain markets, however, there may be other factors at play.
According to West Island Royal LePage broker Sean Broady, the number of properties that were removed from the market or didn’t sell in areas like Beaconsfield has increased in recent years.
Of the West Island municipalities, Beaconsfield typically has the most sales above $1.5 million, Broady said. Since 2017, the number of sales above $1.5 million has held steady at about 10 per year. In 2017, there were seven expired or cancelled listings. In 2018, there were 21, and in 2019, 31.
There may be many reasons why those homes didn’t sell. The homeowners could have changed their minds, for example. But Broady suspects a simpler answer:
“It’s not selling because it’s purely speculative pricing. You’ve got these homes that are at $1.5 (million) to $2.5 million, and you’re just seeing some crazy asking prices. I think some of the brokers are as much to blame as the owners of these properties,” Broady said. “The savvy buyers who are in that price range aren’t just going to pay whatever. They’re doing their homework, they know what these homes are worth.”
The homes in this price range that did sell, Broady noted, sold much more quickly than in 2017, averaging 60 days on the market instead of 153 days.
“Those who are pricing their homes correctly are meeting that same number of buyers that have that budget, and they’re selling them quicker,” he said.
Island real estate market has been booming – Manitoulin Expositor
Lots of buyers has made big dent in ‘for sale’ inventory
MANITOULIN – Manitoulin Island’s housing market has seen a record number of property sales in the past year, indicative of the number of people who wish to purchase a home, cottage or land on the Island that have brought the number of available listings down to levels not seen in living memory.
“I think I can safely say this is probably the first time we’ve ever broken 300 property sales in a year,” said Gore Bay’s Hugh McLaughlin, broker of record at McLaughlin Manitoulin Inc. Real Estate Brokerage.
Mr. McLaughlin began his real estate career in 1974 and said he has never seen the listings supply run as dry as it is now. He referenced a Multiple Listing Service (MLS) figure that 317 properties sold on Manitoulin in 2019. That number was 258 in 2018 and the 2017 sales totalled 273.
This newspaper has reflected the changing Island real estate market. The regular advertisements in the rear pages of this newspaper have shrunk considerably in recent editions, most visibly on the Bousquet advertisement on the outside rear cover. Last week marked the first time in nearly 20 years that the Bousquet advertisement only took up half of the back page.
Chris Bousquet, broker of record at Little Current-based J. James Bousquet Realty Inc., said the number of listed properties peaked in July 2015 at 517.
“This summer, we were still over 300 (available listings) and demand for the last few years has been quite strong,” said Mr. Bousquet.
January and February tend to be the months with the smallest number of active listings on Manitoulin Island. During the lowest month in 2015, which came in January with 351 listings, there were still more properties on offer than the peak month in 2019 (June, with just 326 listings).
Data for December 2019 shows 184 Island listings at that time—the only month that has dipped into the 100s since January 2015.
Rolston Real Estate Ltd. broker of record Steve Rolston said this reflects the cyclical nature of real estate on Manitoulin Island.
“These sorts of things take place every 10 to 15 years on Manitoulin, roughly speaking. We’re just going through another one of those cycles. Unfortunately, it’s tough on our clientele when we get into a market like this—either a strong buyer’s or seller’s market—because it can raise anxieties a bit,” said Mr. Rolston.
While the current market conditions may be anxiety-inducing for some, others find the present prospects positively promising.
“It’s the best market I’ve ever seen,” said Jordan Stephens of the Jordan Stephens Real Estate Team, a Royal LePage-affiliated brokerage.
He said homes are spending far fewer days on the market than ever before. Properties that would normally be tougher to sell, such as high-end waterfront homes, are now getting multiple offers and bidding wars.
“I’ve been working with one buyer for a year and a half now trying to find a suitable house in the $300,000 to $400,000 price range, and it’s almost impossible,” he said.
Mr. Stephens said the massive growth in the Toronto housing market has had trickle-up effects to the North and Manitoulin Island in particular. He said many of the people looking North are retirees.
Manitoulin’s appeal is aided by roadway improvements that make the journey from Toronto much easier than years past.
According to Mr. Rolston, however, Toronto has never been as connected to the Manitoulin market as are southwestern and central Ontario. He said Manitoulin’s popularity has been growing due to other cottage country areas.
“Some people in the Muskokas are saying it’s too busy there now, and we’re seeing some owners bail out for quieter, more peaceful locations like Manitoulin,” said Mr. Rolston.
He added that housing tends to follow a few years behind the global economy and the Canadian Mortgage and Housing Corporation predicts a continued upward pricing trend in the next year or two.
When comparing figures from 2015 to 2019, the changes are remarkable.
Manitoulin properties sold in 2015 totaled 192, a number that soared to 317 in 2019—a 65 percent increase.
Monthly active listings on Manitoulin, on an annual average, dropped from 441.8 in 2015 to 271.1 in 2019, or a 39 percent decrease.
The price of homes, however, shows a different perspective that reflects the laws of supply and demand. Selling prices in 2015 averaged $138,004, which rose to $187,416 in 2019. That’s an increase of 36 percent.
For perspective, a property worth $200,000 in 2015, if it were to follow the average increase in price, would have been worth $272,000 just five years later.
Even more of a change was within that five-year period, between 2018 and 2019, when home prices raised by 26 percent year-over-year.
Both Mr. Bousquet and Mr. McLaughlin agreed with Mr. Rolston that Manitoulin real estate tends to operate cyclically, with the pattern based on 10-to-15-year cycles.
“In the early ‘70s there was a push in prices. Fifteen years later in 1989 there was another push in prices, especially waterfront. Those tripled that summer,” said Mr. McLaughlin.
He said the last big push was from 2004 to 2006, and he has been calling for another rise in 2020-2021.
“Maybe this (listings) shortage is just the quiet before the storm. As realtors, we hope so,” said Mr. McLaughlin.
Mr. Bousquet said high demand and lower amounts of available properties are visible across Canada due to a lack of new housing inventory. Manitoulin, however, is unique in the many recreational and waterfront properties that have been driving demand.
“Lots of people are getting out of the cities and the stressful life, and are looking at more affordable areas where they can change their lifestyles a bit. The cottage and waterfront properties here are very affordable compared to down south,” said Mr. Bousquet.
The tight market makes things challenging for the 25 active real estate agents working on Manitoulin Island. Mr. McLaughlin said the market conditions tend to be the same in all communities from Gore Bay to South Baymouth. Western Manitoulin has always been—and continues to be—a different (and much slower) market altogether from the portion in Gore Bay and to the east.
Mr. Rolston said he had faith that his team would pull through the challenging market conditions.
“I’ve got a great crew here. I’m telling our salespeople to keep concentrating on getting what listings we can,” he said.
By all indications, property owners on Manitoulin who may be looking to move elsewhere are in the most advantaged position in the present market.
“If anybody is thinking about selling their place, now is the time. It’s a strong seller’s market,” said Mr. Stephens.
Although the current real estate market may seem overwhelming in some ways, Mr. Rolston said turning to professional realtors will make the process much easier to handle.
“If I can recommend anything, it’s to find a good salesperson, stick with them and hopefully things will work out without too much stress,” he said.
Mr. Bousquet added that Island-based realtors who live, work and play on Manitoulin and understand the lifestyle will be best prepared to handle the changing market.
As for the current listings lagging behind the strong demand, some choose to view it as an endorsement of all that Manitoulin has to offer.
“We live in the greatest place in the entire world; honestly, it’s surprising we haven’t seen this sooner,” said Mr. Rolston.
Reports: Flooding risks could devalue Florida real estate – 570 News
MIAMI — Flooding due to climate change-related sea level rising, the erosion of natural barriers and long-periods of rain pose substantial economic risks to Florida, particularly to the value of South Florida real estate, according to two new reports released last week.
For years, Florida lawmakers mostly ignored climate change under then-Gov. Rick Scott, who is now a U.S. Senator. But GOP Gov. Ron DeSantis has taken a more aggressive stance at tackling the issue, although environmentalists want him to do more.
Based on past trends, losses from flooding in Florida could devalue vulnerable homes by $30 billion to $80 billion, or about 15% to 35%, by 2050, according to a report from McKinsey Global Institute.
Average annual losses for residential real estate due to storm surge from hurricanes amount to $2 billion today, but that projection could increase to about $3 billion to $4.5 billion by 2050, the McKinsey report said.
“Flooding in Florida could not only damage housing but also raise insurance costs, affect property values of exposed homes, and in turn reduce property tax revenues for communities,” the McKinsey report said.
Furthermore, the impact of a 100-year-storm event could be even more devastating over time, going from $35 billion today to between $50 billion and $75 billion by 2050, the McKinsey report said.
A separate report from the climate-risk analytics firm Jupiter Intelligence said the percentage of vulnerable oceanfront properties affected by extreme flooding will rise in Miami-Dade County from 5% in 2019 to 98% by 2050.
By 2050, annual flooding damage county-wide in Miami-Dade County is expected to roughly double, leading to shortages in affordable insurance coverage and real estate market instability, according to the Jupiter Intelligence report.
“Ignoring, or underestimating, the actual economic risk posed by moderate flooding is common to other geographies in the U.S. and around the world,” said Rich Sorkin, CEO of Jupiter in a statement. “Almost none of this risk is reflected in prices. Most of this dynamic is not yet understood, nor is it implemented into the decision-making of financial institutions.”
The short-term impacts of flooding will be felt within the next decade, according to the Jupiter report.
The impact from moderate flooding of up to one foot in an oceanfront city in Miami-Dade County will increase from 13% of total properties to 48% of total properties. Properties at risk from extreme flooding will jump from 5% to 86% of the total, according to the Jupiter report.
The increased risks of flooding could leave lenders exposed to greater losses and insurers in need of adjusting their pricing to include the greater risks, the Jupiter report said.
“Homes, livelihoods, and the viability of financial institutions and the economy as a whole may find themselves under a Sword of Damocles, unaware of the extent of risk they bear, and without time to prepare,” said Sorkin, referencing the ancient parable about living under imminent peril.
Associated Press, The Associated Press
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