Real eState

Paulson: Residential, retail and industrial real estate listings scarce in Saskatoon – Saskatoon Star-Phoenix

Published

3 years ago

May 4, 2022

Saskatoon has the lowest number of active listings in at least five years, and by a significant margin.

Joanne Paulson is a Saskatoon author and freelance journalist who has been covering real estate, off and on, for more than 25 years. Submitted photo

In the spring, said Alfred, Lord Tennyson, a young man’s fancy lightly turns to thoughts of love.

That’s as may be, and forgive the poetic intrusion; but in the spring, a Saskatonian’s fancy turns to thoughts of selling and buying property.

Historically, anyway.

By May, the city’s residential real estate market is usually steaming. Most sales — and listings, of course — come in May and June. We stream out of our hovels after nasty winters and enter the housing fray.

Being a curious sort, I checked this morning to see just how hot things were. Here’s an indication.

In my (admittedly fairly small and fairly old) neighbourhood, there is one house for sale.

One.

Now this happened previously, about a year ago when the COVID housing madness was in full cry. What’s the market’s excuse now? What are people thinking? Where are the listings!?

It’s not just my neighbourhood flagging, as it turned out upon further investigation. Indeed, says Norm Fisher, owner-broker of Royal LePage Vidorra, the number of listed homes has dropped in all but one week so far this year as of the end of April.

At that moment in time, there were 1,033 homes for sale (single-family and condos), 336 fewer than the same time last year. Single-family home listings fell to 537 from 652, and condos kind of plummeted to 423 from 642.

Peering at Fisher’s active listings chart, I saw that we have the lowest number of active listings in at least five years, and by a significant margin. In 2018, for example, there were about 1,800 homes on the market.

Unsurprisingly, sales are also down, having fallen year-over-year in 14 of 17 sales weeks. In the last week of April, for example, 106 homes changed hands, down by 24 annually.

I have some theories about this. Let’s start with an abnormally long and cold winter, which really just ended about 10 days ago. I was so shocked when the temperature got above five degrees, it took me another week to book a snow tire removal appointment. Call it brain freeze. Seriously, six months of hard winter will take the wind even out of a Saskatonian’s sails. Or should I say sales.

One could also argue that after about 18 months of a crazy COVID market, in which everyone sought bigger homes with office spaces, some demand has been satisfied. Meanwhile, inflation is hitting a lot of people hard. Maybe staying put seems more attractive than taking on a larger mortgage — with a higher interest rate, and that’s another thing.

Still, interest rates have not yet soared, COVID has not yet gone away, and the economy is really starting to fire. Is there something else at play? Do we have a large number of less-desirable properties languishing since last year? If there were more strong listings, would we see higher sales? I actually think so.

The most important factor, however, in any housing market, ever, is the economy. And other real estate numbers do point to a rising economy, although others less so.

Industrial land, for example, can hardly be had for love or money.

In mid-April, ICR International, the commercial real estate firm, pegged the industrial vacancy rate at 2.4 per cent, with the Marquis Industrial area at a mere one per cent. Industry observers say interest in such property is very high for both rental and purchase, and the rate will likely fall further this year.

This is, in part, because of a manufacturing boom, I’m told. Sales of manufactured goods in 2021 were up 24 per cent from pre-COVID levels, which is a heartening sign. In fact, that’s pretty spectacular.

Furthermore, and this is quite astonishing, retail space is renting quite well, with a slight drop in vacancies to 4.55 per cent in first quarter 2022 from 4.93 last year. Considering we all got used to ordering everything during COVID, you’d think it would go the other way, but nope.

Meanwhile, the downtown office vacancy rate is insanely high, somewhere between 21 and 25 per cent depending on which survey you read. This is, admittedly, partly because of the new towers at River Landing adding a huge amount of space and attracting tenants from older buildings. But it’s still too high, and the reasons for it would fill at least two entire columns, so I will leave it there for now.

That’s one cylinder not firing, but there are generally strong economic indicators. Considering rising interest rates and no residential selection, will the economy become a lagging force in the housing market?

I find myself wondering if the usual spring love of property will this year become a fall passion.

Joanne Paulson is a Saskatoon author and freelance journalist who has been covering real estate, off and on, for more than 25 years. Do you have a fascinating real estate story to share? Get in touch at jcpwriter@sasktel.net.

The news seems to be flying at us faster all the time. From COVID-19 updates to politics and crime and everything in between, it can be hard to keep up. With that in mind, the Saskatoon StarPhoenix has created an Afternoon Headlines newsletter that can be delivered daily to your inbox to help make sure you are up to date with the most vital news of the day. Click here to subscribe.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

1 week ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Homelessness: Tiny home village to open next week in Halifax suburb

Published

3 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

Published

4 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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