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Forecasts are for another hot summer in the market for getaway homes.
Royal LePage, the real estate brokerage firm, predicts the national aggregate price for a home away for home will rise 13 per cent in 2022 from last year, to $647,710 for a single family unit, as demand continues to outstrip supply.
“The factors challenging Canada’s residential real estate market — chronic low supply and growing demand — are amplified in the recreational property segment,” said Phil Soper, president and CEO of Royal LePage.
Royal LePage conducted an online survey of 151 brokers and sales representatives to gauge how the cottage country real estate season will unfold.
According to the survey, 84 per cent said there are fewer properties for sale than last year. Further, 50 per cent said there was “significantly” fewer units on the market.
Across the country, Quebec and Atlantic Canada are predicted to experience the largest increases in recreational property prices at 15 per cent. Prices in Ontario and British Columbia are forecast to rise 13 per cent and 12 per cent from 2021, respectively.
As with much in real estate today, the frenzied pace of buying can be sourced back to the pandemic, which sent many Canadians rushing to find more space for their families. Also, remote work has unchained many from cities, making a rural home base possible.
Demographics also continue to apply upward pressure to prices.
Last year, Royal LePage’s survey suggested that more than half of baby boomers who were considering changing their primary residence were contemplating a rural property, potentially resulting in “1.8 million Canadians having entered the recreational real-estate market within the five year period.”
If 2022 is expected to be hot, 2021 was a scorcher.
In that selling season, the aggregate price nationally for a single-family recreational property rose 26.6 per cent from 2020 to $567,000; a single-family waterfront property leapt 21.5 per cent to $976,000; a condominium, 15.4 per cent to $374,000.
In Ontario in 2021, the family recreational property market rose 34.6 per cent, the highest year-over-year aggregate price increase, according to Royal LePage.
Here is how the Royal LePage survey forecasts prices to break down by region:
Prices, on an aggregate basis, are expected to increase 15 per cent to $272,550 for a single family home compared with a 2021 year-over-year increase of 24.1 per cent. In 2021, the price of coveted family waterfront properties rose 39.3 per cent to $333,000.
The aggregate price for a recreational getaway is forecast to jump 15 per cent in 2022 to $356,500, down from a 24.5 per cent increase the previous year. Prices then stood at $310,000 for a family residence.
The province has adopted some of the characteristics associated with hot markets such as Ontario and B.C. Multiple bids are now typical, noted broker Eric Léger, with winning offers coming in over the asking price, something, Léger said, was not a feature of the Quebec recreational property scene prior to the pandemic.
With some of the country’s most sought-after cottaging regions, such as the Muskokas, aggregate prices in the province are expected to rise 13 per cent to $737,890, compared with $653,000 in 2021. That figure was based on a massive 34.6 per cent increase from 2020.
“Prior to the pandemic, an entry-level property in Muskoka would have cost about $400,000. Today, the same property would not go for less than six-to seven-hundred thousand, and you won’t find many listings like this today. Inventory is at an all-time low,” said John O’Rourke, a broker for Royal LePage Lakes of Muskoka.
According to the survey, a single family nature retreat will set a buyer back $1,170,660, based on aggregate prices, in 2022, up nine per cent from 2021. Last year, prices rose 31.5 per cent year-over-year to $1,074,000, compared with 2020.
Among the reasons for such a hefty price tag, the survey cites the Canmore region close to Banff National Park as playing a significant role in the market.
Aggregate prices are expected to break through the $1 million mark in 2022 for a single family recreational retreat, rising 12 per cent to $1,029,280. Last year, the aggregate price rose 22.4 per cent from 2020 to $919,000.
“Demand continues to outstrip supply in the Okanagans, as the desire for more space and access to outdoors remains a top priority for many Canadians, especially those who choose to vacation within the country,” said Francis Braam, a broker for Royal LePage Kelowna.
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PAY TO PLAY Ontario is increasing a speculation tax on non-resident homebuyers to 20 per cent. The tax will also be expanded to cover the entire province. It had previously been set at 15 per cent and only applied in the densely populated Greater Golden Horseshoe region in southern Ontario. Photo by Christinne Muschi for Bloomberg
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- Premier John Horgan and Ravi Kahlon, Minister of Jobs, Economic Recovery and Innovation make an announcement relating to hydrogen investment and development in British Columbia
- Today’s Data: Canadian GDP (Jan), U.S. initial jobless claims
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Canada is on record as committed to cutting its greenhouse gas emissions to net zero by 2050. On Tuesday, the federal government released a report that lays down a possible road map for how to get there. The report breaks down CO2 emissions by sector and then by source for each sector. One of the the major takeaways from the plan is the calculation that the oil and gas sector will need to cut back its CO2 emissions by 42 per cent if the country is to hit its targets. Currently, the sector is the largest emitter accounting for 26% of emissions. However, as FP reporter Gabe Friedman writes, the climate report does not set out how the industry can achieve such a reduction.
Whether you submitted your taxes the minute the Canada Revenue Agency (CRA) started accepting them on Feb. 21, or you’re planning to wait until the last minute on May 2, it’s now just a matter of time before the refund hits your account.
But before you rush to make a big purchase, our content partner MoneyWise has some tips from some leading money experts for you to consider first.
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Calgary recruits commercial real estate expertise to revive new arena – Sportsnet.ca
CALGARY — The city of Calgary has recruited citizens from the commercial real-estate sector to help get a new event centre and home for the Calgary Flames back on track.
When an agreement between the city and Calgary Sports and Entertainment Corporation, which owns the Flames, collapsed late last year, city council voted in January to get a third party involved.
John Fisher, Guy Huntingford and Phil Swift are tasked with determining whether the Flames still want to build an arena with the city, or if the city will have to look for other potential partners to build an event centre.
Fisher is executive vice-president of CBRE, Huntingford is director of strategic initiatives with NAIOP Calgary, and Swift is executive chairman of the Ayrshire Group investment firm.
“This team brings considerable expertise from the commercial real-estate industry including experience in larger development,” the city’s planning and development manager Stuart Dalgleish said Wednesday in an event centre committee meeting.
“The third party has spent considerable time understanding the items and interests behind the terminated agreement and the current landscape. These items have become clarified.
“Based on a meeting with both the city and CSEC, the next step is for the third party to make recommendations on a possible path forward.”
Dalgleish said there is no definitive commitment or timeline for a new agreement.
The city and the Flames agreed on an arena deal over two years ago with the initial estimate of $550 million split between the two.
Shovels were scheduled to hit the ground in 2022 for a 19,000-seat arena and concert venue replacing the Saddledome, which has been the home of the Flames for 39 years.
The cost estimate for the project rose to $634 million, however.
Since the two sides agreed to an amended deal last July, the city added an additional $19 million in roadwork and climate mitigation to the project, and wanted the Flames to pay for $10 million of that.
CSEC president John Bean said in December that the Flames were withdrawing from the agreement because of an accumulation of issues and increased financial risk.
“While CSEC was prepared to move forward in the face of escalating construction costs, and assume the unknown future construction cost risk, CSEC was not prepared to fund the infrastructure and climate costs that were introduced by the city following our July agreement … and are not included in the current cost estimate of $634 million,” Bean said then.
So the Flames remain in the Saddledome, which is the second-oldest NHL arena behind New York’s Madison Square Garden.
CSEC also owns the Western Hockey League’s Hitmen, Canadian Football League’s Stampeders and National Lacrosse League’s Roughnecks.
The Flames recently announced they will move their American Hockey League affiliate from Stockton, Calif., to Calgary for the 2022-23 season.
No trend detected in latest real estate data – Whitehorse Star
For the first time in approximately a year, the average price of a house in Whitehorse has declined.
The real estate market has been on fire in recent months, with steadily-increasing prices.
In the last report from the Yukon Board of Statistics covering the last three months of 2021, the average house price in the city was $647,000. That represented an increase of $48,600, or 8.1 per cent from the fourth quarter of 2020.
The bureau released its latest report on Tuesday. It shows the average sale price of a single-detached house in Whitehorse was $637,300, lower than the end of 2021 but a rise of $46,700, or 7.9 per cent, from the first quarter of 2021.
In the first quarter of 2022, the total value of real estate transactions in Yukon was $81.4 million, with $70.8 million in Whitehorse and $10.6 million for the rest of Yukon.
It’s a decline of nearly $10,000 from the end-of-year report the bureau issued in March.
The average condo sale price in Whitehorse was $419,900, a decrease of $60,100, or 12.5 per cent, from the first quarter of 2021.
However, Marc Perrault, the president of the Yukon Real Estate Association, cautions people not to read too much into those numbers if they’re thinking the bubble has burst on the property market in the territory.
The first quarter of any year is usually the slowest for real estate sales, he told the Star today.
Coupled with concerns about inflation, Perrault said, he thought that was likely the reason for the dip in market values.
Perrault said he would have to see the trend continue for a year before he would become concerned about it.
The only thing that would change his mind would be other major signals of an economic slowdown, and that’s unlikely in the Yukon.
The market and economy here are very stable, he suggested, because it’s a government-based system which prevents most wild swings and
People are still immigrating into the territory to take advantage of its robust economy and growing public service, as well as other opportunities, Perrault said.
He doesn’t see that changing anytime soon.
“Demand is still greater than supply,” he noted.
The only category to show record-breaking growth was the mobile-home market. It hit a record high of $467,300.
A total of 54 single-detached houses were sold during the first quarter, an increase of 19 compared to the first quarter of 2021.
There were 49 condo sales, an increase of 27 compared to the first quarter of 2021.
The average condo price was $419,900, a decrease of $60,100, or 12.5 per cent, compared to the first quarter of 2021 ($479,900).
Four mobile homes were sold at an average price of $467,300.
Seven duplexes changed hands at an average price of $471,600.
Seven commercial properties were sold at a value totalling $6.9 million
In Whitehorse, a total of 130 real estate transactions was recorded in the first quarter of 2022, a rise of 46 compared to the first quarter of 2021. Over the previous five years, the first quarter average number of sales was 100.
Thirty homes sold in Whistle Bend during the period, with a total value of $18.5 million. It was the busiest neighbourhood in the city.
Copper Ridge saw eight properties sell at a total value of $5.3 million.
Porter Creek was the next-highest, with seven properties selling for $4.4 million.
The report showed that, excluding country residential properties, which typically sell for much higher prices than other single-detached houses, the average price in Whitehorse was $626,200 in the first quarter of 2022.
That compared to $632,100 in the fourth quarter of 2021 and $580,500 in the first quarter of 2021.
In Whitehorse, the median price of single-detached houses in the first quarter of 2022 was $620,500. That means the prices of half the houses sold were above this figure and the remaining half, below.
B.C. Real Estate: Five homes for sale under $200000 – Vancouver Sun
According to a report released by a U.S.-based property management software company, around 10 per cent of all active home listings in Canada right now are priced at less than $200,000.
There are no listings for less than $200,000 in the Lower Mainland (except in Richmond).
Here are five residential properties in B.C. that are for sale at less than $200,000.
Richmond 106/7240 Lindsay Road
This 630 square foot apartment is almost 50 years old and has a monthly maintenance fee of $460.
It is on the ground level and a key reason that it is priced at $199,000 is because it is built on leased land. The lease is prepaid until 2087.
Sonora Island Lot 30 Owen Bay
This 1.26 acre lot comes with a small older cabin that is livable and is priced at $129,000. It has solar and wind power. There is a dock a ten-minute walk away.
Sonara Island is one of the Discovery Islands where Johnstone Strait joins the Georgia Strait.
The closest large community is Campbell River on Vancouver Island. Sonora Island is not serviced by B.C. Ferries.
Port Hardy 7/7077 Highland Drive
There are four apartments in different locations within Port Hardy on the top end of Vancouver that are priced at less than $200,000.
This one has two bedrooms and has been updated with new laminate floors and is south facing. It is priced at $169,000.
As a base for ferries to Prince Rupert, Port Hardy sees a lot of tourists in the summer.
Trail 2075 Topping Street
Trail, the site of Teck Resources zinc and lead smelting and refining complex, was a decade ago a place you could buy a home for $50,000.
It’s now a place where you can get a detached home for less than $200,000. Despite the smelter that looms over the city, Trail is close to excellent skiing and recreation.
This 1,300 square-foot home has views of the Columbia River with a serviceable kitchen and even has a new washer-dryer. It is priced at $199,000.
Tumbler Ridge 103 Ash Crescent
Tumbler Ridge in the Peace River region was built from scratch in the early 1980s to create a community for coal mining companies in the area.
As a result, it’s a lovely town that’s well laid out and has great amenities. It is, however, beholden to coal demand, that has led to a slump in real estate prices.
With an asking price of $183,000, this 2,100 square foot home is on a large corner lot. It has three bedrooms and comes with a new furnace. It has been on the market for over two years.
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