L’ÎLE-DES-SŒURS, Quebec, Oct. 16, 2020 (GLOBE NEWSWIRE) — The Quebec Professional Association of Real Estate Brokers (QPAREB) has released its most recent residential real estate market statistics for the province of Quebec, based on the real estate brokers’ Centris provincial database.
In total, 32,200 residential transactions were concluded in the province of Quebec in the third quarter of the year, an exceptional 49 per cent increase compared to the third quarter of last year. This also represents a new sales record, all quarters combined, since the real estate brokers’ Centris system began compiling market data (2000).
- In total, 21,876 single-family homes (+51 per cent), 7,673 condominiums (+47 per cent) and 2,457 plexes (+37 per cent) changed hands in the third quarter of the year.
- Geographically, the agglomerations of Charlevoix (+174 per cent), Sainte-Agathe-des-Monts (+122 per cent), Saint-Sauveur (+118 per cent) and Mont-Tremblant (+115 per cent) saw their number of residential sales more than double compared to the third quarter of last year.
- As for the province’s six census metropolitan areas (CMAs), the largest increase in sales was in the Sherbrooke CMA, where sales jumped by 67 per cent. This was followed by the Quebec City CMA (+58 per cent) and the Saguenay CMA (+52 per cent). The Montreal and Gatineau CMAs also registered a significant increase in sales at 42 per cent and 39 per cent, respectively. Finally, only the Trois-Rivières CMA registered a more modest increase in sales, at 16 per cent.
- The median price of single-family homes in Quebec jumped by 21 per cent to reach $310,000.
- As for the province’s metropolitan areas, for the second consecutive quarter, the largest price increases for single-family homes were in the Gatineau (+24 per cent), Montreal (+21 per cent) and Sherbrooke (+17 per cent) CMAs.
- Outside of the metropolitan areas, the largest price increases for single-family homes were in the agglomerations of Sainte-Adèle (+31 per cent), Granby (+29 per cent), Saint-Sauveur (+26 per cent), Saint-Hyacinthe (+23 per cent) and Sainte-Agathe-des-Monts (+21 per cent).
- The median price of condominiums across Quebec increased by 11 per cent to reach $282,500, while that of plexes was unchanged at $427,000.
- The downward trend in supply continued for a 19th consecutive quarter. From July to September, there were an average of 36,494 residential properties for sale in the real estate brokers’ Centris system, a 33 per cent drop compared to the same period last year. This was the largest quarterly decrease ever recorded since Centris began compiling statistics. The last time the province had such a low level of supply was back in 2004.
- All of the province’s CMAs registered a significant drop in supply. The CMAs of Trois-Rivières (-47 per cent), Gatineau (45 per cent) and Sherbrooke (39 per cent) registered the largest decreases.
Market conditions and selling times
- The significant decline in supply, coupled with strong sales activity in most areas of the province, led to a further tightening of market conditions, again to the advantage of sellers.
- However, the condominium market on the Island of Montreal contradicted the general trend, as market conditions, which remain in favour of sellers, stabilized for a second consecutive quarter.
- It took an average of 94 days (-2 days) to sell a single-family home in Quebec, 62 days (29 days) to sell a condominium, and 94 days (-7 days) to sell a plex.
“With an historic rebound – and an exceptional one given the spring confinement period – the province’s resale market experienced tremendous growth in the third quarter. Since the start of the year, there has been a 10 per cent increase in sales compared to the first nine months of last year, which was already an excellent year,” said Charles Brant, director of market analysis at the QPAREB. “In a context of renewed interest for residential properties as a safe haven and essential asset, stimulated by record low interest rates and the accelerated rise in household savings, most markets are exceptionally active, particularly in the periphery regions of the CMAs. This situation is causing a drop in listings and a tightening of many markets in favour of accelerated price growth,” he added.
For more detailed market statistics for the province, click here.
About the Quebec Professional Association of Real Estate Brokers
The Quebec Professional Association of Real Estate Brokers (QPAREB) is a non-profit association that brings together more than 13,000 real estate brokers and agencies. It is responsible for promoting and defending their interests while taking into account the issues facing the profession and the various professional and regional realities of its members. The QPAREB is also an important player in many real estate dossiers, including the implementation of measures that promote homeownership. The Association reports on Quebec’s residential real estate market statistics, provides training, tools and services relating to real estate, and facilitates the collection, dissemination and exchange of information. The QPAREB is headquartered in Quebec City and has its administrative offices in Montreal. It has two subsidiaries: Centris Inc. and the Collège de l’immobilier du Québec. Follow its activities at qpareb.ca or via its social media pages: Facebook, LinkedIn, Twitter and Instagram.
Société Centris provides real estate industry stakeholders with access to real estate data and a wide range of technology tools. Centris tools are used by close to 14,000 real estate brokers, as well as other industry professionals. Centris also operates Centris.ca, the most visited real estate website in Quebec.
Click on the links below to consult the regional press releases:
Quebec City CMA
RMR de Gatineau
RMR de Sherbrooke
RMR de Saguenay
RMR de Trois-Rivières
Agglomération de Granby
Agglomération de Joliette
Agglomérations des Laurentides
Agglomération de Saint-Hyacinthe
Agglomération de Drummondville et de Victoriaville
Agglomération de Val-d’Or et de Rouyn–Noranda
For more information:
Communications and Marketing
514-762-2440, ext. 157
Communications and Marketing
514-762-2440, ext. 238
Subversive Real Estate Acquisition REIT LP Announces Election of Directors of General Partner – Canada NewsWire
TORONTO, Oct. 30, 2020 /CNW/ – Subversive Real Estate Acquisition REIT LP (the “REIT LP“) (NEO: SVX.U) (NEO: SVX.RT.U) (OTCBB: SBVRF) today announced that the nominees listed in the management information circular for the 2020 annual general and special meeting of holders of Proportionate Voting Units were elected as directors of Subversive Real Estate Acquisition REIT (GP) Inc., the general partner of the REIT LP. Detailed results of the votes by proxy for the election of directors held virtually on October 29, 2020 in Toronto, Ontario are set out below:
Michael B. Auerbach
Craig M. Hatkoff
Details of the voting results on all matters considered at the meeting are available in the REIT LP’s report of voting results, which is available under the REIT LP’s profile on SEDAR at www.sedar.com.
About Subversive Real Estate Acquisition REIT LP
Subversive Real Estate Acquisition REIT LP is a limited partnership established under the Limited Partnerships Act (Ontario) formed for the purpose of effecting, directly or indirectly, an acquisition of one or more businesses or assets, by way of a merger, amalgamation, arrangement, equity exchange, asset acquisition, equity purchase, reorganization, or any other similar business combination involving the REIT LP that will qualify as its qualifying transaction for the purposes of the rules of the Exchange. The REIT LP is a special purpose acquisition corporation for the purposes of the rules of the Neo Exchange Inc. (the “Exchange“). The REIT LP’s restricted voting units and rights are listed on the Exchange under the symbols “SVX.U” and “SVX.RT.U”, respectively.
Additional information is located at www.subversivecapital.com/reit.
SOURCE Subversive Real Estate Acquisition REIT LP
Canada real estate: RBC Economics reports condo listings on the rise as investors look to sell – The Georgia Straight
RBC Economics reported on October 15 that condo prices have “stagnated over the past six months”.
Previous to this, the bank’s economics section on September 30 predicted that condo prices could “weaken in larger markets next year”.
Another thing is happening as well with the condo market in Canada.
In its latest housing report, RBC Economics noted that the real-estate market is awashed with condo supply.
According to economist Robert Hogue, “condo investors are looking to sell”.
“As rents soften and vacancies rise, condo listings are spiking in Toronto, Montreal and Vancouver—albeit from low levels,” Hogue reported on Wednesday (October 29).
In the City of Toronto, condo listings in September 2020 increased 133.9 percent compared to supply in the same month last year.
For the rest of the Greater Toronto area, condo listings last month posted year-over-year growth of 81.5 percent.
In the island of Montreal, listings rose 41.4 percent in September compared to the same month in 2019.
However, for the rest of the Greater Montreal area, listings declined 32.8 percent year-over-year.
In Greater Vancouver, listings of condo properties rose 20.9 percent in September 2020 compared to the same month last year.
In contrast, listings for detached homes in all Toronto, Montreal, and Vancouver metropolitan regions decreased year-over-year in September.
“New, stricter regulations in Toronto are adding to the impulse to sell – at a time when new condo completions are bringing more units to the Toronto and Vancouver markets,” Hogue noted in his October 29 report.
Hogue’s report covered in broad strokes how the COVID-19 pandemic is affecting the Canadian housing market.
“Rural and suburban areas that once lagged desirable city addresses are now roaring hot as homebuyers wearied by lockdowns seek bigger yards and larger living spaces,” Hogue wrote.
Meanwhile, “Tight downtown condo markets that previously commanded expensive rents are now thick with supply.”
Hogue also stated that “rent is now declining in Toronto, Montreal and Vancouver, especially in higher density, downtown locations”.
“Underlying the shift,” according to the bank economist is a “surge in rental supply as the short-term rental business dries up and new purpose-built rental and condo units are completed”.
As well, “Big-city living has lost some of its luster with social distancing measures severely restricting cultural life and socializing opportunities.”
“Meantime, affordability issues are driving many Canadians further afield into smaller towns and cottage country, where larger living spaces are available,” Hogue wrote.
The Importance of Mortgage Loan Insurance
Mortgage Loan Insurance is meant to shield the borrower from default on the borrower’s part, both straightforward and easy. However, the Canada Mortgage and Housing Corporation (CMHC) has built mortgage loan insurance to cover more than just banks. The CMHC needed homeowners to be better able to reach the housing market at an earlier time and better results. After all, more privately-owned housing means more employment, more market activity, more money invested, and so on. If there are more jobs and more investment, the economy will gain. In short, the risk to lenders has been eliminated, leaving them in a stronger position to offer lower interest rates and lower payments.
When the CMHC developed its Mortgage Loan Insurance (MLI) plan, it had a stipulation that if the borrower had less than 20% of the purchase price as a down payment, the insurance was necessary. Before introducing MLI, the Canadian Bank Act restricted federally controlled lending institutions from lending to those with less than 20% of loans. Banks will now fund up to 95 percent of the purchase price, given that MLI is purchased. The move meant that so many more people, who had previously given up on owning a house, now had hope.
MLI offers choices for those who already own a house for those who want to renovate, refinance, or move to another place. CMHC MLI’s are portable from an existing home to a newly purchased one, often without paying the initial premium for a new home. Besides, self-employed individuals looking to fund the purchase of a new home are now in a position to do so without offering conventional forms of proof of income. And those new to Canada are eligible. Current homeowners who choose to integrate energy-efficient elements into their home (the NRCan Energy Assessment Rating must increase by at least five points) are entitled to an extended amortization period-without a surcharge and with a 10% insurance premium rebate. There are also more incentives for borrowers to buy a second home or income land.
Now that we know the value of MLI, how do we translate it into numbers? Ok, it depends on a few equations, for instance. Your lender will do it for you, but if you want an idea ahead of time, start measuring the Gross Debt Service (GDS). The GDS estimates the most expenses you can afford per month, particularly those related to running your house. The cumulative GDS need not be more than 32% of your gross household income to apply for an MLI. Next is your Total Debt Service (TDS) estimation, which calculates the most debt cost your payment can cover. The TDS should not be more than 40% of your total monthly household income. Use the online mortgage calculator to enter the details and your gross monthly income, along with other factors, and you will be presented with the maximum allowable mortgage you apply for.
The MLI premium rate will then be measured as a percentage of the overall loan, taking into account the down payment size. For example, if you need the lender to fund 80% of the property’s cost, your fee would be 1 % of the total loan. If the purchase requires 95 percent of the lender’s funding, the price would be 2.75 percent of the total amount of the loan. The lower the sum financed, the lower the insurance premium.
Also, the harder homeowners work to pay off their mortgage, the more equity they create in their house. The ability to buy earlier than was traditionally feasible (through the MLI), homeowners took the opportunity to go faster than even the lender had expected. As of 2009, the CMHC estimated that Canadian homeowners’ equity status was, on average, 74 percent, while that of its American counterparts was 43 percent. The importance of the MLI is obvious now.
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