How has the real estate market outperformed your expectations as of late?
Yes, we have seen the mother of all V-shaped recoveries. The fact that the market recovered was not a big surprise. The speed at which it recovered was a surprise. I think that the number one fact though, of course, when people try to figure this out, will point to pent up demand and extremely low interest rates, which is true. However, there is much more to it. I think that if you look at qualification rates, at 4.79%, for variable and fixed-term rates, they are in fact higher from a qualification perspective when they were in 2008. And back then, this activity went down. In fact, this has been the most housing-market-friendly recession ever. Okay, so it’s not just about the industry. It’s about the composition of the damage in the labour market.
Explain how the labour market activity has impacted the market.
The vast majority, almost 100%, of all jobs lost during this recession were low wage occupations. Many of them are renters and are not players in the resale market. Second, is that it means that a very large segment of households was untouched by this crisis, financially speaking, their job is there, their income is there. In fact, many of them are sitting on extremely high levels of excess cash. And the interest rates are in the basement. That’s the opportunity that they were looking for. So the asymmetrical distribution of development in the labour market is the secret behind the success of the housing market today.
The downtown condo market is that big outlier here. What do you see happening there right now?
I think most of the most of the improvement was, of course, in the low-rise segment of the market. It makes sense because the nature of the crisis means that a lot of people want to move to detached houses. We are seeing a situation in which there is a positive correlation between the inflation rate in housing and the price of housing. The fact that detached prices are rising is a real nightmare, if you wish, for mover-uppers, because the price of the house that you want is rising faster than their own house. The gap is widening. So this is a reflection of people wanting to live in bigger houses and therefore they also move to outside the 416.
And do you see this trend continuing for the long-term?
I believe that that will continue to be the case for the next six months or so especially during the winter. The housing market in general, during the winter, will weaken alongside the economy as a whole as we have a second wave combined with the flu season confidence will go down. So that’s clearly something that we expect, and that will impact the housing market. I think that the 416 condo space will feel most of the pain because of the fact that we have a lot of supply coming in and demand is slowing. Having said that, I think that as we reach the other side of this crisis, the later the second half of 2021 we’re going to see a situation in which people start realizing the rental space in downtown Toronto is a bargain and you will see demand returning In between I see some adjustment in supply and some developers that basically front load and that activity will not be there during the winter. So the net result of some reduced supply in the second half of 2021 and marginal improvements in demand, we see some improvement in this market as well. But in between, we have to go through the winter.
And do you see the exodus to the suburbs trend continuing?
That trend started way before the crisis, as we all know, this is not new. Every crisis is a trend accelerator. And this crisis is no different in the sense that it accelerated this trend. Will we continue this trend? Absolutely not. When we are on the other side of this crisis, people will rethink this approach, it will continue, but not at the current rate. So again, when you’re in a situation, you have a tendency to exaggerate the long-term implications of that situation and we are in a situation. So people look at the people fleeing from downtown as a sign of a long-term trend. That’s not the case. I think that people will go back to downtown and the trend will continue but at a much slower pace than we’re seeing now.
What is your advice in terms of navigating this volatile market? Is it better to wait it out?
Well, I think that if you are in the market for a quick investment, then you can wait. For the long term, I think that the winter will provide some good entry positions given the relatively soft nature of the market. I think that the spring will be relatively strong.
And when the vaccine rolls out the timing, what will that do in terms of the market and the economy in general?
That’s one of the reasons why I believe that the economy will be very strong in the second half of the year, especially in the summer and into October, November when the vaccine will be widely available. That’s one of the reasons why I’m so optimistic about the second half of the year, when the economy I believe will rise by four, five, six percent including some nice improvement in the housing market.
Is now actually the best time in terms of buying a condo downtown?
I think that the market is soft and will probably get softer. The next few months will be actually if you have a long term horizon, the next few months will be a good opportunity absolutely.
‘Where is Snoopy?’: Dartmouth Realtor suspended, fined for taking tenant's dog – TheChronicleHerald.ca
A Dartmouth Realtor is in the doghouse with her regulatory body for taking a hound named Snoopy from a tenant in a home she was trying to sell.
The Nova Scotia Real Estate Commission suspended Sarah Sullivan of Century 21 Trident Realty Ltd. effective Jan. 16 until Feb. 15 for violating the province’s real estate laws. Sullivan has also been ordered to pay $2,500 in fines.
“The violations resulted from an investigation of a complaint from a member of the public. The complainant, who owned a dog, was a tenant of a property that was listed for sale. Ms. Sullivan viewed the property with a potential buyer,” said the decision from the commission.
“At a later date, Ms. Sullivan approached the complainant, and asked if they were interested in selling the dog, which they advised they were not. Ms. Sullivan offered to take the dog while they moved out of the property.”
Threatened to use inside info
Sullivan took the dog and failed to return it, said the decision.
“In response to efforts by the complainant to have the dog returned, Ms. Sullivan inappropriately used or (threatened) to use information she acquired only as a result of her access to the property as a real estate licensee. When the matter was investigated, she provided false/misleading information to the investigator on several occasions.”
This isn’t the first time she has been in trouble with the regulatory body.
“Ms. Sullivan had previously been disciplined in 2014 for providing false information to the commission during the course of an investigation.”
Sullivan’s actions hurt the profession as a whole, said the decision about taking the dog.
“This conduct is dishonourable, unprofessional, harmful to the best interests of the public and to the reputation of the industry at large. The public must have confidence that when they provide access to their property to members of the profession, that their privacy will be respected and information shall be gathered, used and shared, only for reasons related to the trading in real estate. Further, it is a violation to provide false/misleading information to the commission.”
Sullivan, a mother of four, declined to comment when reached Monday by telephone.
“I am unfortunately not able to discuss or disclose my side of the story,” she said.
Brother still looking for dog
A Dartmouth man named Robert Smaggus said in an email to The Chronicle Herald that the dog in question, named Snoopy, belonged to his brother.
“I have been looking for him since June 4, 2020,” Smaggus wrote.
He said he complained about the missing dog to police, but was told it was a civil matter.
He also noted in his email that he contacted Patricia Arab, the minister responsible for Service Nova Scotia, but was told she couldn’t intervene in the case.
“Where is the accountability?” Smaggus said. “Where is Snoopy?”
St. John's Real Estate: The Housing Market That is Topping the Charts – RE/MAX News
At the start of 2020, few would have anticipated that St. John’s real estate would be one of the hottest Canadian housing markets by the end of the year. Twelve months later and the nation’s east coast is witnessing exponential growth in its housing sector. Commercial development, population growth, and a rebounding economy are contributing to the area’s booming real estate market. And this could be a main headline in Canadian real estate news for many years to come.
St. John’s is one of Atlantic Canada’s hottest cities, despite having one of the country’s coldest winters! From impressive sales activity to record-breaking valuations, St. John’s is becoming the envy of the nation for its eye-popping real estate data. But is this only temporary, or is it a long-term trend that will carry into 2021, and beyond?
For years, Atlantic Canada had been considered a buyer’s market. Housing was cheap, the economy was struggling, and the region was experiencing a population exodus. Fast forward to the present, and St. John’s and its neighbours are sitting comfortably in a seller’s market. Here is what you can expect if your home-buying sights are set upon this historic Atlantic city:
St. John’s Real Estate: The Housing Market That is Topping the Charts
According to the Newfoundland and Labrador Association of REALTORS®, residential activity in St. John’s ballooned by 62.9 per cent year-over-year in December. This outpaced the 50-per-cent growth in the rest of Newfoundland and Labrador. Single-detached home transactions soared at a record 47.2 per cent from the same time a year ago.
What about prices?
St. John’s overall benchmark price climbed by an annualized rate of 5.7 per cent in December to $268,200. But certain properties outperformed others: the benchmark price for single-family homes increased by 6.7 per cent year-over-year to $271,400, while the benchmark apartment price tumbled four per cent to $225,000.
With supply not increasing in line with demand, these prices could continue to climb heading into 2021. Active residential listings province-wide in December were down 21.1 per cent compared to December 2019, marking a five-year low inventory level for the month of December.
Months of inventory fell to 7.1 months in December, down from the 14 months of inventory recorded at the same time a year ago. The long-run average of months of inventory is 10.5 for this time of the year. This is an important metric the industry uses because it is the number of months it would take to sell current stocks at the present rate of activity.
Despite long-term bullishness, the RE/MAX outlook for St. John’s residential real estate in 2021 is a drop of as much as three per cent to approximately $285,027 across all property types.
Is the St. John’s Housing Market ‘Vulnerable’?
The Canada Mortgage and Housing Corporation (CMHC) published its latest Housing Market Assessment (HMA) for the third quarter of 2020. The HMA examines the nation’s biggest real estate markets’ level of vulnerability, using four primary factors: overbuilding, overvaluation, overheating, and price acceleration.
Regina, Hamilton, Montreal, and Moncton topped the list of cities more vulnerable in the Canadian housing market. St. John’s, meanwhile, joined the list of six markets that received overall low vulnerability scores (Edmonton, Calgary, Saskatoon, Winnipeg, and Quebec City were the others).
“Although the unprecedented income supports from governments provided temporary relief, the COVID-19 crisis negatively affected the level of permanent disposable income available to households,” said Bob Dugan, CMHC’s chief economist, in a news release. “Along with the weakening of other drivers of the housing market, overvaluation imbalances increased further or started to emerge in several markets in the third quarter of 2020.”
Beyond Pent-Up Demand in St. John’s
The term “pent-up demand” has become a fixture in conversations about the Canadian real estate market last year, to explain the monumental surge in housing activity. Due to the coronavirus pandemic, much of the spring and summer buying and selling had been delayed by a few months. But while it is believed that the pent-up demand has been exhausted, St. John’s situation is beyond this market phenomenon.
Indeed, the east coast city’s rejuvenation is potentially part of a long-term trend of economic revitalization, population growth, and a strong housing sector. The COVID-19 public health crisis could be the contributing factor to its long-term rejuvenation.
From historically low interest rates, to a change in how we work and the adoption of digital tools by real estate agents, Canadians have more options at their disposal to navigate the housing market during these unprecedented times. This is great news for Canada’s former underdog housing markets like St. John’s.
Avoid These Common Problems with Professional Window Installation
It may seem easy to hire any affordable contractor to install your new windows in your home, or to attempt the job yourself. The reality, however, is that even if your windows look good at first inspection, there are a number of devastating problems that can easily arise further down the road if you don’t get a professional to do the job.
Proper Functioning of Your Windows
Whether you’re doing a retrofit to match new windows into old frames or are starting from scratch with an entirely new build, an expert installation by a knowledgeable team is key to ensuring that your windows function as intended.
If your windows won’t open and close properly, then it should be obvious that things are going poorly during the installation itself. Slight errors, however, can result in function problems that develop over time – the worse the error, the quicker the problem will develop. The best solution is to find a window company in Ontario that offers professional installation directly from in-house experts.
Plain and simple, if you can’t see through your windows then they aren’t doing the job that they are designed to do. Foggy windows will also spoil the time and money that you put into giving your home a unique and elegant look.
While there is no avoiding a certain amount of condensation buildup at times when it is warranted – such as when the weather calls for rain or a high amount of humidity in the atmosphere – it should not be present all of the time. When you notice condensation developing between the panes of glass inside your windows, this is a sure sign of an improper installation.
When the caulking on your windows is poorly applied, it can give the entire appearance of your room a messy look. Unfortunately, the appearance of your windows is the least of your concerns if the job has been done badly. Caulking is not only added to give your windows a finished and sleek appearance, it serves the important purpose of keeping your windows sealed and water-resistant. Improper caulking can cause leaks and render your home susceptible to mold.
If you live in an area that experiences extremes in temperature through the year, it isn’t difficult to detect cold air coming in near or around your windows. A poor installation can result in windows that are not doing the job of keeping heat inside and cold outside, which can result in a large increase to your power bill. Buy your windows from a company that you can trust to avoid having this expense sneak up on you later on.
You may think you’re saving yourself some initial cost by going with an amateur to install windows on your home, but if that route results in one of these major issues then the expense will end up growing astronomically. In the worst-case scenario, you’ll have to pay to have the entire job done over or, worse, an inexperienced contractor could even end up doing further damage to your home.
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