A Vancouver-based realtor says the Bank of Canada’s interest rate hike is a huge blow for first-time buyers in one of the country’s most expensive real estate markets.
The 2.5 per cent rate hike is the biggest by the central bank in nearly 25 years.
Kate MacPhail says she had many clients of the verge of purchasing their first property, but this development will likely make that unattainable.
“There’s just these sensitive segments of people who are going to try and squeak into a type of home, Once their buying power goes down, it’s not enough for them anymore,” MacPhail, a member of Stilhavn Real Estate Services told CTV News.
Even with property values expected to drop, MacPhail says it won’t be enough to overcome the rate hike.
“If the interest rates go up by two per cent all of a sudden your monthly payments just skyrocketed by about $1,000 a month,”
“Even if this creates an overnight five per cent decrease in prices in the Vancouver real estate market it’s not enough to cover the difference,” said MacPhail.
At this time last year a $500,000 mortgage at a 2.3 per cent fixed rate would cost $2190 per month.
Wednesday that same mortgage at 5.2 per cent would cost $2965.
A difference of $765 per month, and more than $9,300 per year.
The changes are also expected to put a serious decrease on demand, driving down prices across the country.
According to B.C. real estate statistics, sales in Greater Vancouver had already dropped nearly 36 per cent over the past year
MacPhail says this will now put serious pressure on those looking to sell.
“People who have properties that they need to sell, especially if they’ve already purchased, this now becomes extremely urgent if we’re going to see a downturn in the market,”
Toronto-area commercial real estate deals total $7B in Q2, up 43% from year ago – Alberta Prime Times
TORONTO — A new report says the total value of commercial real estate sales in the Greater Toronto Area in the second quarter rose 43 per cent compared with a year ago.
The report by Avison Young says sales of office, industrial, retail, multi-residential and industrial, commercial and investment (ICI) land across the region totalled $7 billion for the three-month period, up from $4.9 billion a year earlier.
The result brought total investment to $14 billion for the first half of 2022.
The report says the industrial sector saw the highest investment dollar volume during the quarter with $2.6 billion compared with $1.4 billion in the same quarter last year.
The ICI land category garnered $1.7 billion, up from $1.6 billion a year ago, while office properties saw $1.1 billion in deals, up from $349 million in the second quarter of 2021.
Multi-residential deals totalled $1 billion, up from $815 million in the same quarter last year and retail property deals amounted to $696 million, down from $725 million a year ago.
This report by The Canadian Press was first published Aug. 18, 2022.
The Canadian Press
From Homebuyers To Real Estate Investors – AccessWire
TORONTO, ON / ACCESSWIRE / August 18, 2022 / To say that a mortgage is just a loan is far from the truth. It is much more than that. A mortgage is your key to home/property ownership, and if you land the right one, it will become a crucial financial tool for building a strong financial future through real estate.
How would you be able to land the right mortgage and make millions yourself? You’re in luck because you don’t have to do it alone. We know a mortgage agency that can hook you up with a certified mortgage professional to speed up the process, ensure you get the best deal, and teach you how to earn your fortune in real estate.
Mortgage Alliance is one of Canada’s most established mortgage companies, with years at the industry’s top. The Canadian mortgage agency enjoys a reputation as a prime source of mortgage solutions for homebuyers, homeowners, and investors alike. They cater to clients all around Canada, providing professional mortgage services and financial guidance to “help people improve their financial health in the short, medium, and long term through real estate,” according to Mortgage Alliance agent Lesley Hepditch.
To that end, the agency takes a comprehensive approach to helping its clients achieve their goals. Their agents don’t use any cookie-cutter solutions. Instead, they work closely with clients to understand their financial situation or needs and provide personalized strategies to secure the best results for their mortgage and their financial future. “We also act as financial coaches, so while I myself am chiefly a mortgage professional, I am also licensed to handle investments and insurance. This allows Mortgage Alliance agents like me to help clients in ways not many other companies can. In short, we look at their overall financial health, then help them craft ways to achieve their goals.” Lesley said.
Mortgage Alliance covers all the usual mortgage services, including new home purchases, refinancing, and renewals. It promises clients unbiased advice and expert education on what they need to know to make the best decisions. Lesley explained that the end goal is simple: “We want to help people earn more income and become properly protected, debt-free, and financially independent by helping them build their four pillars of investing: investments, income protection, debt elimination, and real estate. For us, client education is just as important as results because we want to help them achieve lasting wealth.”
With their agents’ mortgage expertise and deep financial acumen, landing the right mortgage will be the least of your worries, or rather successes, with Mortgage Alliance. If you’re ready to take the first step toward securing a thriving financial future, don’t hesitate to contact the mortgage and financial experts at Mortgage Alliance using the details listed below.
About Mortgage Alliance:
Mortgage Alliance is one of Canada’s most trusted mortgage companies. They offer the full selection of mortgage services, with a focus on providing custom solutions for any of their clients’ financing needs.
SOURCE: Mortgage Alliance
Real estate at critical juncture to embrace dynamic workplaces – PR Newswire
JLL’s Future of Work Survey shows that while hybrid work is here to stay, the office remains critical to business operations
CHICAGO, Aug. 18, 2022 /PRNewswire/ — As businesses continue to evolve their workplaces to best meet the needs of their employees, JLL’s (NYSE: JLL) global Future of Work Survey finds that 72% of decision makers believe the office is critical to doing business. The research shows that over the next several years companies anticipate hybrid work to become the dominant model and will be looking across their real estate portfolios to re-think their office spaces, invest in new technology and prioritize sustainability.
“The next three years will prove to be an inflection point for real estate as businesses plot their future path and rethink the purpose of their portfolio,” said Dr. Marie Puybaraud, Global Head of Research, JLL Work Dynamics. “The changes accelerated by the pandemic represent an opportunity to pause, think about a long-term real estate strategy and how it aligns with future business priorities.”
Rethinking the office layout to accommodate hybrid working in the long-term
The mass adoption of hybrid work will have a lasting impact, with 77% of CRE leaders agreeing that offering remote or hybrid working will be critical to attracting and retaining talent in the future. As the trend toward dynamic working will continue, successfully operationalizing hybrid working will be the most important strategic priority for commercial real estate (CRE) executives over the next three years. This includes exploring flexible space options, with 43% of companies planning to accelerate investment in flexible space between now and 2025, and 51% saying they will lease flexible space through a third-party provider.
“As the office finds a new purpose post-pandemic as a destination for collaboration in employees’ hybrid workstyles, occupiers will need to continue increasing their investments in creative spaces,” said Cynthia Kantor, Chief Client Value & Growth Officer, JLL Work Dynamics. “Enhancing socialization, especially among a large, often geographically dispersed, workforce will be critical to future talent strategies, as the office accelerates its role as the innovation hub of the work ecosystem.”
Forty-five percent of organizations consider collaboration to be one of the primary purposes of office space and 73% have planned or are planning to make all office spaces open and collaborative, with no dedicated desk spaces. Many companies are also investing in spaces that support new workforce priorities around health and wellbeing.
Environmental and social aspirations will shape future portfolio transformation
As organizations face ever increasing pressure to deliver clear outcomes in the race to net zero and create social value through real estate, 77% say investing in quality space is a priority. With green strategies having a direct impact on real estate decisions, 74% say they are likely to pay a premium for green credentials; further, more than half of occupiers (56%) plan to do so by 2025.
However, stakeholder aspirations are not solely environmental, with nearly 8 out of 10 companies saying their employees expect their workplaces to have a positive impact on society. This means increasing investment in social considerations will be equally as important as funding environmental objectives. With diversity, inclusion and wellbeing now falling high on the corporate agenda, companies are underpinning these objectives with further investment and resources. Seventy-nine percent of respondents agree that their organizations are acting today to make the workplace more inclusive and diverse for all employees.
Investing in technology investments to boost workplace performance and productivity
Technology and data will be critical foundations in the future of successful real estate operations, but the gap that needs to be filled is immense. Only 13% of CRE executives say they are collecting data on an ongoing or real-time basis using advanced analytics. With the transformative power of technology to shape the dynamic workplace, companies are focused on ramping up investments in intelligent solutions to unlock new opportunities for boosting workforce performance and productivity.
The research finds a clear roadmap for CRE technology shaped around 15 anchor technologies, including workplace apps, remote working technology and virtual reality.1 As organizations plan future investments, CRE leaders are focused on key strategic areas like sustainability and employee wellbeing. By 2025, most companies (78%) plan to have incorporated over ten of the anchor technologies in their operations, and 40% plan to incorporate all 15.
Real estate needs are becoming more sophisticated and complex
To respond to the complex range of future of work challenges, CRE leaders will focus more on harnessing specialist skills to achieve their strategic objectives. Seventy-five percent of leading CRE functions anticipate greater reliance on external partners, with the two top areas for outsourcing growth expected to be health and wellbeing services (44%) and sustainability strategy (44%). Further, as technology becomes a crucial platform to boost performance levels on all fronts, 43% say they will need more outsourcing support for CRE technology solutions over the next three years.
1 For a list of the 15 anchor technologies, refer to p. 30 in JLL Future of Work Survey (August 2022)
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Contact: Gayle Kantro
Phone: + 1 312 228 2795
Email: [email protected]
Tourism shaping Osoyoos's economy in big way – Times Chronicle
UBC researchers say they've found 'weak spot' in all COVID-19 variants that could lead to better treatment – CBC.ca
Surrey Art Gallery talks return with wildlife artist – Surrey Now Leader
Silver investment demand jumped 12% in 2019
Europe kicks off vaccination programs | All media content | DW | 27.12.2020 – Deutsche Welle
Global Media Markets, 2015-2020, 2020-2025F, 2030F – TV and Radio Broadcasting, Film and Music, Information Services, Web Content, Search Portals And Social Media, Print Media, & Cable – GlobeNewswire
Sports18 hours ago
Czechia pulls off major upset over U.S., advances to WJC semifinal vs. Canada – Sportsnet.ca
Tech18 hours ago
Apple iPhone 14, iPhone 14 Pro Surprise Early Release Leaked In New Report – Forbes
Science10 hours ago
Russian spacewalk cut short by bad battery in cosmonaut suit – The Indian Express
Sports4 hours ago
Czechia upsets U.S. in World Junior quarterfinals – TSN
News18 hours ago
Census data shows linguistic diversity on the rise in Canada – Saanich News
News8 hours ago
Wagering Online Using Real Money
Media8 hours ago
Media Release – August 18, 2022 – Guelph Police – Guelph Police Service
Tech17 hours ago
Samsung Galaxy Z Flip 4, Galaxy Z Fold 4 receive 50,000 bookings in just 12 hours! – HT Tech