Real estate listings hit a record as hot housing market cools off
September 7, 2022 7:07am
The number of new real estate listings reached a 10-year record in August, as the housing market and prices cooled off in Sarnia-Lambton.
Sarnia-Lambton Real Estate Board President Rob Longo said there were 342 active listings last month, a 134 per cent increase over August 2021, and 267 of them were new.
“We have seen a dramatic shift in the market in the last couple of months, which is not necessarily a bad thing, but we did see in August a record number of new listings come on which is a really good thing for buyers and sellers that are looking in the local market,” said Longo.
As a result of the increased inventory, homes took longer to sell, averaging 21 days on the market.
“Buyers can take their time, they can look at a few more options that are available. There’s not as much urgency in the market. So, it’s just a little bit easier and less stressful for both those buyers and the sellers, in terms of a more traditional process of what we’re used to, versus how busy it’s been the last couple of years.”
Longo said on average, homes sold for about 97 per cent of their asking price in August.
“We are still seeing some houses that are getting multiple offers and going [selling] over asking. But, for the most part, most are back to a more traditional process.”
Longo said the median sale price year-to-date was $500,000 last month, which was down slightly from the previous month, but still up 14 per cent over the median price in 2021.
“Usually we see a bit of a seasonal slowdown at the end of August, beginning of September, with people going back to school and vacationing and different things like that. But, overall, we’re expecting a very strong fall and I think things have set up to really be a busy fall for buyers and sellers here locally.”
Volume sales for the month reached nearly $70 million, an almost 14 per cent decrease from August 2021.
Investors Take Adler to Court Over Plan to Sell Real Estate Unit’s Assets – BNN Bloomberg
(Bloomberg) — A group of Adler Real Estate’s shareholders started litigation proceedings against the parent company to prevent a plan to sell almost all of the unit’s assets.
The group hired Munich-based law firm Martius to begin litigation, which was filed to Berlin’s regional court at the end of last month, according to people familiar with the matter. The motion seeks to block the Adler Group SA’s proposed sale of almost 95% of Adler Real Estate’s residential and commercial units to a third party, the people said.
The move is the latest initiative taken by Adler Real Estate’s investors concerned that assets and cash are being moved out of their reach. The group is seeking to pay down €6.3 billion ($6.2 billion) of debt just as Germany’s once booming real estate market shows signs of turning.
The German landlord has been thrust into limelight by allegations leveled by short-seller Viceroy Research and a former associate of Cevdet Caner, the tycoon accused of pulling the strings behind the company. Investors are concerned about the financial position of the landlord, after large-scale asset sales and a forensic probe into allegations of fraud failed to stop a slide in its shares and bonds.
Adler made a number of writedowns this year, including hundreds of millions of euros in receivables that Viceroy had flagged in the report, and has also written down the value of its development arm Consus Real Estate AG.
Adler’s management said an investigation led by KPMG didn’t find evidence of “systematic fraudulent and looting transactions.” The forensic report couldn’t disprove some allegations regarding Caner’s involvement and deals. KPMG has since resigned as Adler’s auditor.
Adler declined to comment for this story but has previously said it is engaged in constructive discussions with the majority of its bondholders, including a larger group of creditors to the parent company. Representatives for Martius did not respond to a request for comment.
Adler Real Estate is the unit that led a three-way merger with Consus and ADO Properties to form Adler Group in 2020. The parent company now owns almost 97% of its shares, while the unit has about €1.5 billion of debt, including €500 million of bonds due in April 2023.
The troubles now engulfing the company have made some creditors nervous about its ability to raise sufficient funds from asset sales to meet those obligations. The subsidiary moved almost €600 million in loan and cash to Adler Group since December.
Some hedge funds that specialize in distressed debt have also bought the bonds in an attempt to capitalize on the situation. Notes due April are indicated at 82 cents on the euro, while bonds maturing in 2026 are at 69 cents, according to CBBT prices.
©2022 Bloomberg L.P.
5 Recent Western Canada Commercial Real Estate Deals You May Have Missed – Storeys
After the usual summer dip, Western Canada saw quite a few commercial real estate transactions in September. Here are a few notable deals that may have flown under the radar.
2M Sq. Ft Industrial Portfolio (Alberta)
Buyer: Skyline Industrial REIT
Skyline Industrial REIT announced in early September that it had completed its largest-ever transaction, comprising of 16 industrial buildings on 129.5 acres of land across four industrial parks in Calgary and Edmonton, which are 97.7% occupied and total to over 2M sq. ft of industrial space.
The deal is shrouded in a little mystery, however, as the seller has not been publicly named, with Skyline only saying that it purchased the portfolio from “a major Canadian pension plan.”
However, Skyline did list the properties it acquired, one of which was the Rampart Business Park on 157th Avenue NW in Edmonton, and development information for one of the buildings at Rampart Business Park listed on the Province of Alberta website named the developers as LaSalle Investment Management, a Chicago-based real estate investment management firm that has previously acquired large amounts of industrial space in Alberta.
72,088 Sq. Ft Industrial Building (Edmonton)
Buyer: BTB REIT
BTB REIT, another real estate investment management firm, purchased one of the buildings within McIntyre Industrial Park in early September, which is leased to a single tenant: Redco Equipment Sales, which makes tools for the oil industry. The building is located on 8743 50th Avenue and was originally built in 1998.
220 Prior Street (Vancouver)
Seller/Developer: Keltic Canada Development Co. Ltd.
Buyer: Masimo Corp.
This upcoming building was originally going to be developed and leased, like most office space is. However, Keltic eventually decided to sell the building, now owned by California-based company Masimo, which makes a variety of personal and professional heath-tracking devices. The building is in the False Creek Flats area near the site of the also-upcoming St. Paul’s Hospital.
The building is set to be 100,000 sq. ft, meaning the deal works out to approximately $1,200 psf. The site was previously a warehouse, which Keltic purchased in 2019 for $25M. Ground broke officially on August 30 and is set to complete construction in 2024.
Gastown Heritage Building Commercial Strata Units (Vancouver)
This isn’t a deal with any particularly eye-catching numbers, but it is nonetheless noteworthy because it involves two commercial strata units in a Gastown heritage building, now called the Koret Lofts, that was built in 1906. The two units — on 57 and 63 East Cordova Street — total to approximately 2,807 sq. ft of space.
The Hamlets Senior Housing Portfolio (BC & Alberta)
Seller: H&H Total Care Services Inc.
Buyer: Axium Infrastructure & Optima Living
This $300M commercial real estate deal is for an eight-property portfolio, together known as the Hamlets, of senior housing communities spread out across Western Canada. Three are in Alberta — two in Red Deer and one in Airdrie — and five in British Columbia, in Vernon, Duncan, Penticton, Kamloops, and Surrey. In total, the deal includes 1,092 suites.
“The portfolio features a balanced mix of assisted living and independent living suites and funded long-term care and complex care beds and private pay complex care beds,” said the Newmark Group, who brokered the deal, in a press release. “The portfolio is relatively new, with an average building age of 10 years and three residences opened since 2019. In addition, three of the assets provide the new ownership with over 360 units of development/expansion opportunities. The properties are each positioned well within their respective markets and spread across some of Canada’s most desirable retirement communities.”
Howard is a Staff Writer at STOREYS. He is based in Vancouver, British Columbia, and has also written about media for One Zero and international politics for WhoWhatWhy. Before STOREYS, he was also the Deputy Editor of 604 Now.
Winnipeg Real Estate Market Favours Sellers – RE/MAX News
The Winnipeg real estate market continues to be a seller’s market in 2022, but as new listings rise, could that be changing?
It appears that the Winnipeg real estate market may have peaked in May, as month-to-month prices fall, even though year-to-year prices have risen. According to data from the Winnipeg Regional Real Estate Board, the year-to-date average single-family home selling price is $431,158, up from the 2021 average of $379,844.
Month-to-month data shows a cooling off of the market—the average single-family home sold for $400,000 in July, compared to over $454,000 in May. Rising interest rates are a critical factor in the decline, but there is more to the story.
Another key factor is the rising choice of homes. There were 3,700 active listings available at the end of July compared to half that amount in the first four months of 2022. There were 2,359 new listings in July, an increase of nine per cent over July 2021.
“We are seeing once very tight market conditions loosening up in the second half of 2022,” says Akash Bedi, president of the Winnipeg Regional Real Estate Board, “above list price sales for both single-family homes and condominiums are trending down from what they were earlier in the year.”
Though July 2022 was not up to the peak pricing of earlier in the pandemic, it is still one of the best Julys on record. When you remove the 2020 and 2021 data, July 2022 outperforms any other July and ranks as the third-best July on record. So, we are not exactly experiencing a full-on market correction just yet.
Who’s Driving Demand for Winnipeg Real Estate?
Like many other cities across the country, move-over buyers drove much of the rising demand during the first two years of the pandemic. This population increase has had a significant impact on the local economy and the real estate market. It’s no surprise that people wanted to move to the city; it is one of the most affordable in Canada. Families can purchase a detached house below the national average price.
Our 2022 Housing Affordability Report ranked Winnipeg at number 10 on the list based on where homebuyers can own a home for the lowest price. If you are in Vancouver or Toronto, these numbers may make you realize why people have been relocating:
- Average Home Price (January 1 – June 30, 2022): $437,460.00
- 20% Down Payment: $87,492.00
- Mortgage Amount: $349,968.00
- Monthly Mortgage Payment: $2,104.00
- Average Monthly Income: $65,381.25
- % of Monthly Income Allocated to Mortgage: 39.10%
First-time homebuyers in Winnipeg are typically young couples looking for single-detached homes. These properties range in price from $300,00 to $400,00. Bidding wars have continued to impact both first-time homebuyers as well as move-up buyers from entering the market.
Move-up buyers in the Winnipeg housing market are typically families, and many have decided to wait on entering the market if their current home continues to meet their needs. This results in a lack of urgency to move.
The condominium market in Winnipeg is most popular with single homebuyers and young couples, with the average price for a condominium in Winnipeg being $271,901. The current condo market in Winnipeg is better than it has been in a while but is still slower than the detached home market.
Winnipeg New-Home Construction
According to Canada Mortgage and Housing Corporation (CMHC), new housing construction activity has increased slightly this month. Housing starts increased six per cent month-over-month to 471 units in July.
What Does the Future Hold for the Winnipeg Real Estate Market?
Industry professionals concede that the Winnipeg real estate market, as well as the broader housing sector in Manitoba, is tilted toward sellers, mainly because of tight inventory levels.
The gap between buyers and sellers is not as vast as in other markets such as Toronto and Vancouver. Considering the current values and pricing forecasts for the Winnipeg real estate market this year, it remains one of the most affordable cities in Canada.
Finally, with the Bank of Canada (BoC) raising interest rates, the conditions in the Canadian real estate market could be rebalancing. Though Winnipeg is unlikely to sustain its pandemic-level growth, it is doubtful that it will return to pre-pandemic prices. Time will tell what the happy median will be.
Investors Take Adler to Court Over Plan to Sell Real Estate Unit’s Assets – BNN Bloomberg
Danielle Smith: Facts about Alberta’s new premier, United Conservative Party leader
Iran flight relatives say Canada a haven for regime officials
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
Health22 hours ago
The keto diet and mental health: how closely should the food industry watch this trend?
Science22 hours ago
Laughing gas in space could mean life
Politics16 hours ago
What Shakespeare Can Teach Us About Power and Politics – St. Lawrence University Saints
Health23 hours ago
Laurier discovery could change how we target and kill virus and cancer genes
Media24 hours ago
Social media and depression; Micron semiconductor investment; Google Cloud Region comes to South Africa
Art20 hours ago
10 LGBTQ+ Artists Who Redefined Contemporary Art
Investment17 hours ago
Help clients navigate emotions when making investment decisions
Health9 hours ago
Toronto Public Health expands access to Meningococcal vaccination for eligible adult residents – Toronto