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Real estate sales activity 'increased heavily' compared to 2019 – OrilliaMatters

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NEWS RELEASE
BARRIE & DISTRICT ASSOCIATION OF REALTORS
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Quarter Three (Q3) Residential Real Estate Activity

Sept. 30, 2020 marked the end of Quarter Three (Q3) of 2020, and residential sales information is in with residential property sales recorded through the Matrix System for the Barrie and District Association of Realtors (BDAR). 

Q3 2020 (July 1, 2020 – Sept. 30, 2020) sales activity increased heavily compared to Q3 2019.

The average price of units sold also saw a modest growth in Q3 2020 as compared to Q3 2019. Sales activity in Q3 2020 was much stronger than the same time last year. This was likely due to a rebound in the market as the economy reopens from the pandemic.

Both Barrie and Simcoe Country Excluding Barrie contributed to this growth.  Average price during Q3 2020 was up 22.4 per cent as compared to Q3 2019. This was driven by a growth in average price inside and outside of Barrie.

Simcoe County
There was an 55.3 per cent increase in units sold when compared to Q3 2019 (Q3 2020 with 3344 units sold vs Q3 2019 with 2153 units sold). Average price of homes in Simcoe county during Q3 2020 was $616,115. This was a 22.4 per cent growth from the same timeframe last year.

Barrie
The number of sales increased 54.9 per cent in Q3 2020 (1021 units sold) when compared to Q3 2019 (659 units sold). Home prices within Barrie increased to $574,023, which was a 16.8 per cent increase from Q3 of last year.

Simcoe County Excluding Barrie
The number of sales increased 55.5 per cent in Q3 2020 (2323 units sold) when compared to Q3 2019 (1494 units sold). Simcoe County Excluding Barrie had an average price of $634,586. This was a 24.7 per cent increase form Q3 of 2019.

Innisfil
The number of units sold in Innisfil during Q3 2020 was 241, 56.5 per cent more than the number of units sold in Q3 2019 (154 units sold). The average price of units sold in Innisfil during Q3 2020 was $629,606. This was 32.3 per cent greater than the average price of Innisfil units sold during Q3 2019.

Orillia
The number of units sold in Orillia during Q3 2020 was 251. This was 56.9 per cent more than the number of units sold in Q3 2019 (160 units sold).The average price of units sold in Orillia during Q3 2020 was $478,894. This was 12.0 per cent greater than the average price of Orillia units sold during Q3 2019.

Month-Over-Month (September 2020 vs August 2020) All Residential Homes

The September 2020 sales information is in, and residential property sales recorded through the Matrix System for the BDAR region showed a month-over-month decline in the number of units sold outside of Barrie, while the month-over-month change in average price remained the same.

Year-to-date change in number of units sold and average price showed strong growth. The Housing Price Index (HPI) showed a month-over-month increase of 2.5 per cent from August 2020.

Simcoe County
1031 residential units were sold in Simcoe County last month—a 6.7 per cent decrease from August 2020. During the same time a year ago (August 2019 to September 2019), there was a 6.9 per cent decrease in the number of units sold.
The average price of residential units sold last month was $628,403—a 0 per cent change from August 2020. This decline was around the same as the month-over-month change in average price a year ago which increased 0.1 per centt from August to September.
City of Barrie
329 units were sold last month within the City of Barrie, which was 3.8 per cent more than the number of units sold the month prior. A year ago, the number of units sold between September and August decreased 5.4 per cent.
The average price of units sold within Barrie during September 2020 was $567,916. This was 0.9 per cent less than the average price during August 2020. In contrast, the average price of units sold between September 2019 and August 2019 increased by 2.1 per cent.
City of Barrie – Apartments & Condos
52 apartment and condo units were sold in Barrie this month — 1.9 per cent more than the number of units sold in August 2020. The average price of apartment and condo units sold in the City of Barrie this month was $410,601 — 1.6 per cent less than the average price in August 2020.
Simcoe County Excluding Barrie
In Simcoe County Excluding Barrie last month, 702 units were sold. This was 10.9 per cent less than the number of units sold during August 2020. At the same time a year ago, there was a 7.6 per cent decrease in the number of units sold outside of Barrie.
The average price of units sold in the areas outside of Barrie last month was $656,752. This was 1.0 per cent more than the month before. Between September 2019 and August 2019, the average price of units sold outside of Barrie decreased 0.8 per cent. 
62 residential units were sold in Innisfil last month—a 30.3 per cent decrease from August 2020. During the same period a year ago (August 2019 to September 2019), there was a 29.5 per cent increase in the number of units sold. The average price of residential units sold in Innisfil last month was approximately $605,571—a 9.4 per cent decrease from August 2020. This was a larger decline than last year, when the average price decreased by 3.3 per cent from August to September.
78 residential units were sold in Orillia last month—a 1.3 per cent increase from August 2020. During the same period a year ago (August 2019 to September 2019), there was a 14.8 per cent decrease in the number of units sold. The average price of residential units sold for Orillia last month was approximately $503,535 —a 5.0 per cent increase from August 2020. In comparison, the average price a year ago decreased by 0.3 per cent from August to September.
Year-To-Date (YTD) (September 2020 YTD vs September 2019 YTD) All Residential Homes
Simcoe County
7,001 residential units were sold in Simcoe County during September 2020 Year-To-Date (YTD) (January 1st, 2020 – September 30th, 2020). This was 23.3% more than what was sold during the same timeframe last year (January 1st, 2019 – September 30th, 2019). The average price of residential units sold during September 2020 YTD was $578,634. This was 14.7% greater than the average price during the same timeframe last year.
City of Barrie
2,260 units were sold in the City of Barrie during September 2020 YTD. This was a 28.2% growth from the same timeframe last year. This growth was greater than the increase in total Simcoe County (+23.3%).
The average price of units sold within the City of Barrie during September 2020 YTD was $550,832. This was 12.1% more than the same timeframe last year, and this growth was lesser than what was seen in the total Simcoe region (+14.7%). During September 2020 YTD, Barrie accounted for 32.3% of residential properties sold. This was 1.2 share points more than the same timeframe during 2019.
City of Barrie – Apartments & Condos
312 apartment and condo units were sold in Barrie during 2020 YTD — 22.8% more than the number of units sold in September 2019 YTD. The average price of apartment and condo units in the City of Barrie this year so far was $400,350. This was 7.7% more than the average price during the same timeframe last year.
Simcoe County Excluding Barrie
4,741 residential units were sold in the areas outside of Barrie during September 2020 YTD. This was 21.1% more than the number of units sold during September 2019 YTD. This growth in number of units sold was less than the growth seen in the total Simcoe region (+23.3%).
The average price of units sold during this time was $591,881. This was 16.0% greater than what was seen during September 2019 YTD. This growth was slightly greater than that of total Simcoe (+14.7%). During September 2020 YTD, Simcoe County Excluding Barrie accounted for 67.7% of residential properties sold. This was 1.2 share points less than the same timeframe during 2019.
520 residential units were sold in Innisfil during September YTD. This was 18.2% more than what was sold during the same timeframe last year (Jan. 1, 2019 – Sept. 30, 2019). The average price of residential units sold in 2020 YTD was $584,354. This was 16.5% greater than the average price during the same timeframe last year. During this time, Innisfil accounted for 7.4% of sales in Simcoe County — down 0.3 share points from the same timeframe last year.
529 residential units were sold in Orillia from the beginning of 2020 to September 30th, 2020. This was 23.3% more than what was sold during the same timeframe last year (Jan. 1, 2019 – Sept. 30, 2019). The average price of residential units sold during September YTD was $463,847. This was 9.9% greater than the average price during the same timeframe last year. During September 2020 YTD, Orillia accounted for 7.6% of sales in Simcoe County, equal to that of September 2019 YTD.
Year-Over-Year (September 2020 vs September 2019) All Residential Homes
Simcoe County
1,031 residential units were sold in Simcoe County last month—53.2% greater than the same time last year. As well, the average price of residential units sold was $628,403, which was 26.0% greater than that of September 2019.
City of Barrie
329 residential units were sold during September 2020 within Barrie. This was 55.2% more than the number of units sold during September 2019. This growth was greater than that of total Simcoe County (+53.2%).
The average price of residential Barrie units sold during September 2020 was $567,916—13.5% greater than the average price of units sold during September 2019. This growth was less than the average-price growth of total Simcoe County (+26.0%).
Sales in Barrie accounted for 31.9% of residential sales in Simcoe County last month. This was 0.4 share points more than the same time last year.
City of Barrie – Apartments & Condos
52 apartment and condo units were sold in Barrie during September 2020 — 67.7% more than the number of units sold in September 2019. The average price of apartment and condo units in the City of Barrie in September 2020 was $410,602. This was 9.1% more than the average price during the same time last year.
Simcoe County Excluding Barrie
702 residential units were sold outside of Barrie during September 2020, and this was 52.3% more than the number of units sold during September 2019. This growth was slightly less than the 53.2% growth seen in the total Simcoe region.
The average price of units sold in Simcoe County Excluding Barrie last month was $656,752. This was a 31.9% increase in the average price, year-over-year. This growth was greater than what was found in total Simcoe County (+26.0%).
Residential property sales outside of Barrie accounted for 68.1% of sales in Simcoe County last month. This was 0.4 share points less than the same time last year.
62 residential units were sold in Innisfil during September 2020, and this was 8.8% more than the number of units sold during September 2019. This growth was significantly less than the 53.2% growth seen in the total Simcoe region.
The average price of units sold in Innisfil last month was approximately $605,571. This was a 32.0% increase in the average price, year-over-year. This growth was greater than what was found in total Simcoe County (+26.0%).
Sales in Innisfil accounted for 6.0% of sales in Simcoe County during September 2020. This was 2.5 share points less than Innisfil’s share of sales during the same time last year.
78 residential units were sold in Orillia during September 2020, and this was 69.6% more than the number of units sold during September 2019. This growth was greater than the 53.2% growth seen in the total Simcoe region.
The average price of units sold in Orillia last month was approximately $503,535. This was a 22.1% increase in the average price, year-over-year. This growth was less than what was found in total Simcoe County (+26.0%).
Orillia’s sales made up 7.6% of sales in Simcoe County. This was 0.7 share points more than the same time last year.

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Top Canadian Real Estate Trends to Look For in 2021 – Toronto Storeys

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It’s safe to say that 2020 has been unpredictable, to say the least. This theme carries over to the Canadian real estate market, which still managed to experience unprecedented growth despite many buyers deciding to hold off on purchases amid uncertain economic conditions brought on by the pandemic.


However, the uncertainty of the past seven months — and the fact that some parts of Canada are now living amid the second wave of the coronavirus — makes thinking about real estate in 2021 a daunting experience for some.

But to get a better grasp of what Canadian investors, realtors, and mortgage brokers can expect in the new year, PwC Canada and the Urban Land Institute teamed up to share their take on what Canadian real estate trends will take precedence in 2021.

Earlier this month, the groups released their Emerging Trends in Real Estate report, which looks at how Canadian real estate has proven to be resilient as buyers amid accelerated change brought on by the pandemic.

According to the report, the impact of COVID-19 on retail, office spaces, as well as suburbanization has accelerated the pace of change for developers, sellers, and buyers. The report suggests that the best opportunities going into 2021 include warehousing and fulfillment, multifamily residential, and medical office space.

“The coming year will be all about embracing opportunities to be resilient in the face of uncertainty while shifting strategies in anticipation of market headwinds,” says Frank Magliocco, National Real Estate Leader, PwC Canada. “For the first time in a few years, we’re hearing divergent views from industry players about issues like the future of office spaces and the urbanization and suburbanization trends.”

READ: Will Canada’s Real Estate Market Stay Hot This Winter? RE/MAX Thinks So

The 117-page report is based on interviews and surveys with almost 3,000 commercial investors, real estate advisors, banks, and builders, which resulted in a wide-scale summary of the trends that will shape Canadian real estate in 2021.

Here are a few of the most relevant highlights.

Residential real estate

Creating 18-Hour Cities Across Canada

Amid the pandemic, Canadians are now looking at suburban and rural areas as an alternative away from major cities like Toronto and Montreal given the available affordability and space.  As more people work from home and look for more affordable housing outside dense cities, there is a stronger demand for areas that offer more space to live, work, and play.

With remote working making it possible for more people to live in the suburbs, the report points to an “18-hour city” trend to pick up across Canada, whether in larger city centres like Toronto and Montreal or in places like VictoriaQuebec City, and Halifax due to accelerated growth. According to Investopedia, 18-hour cities “describe a mid-size city with attractive amenities, higher-than-average population growth, and a lower cost of living and cost of doing business than the biggest urban areas.”

Meanwhile, cities like Ottawa are also looking into the “15-minute city” which allows urban residents to meet their daily needs, such as a trip to the grocery store or school, within 15-minutes of their home either by walking or cycling. The report says one way to make this happen is through “gentle intensification of traditional single-family neighbourhoods while encouraging more diverse land uses.”

Commercial Real Estate

Retail Troubles and Warehousing Gains

According to the report, warehousing and fulfillment centres were identified as the “number one best bet.” With the retail industry being impacted by lockdown measures brought out by the pandemic, COVID-19 accelerated the already growing move to eCommerce, which is now paving the way to a need for increased warehouse space.

Survey respondents indicated that malls with excess lands need to be re-imagined into residential or mixed-use properties, or, some of this space could be used for warehousing, distribution or fulfillment centres — including last-mile delivery — to satisfy the growing demand for online shopping. The report says that grocery-anchored strip malls will fare best, as grocers have seen record sales during the pandemic.

Office Space

According to the report, the uncertainty around the “return-to-office process” sparked divergent views from interviewees. Some predict that employees and their strong desire for social connections will result in employees returning to the office, while others question whether the pandemic will spark a renewed interest in suburban office development, as some employees might prefer to work closer to home and plan more work from home in the future.

According to PwC Canada’s Workforce of the future survey published in September 2020, 34% of employees said they prefer to work mostly or entirely remotely, 37% want to be in the office most or all of the time, with the remaining 29% looking for an even split between the two options.

“We’re hearing different points of views on office space. Companies that have the digital capabilities to have a remote workforce are now reevaluating their real estate portfolio needs,” said Magliocco.

Medical Office Space

As hospitals continue to be limited on space amid the pandemic, the report says there may be opportunities to move some health care functions to high-traffic community locations — such as malls.

While the pandemic has led to the rapid adoption of virtual health services, there will still be an ongoing need for physical space for care that can’t be delivered digitally as well as space for diagnostic equipment.

Additionally, the report says an ageing population will continue to put pressure on health services and the shift to virtual care could lead to some repurposing of medical office space as practitioners adjust to digital delivery.

Proptech (Property Technology)

Prior to COVID-19, the real estate industry was on the cusp of widespread proptech adoption and since the pandemic, industry digitization has accelerated.

Looking ahead, proptech trends such as digital solutions to ensure business continuity, customer engagement, and sales platforms and tools to manage costs and efficiencies, as well as construction technology, are expected to generate demand in 2021. Other key areas to watch out for include data analytics and cybersecurity.

The report concludes with the top markets to watch in 2021 including VancouverTorontoMontrealOttawa, and Québec City.

You can read the full report here.

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Warren Buffett Would Love This Canadian Real Estate Pick – The Motley Fool Canada

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Real estate is a very difficult asset class to gauge these days. The coronavirus pandemic as fundamentally changed how society uses real estate. Digitization has rapidly increased in importance compared to the past.

In this context, in the past, I have been bearish on Brookfield Property Partners (TSX:BPY.UN). This article is going to outline the contrarian perspective on why BPY could turn out to be a good investment right now. After all, Warren Buffet would love this pick.

Real estate and risk

Much ado has been made of Brookfield Property Partners’ exposure to retail and office space. These assets are likely to be hit hard due to the previously mentioned digitization trend. That said, a majority of this company’s revenue (around 55%) is generated from BPY’s portfolio of multifamily and commercial real estate.

On one hand, the company has a little less than half of its business tied to office and retail real estate assets. These are risky. On the other hand, revenues are likely to continue to be stickier than investors and analysts expect due to the quality of BPY’s assets and its diversified holdings.

The company’s assets are widely considered to be among the best in class across the board. This supports a bull case that cash flows in the future may be more stable than strained in the coming quarters. Also, there is definitely potential for share price appreciation from these levels.

Value and income investors take note

From a valuation perspective, Brookfield Property Partners hasn’t been this cheap in quite some time, which makes the value argument very intriguing for long-term investors. The share price decline of Brookfield Property Partners in recent months has resulted in a dividend yield of approximately 11%, at the time of writing. This is much higher than the company’s traditional range of 7-8% in recent years.

From an income perspective, this dividend is too juicy to ignore. Of course, investors may have concerns around the payout ratio of Brookfield Property Partners. However, delinquencies and non-payment of rent are materializing at a slower clip than expected. Market sentiment could shift positively in the near-term. Thus, income investors may regret not picking up shares in hindsight with an 11% yield.

Further, Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) fully backs Brookfield Property Partners. BAM is the company’s largest shareholder, further boosting the argument BPY’s dividend yield could be maintained. Brookfield Asset Management recently put forward a substantial issuer bid to increase its ownership up to 60% in respect to the value it sees in Brookfield Property Partners.

This bid has stoked bets that BAM may choose to fully acquire and integrate BPY back into the parent company if the stock price gets too cheap. This theoretically puts a floor beneath BPY’s share price in the near-term.

BAM and its incredibly talented management team would love nothing more than to take advantage of negative market sentiment. They may plan to re-acquire BPY at dirt cheap levels, spinning out these assets in the future at much higher prices when things cool down.

Don’t miss out on this Warren Buffet contrarian pick!

Motley Fool Canada Makes 5G Buy Alert

5G is one of the greatest arrivals in technology since the birth of the internet. We could see plenty of new wealth-building opportunities in 2020 that would potentially dwarf any that came before them.

5G has the potential to radically change our lives and society as we know it, but if you’re an investor, the implications are even greater — and potentially much more lucrative.

To learn more about it and its revolutionary potential to change the industry — and potentially your bank account — click on the link below to get the full scoop.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV and Brookfield Property Partners LP.

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Warren Buffett Would Love This Canadian Real Estate Pick – The Motley Fool Canada

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Real estate is a very difficult asset class to gauge these days. The coronavirus pandemic as fundamentally changed how society uses real estate. Digitization has rapidly increased in importance compared to the past.

In this context, in the past, I have been bearish on Brookfield Property Partners (TSX:BPY.UN). This article is going to outline the contrarian perspective on why BPY could turn out to be a good investment right now. After all, Warren Buffet would love this pick.

Real estate and risk

Much ado has been made of Brookfield Property Partners’ exposure to retail and office space. These assets are likely to be hit hard due to the previously mentioned digitization trend. That said, a majority of this company’s revenue (around 55%) is generated from BPY’s portfolio of multifamily and commercial real estate.

On one hand, the company has a little less than half of its business tied to office and retail real estate assets. These are risky. On the other hand, revenues are likely to continue to be stickier than investors and analysts expect due to the quality of BPY’s assets and its diversified holdings.

The company’s assets are widely considered to be among the best in class across the board. This supports a bull case that cash flows in the future may be more stable than strained in the coming quarters. Also, there is definitely potential for share price appreciation from these levels.

Value and income investors take note

From a valuation perspective, Brookfield Property Partners hasn’t been this cheap in quite some time, which makes the value argument very intriguing for long-term investors. The share price decline of Brookfield Property Partners in recent months has resulted in a dividend yield of approximately 11%, at the time of writing. This is much higher than the company’s traditional range of 7-8% in recent years.

From an income perspective, this dividend is too juicy to ignore. Of course, investors may have concerns around the payout ratio of Brookfield Property Partners. However, delinquencies and non-payment of rent are materializing at a slower clip than expected. Market sentiment could shift positively in the near-term. Thus, income investors may regret not picking up shares in hindsight with an 11% yield.

Further, Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) fully backs Brookfield Property Partners. BAM is the company’s largest shareholder, further boosting the argument BPY’s dividend yield could be maintained. Brookfield Asset Management recently put forward a substantial issuer bid to increase its ownership up to 60% in respect to the value it sees in Brookfield Property Partners.

This bid has stoked bets that BAM may choose to fully acquire and integrate BPY back into the parent company if the stock price gets too cheap. This theoretically puts a floor beneath BPY’s share price in the near-term.

BAM and its incredibly talented management team would love nothing more than to take advantage of negative market sentiment. They may plan to re-acquire BPY at dirt cheap levels, spinning out these assets in the future at much higher prices when things cool down.

Don’t miss out on this Warren Buffet contrarian pick!

Motley Fool Canada Makes 5G Buy Alert

5G is one of the greatest arrivals in technology since the birth of the internet. We could see plenty of new wealth-building opportunities in 2020 that would potentially dwarf any that came before them.

5G has the potential to radically change our lives and society as we know it, but if you’re an investor, the implications are even greater — and potentially much more lucrative.

To learn more about it and its revolutionary potential to change the industry — and potentially your bank account — click on the link below to get the full scoop.

Learn More Today!


Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV and Brookfield Property Partners LP.

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