It has yet to be determined, if we are slowly climbing out of, or still descending further into economic misfortune. COVID-19 measures to slow down exponential viral growth in the now-pronounced second wave are here, and B.C. extended its state of emergency. Many have returned to work, but many others have no work to return to. The generous government emergency stimulus has ended, transitioning those still not working to Employment Insurance, if they qualify. Looming insolvencies coupled with unmanageable debt could now catch up with many homeowners and business owners and directly affect any long fought attempts to extend our economic holding pattern.
August 2020 saw record real estate sales locally and across the country in what can only be described as a “Land Rush.” In BC we saw a 5 per cent market increase in June, a 17 per cent year over year increase in July, and August rang out with an incredible 42.8 per cent increase from August 2019. All this market movement continues to create ripple sales into the northern part of the province. We can attribute this years “Land Rush” to spring lockdown market delays, the huge transition of lifestyle changes, lower interest rates, lower CMHC B-20 Stress Tests levels, and low housing inventory.
Inventory is the supply of saleable properties available on the market, and B.C. has had very low inventory numbers in many of its regions for several years. When you have a low inventory count, buyers are then forced to choose from what is available and when you get hundreds of buyers all looking to buy the same properties in the same areas you get a boom cycle This cycle of low supply and great demand created the fast-paced, price-climbing market we saw in August.
There was unprecedented demand for property in the interior and northern part of the province over the past two months. The competition is getting tough in several regions including 100 Mile House, Williams Lake, Prince George, Fort St. John, Smithers, Terrace, Kitimat, Prince Rupert, Fort Nelson, Mackenzie and Quesnel all saw incredible sales figures and record prices. Great demand and small supply continues to create multiple offers on medium to lower priced housing. The British Columbia Real Estate Association reported total sales dollar volume reached $7.8 billion a 61 per cent increase over August 2019 numbers. Wow! The average B.C. MLS price gained 12.7 per cent, reaching a lofty $771,309, and the Chilliwack region reported a 14.1 per cent percent median price increase to $586,976.
We have yet to see the market decline of almost 18 per cent predicted by the CMHC. If sales volumes fall between 19 per cent and 29 per cent as they predict, our housing starts and construction will also drop off taking with it our major engine of economic growth. Many market analysts and economists are predicting that this summers record-setting housing market is a huge bubble about to break. But, not everyone is convinced that this will actually happen. It would be really nice to believe that this summers real estate boom will help to propel us out of our economic peril, and it will be telling to see how many jobless workers are homeowners headed into insolvency. If the insolvency numbers remain below a certain threshold, the residential market would dip, but remain anchored.
The demand is so great for land and the security of property ownership, that residential markets may not be as affected as predicted. Owning equity and liquidity in a hard asset like land has been a way to prosperity for decades. The real danger of a large influx of foreclosures lies in the difficulty for lenders to continue to grant mortgages. At a time when homeowners need to leverage everything they can to sell and then buy again, a stagnation in housing liquidity would further compound the economy building housing market.
The Canada Emergency Rent Assistance Program (CECRA) extended coverage again for September to small businesses to apply for a 75 per cent reduction in rent which in turn allows commercial landlords to qualify for forgivable federal loans. The uncertainty of this emergency funding has again delayed the inevitable consequences of evictions due to closures and revenue losses. Small business owners are still trying to adapt to remain compliant and open to the public. Businesses that can no longer operate are trying to rework their business models and pursue other needed services and “New Norm” Opportunities. It is into October’s unknown that will decide the fate of so many. Commercial and residential landlords are such a vital part of our economic fabric, and tough decisions derived from tough times may deliver a crippling blow to an entire market segment unless we can find a way to beat COVID-19.
We have been cautioned about our growing household debt levels that were very high even before the 2020 shutdown began. Not heeding any debt ceiling themselves, the Federal Government continues to print money and offset the economic collapse brought on by industry-killing policy and the pandemic shut down.
This influx of printed capital helped to keep the economy from grinding to a complete stop during the initial pandemic shutdown, but it is a short-term solution with dangerous consequences. This inflation building fix, added to an existing national debt load, severe drop in our GDP likens the country to a half sunk ship navigating very stormy seas.
We know the first wallet-hitting consequence will be another federal carbon tax, which will make everything we consume and use more expensive.
It could be rising government debt that is the catalyst that wipes out the entire economy and cancels out any future prosperity prospects for all generations of tax payers and retirees. Canada is only one of many countries to be printing money and handing it out as emergency capital to stave off economic collapse during the Covid crisis.
The world anxiously awaits the unknown future of the Untied States, its coming election and the faltering state of the U.S. Dollar. Discussions center around the prediction that the USD’s loss of world reserve standard status could cause global hardship. Financial analysts are discussing how the world is not ready for, or trusting enough in crypto-currency as a standard solution, as it opens up a regulatory nightmare. A solution that is being discussed is going back to the “Gold Standard” that was in place before 1971. It was the gold backed dollar that built North America into prosperous capitalist nations during the 50’s and 60’s. Returning to a Gold Standard would be a reset of epic proportions for the U.S., but as money movement in Europe, China and Russia show a large increase in both gold and foreign reserves. The Euro, the Yaun and the Russian Ruble are all contenders to replace the U.S. Dollar unless it can be reset to its gold backed security state.
With so many unpredictable outcomes, we have to take stock of what we do know at this time. The residential real estate market is booming, demand is great and it desperately needs more inventory. A looming insolvency crisis is coming in both the residential and commercial markets and will be bringing lender-owned inventory into the supply. Record residential property prices will fall with additional insolvency inventory in the residential market, but commercial real estate is in line to be the hardest hit market segment. Our household and national debt are at all-time highs and are a compounding catalyst of this economic and global health crisis. The USD is in danger of losing its global reserve status, and global wealth is steering us toward hard asset currencies like gold and silver. Hard assets include landholdings, owning land will always bring with it security and opportunity to rise above whatever our unknown future holds.
Read the full column online at www.agassizharrisonobserver.com.
Freddy Marks, together with his daughter Linda Marks, runs Agassiz’s 3A Group Sutton Showcase Realty. He has been a Realtor in Canada and Germany for more than 30 years, and currently lives in Harrison Hot Springs.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
