By JOE FRIES
With the supply of active listings down by nearly half compared to last summer, it’s no wonder home prices are still surging in the Okanagan.
“The market has slowed down slightly due to a chronic lack of inventory but it’s by no means slow. Listings are at record lows and not replenishing to meet the high demand,” said Kim Heizmann, president of the Association of Interior Realtors, in a press release.
Residential sales across the association’s territory — which stretches from Revelstoke to Manning Park and also includes the South Peace region — totalled 1,140 in August, down 15% from August 2020.
More notably, there were 5,556 active listings across the association’s territory in August, down 46% on a year-over-year basis.
“This chronic shortage of supply is putting upward pressure on pricing and making it a strong seller’s market,” noted Heizmann.
In the Central Okanagan, the benchmark price of a single-family home rose to $962,000 in August, up 35% on a year-over-year basis, with 236 sales that took an average of 30 days to complete.
In the North Okanagan, the benchmark price of a single-family home climbed to $683,000, a 33% hike year-over-year, on 97 sales that closed in an average of 33 days.
Benchmark properties are those with what the realtors’ association considers “typical” assets that provide a more accurate indicator than a pure average.
And in the South Okanagan, where benchmark pricing isn’t available, the average sale price of a single-family home rose 10% year-over-year to $780,000, based on 116 deals that took an average of 57 days to close.
The Association of Interior Realtors was formed on Jan. 1 through the amalgamation of the Okanagan Mainline Real Estate Board and the South Okanagan Real Estate Board, and represents approximately 1,600 realtors.
House prices in the Okanagan
Thinking about selling? Here are the benchmark* and average sale prices for Okanagan homes in August 2021.
Source: Association of Interior Realtors
* Benchmark properties are those with what the realtors’ association considers “typical” assets and is considered a more accurate indicator than a pure average.
** Benchmark prices aren’t available yet for the South Okanagan as the region is a new addition to the realtors’ association.
Novel $10.7 Billion Swedish Deal Reinvents Real Estate Finance – BNN
(Bloomberg) — A historic shift in how Swedish property firms fund themselves was already underway before a little-known private company revealed a $10.7 billion acquisition that will put the trend firmly on the map.
Heimstaden Bostad AB — owned by Ivar Tollefsen’s Fredensborg AS and pension funds — says it will use debt capital markets to refinance a jumbo bridge facility for the largest ever private property transaction in the Nordic region.
The deal highlights a shift by real estate companies in the biggest Nordic economy into both bonds and euros. The trend is driven by a quantitative easing-fueled property boom that’s allowing companies to raise more money than is available in the local market.
“The real estate sector has grown so much because companies have replaced secured bank financing with unsecured bond financing,” said Max Berger at DWS Investment GmBH. More broadly, Europe’s property industry has become “the fastest growing in euro investment grade in the last couple of years.”
Since 2010, the number of real estate issuers in the euro investment grade market has increased to 69 from five, according to Berger, who manages 6 billion euros ($7 billion) of bonds. Euros have now overtaken Swedish krona as the main funding currency for outstanding bonds sold by the country’s property companies.
Heimstaden Bostad’s bridge loan “will clearly be refinanced mainly in euro bonds,” said Anders Holmlund, head of bond origination at Svenska Handelsbanken. The banker adds that the domestic krona market “isn’t a realistic alternative” given the short time frame.
The boom in real estate bonds can be seen in its dominance of the Swedish central bank’s balance sheet, where more than half of the Riksbank’s corporate bond holdings come from property companies.
The European Central Bank’s bond-buying program is adding further fuel to the market, according to Holmlund.
And the broader buyer base is allowing Swedish property companies to expand massively. Samhallsbyggnadsbolaget i Norden AB, for example, announced a plan recently to nearly triple its property portfolio size to 300 billion kronor ($34.4 billion) by 2026.
“We will focus more on euro in the future,” Marika Dimming, a spokesperson, said in an interview. “It’s a natural progression for us,” she said, adding that “the trend is also to set up a subsidiary in the euro area so that the bonds can be bought by the ECB in their QE program,” she said.
But a summer rally in Swedish house prices, warnings of excessive valuations in share prices and concerns about a withdrawal of central bank stimulus have stoked concern among politicians and analysts alike.
Equity analysts at Svenska Handelsbanken said they have “a clear negative tilt towards the sector universe,” citing “disturbances in the increasingly important capital markets” triggered by QE tapering as a possible downside catalyst.
Still, euro bond investors are attracted to Swedish residential firms’ risk-return profile compared with western European office companies, said DWS’s Berger.
“Nordic players have provided us with interesting sub-sectors that have defensive characteristics, but trade in line with the wider sector,” the Frankfurt-based portfolio manager said, adding that sub-sector selection within real estate is key to making profitable investments.
“The pandemic has been a good stress test for real estate companies’ balance sheets,” he said. “Even hotel and retail focused companies have weathered the pandemic.”
©2021 Bloomberg L.P.
When it comes to cutting carbon emissions, the real estate industry is running out of time – CNN
Diane Hoskins is co-CEO of Gensler. The opinions expressed in this commentary are her own.
Extreme weather events — including heat waves, droughts and floods — have unfolded all over the world this summer. The grave impact of climate change is upon us and will continue to have a profound impact on human life. But there are still largely untapped actions we can take to reduce the damage.
What Sold: 19 Newport County real estate sales, transactions (Sept. 18 – 24) – What'sUpNewp
Real estate, like any industry, is based on the foundation of supply and demand. Sellers are seeing premium prices for their homes due to low-interest rates and even lower inventory; which makes for a very competitive environment from a buyer’s perspective.
If you’re considering selling or simply want to know what your home may be worth in today’s market, I am offering confidential, complimentary, and no-strings-attached home value analyses to anyone interested. If you have any real estate questions, please give me a call directly at 401-241-1851 or email me at TylerB@remaxnewportri.com.
In the meantime, here’s what sold in Newport County last week.
26 Brown and Howard #201 sold for $2,275,000 on September 24. This 2,556 sq. ft home has 2 beds and 3 baths.
11 Harrison Avenue #D4 sold for $2,295,000 on September 23. This 2,446 sq. ft home has 3 beds and 3 baths.
529 Bellevue Avenue sold for $6,600,000 on September 24. This 7,624 sq. ft home has 5 beds and 8 baths.
14 Homer Street sold for $611,000 on September 24. This 1,573 sq. ft home has 3 beds and 2 baths.
15 Hammersmith Road #14A sold for $775,000 on September 24. This 1,956 sq. ft home has 3 beds and 3 baths.
31 Bowery Street sold for $5,200,000 on September 22. This 6,613 sq. ft home has 11 beds and 10 baths.
11 S Baptist Street sold for $690,000 on September 21. This 1,536 sq. ft home has 4 beds and 2 baths.
13 Holland Street #2 or B sold for $415,000 on September 20. This 1,018 sq. ft home has 2 beds and 2 baths.
14 Brinley Street #1 sold for $300,000 on September 20. This 631 sq. ft home has 1 bed and 1 bath.
154 Eustis Avenue sold for $1,200,000 on September 20. This 2,160 sq. ft home has 3 beds and 2 baths.
11 Sagamore Street sold for $459,000 on September 20. This 1,852 sq. ft home has 3 beds and 3 baths.
109 Wolcott Avenue sold for $1,060,000 on September 23. This 3,800 sq. ft home has 6 beds and 6 baths.
3 Fox Run sold for $399,000 on September 22. This 1,600 sq. ft home has 2 beds and 3 baths.
30 Moitoza Lane sold for $650,000 on September 21. This 1,026 sq. ft home has 2 beds and 1 bath.
297 Glen Road sold for $1,105,000 on September 21. This 2,402 sq. ft home has 4 beds and 3 baths.
66 Rebels Way #BH 26 sold for $586,000 on September 21. This 2,321 sq. ft home has 2 beds and 3 baths.
26 Cherokee Drive sold for $530,000 on September 21. This 2,194 sq. ft home has 3 beds and 3 baths.
12 Ann Avenue sold for $413,000 on September 20. This 1,908 sq. ft home has 3 beds and 2 baths.
Nothing to report.
2156 Main Road sold for $379,000 on September 20. This 1,008 sq. ft home has 2 beds and 1 bath.
Nothing to report.
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