Connect with us

Real eState

Real Estate: Supply down, housing prices shoot way up – The Daily Courier




Penticton Herald

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.


Single-family: $683K

Townhouse: $444K

Condo/apartment: $298K


Single-family: $962K

Townhouse: $645K

Condo/apartment: $473K


Single-family: $780K

Townhouse: $594K

Condo/apartment: $448K

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.

Adblock test (Why?)

Source link

Continue Reading

Real eState

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.

Adblock test (Why?)

Source link

Continue Reading

Real eState

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.

Achieving global policy ambitions like the ones set in the 2015 Paris Agreement will require leadership from the private sector, but individual companies with strong internal climate commitments can’t go at it alone. They are hamstrung unless other businesses in their ecosystem follow through with similar pledges. To accomplish this, companies need policies that require the cooperation of external stakeholders at every step of the value chain.
For those of us in the real estate sector, the concern always seemed to be less about the cause of our manmade carbon footprint and more about cost. For years, we have seen rising sea levels and extreme weather events happening around us, putting property portfolios at risk. The economic and physical changes have affected insurance industry volatility, impacting construction and long-term investment prospects.
However, many in the industry have yet to admit that buildings are as responsible for carbon as cars. The real estate industry makes up 49% of global carbon emissions when accounting for construction and building performance. Most carbon reduction efforts in the building sector have focused on operational efficiency — energy sources for keeping buildings at an ideal temperature, lighted, ventilated and powered — so that properties consume as little energy as possible. And while these efforts have furthered the industry’s goal of getting buildings closer to net zero operationally, we can no longer ignore that building materials account for half of a building’s total lifetime carbon footprint.
We are out of time. And the real estate industry’s wait-and-see approach is no longer acceptable. Embodied carbon — emissions associated with the manufacturing, transport, construction and disposal of building materials — must become a priority for the entire industry value chain.
With commercial buildings, concrete and steel have traditionally been used for construction, along with other frequently used carbon-intensive materials like foam insulation, plastics and aluminum. However, building with structural wood has increasingly gained traction as an alternative, given that it sequesters more carbon than it emits. Developers are becoming aware of its versatility and sustainability, and if adopted on a global scale, mass timber could challenge steel and cement as the preferred materials for construction. Additionally, structural engineers have already successfully used recycled steel and low-carbon cement consisting of alternative mixtures. This, combined with using more unpolished and salvaged materials, has already proven to lower buildings’ carbon footprints.
And since nearly 75% of all raw materials in the US are used for the construction of buildings, the conscious decisions about the sourcing, construction and finishing of our development projects will have a lasting environmental impact.
At Gensler, a global architecture and design firm, we recently issued letters to our structural engineers, vendors, suppliers, construction and general contracting leaders asking for their partnership in shaping their policy to change the value chain. Together, we are developing an agreed-upon approach for specifying quality products that align with our company’s carbon neutrality promise. In early 2022, Gensler is launching new green specifications that focus on reducing high-carbon materials, using the most efficient structural solutions to reduce material quantities, sourcing materials that are extracted and manufactured locally, and minimizing waste. These specifications will be used on all of our projects. From then on, we will prioritize working with partners who meet those specifications and use materials that significantly reduce construction-related emissions, such as low-carbon concrete, steel, cross-laminated timber and alternative materials that absorb rather than emit carbon. With Gensler’s design impact and its global scale, this change in demand for sustainable materials will have an immediate ripple effect across the building sector.
If all parts of the real estate ecosystem — including architects, owners, developers, investors, constructors and material suppliers — move toward a net zero ambition, together, they could save 10 billion tonnes of CO2 from the atmosphere. This is the equivalent of removing nearly 2.2 billion gas-powered cars from the road for an entire year. There must be global net zero building standards across major market participants, investors, developers, designers and occupiers to drive demand. We must also create policies that demand energy suppliers provide access to low-carbon alternatives.
This era of reducing the embodied carbon in building materials will change construction and real estate development. We have entered a critical period for humanity. Carbon-neutral statements, science-based targets, and promises at international forums like the UN Climate Change conference will not suffice. Tangible and immediate action is the only solution.

Adblock test (Why?)

Source link

Continue Reading

Real eState

What Sold: 19 Newport County real estate sales, transactions (Sept. 18 – 24) – What'sUpNewp



Peoples Credit UnionPeoples Credit Union

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

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.

Little Compton

Nothing to report.

Adblock test (Why?)

Source link

Continue Reading