Seven months into the pandemic, confidence remains high, with intentions to buy up 5% since March 2020
LAVAL, QC, Nov. 2, 2020 /CNW Telbec/ – The second phase of the RE/MAX Real Estate Index, gathered through a large regional semiannual survey on whether or not Québec residents intended on buying or selling their homes1 and other related topics, was improved from its original version to better assess the impact of the pandemic on respondents’ intentions.
The first phase of the RE/MAX Real Estate Index was conducted in the last two weeks of March 2020, when lockdown measures had just been put in place.
“This second stage measures how the pandemic is impacting the intentions of Québec buyers and sellers,” said Sylvain Dansereau, Executive Vice President of RE/MAX Québec. “We wished to go beyond industry data, which only provides a statistical profile, and survey intentions to identify the trends that will dominate the next five years. Data confirms what our brokers observe in the field: Québec real estate market is dynamic and is expected to remain active.”
First finding: Confidence remains high
“One point is clear: seven months into the pandemic, confidence remains high in the real estate market, with 45% of respondents thinking that they will likely purchase a home in the next five years, which represents a 5% increase since March,” added Sylvain Dansereau. “Among respondents aged 18 to 34, home buying is highly appealing, since 70% have the intention to acquire a home.”
Second finding: The popularity of the city, the suburb and the country
“While remote work is growing in popularity, we have not observed an urban exodus, but a push toward the country. We are closely monitoring this phenomenon since it could have an effect on prices,” stated Sylvain Dansereau.
The city’s appeal remains stable at 26% (28% in March), while there are fluctuations in the popularity of the suburb and the country. Accordingly, 40% of prospective buyers would rather live in the suburbs, down 6% from March, while those preferring the country increased by the same percentage, to 27%.
However, for households with at least one child under 18, the suburb is still clearly the top choice (49% vs. 22% for the city and 25% for the country).
Trends among buyers: looking for a yard, an office and high-speed Internet
The pandemic impacted two thirds of the respondents intending on buying a property, especially young families.
A quarter of the respondents are looking to buy a home with a yard or a larger yard, 20% want to move out of a main urban centre and 16% are looking for a larger house where they could set up a home office. However, this trend is not as prevailing in Sherbrooke (9%) and in Saguenay–Lac-Saint-Jean (7%).
The availability of high-speed Internet services in the region was a factor for 15% of the respondents.
Trends among sellers: confidence to get the asking price, an increase in selling intention and renovations
Across the province, respondents are increasingly confident of getting the asking price (91% vs. 83% in March). Saguenay–Lac-Saint-Jean is the region where the confidence level is the lowest at 75%.
A growing number (41% vs. 37% in March) of respondents think it is likely that they will sell their residential property in the next five years. Among them, 60% have completed a renovation to help sell their house or get a better price. Future sellers may postpone the sale of their home for the following key reasons: the high price of other properties (31%), economic insecurity caused by the pandemic (24%) and the competitiveness on the current market (22%).
Significant regional disparities
In the Greater Montréal area, the intention to buy a residential property is on the rise, from 43% in March to 49%.
In the Québec (86%), Trois-Rivière/Drummondville (89%) and Sherbrooke (85%) regions, respondents are especially confident to be able to stay within their budget. Conversely, Gatineau residents are significantly less confident (71%) than during the first wave (83%).
Residents of the Greater Québec area and Sherbrooke stand out among owners intending on selling in the next five years, due to their significantly lower intentions (29% and 26%, respectively) compared to the provincial average (41%). Such intention peaks in the Greater Montréal area, at 45%. Such increased supply foreshadows a dynamic housing market and attractive opportunities for buyers often hindered by the limited supply.
“RE/MAX will keep a close eye on how the pandemic will impact buyers’ and sellers’ intentions and criteria when looking for a property,” added Sylvain Dansereau.
The RE/MAX Six Index, conducted by Léger between September 14 and 20, 2020, targeting 1,401 Québec residents in six regions. The margin of error is +/- 2.6%, 19 times out of 20.
About RE/MAX Québec
With over 4,214 brokers across 146 offices, RE/MAX puts Québec’s biggest sales force at your disposal, which accounts for 43% of the total market share. There are over 120,000 RE/MAX brokers in nearly 100 countries worldwide. For 33 years, RE/MAX has been supporting Opération Enfant Soleil, a non-profit organization that raises funds to help sick children across the province. Since 1988, RE/MAX has raised over $25 million to support the development of high-quality pediatric care for all children in Québec.
Visit RE/MAX Québec for more information.
SOURCE RE/MAX Québec
For further information: To get the RE/MAX Real Estate Index, for more information or to schedule an interview with Sylvain Dansereau or a RE/MAX Québec regional representative, please contact: Valérie Lavoie, Massy Forget Langlois Public Relations, Cell: 438-885-9135, [email protected]; Jessica Lavoie, RE/MAX Québec Inc., O.: 450-668-7743 or cell.: 514-826-0070, [email protected]
Nakisa to acquire real estate management tech firm IMNAT | RENX – Real Estate News EXchange
Nakisa CEO Babak Varjavandi said IMNAT’s real estate management technology will be added to Nakisa’s lease management solutions portfolio.
“By combining the breadth of our lease accounting knowledge with their real estate expertise, we’re poised to disrupt the corporate real estate market, which is currently reliant on outdated processes and proptech legacy software,” he told RENX.
IMNAT is also Montreal-based. The start-up has about a half dozen employees and has entered the sales phase for its platform, which it markets specifically at businesses which manage their real estate.
“Our reimagined corporate real estate solution will offer customers a complete modern end-to-end solution that leverages the Nakisa cloud platform and provides full ITGC (IT general controls), GDPR (General Data Protection Regulation), user management and more,” Varjavandi said. “We truly believe we can disrupt this market because I think we are much further ahead . . . of our competitors with the technology.
“At the end of the day, because of the technology that we have, we believe we can bring in all these other pillars to provide an end-to-end solution.”
He said IMNAT Software’s technology will complement and extend Nakisa’s existing lease accounting product line and address increasing demand for global corporate real estate management solutions.
The acquisition is set to close on Jan. 1, 2021.
Nakisa and IMNAT
Nakisa released the first version of its product in 2000. The company has two lines of business – one addressing human resources and the other in leasing. It will now expand to provide end-to-end lease management which will include real estate and lease accounting.
The company also has offices in Frankfurt, Singapore, Florida and Pakistan.
Varjavandi said the company name is also his mother’s name.
He said IMNAT Software, founded in 2011, has a core product, InfoSite, which is a leading edge corporate real estate management software designed to centralize and manage corporate real estate accounts.
The platform features databased reporting and dashboards, streamlines corporate lease operations and manages data for leases, taxation, payments and rent rolls.
“When we talked to our customers and looked at the market, what we found that was interesting is that the real estate software industry hasn’t really evolved,” said Varjavandi. “They’re still using very old technology and it’s very costly to implement.
“Even if they’re on the cloud, they’re really not what we call a native cloud application.
“We saw huge opportunity in that area. For us to enter that market, we had a choice of either building the whole real estate functionality, which is the operation day-to-day activity of maintaining your real estate.
“Or we had to acquire a company that already had a customer base, they already had the expertise and they could use their expertise and that’s what happened. We saw this made-in-Montreal company.”
IMNAT has some major clients
Nakisa became familiar with IMNAT because the companies share some of the same clients.
IMNAT’s customer base include large private corporations such as Dollarama, Transcontinental and Lowe’s Canada, as well as some of the largest public government institutions in Canada.
Nakisa and IMNAT will combine their technology and networks. They will also combine their company-level data to generate a more accurate financial planning repository of information for trends and projections.
Varjavandi said InfoSite will be integrated into Nakisa’s product line and branded under the Nakisa umbrella. In January, IMNAT’s team, including CEO and co-owner Alexis Dénommée-Godin and co-owner Jean-François Bechard, will join Nakisa.
“I’m extremely proud of the quality software our team has built over the years and it’s an honour to be recognized and chosen by an established lease accounting brand that serves Fortune 500 companies around the world,” said Dénommée-Godin in a statement announcing the sale.
“Joining Nakisa allows us to take our real estate expertise to the global market and fulfill a need that has a tangible impact on both businesses and people.”
Unify divergent software products
Varjavandi said Nakisa serves more than 900 enterprise customers and over one million subscribers in 24 industries. Its client base includes a number of different industries, including retail, pharmaceutical and airlines. It has users in over 120 countries and supports 18 languages.
He said the acquisition of IMNAT presents a huge opportunity for Nakisa to both better serve existing customers and attract new ones.
“We are seeing companies having multiple software and we think we can actually unify the whole leasing, both for accounting and operations side, under one umbrella,” Varjavandi said. “From our perspective, any kind of asset you have we can provide an end-to-end solution.
“On the real estate side, we have a few customers who are interested in expanding on that to things like facility management and project management. Those are areas we’re also working with them. The beauty of the customers that we have, because these are very large customers, they’re actually willing to engage with us . . .
“From a customer perspective, the whole implementation and management is already done for them because it falls on the same platform.”
Real estate expert Benjamin Tal on the winter market, the vaccine, and the massive recovery to come – Post City
How has the real estate market outperformed your expectations as of late?
Yes, we have seen the mother of all V-shaped recoveries. The fact that the market recovered was not a big surprise. The speed at which it recovered was a surprise. I think that the number one fact though, of course, when people try to figure this out, will point to pent up demand and extremely low interest rates, which is true. However, there is much more to it. I think that if you look at qualification rates, at 4.79%, for variable and fixed-term rates, they are in fact higher from a qualification perspective when they were in 2008. And back then, this activity went down. In fact, this has been the most housing-market-friendly recession ever. Okay, so it’s not just about the industry. It’s about the composition of the damage in the labour market.
Explain how the labour market activity has impacted the market.
The vast majority, almost 100%, of all jobs lost during this recession were low wage occupations. Many of them are renters and are not players in the resale market. Second, is that it means that a very large segment of households was untouched by this crisis, financially speaking, their job is there, their income is there. In fact, many of them are sitting on extremely high levels of excess cash. And the interest rates are in the basement. That’s the opportunity that they were looking for. So the asymmetrical distribution of development in the labour market is the secret behind the success of the housing market today.
The downtown condo market is that big outlier here. What do you see happening there right now?
I think most of the most of the improvement was, of course, in the low-rise segment of the market. It makes sense because the nature of the crisis means that a lot of people want to move to detached houses. We are seeing a situation in which there is a positive correlation between the inflation rate in housing and the price of housing. The fact that detached prices are rising is a real nightmare, if you wish, for mover-uppers, because the price of the house that you want is rising faster than their own house. The gap is widening. So this is a reflection of people wanting to live in bigger houses and therefore they also move to outside the 416.
And do you see this trend continuing for the long-term?
I believe that that will continue to be the case for the next six months or so especially during the winter. The housing market in general, during the winter, will weaken alongside the economy as a whole as we have a second wave combined with the flu season confidence will go down. So that’s clearly something that we expect, and that will impact the housing market. I think that the 416 condo space will feel most of the pain because of the fact that we have a lot of supply coming in and demand is slowing. Having said that, I think that as we reach the other side of this crisis, the later the second half of 2021 we’re going to see a situation in which people start realizing the rental space in downtown Toronto is a bargain and you will see demand returning In between I see some adjustment in supply and some developers that basically front load and that activity will not be there during the winter. So the net result of some reduced supply in the second half of 2021 and marginal improvements in demand, we see some improvement in this market as well. But in between, we have to go through the winter.
And do you see the exodus to the suburbs trend continuing?
That trend started way before the crisis, as we all know, this is not new. Every crisis is a trend accelerator. And this crisis is no different in the sense that it accelerated this trend. Will we continue this trend? Absolutely not. When we are on the other side of this crisis, people will rethink this approach, it will continue, but not at the current rate. So again, when you’re in a situation, you have a tendency to exaggerate the long-term implications of that situation and we are in a situation. So people look at the people fleeing from downtown as a sign of a long-term trend. That’s not the case. I think that people will go back to downtown and the trend will continue but at a much slower pace than we’re seeing now.
What is your advice in terms of navigating this volatile market? Is it better to wait it out?
Well, I think that if you are in the market for a quick investment, then you can wait. For the long term, I think that the winter will provide some good entry positions given the relatively soft nature of the market. I think that the spring will be relatively strong.
And when the vaccine rolls out the timing, what will that do in terms of the market and the economy in general?
That’s one of the reasons why I believe that the economy will be very strong in the second half of the year, especially in the summer and into October, November when the vaccine will be widely available. That’s one of the reasons why I’m so optimistic about the second half of the year, when the economy I believe will rise by four, five, six percent including some nice improvement in the housing market.
Is now actually the best time in terms of buying a condo downtown?
I think that the market is soft and will probably get softer. The next few months will be actually if you have a long term horizon, the next few months will be a good opportunity absolutely.
Vancouver real estate: Kitsilano property purchased for $138000 in 1986 sold in 2020 at $3.5 million – Straight.com
Here’s an example of how real estate creates wealth.
On November 9 this year, a Vancouver property in Kitsilano sold for $3.5 million.
The transaction was tracked by real-estate site fisherly.com.
Realtor and market observer David Hutchinson shared the sales history of this property at 3472 West 12th Avenue to illustrate what the market does.
Some people make money and, of course, some lose. Others break even, Hutchinson told the Georgia Straight.
The property was sold on December 22, 1986, for $138,000, based on information from the real-estate site Redfin.ca.
Years later, it again sold on April 20, 2012, for $1,510,000.
In 2013, a new house was built on the property.
The house features four bedrooms and six baths.
On June 2, 2014, the property sold again, this time for $2,475,000.
B.C. Assessment placed the 2020 value of 3472 West 12th Avenue as of July 1, 2019, at 2,810,000.
After more than six years, the Kitsilano property was back on the market.
Sutton Group-West Coast Realty listed the property on October 28, 2020, for $3,688,888.
The realty agency described the “stunning Kitsilano family home” as one of “highest quality with lavish, elegant finishes”.
Plus, it has “nanny or in-law accommodation with roughed in laundry & separate entrance”.
It sold after 12 days on November 9 at $3.5 million.
“This one is a big money maker,” said Hutchinson, who watches the market closely.
According to Hutchinson, the market is “fickle”, and results are “unpredictable”.
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