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South Florida real estate brokers begin to feel impact of coronavirus – The Real Deal

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South Florida real estate is impacted by the coronavirus (Credit: iStock)

The owner of a multimillion-dollar condo in Miami Beach had his real estate agent cancel a showing last week. The reason? The prospective buyer, who was flying in from New York, was feeling under the weather.

“My client said he’s not permitted to enter the property,” said Douglas Elliman agent Bill Hernandez. “He said, ‘I’m very particular about who enters my property and where they’re coming from.’”

Hernandez, part of the Bill & Bryan Team, said that’s the first time he’s had that happen in his 16-year career. It happened about a week ago, before COVID-19, or coronavirus, was declared a pandemic. “I was a bit shell-shocked to be honest with you,” he said.

Across South Florida, residential, as well as commercial agents say they are concerned about how coronavirus will affect the market and ongoing deals.

Hernandez declined to identify his client or the unit, but said the prospective buyer was planning to tour other units in the building and neighborhood, which means his seller, a prominent New Yorker, may have lost the opportunity to sell to that buyer.

“Sellers are very concerned about who’s coming to their property. At the end of the day we’re talking about strangers,” he added.

Yet, Hernandez said that the coronavirus scare could also benefit sellers, if residents of densely populated areas like New York City accelerate their search for a home in the Miami market.

Gary Pohrer, an Elliman agent in Palm Beach, is listing a condo at One Watermark Place in West Palm Beach that has its own elevator, “so you’re not sharing it with a bunch of people.”

Generally, though, his clients are waiting to see what happens. Pohrer had a buyer coming to town, looking to purchase a house in the $7 million to $10 million range on the north end of the island, but he decided to pause his search for a month or two.

Another client was being cautious with their offer, and planned to use coronavirus to get a better deal. Pohrer, who canceled his trip to the Ellies in Uncasville, Connecticut in early March, said his clients are more concerned about their financial portfolios than about contracting the illness.

Coronavirus is impacting all facets of the industry, including the industrial market. Its effects on the financial markets, manufacturing and more, coupled with the fact that it’s an election year, may not bode well for sellers, some experts say.

Miami events, such as Ultra and Winter Music Festival, and eMerge Americas, have been postponed. The hotel market in the U.S. is taking a plunge due to booking and event cancellations. In the Miami/Hialeah market, occupancy fell by 9 percent, according to data from hotel research firm STR.

“It is literally the perfect storm for real estate that is not good for the market,” Hernandez said.

Danny Zelonker, commercial broker and owner of Z Miami Commercial RE Inc., is worried about institutional players taking a step back from the Miami market. “We’re in the 11th year of an up economy. Everything that goes up must come down,” Zelonker said.

He has two deals – a warehouse lease in Allapattah, and the sale of a warehouse in the east airport submarket – where the tenant and buyer are waiting to see what happens with coronavirus.

Commercial broker Lyle Chariff said he’s adding a state of emergency clause to all of his contracts, extending agreements if the president, governor or mayor declare a state of emergency.

Yet some real estate players say it is business as usual. Top luxury residential broker Jill Hertzberg, of Coldwell Banker, said her deals have not been affected. Hertzberg, part of The Jills Zeder Group, has a Sunset Island home under contract for nearly $14 million.

“In general I think people are cautious and careful right now. People are always concerned when the stock market hits a dip like it is, they want to be assured that they’re safe,” she said. “It’s going to take a couple of months to see where this goes.”

Co-working operator Büro, which has six locations in South Florida, hasn’t felt a financial impact from coronavirus, according to owner Michael Feinstein.

He said on Tuesday that new management deals in the works have not been impacted. Büro members are “still coming to the office” and Büro has enhanced its cleaning practices of common areas and bathrooms and installed Purell dispensers.

Similar to property management companies, landlords and most offices in markets impacted by coronavirus, Büro sent out an email to its members on Monday informing them of the measures.

Feinstein expects buyers across all asset classes to be cautious. “When there’s uncertainty in the market,” he said, “people are less likely to pull the trigger.”

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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