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US will ‘become a renter nation,' says real estate investor – Yahoo Canada Finance

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Rising home prices are keeping prospective buyers out of homeownership — and some investors say it could be good for the rental market.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="High demand, low supply and low mortgage rates have driven up home prices to historic highs this summer. And for every $1,000 price increase, some 150,000 potential buyers are priced out of a home purchase — keeping them in the rental market.&nbsp;” data-reactid=”17″>High demand, low supply and low mortgage rates have driven up home prices to historic highs this summer. And for every $1,000 price increase, some 150,000 potential buyers are priced out of a home purchase — keeping them in the rental market. 

“Homeownership is still dead in this country because the only people that are buying homes right now are people that have equity, great credit and a job,” multi-family housing investor Grant Cardone told Yahoo Finance.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Home prices usually drop in the fall, but median home prices hovered near summer highs at $350,000 last week, up 12.9% for the week ending October 3 compared to the same time last year, according to Realtor.com.” data-reactid=”19″>Home prices usually drop in the fall, but median home prices hovered near summer highs at $350,000 last week, up 12.9% for the week ending October 3 compared to the same time last year, according to Realtor.com.

“If you keep pushing prices, you’re pricing people out. There’s no way around that,” said Ali Wolf, chief economist at Meyers Research, a California-based market data firm. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Meanwhile rent prices slid this summer, making apartments even more desirable and attainable for Americans during the pandemic. The national median rent price for a one-bedroom apartment was down 0.1% from last month to $1,231 according to Zumper, following a summer of stalled rent prices.&nbsp;” data-reactid=”21″>Meanwhile rent prices slid this summer, making apartments even more desirable and attainable for Americans during the pandemic. The national median rent price for a one-bedroom apartment was down 0.1% from last month to $1,231 according to Zumper, following a summer of stalled rent prices

“We’re going to become a renter nation in this country,” said Cardone. “Renting will become the economic choice and the desirable choice again…” 

Red shoes from above on the white arrows,dilemmas concept buy or rent
Red shoes from above on the white arrows,dilemmas concept buy or rent

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Americans — especially renters —&nbsp;have lower credit scores, higher rates of unemployment and less savings for a downpayment than they did at the beginning of the pandemic. Renters were more likely to fall behind on rent payments and more likely to lose their jobs during the pandemic, according to Nerdwallet, a California-based personal finance company.” data-reactid=”34″>Americans — especially renters — have lower credit scores, higher rates of unemployment and less savings for a downpayment than they did at the beginning of the pandemic. Renters were more likely to fall behind on rent payments and more likely to lose their jobs during the pandemic, according to Nerdwallet, a California-based personal finance company.

“There is an overlap in the people most likely to rent and those most likely to be hit by unemployment. For example, younger people and those working in hotel and food industries have both higher rental rates and are more likely to have lost their job during the pandemic,” said Elizabeth Renter, data analyst at Nerdwallet. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Meanwhile, lenders have increased requirements to slow homebuying demand as they scramble to distribute a record $3.9 trillion in loans this year, according to a Fannie Mae forecast.&nbsp;” data-reactid=”36″>Meanwhile, lenders have increased requirements to slow homebuying demand as they scramble to distribute a record $3.9 trillion in loans this year, according to a Fannie Mae forecast

“Homeownership is being driven by the upper class,” said Cardone. “You need a job that is secure, they’re [the banks] going to look at how you actually went through March, April, May and June with your job. If that was even slightly suspect, you’re not gonna get a home loan… You need a better credit score than you needed before COVID, and you need to secure a job.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Sarah Paynter is a reporter at Yahoo Finance. Follow her on Twitter&nbsp;@sarahapaynter” data-reactid=”38″>Sarah Paynter is a reporter at Yahoo Finance. Follow her on Twitter @sarahapaynter

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Read the latest financial and business news from Yahoo Finance” data-reactid=”39″>Read the latest financial and business news from Yahoo Finance

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;SmartNews,&nbsp;LinkedIn,&nbsp;YouTube, and&nbsp;reddit.” data-reactid=”40″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardSmartNewsLinkedInYouTube, and reddit.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More from Sarah:” data-reactid=”41″>More from Sarah:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Opendoor and other iBuyers’ sales stall despite hot housing market” data-reactid=”42″>Opendoor and other iBuyers’ sales stall despite hot housing market

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Home searches reveal that swing states may turn blue on Election Day: Realtor.com” data-reactid=”43″>Home searches reveal that swing states may turn blue on Election Day: Realtor.com

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The cities most at risk of a housing bubble: UBS” data-reactid=”44″>The cities most at risk of a housing bubble: UBS

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Global Luxury Real Estate Market 2020 Key Regions – Brookfield Asset Management, Public Storage, Prologis, American Tower, AvalonBay Communities – re:Jerusalem

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Hot Property Newsletter: The luxury real estate market changes with the  calendar - Los Angeles Times

MarketsandResearch.biz has uploaded a smart research report titled Global Luxury Real Estate Market 2020 by Company, Type and Application, Forecast to 2025 that tracks the significant developments which are recently being adopted across the global market. The report covers a variety of market factors such as drivers, opportunities, and restraints. The report highlights a comprehensive summary of the market, highlighting the future trends in the global Luxury Real Estate market that will impact the demand during the forecast period from 2020 to 2025. It contains an analysis of market size, growth rate, regional market scope, product-market various applications, industrial chain, market effect factors analysis.

About The Report:

The report further pinpoints the various limitations and strengths of the leading companies operating in the global Luxury Real Estate market. The competitive developments such as research and development activities, partnerships, product innovations, and mergers and acquisitions have been analyzed. The research contains a comprehensive market breakdown on the basis of value, volume, CAGR, and year on year growth. The intelligent market research report enables clients to take strategic decisions and achieve estimated growth.

NOTE: Our report highlights the major issues and hazards that companies might come across due to the unprecedented outbreak of COVID-19.

DOWNLOAD FREE SAMPLE REPORT: https://www.marketsandresearch.biz/sample-request/89213

The Key Market Parameters Included:

  • Company overview and snapshot
  • Product/service portfolio
  • Strategies and key developments
  • Global Luxury Real Estate market outlook
  • Global market trends
  • Global market forecast
  • Global market overview
  • Global market growth analysis

In the global Luxury Real Estate market, the following companies are covered: Brookfield Asset Management, Public Storage, Prologis, American Tower, AvalonBay Communities, Simon Property Group, Klepierre, Weyerhaeuser, Link REIT, Gecina, Covivio, Equity Residential, Welltower, Ventas, Equinix, Host Hotels & Resorts, Boston Properties, Digital Realty Trust, HCP, Annaly Capital Management, Segro, Starwood Property Trust, Dexus, Vornado Realty, Realty Income

Product segment analysis of the market is: Single-family homes, Condos, Townhouses

Application segment analysis of the market is: Residential, Commercial

The market report offers a comprehensive geographical analysis with major regions such as: North America (United States, Canada and Mexico), Europe (Germany, France, UK, Russia and Italy), Asia-Pacific (China, Japan, Korea, India and Southeast Asia), South America (Brazil, Argentina, etc.), Middle East & Africa (Saudi Arabia, Egypt, Nigeria and South Africa).

The manufacturers dominant within the global Luxury Real Estate market are highlighted inside the competitive landscape section of the report. The report documents factors such as drivers, restraints, and opportunities that impact the remuneration of this market.  The report includes data about several parameters related to the regional contribution such as market share, application share, type share, key companies in respective regions. Furthermore, information related to the growth rate, revenue, sales, production, consumption, during the forecast period is delivered in the report.

ACCESS FULL REPORT: https://www.marketsandresearch.biz/report/89213/global-luxury-real-estate-market-2020-by-company-type-and-application-forecast-to-2025

In-Depth Study of Each Point of The Market:

Manufacture Analysis: Manufacture of the Luxury Real Estate is analyzed with respect to different applications, types, and regions. The manufacturer segment has been described in the report with its market share, revenue, basic data, company profiles, product picture and specifications, sales revenue, price, gross margin, and contact info and the highest growing segment globally.

Resource And Consumption: This segment studies resource and consumption. Import-export data is also provided by region if applicable.

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Head of Business Development
Phone: +1-201-465-4211
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Web: www.marketsandresearch.biz

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Will Canada's Real Estate Market Stay Hot This Winter? RE/MAX Thinks So – Toronto Storeys

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After COVID-19 reared its ugly head on Canadian soil, life as we knew it changed forever… or at least for the foreseeable future.


Businesses closed and jobs were lost across every industry as the government tried to gain control of the deadly virus. However, despite a minor hiccup in the spring, the Canadian real estate market has managed to (so far) come out unscathed — for the most part, anyways.

In the months to follow the initial outbreak of the virus, Canada’s housing market experienced a record-setting recovery from coast to coast, thanks to high demand, Canadians taking advantage of low-interest rates, and real estate agents utilizing digital sales tools.

Since the start of the pandemic, Canadian homebuying behaviours have shifted immensely, with many urbanites relocating to the ‘burbs in search of more space as the work-from-home trend continues.

As such, both sales and prices are up, which raises the question: will the Canadian housing market maintain this upward trend as we head into winter?

READ:  Home Renovations in Canada Up Nearly 40% Since Start of Pandemic

The Federal Reserve Bank of Dallas recently published a report that analyzed the real estate markets in the Group of Seven countries during the second quarter. According to the report, Canadian residential real estate prices reported the biggest jump in the G7, rising 2.42% from Q1-2020. The next biggest jump by a G7 country was France, rising 1.71%. This occurred in Canada despite soaring vacancy rates and very little immigration during the April-to-June period.

To get a better understanding of the Canadian housing market, RE/MAX shared the average sales prices and the year-over-year growth from August.

  • Greater Toronto Area: $890,400 (+11.1%)
  • Greater Vancouver Area: $1,038,700 (+5.3%)
  • Ottawa: $517,800 (+19.9%)
  • Greater Montreal Area: $408,200 (+16.4%)
  • Halifax: $372,982 (+18.1%)

“The unforeseen developments of 2020 may have stumped market watchers, but the upward trends make sense since a key factor helping in the recovery of the national real estate market has been an inventory shortage that surfaced long before COVID-19 reared its head in Canada,” wrote RE/MAX in a recent report.

According to the Canadian Real Estate Association (CREA), inventory levels fell to an all-time low of 2.6 months in August.

Looking ahead, some economists said that the pent-up demand has been exhausted, which could mean the Canadian real estate market would lose some of its current momentum in the months to come. Despite the possibility of a slowdown, RE/MAX suggests that prices will continue to climb.

“With pent-up demand now largely exhausted, we see activity cooling later this fall,” said RBC economist Robert Hogue.“The pent-up demand created this spring proved a powerful driver of activity. Question is: how much longer can it be such a dominant factor? We think there’s probably little pent-up demand left to satisfy in most markets.”

RBC’s forecast for higher prices coincides with RE/MAX Fall Market Outlook Report, which predicted a “continuation of growth in valuations and activity in most housing markets.”

Regardless of where you’re looking to move, RE/MAX says the Canadian real estate market is “ripe with a wide range of opportunities for both new homebuyers and homeowners looking to upgrade.” Particularly since more people are working remotely and fewer workers need to be in close proximity to their workplace, which is leading to growth outside of downtown cores — namely within small suburban or rural municipalities.

The Bank of Canada (BoC), which is anticipated to maintain an accommodative monetary policy for a few more years, forecasts that it’ll still be some until Canada’s economy recovers. However, despite the remaining roadblocks within the economy — including business closures and widespread job loss — the real estate sector is booming.

RE/MAX suggests that “any significant price cooling activity is unlikely to correlate with Canada’s cooling temperatures” and when it comes to the national real estate market, “all signs point to a hot winter market ahead.”

Of course, it must be noted that RE/MAX has a vested interest in the market performing, and they have been one of the most critical voices of the CMHC’s dire forecasts since COVID-19 began. That said, RE/MAX’s predictions about the housing market have so far been more aligned with real life occurrences than those of the CMHC. But, as the saying goes, winter is coming — and if buyers start to get cold feet it’s going to be a long one.

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Vancouver posts Canada’s lowest commercial property tax rate – Business in Vancouver

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Altus Group 2020 Canadian Property Tax Rate Benchmark Report.

The City of Vancouver now has the lowest tax rate for commercial property among major Canadian cities, but Vancouver has shifted the burden to residential real estate, creating the most heavily-taxed homeowners in the country.

With a decrease of 27.9% from 2010, Vancouver posted the largest drop in commercial rates out of 11 cities surveyed by the Altus Group for its 2020 Canadian Property Tax Rate Benchmark Report, released October 26. The 17th annual survey was done in conjunction with the Real Property Association of Canada.

The tax shift is measured by a commercial-to-residential ratio that compares the commercial tax rate to the residential tax rate. For example, if the ratio is 2.50, a commercial property valued at $1 million dollars would incur property taxes 2.5 times higher than an equally-valued residential property.

Because of the pandemic, many cities have shifted the tax burden away from businesses, which resulted in a decrease of the commercial-to-residential tax ratios in 2020.

But Vancouver was particularly aggressive.

Vancouver’s commercial-to-residential tax ratio dropped 36.84% in 2020 from a year earlier to a historic low of 2.3. This was the largest decline of all cities surveyed, Altus found. This decrease took Vancouver from the third highest ratio in 2019 to the fourth lowest in 2020.

In comparison, the average national commercial-to-residential tax ratio in Canada is now 2.65, down 6.6% from 2019.

“[This] marks the fifteenth year in a row that Vancouver’s commercial rates have gone down. Over the last five years, Vancouver’s commercial tax per $1,000 of assessment has dropped 55.3%, going from $15.05 in 2015 to $6.73 in 2020,” Altus reported.

The city cannot take full credit for the dramatic cut in commercial taxes. The drop was driven in large part by a B.C. government decision in April to reduce the school tax portion of the commercial tax mill rate (tax per $1,000 of value)  by 70% this year as part of its COVID-19 Action Plan.

The tax shift has dinged owners of homes, which remain the highest priced in the country.

Vancouver posted the largest increase in residential tax rates in Canada this year, with a 14.2% increase from 2019, the Altus report reveals. This moved the city’s mill rate on a median residential unit to approximately 2.92 this year, from approximately 2.56 in 2019. This increase adds $131 more in property taxes for a median priced home of $1.2 million, according to the City of Vancouver.

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