Greater Vancouver real estate is still adjusting to the pandemic, but buyers seem to be more deterred than sellers. Real Estate Board of Greater Vancouver (REBGV) data shows the price of a typical home made a significant monthly decline in May. Inventory fell from last year’s levels, but didn’t drop nearly as much as sales did.
Great Vancouver Real Estate Prices Dropped $7,600 Last Month
Greater Vancouver real estate prices are up from the same month last year, but not much else. REBGV reported the benchmark price for a home reached $1,028,400 in May, up 2.9% from last year. In the City, Vancouver East’s composite benchmark reached $1,089,000, up 3.5% from last year. Pricey Vancouver West saw the benchmark reach $1,283,000, up 4.2% from last year. Looking at the benchmark price chart, you may have noticed this isn’t the first impression.
Greater Vancouver Composite Benchmark Price
The price of a typical home across Greater Vancouver, in Canadian dollars.
Source: REBGV, Better Dwelling.
The year-over-year rate of growth is higher than last month, but prices are down using monthly or peak numbers. The 2.9% annual increase for May is higher than it was in May 2019. However, prices are down 0.73% from April 2020 – about $7,600 lower over the span of a month. Prices are also down 6.88% from peak, whereas they were down just 6.19% from the month before. A lot of odd dynamics created by the monthly price change falling almost twice as fast as last year, but the takeaway is prices are lower from peak, and last month.
Greater Vancouver Composite Benchmark Price Change
The annual percent change of a typical home across Greater Vancouver.
Source: REBGV, Better Dwelling.
Greater Vancouver Home Sales Fall Over 43%
Greater Vancouver real estate sales slipped, although this was largely expected due to the pandemic. There were 1,485 home sales in May, down 33.9% from a month before. This represents a decline of 43.7% when compared to the same month last year. Once again, the drop in sales was expected due to the pandemic. However, sales coming in 54% lower than the 10-year average for the month is a tough pill to swallow regardless.
Greater Vancouver Composite Sales Vs. Listings
The number of homes sold vs total inventory in Greater Vancouver.
Source: REBGV, Better Dwelling.
Greater Vancouver Home Inventory Fell, But Not As Much As Sales
New listings for Greater Vancouver homes didn’t fall quite as much as sales. REBGV saw 3,684 new listings in May, up 59.3% from the month before. This represents a 37.1% decline compared to the same month last year. The smaller decline for new listings helped prevent total inventory from completely drying up.
Total inventory, a.k.a. active listings, climbed higher across the board. REBGV reported 9,927 active listings in May, up 5.7% from a month before. This represents a decline of 32.4%, when compared to the same month last year. Once again, total inventory didn’t quite fall as much as sales, which actually led to a lower ratio of sales to listings.
The sales to listings ratio (SALR) slid from last year. The SALR fell to 15% in May, down from 18% during the same month last year. Generally, analysts believe prices fall when the ratio drops below 12%. Prices are expected to rise when the SALR is above 20%, and considered balanced between 12% and 20%. The market is still in balanced territory, but a little closer to seeing prices fall, compared to last year.
The pandemic is slowing things down, but buyers appear to be more deterred than sellers at this point. Price growth did still accelerate on an annual basis, which is considered a bullish indicator. However, the mechanics are somewhat broken, considering prices fell on both the month and from peak.
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WiredScore drafting first global smart buildings certification | RENX – Real Estate News EXchange
WiredScore has created an international Smart Council, with representatives from some of the largest commercial real estate owners/operators in Canada and the world, to create the first international certification standard for smart buildings.
The WiredScore Smart Council is collecting insights and defining what constitutes a smart building in order to launch the new certification.
“Just like technology, that’s going to evolve over time and bring new challenges and opportunities to our industry,” WiredScore Canadian head Andrew Freitas told RENX in an exclusive interview prior to the announcement. “But, ultimately, we want it to help create a global standard that the industry can wrap its arms around.”
WiredScore is the organization behind Wired Certification, the internationally recognized digital connectivity rating system for real estate that helps landlords design and promote buildings with powerful digital connectivity. It’s the only certification for rating the infrastructure, connectivity and technological capacity of commercial buildings.
WiredScore launched Wired Certification in 2013 and moved into Canada in 2017. Freitas became the first head of its Canadian operations less than a year ago.
The smart buildings certification
The WiredScore Smart Council was created over the past few months to provide clarity, leadership and guidance on what constitutes a smart building and create a standard that can be used for benchmarking purposes.
“This is separate from our core product, our connectivity certification, but we’re really looking to build on the success of that,” said Freitas. “How we grow and evolve is driven by what our clients have been asking us to do. This was no different.”
The smart building certification will be developed by exploring factors related to building operational efficiency, optimization and obsolescence, and ultimately a building’s ability to deliver an inspirational user experience.
WiredScore works with more than 600 clients in nine countries, representing more than 550 million square feet of space in 2,000 buildings, helping owners and property managers benchmark and improve connectivity.
WiredScore Smart Council membership
The goal is for the WiredScore Smart Council to have global breadth and a diversity of thought leadership in portfolio management, building operations and innovation from all of the key markets in which WiredScore operates.
The WiredScore Smart Council is comprised of companies including Allianz Real Estate, Allied Properties REIT, Art-Invest Real Estate, AXA Investment Managers, British Land, Commerz Real, Deliveroo, Derwent London, EDGE, Fifth Wall, Gecina, Great Portland Estates, Hines, KingSett Capital, KPMG, Legal & General, Nuveen Real Estate, Patrizia, PGIM Real Estate, Rudin Management Company and U+I.
“Our expertise has allowed us to form some pretty great, strong and deep relationships that allows us to be trusted advisors to these companies,” said Freitas. “We brought together owners, developers and tenants to form the council.”
WiredScore Smart Council members take part in individual sessions and group discussions that look at smart building drivers, data protocols, cyber security standards and other factors on a near-monthly basis.
The WiredScore Smart Council was created during the COVID-19 crisis, but the pandemic has not added any complications since everything has been done virtually. So far, members have largely been working remotely.
WiredScore in Canada
Allied and KingSett are the Canadian representatives on the WiredScore Smart Council.
“The notion of establishing a benchmark for smart buildings has been a discussion point for a long time and it’s fantastic to see WiredScore take the lead in forming this council of owners and users from across the world,” Allied technology vice-president Travis Vokey said in a media release.
“We’ve been looking for a framework to understand how our buildings are performing today and what we need to do in order to future-proof them — not just in their digital capabilities, but also their smartness — and being a member of the WiredScore Smart Council will help us do this.”
WiredScore’s other Canadian clients include such prominent commercial real estate owners as Ivanhoé Cambridge, GWL Realty Advisors, Dream Office REIT, Cadillac Fairview, Northwest Healthcare Properties, QuadReal Property Group and Slate Asset Management.
WiredScore has grown from having about 44 million square feet committed to Wired Certification in Canada when Freitas took over to more than 66 million square feet today.
The primary Canadian markets are Toronto, Vancouver, Montreal, Calgary, Edmonton, Ottawa and Halifax.
RE/MAX | Is Sudbury Real Estate a Good Investment? – RE/MAX News
Thinking about adding to your real estate investment portfolio? This north-eastern Ontario city may not have crossed your mind but purchasing property in Sudbury could be a good investment. With the largest population and land mass of a city in this area don’t underestimate Sudbury. The market conditions and other considerations make this a market to watch. Here are a few reasons to consider investing in the Sudbury real estate market.
Sudbury is often touted as Canada’s nickel city, yet it is also a fast-growing real estate market. The city is making important investments in other industries such as education, health and retail. This expansion will lead to job diversity and attract more people to seek employment – and residence – in Sudbury.
Sustainability is another key area where this city is making great strides. Other factors include city and cultural centres, green spaces and more.
With increased livability in Sudbury, making a real estate investment in this city could be a smart move. If you’re thinking about purchasing a home in Sudbury, keep in mind that the most livable neighbourhoods include Copper Cliff, Coniston and McCrea Heights. Purchasing in these popular neighbourhoods could increase your return on investment, since demand is higher here.
Sudbury is an attractive market due to its affordability compared to others in the province of Ontario. While Toronto continues to be a desirable market for purchasing homes, the average sale price in Toronto was $955,273 in May. Meanwhile in Sudbury, the average sale price was significantly lower, at $298,431 in May. In fact, Sudbury is considered one of the most affordable real estate markets in Ontario.
Both markets continue to be overall sellers’ markets, with Sudbury experiencing a listing shortage since earlier this year. This remains a top concern for homebuyers hoping to purchase in this city, the majority of which are families and move-up buyers.
Yet, millennials and first-time buyers on the hunt for a bargain, may find that homes in Sudbury may fit the bill.
With recent cuts to the benchmark interest rate, those looking at investing in the Sudbury real estate market can take advantage of even more savings, by securing a mortgage loan at a more affordable rate.
Low Vacancy Rate for Rental Properties
Many people are moving to Sudbury and renting properties. The vacancy rate in Sudbury is 2.1 per cent which points to a healthy rental market. Students flock to the city to attend post-secondary institutions such as Laurentian University, University of Sudbury and Cambrian College. This has led to a strong rental market for students who need a place to live during the school year. In fact, this high demand has made it more difficult for students to find the housing they need.
Although, the vacancy rate is low, average rental prices rose by 5.6 per cent ($1,024) earlier this year, reflecting a tight and expensive Sudbury rental market. For investors this is good news, since increased demand means it will be easier to secure a tenant and you are more likely to get a healthy return on your investment as a landlord each month.
The key to success in the rental property market is to ensure the amount you charge your tenants is high enough to cover the investment property’s mortgage payments and maintenance fees, but low enough to be competitive. Overall, all signs point to Sudbury as a good investment opportunity.
If you’re thinking about investing in the Sudbury real estate market, then now might be the time. The livability in this city is improving with exciting developments, expanding industries and an education hub. Affordability remains to be an attractive factor for making the move north, or at least investing in real estate in this city. Lastly, low vacancy rates for rental properties mean if you invest here, you will likely be able to attract tenants, earn income from renters and get a solid ROI. Yet there are different types of real estate investing strategies you can choose such as buy and hold, rental properties, joint ventures and more. Deciding on the right investment strategy depends on your personal situation, take the right steps to educate yourself before making an investment in the Sudbury market.
South Okanagan real estate sales in June show “cautious optimism” – Oliver Chronicle
Local Journalism Initiative
Real estate sales are looking up in the South Okanagan this month, according to a report by the South Okanagan Real Estate Board.
The report says 121 single-family homes were sold in the South Okanagan in June, up 38 percent from the same period last year, while home listings were down.
Sale prices also increased by 20 percent, with the average cost of a single-family home rising to $617,986.
“Housing market activity certainly increased in June, in stark contrast to what we saw the month before,” said South Okanagan Real Estate Board president Lyndi Cruickshank.
Townhouse sales are also up significantly in the region, with a 56 percent increase in sales in June, while condo sales are down.
Osoyoos saw the largest increase in sales last month, with 20 single-family home sales resulting in a 150 percent increase over June 2019.
In a statement sent to the Times-Chronicle along with the report, Cruickshank warned that COVID-19 concerns are still out there, so business is not quite back to normal in the real estate world just yet, but there is hope.
“The increase in activity does draw cautious optimism for the housing market to recover sooner than may have been expected,” she said.
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