Canada saw a surge in housing prices over the past year due to COVID-19, a market trend experts say is caused by people working from home more often and moving to rural and suburban areas.
Data released by the Canadian Real Estate Association (CREA) shows that when comparing the average market prices from February 2020 to February 2021, Canada had a 25 per cent year-over-year increase. The average price rose from $542,484 to $678,091.
“One factor is that with work-from-home even more generalized, many people don’t have to live within commuting distance from their jobs,” Shaun Cathcart, senior economist at CREA, told CTVNews.ca. “That means that folks who own condos and smaller homes can take out built-up equity and move to a property that better meets their needs – as over the past year, home is not only where you eat a few meals and sleep, but also the office, your kids’ school, playground, gym, etc.”
The largest year-over-year percentage changes came from the Northwest Territories (48.1%), Nova Scotia (30.4%), Ontario (24.5%), Quebec (22.5%), and New Brunswick (20.9%).
Cathcart noted that the higher percentage change in Northwest Territories is likely due to the fact that in both February 2020 and February 2021, six homes were sold throughout the entire territory and the ones that were sold in 2021 were marked at a higher price.
When looking at the provinces and territories that had the largest upsurge in terms of price difference, Ontario sits at the top of the list with an increase of over $170,000. Northwest Territories came next, followed by British Columbia, Nova Scotia, and Quebec.
The data also shows that prices in suburban and rural areas were impacted the most and saw the biggest changes, with regions like Rideau-St. Lawrence and Sarnia-Lambton in Ontario averaging about a 50 per cent increase from the previous year.
“With people no longer having to live within commuting distance to their jobs, as long as suburban and rural areas have decent internet, they become even more attractive to families looking for more space,” said Cathcart.
Find your region and the year-over-year price and percentage change below.
Cathcart says that Canadians can expect to see sales and prices increase this year, but forecasts sales to slow down in 2022 while prices remain high.
Forest Gate buys Niagara Falls shopping centre | RENX – Real Estate News EXchange
Forest Gate Financial Corp. has acquired a Niagara Falls shopping centre as the newly formed investment firm begins building a portfolio and executing on its strategy to acquire a diverse range of properties.
The Mount Carmel Centre was purchased from a private investment group for $37 million. The 30-acre site at 3930 Montrose Rd. is occupied by a shopping centre with tenants that include Food Basics, The Sleep Factory, Tim Hortons, Swiss Chalet and Harvey’s, among several other retailers and food, beverage and service providers.
“We really believe in the Niagara Falls market and think this is an excellent opportunity for us,” Forest Gate chief executive officer and managing partner Dan Marinovic told RENX. “We like the site because it’s a very large property that we feel we can add value to.”
Forest Gate will manage the property, which is in close proximity to a residential neighbourhood and Mount Carmel Park. Niagara Falls has natural attractions, a strong tourism industry and a manufacturing base.
The city will benefit from improved GO Transit service, which Marinovic believes will make it an attractive location for people looking to work remotely while seeking a more affordable and relaxed lifestyle than can be found in larger markets.
Forest Gate seeks variety of asset classes
While there are no immediate plans for redevelopment, the Mount Carmel Centre site is large enough to accommodate future multifamily and mixed-use development.
Forest Gate is establishing a stand-alone purpose-built rental apartment vertical and Marinovic said it has close to 500 units under management or in its acquisition pipeline.
The company is looking to add at least 1,000 units annually over the next several years. It’s targeting value-add opportunities in Southern Ontario communities like Niagara Falls where there’s access to public transit and pleasant environments for living and working from home.
Forest Gate is also seeking income-producing industrial and retail properties, as well as development and redevelopment opportunities.
The Vaughan-headquartered boutique real estate private equity, private debt and advisory investment firm was launched in March by Marinovic and partner and chief financial officer Frank DelZotto to deliver premium risk-adjusted returns on its own and in partnerships with developers, builders, investors and capital providers.
Forest Gate can be nimble in making acquisitions and Marinovic is excited by the momentum the company has achieved in its first six months.
“We’re big believers in the Canadian real estate landscape, especially as things start to normalize and we get immigration back to pre-pandemic levels,” said Marinovic. “We’re looking at very significant growth over the next 12 months.”
The Forest Gate team
Marinovic was most recently chief development officer of Dream Unlimited, where his responsibilities covered finance, development, construction and operations. Before joining Dream in 2013 he was vice-president of finance for First Gulf, the commercial real estate arm of Great Gulf, for seven years.
DelZotto was previously a partner at BDO Canada LLP for 19 years.
Forest Gate just hired Justin Hawkins, formerly First Gulf’s senior manager of development and planning, as director of development. Hawkins worked for RioCan REIT, Dream and SmartCentres REIT before that.
Vaughan-based home-builder Treasure Hill Homes is a partner in Forest Gate. Forest Gate’s advisory board is comprised of Marinovic, DelZotto, Treasure Hill president Nicholas Fidei and Treasure Hill CFO Mark Caruso.
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Podcast: What triggered a record-breaking Ottawa real estate deal – Ottawa Business Journal
A record-setting residential real estate deal takes centre stage in the latest episode of Behind the Headlines.
To hear the full podcast with OBJ publisher Michael Curran and editor David Sali, please watch the video above. Prefer an audio version of this podcast? Listen to it on SoundCloud or Spotify.
MC: We know the business audience likes big numbers, and this is a big number: a quarter of a billion dollars. This is a three-building rental apartment complex in Westboro, and it sold for $267 million. We think it’s the largest residential real estate deal in Ottawa history. Dave, tell us about it.
DS: CBRE brokered this historic deal. It actually took three of their offices – Ottawa, Toronto and Montreal – working together to get this deal done. That’s how big it was. The buyer is Homestead Land Holdings out of Kingston. They already own a couple of dozen properties in Ottawa along with dozens more across the province. As Nico Zentil of CBRE’s Ottawa office told me, it is just very rare that you would see a property of this scale ever come on the market in Ottawa because we have a pretty tightly controlled market here. This is part of Homestead’s play to expand its footprint here – they also recently filed an application to build a 25-storey apartment tower with 235 units near Baseline and Greenbank. Clearly, they’re wanting to go big in what they think is going to be a big bounceback for the Ottawa rental market. Zentil said the properties were hotly pursued and got multiple bidders. That’s a testament to the strength of the Ottawa residential market right now.
As you know, last year wasn’t great for the rental market in Ottawa. With the pandemic, two big groups that are normally pretty steady, reliable renters – students and new immigrants – well, there weren’t many of those coming to the capital last year, so that caused a little bit of a dip in the rental market for sure. But the general consensus seems to be that things are ready to bounce back.
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