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Windsor area sees record year in industrial/commercial real estate activity

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The new buildings and many construction sites are hints of the robust economic activity in the region, but the 2022 CBRE industrial/commercial sales statistics released this week confirmed it was a record year for Windsor.

The annual sales total of $727 million bested 2021’s numbers by $286 million while the number of deals increased by 22 per cent to a new high of 112.
“I was pleasantly surprised the second half of 2022 actually led to a larger number of transactions and dollar figures than the first half of the year,” said CBRE senior vice president Brook Handysides.

“It just goes to show the robust investor confidence in the Windsor market.”

Handysides said further evidence of that confidence is the Windsor market is dominated by private capital investment. Private investment is more concerned about risk factors than the public sector, but Windsor’s bright outlook has lessened those concerns.

“The market confidence that’s there now, we haven’t seen before,” Handysides said.

“The growth of the industrial sector from 2020 is 157 per cent followed by (vacant) land deals at 41.6 per cent.”
The Ambassador Plaza on Huron Church Road and Tecumseh Road West is shown on Friday, February 17, 2023. The plaza sold for $40 million last year, the largest industrial/commercial real estate transaction in Windsor-Essex. Photo by Dan Janisse /Windsor Star

In comparison, Windsor saw 38 deals worth $117 million in 2017, 52 deals valued at $309 million in 2020 and 87 deals for $441 million in 2021.

While the NextStar Energy battery plant was recently honoured as the biggest impact business deal in Canada for 2022, it wasn’t even the largest land transaction in the Windsor region last year.

It came second to the $40 million paid for the Ambassador Plaza on Huron Church Road at Tecumseh Road West. The battery plant land purchase was for $33.5 million.

The other top four deals last year were $27 million for the former CS Wind plant and $24.3 million for an apartment building at 8717 Riverside Dr. E.

CBRE Windsor associate vice president Brad Collins said the growth seen across the retail, industrial and residential classes is an illustration of how buoyant all sectors of the local market were in 2022.

“It wasn’t who were the winners and losers; it was a matter of how big a winner each asset class was,” Collins said.

“The industrial and land sectors for multi-residential were the classes that led the way.”

The Ambassador Plaza on Huron Church Road and Tecumseh Road West is shown on Friday, February 17, 2023. The plaza sold for $40 million last year, the largest industrial/commercial real estate transaction in Windsor-Essex. Photo by Dan Janisse /Windsor Star

Collins added there were a few large purchases of property made that are intended for single-family and multi-residential use. Several of those sales occurred along the County Road 42 corridor near Banwell Road.

“Some of those purchases along County Road 42 are strategic long-term hold purchases,” Collins said. “It shows confidence in the long-term trajectory of this area.”

However, Collins said the expectation is the first half of 2023 will be soft for the volume of sales.

“We’re expecting a choppy 2023 because of the interest rate uncertainty,” Collins said. “It’s not as easy to make sales today as it was last year.”

Handysides said the area is enjoying a healthy mix of investors.

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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.

The Canadian Press. All rights reserved.

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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.

The Canadian Press. All rights reserved.

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