Canada’s remote workforce has been breathing new life into small cities, but that may come crashing down soon. The Government of Canada (GoC) has ordered its remote workforce back to the office starting next week. The reasons cited haven’t been particularly strong, but the impact on big cities has been. Downtowns have been hollowed out as workers moved to smaller regions and took their spending with them. Now big cities and their leaders have been trying to get workers to go back into the office, for just enough days to prevent them from moving too far out of their pricey regions.  Canada’s Public Servants Ordered Back-To-Office Next Week Back in December 2022, the Treasury Board Secretariat (TBS) announced that public workers will have to be on-site for 2 or 3 days per week, or between 40-60% of their regular schedule. This came shortly after business leaders publicly called for an end to work-at-home policies in the Federal Government.   In May 2024, the TBS rolled out the “prescribed presence” directive for those working in public administration. This requires the public service to work on-site a minimum of 3 days for workers, and 4 days for executives. It goes into effect on September 9th, less than a week from today.  Government of Canada Cites Weak Logic, To Appear In Court The GoC argues their back-to-office mandate is necessary. Officially, the reasons cited are strengthening confidence in public service, “fairness,” and attracting the best talent. In other words, all buzz-term objectives with no actual reason cited.  Most research shows workers generally perform better in a work-from-home environment. Studies show productivity increased by 22%, and office-free environments tend to attract higher-quality talent. Only a handful of studies show the opposite and largely attribute the decline to management.  Public workers aren’t keen on the idea. The Public Service Alliance of Canada (PSAC), representing 240,000 public servants, called the decision “arbitrary” and a one-size-fits-none policy. A survey of their membership showed 91% of respondents were against the mandate, and 75% were willing to fight the mandate.  The survey found that the biggest reason workers opposed the policy was the cost, with 91% of respondents agreeing. Other popular reasons include commute time (90%), work-life balance (89%), the environment (84%), and mental health (83%).  The GOC has been fighting an application for a full hearing in Federal Court. They lost that fight last Friday and it was granted last-minute, according to PSAC. A hearing doesn’t reverse the decision, just allows it to be heard publicly and fairly—an issue the GoC is more concerned about than PSAC, it appears. Canadian Back-To-Office Mandates Are About Real Estate Demand Like most issues in Canada, this is about real estate. Cities carry substantial premiums due to the proximity to amenities, such as industry. A high-traffic region of offices is also a big boom to the downtown core of major cities, breathing life and supporting further commercial real estate premiums.  Now the exact opposite is happening with work-from-home. The steep premiums don’t make sense to many workers, who are now fleeing to smaller regions. It’s created a lot of economic activity in smaller cities, reviving many sleepy towns. That’s left small cities with huge demand boosts and big ones with a complete lack of demand, and starting to look overpriced. The great decentralization of office space has led to a major flight from downtown cores. Greater Toronto office space went from highly coveted pre-pandemic to a record fifth of space sitting vacant. Not quite as bad as downtown Calgary offices, where a quarter of the space is vacant. Ottawa office vacancies are double pre-pandemic volumes, while Vancouver is sitting at triple its rate. Even with Nova Scotia’s population boom, over 1 in 7 sqft of office space sits empty in Halifax.   Canada’s Largest Cities Want Workers (& Their Wallets) Tethered Consequently, powerful people have been pushing for a return to the office. Most notably, the Canadian Chamber of Commerce and 32 business leaders penned an open letter requesting the GoC bring office workers back to office. The group, including the heads of the retail and restaurant associations, cited concern over the hollowing out of downtown regions—especially Ottawa.   Politicians are also urging a return to office from federal workers—some more directly than others. For example, Ontario Premier Doug Ford demanded a return-to-office.  “It sounds crazy. I’m begging people to go to work for three days — not that they aren’t working at home, but it really affects the downtown,” stated Premier Ford, at a press conference standing beside the Mayor of Ottawa.  Speaking of the Mayor of Ottawa, he is amongst a growing group of big city mayors indirectly calling for a return-to-office. The Mayor of Ottawa denies lobbying the GoC, but publicly voiced concern over the “hollowing out” of downtown Ottawa. There’s that term again.  The Mayor of Toronto is also publicly pushing for a return-to-office, citing the lack of activity downtown. While she voiced her concerns publicly, she opted to privately court office workers instead.   Provincial governments are also on the same boat. Both Ontario and Nova Scotia have respectively ordered public workers back to the office soon.  It’s worth noting that most of the government return-to-work orders don’t require a full back-to-office campaign. Instead they’ve largely focused on 2-3 days of in-office appearances, not even necessarily on the same day as their peers—not a great argument for improving peer-to-peer interaction. However, it’s just enough to prevent people from moving out of the city for more affordable housing, an issue typically seen at the peak of real estate bubbles.

Key highlights The Bank of Canada’s (BoC) decision to lower its overnight lending rate by an additional 25 basis points today aligns with market predictions for continued rate cuts until the end of the year Inflation hit a new low of 2.5% in July, and continues to inch closer to the Bank of Canada’s (BoC) target of 2% With inflation cooling at a consistent rate, many economists are now turning their attention toward weakening labour market data While BoC interest rate decisions are rarely a catalyst for action in the short term, they are important signals for the broader market and indicate that the tides may be turning, even if a significant uptick in transaction activity doesn’t materialize immediately Sentiment supporting loosening monetary policy positions at the next BoC interest rate announcements in October and December is also rising The Bank of Canada cuts its overnight lending rate to 4.25% In what was a highly anticipated – and eagerly awaited – move, the Bank of Canada (BoC) has announced a third 25 basis point cut to its overnight lending rate today. This continued momentum can be largely attributed to cooling inflation; according to July’s inflation data, inflation reached a new low of 2.5% (down from a previous low of 2.7% in June). In fact, July marked the lowest level seen since March 2021, inching us closer to the BoC’s 2% target. Of course, the elephant in the room hasn’t changed since the last BoC rate announcement. Will a third consecutive interest rate cut breathe new life into the Canadian real estate market after an extended downturn? If inflation is under control, and the BoC continues to lower bowering costs as the market has forecasted, will investors finally move off the sidelines in the interest of transacting? Sentiment supporting loosening monetary policy positions in the next few BoC interest rate announcements is also rising. The possibility of rates dipping below 3.00% within the next year or so is becoming much more likely. Addressing Canada’s weakening job market   Leading up to the Bank of Canada’s interest rate announcement today, all eyes were on inflation data. However, in this current landscape, inflation may no longer be the biggest challenge we are up against. With inflation cooling at a consistent rate and nearing the 2% target, many economists are now turning their attention toward weakening labour market data. To this effect, at the last meeting, the BoC’s Governor Tiff Macklem hinted at the need to shift policy focus from inflation control to boosting the Canadian economy. In June, Statistics Canada reported a 0.3% decline in reported payrolls, signaling a decrease of 47,300 workers.Employment also dropped in 11 of 20 sectors, while the number of job vacancies remained largely unchanged. However, June marked the fifth consecutive monthly increase in the unemployment-to-job vacancy ratio, hinting at a potential decline in the health of Canada’s labour market. In July, Statistics Canada reported that the national unemployment rate held steady at 6.4%, with approximately 2,800 jobs lost. Taking a closer look at the report, we can see that the private industry constricted with the loss of 42,000 positions, while the public sector offset some of these losses with the addition of 41,000 new hires. Rising concerns relating to Canada’s low productivity growth have also been splashed across headlines in recent months, with Treasury Board President Anita Anand announcing the creation of a new federal working group tasked with dissecting labour efficiency trends in both the private and public sectors and proposing recommendations to address the productivity concerns raised by both economists and the BoC. While Canadian labour market conditions continue to trend down, speculation has increased around Canada’s Temporary Foreign Worker (TFW) Program, which was originally designed to address labour market shortages across Canada. In response, Randy Boissonnault, federal Minister of Employment, Workforce Development, and Official Languages, recently announced the government’s plans to “weed out TFW Program misuse and fraud.” According to Boissonnault, these changes will help to prioritize Canadian workers and, in turn, help to mitigate the challenges of the current labour market. How will this cut impact Canadian commercial real estate?   Following the BoC’s two consecutive cuts, we have yet to see an overtly tangible impact on the Canadian commercial real estate market. This was to be expected; after all, both cuts followed an extended period of substantial economic tightening. With the high cost of borrowing and lingering signs of economic volatility, the majority of Canadian consumers and investors seem to have adopted a ‘wait and see’ approach. “This third BoC interest rate cut is meaningful because it signals that rates are trending down and, more importantly, at a more rapid pace than previously expected,” notes Peter Norman, VP and Chief Economist at Altus Group. “But this is also a double-edged sword for the CRE industry, which can benefit from better financing conditions, but will face escalating risks from the deteriorating economic conditions. Weak labour market conditions and anemic GDP growth portends shelved expansion decisions by office tenants, weaker retail sales by consumers, and delayed homebuying decisions by households.” While BoC interest rate decisions are rarely a catalyst for action in the short term, they are important signals for the broader market and indicate that the tides may be turning, even if a significant uptick in transaction activity doesn’t materialize immediately. The point of rate cuts is to stimulate the economy, but they typically do so with fairly long lags, meaning that the CRE industry may be waiting for improvements in employment and economic conditions well into 2025 before new investment decisions start to make more sense. “With additional rate cuts expected in October and December, transaction activity may remain muted in anticipation of lower borrowing costs. However, we should see some increase in activity in identifying opportunities for core assets following this decision,” notes Raymond Wong, Vice President, Data Solutions Delivery at Altus Group. “The main challenge we face, right now, is the lack of product and the continued bid-ask gap in expectations between buyers and sellers. Obviously, we need to keep an eye on inflation, GDP growth, and employment – but I think we may also see cap rates start to flatten in the coming months.” Are Federal Reserve and BoC policy directions coming into alignment?   The BoC’s interest rate decisions do not exist in a vacuum; while the BoC began its easing cycle ahead of other major central banks, these decisions are undeniably influenced by what is happening south of the border. There exists a delicate balance between the US and Canadian economies, and if the Federal Reserve was not expected to begin its cutting cycle in September, today’s rate decision could have put our dollar at risk. “There is growing frustration that the (US) Fed has waited too long to cut rates, putting the economy in a precarious position,” notes Omar Eltorai, Director of Research at Altus Group. “Other countries, like Canada, have already started throttling back on base lending rates. The Fed may have already missed the ideal time to cut, resulting in a not-so-soft landing that ends up disrupting the US economy.” As of right now, the markets are pricing in a 25 to 50 bps cut at the next FOMC announcement on September 18th. In the wake of today’s decision, Canadian consumers and investors are likely breathing another sigh of relief. If inflation continues to trend in the right direction while the economy indicates the need for a boost, the BoC should have no reason to deviate from its current pace of rate relief. As for the Canadian real estate market – we may not have landed the plane yet, but most of the turbulence appears to be behind us.

A 'now selling' banner on a new condo tower in downtown Vancouver, pictured in January 2022. (Ben Nelms/CBC)   Greater Vancouver Realtors says home sales in the region dropped 17.1 per cent in August compared to the same month in 2023 and remained more than a quarter below the 10-year seasonal average. The real estate board says sales in the market totalled 1,904 last month, down from the 2,296 recorded in August 2023. The composite benchmark price for all residential properties in Metro Vancouver was $1,195,900, a 0.9 per cent decrease compared to August 2023 and a 0.1 per cent decrease from July, according to the MLS Home Price Index. In the area covered by Greater Vancouver Realtors, 4,109 detached, attached and apartment properties were newly listed in August, 4.2 per cent more than the same month last year. Andrew Lis, the board's director of economics and data analytics, says sales remained in a "holding pattern" in August, suggesting buyers were still feeling the pinch of higher borrowing costs despite the Bank of Canada's two previous cuts to its key interest rate. He says he's optimistic buyers will come off the sidelines after the central bank announced a third consecutive decrease by a quarter percentage point on Wednesday, coupled with the fact that September typically sees more homes changing hands. The areas and municipalities covered by Greater Vancouver Realtors are Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, the Sunshine Coast, Vancouver, West Vancouver and Whistler. Fraser Valley slowdown The Fraser Valley Real Estate Board (FVREB) says the market is slowing in its region as well, after recording 1,067 home sales in August, down 13 per cent from July and 16 per cent from August 2023. The board says this number is down 30 per cent compared to the 10-year seasonal average.  It comes after the FVREB announced the second-slowest July in 10 years.  The board says it all comes down to affordability in B.C. "With prices for single-family homes, townhouses and condos holding relatively flat year-over-year, many continue to face challenges buying their first home or moving up in the market, as reflected in seasonally slow August sales," board chair Jeff Chadha said in a media release. The Fraser Valley Real Estate Board covers Abbotsford, Langley, Mission, North Delta, Surrey and White Rock.      

The Edmonton housing market has seen its average residential sale price rise by a healthy 7.4 per cent year-over-year across all property types, between January 1 and July 31 (from $409,986 in 2024 to $440,446 in 2024). The number of sales has also increased by a considerable 30.9 per cent for the same time period (from 13,713 sales in 2023 to 17,951 sales in 2024). The number of listings rose 6.9 per cent (from 22,241 in 2023 to 23,775 in 2024). Average sale prices across all property types are anticipated to increase by six per cent through the remainder of 2024, while the number of sales is likely to see a 15-per-cent bump. Edmonton is currently experiencing a seller's market, conditions that are anticipated to persist this fall. There is not enough inventory to match buyer demand, and additional interest rates cuts will see new more buyers entering the market and putting additional strain on inventory levels. There are a number of factors contributing to Edmonton's housing shortage. HIGH-DEMAND PRICE POINTS: The highest demand in the market right now is for single-family homes priced between $300,000 to $500,000, and condos under the $200,000 pricepoint. Luxury homes valued at more than $1 million is also in short supply. DWINDLING INTEREST IN OLDER HOMES: There is an oversupply of older, outdated homes sitting on the market, especially in the $500,000 to $999,000 price range. However, there is high demand from real estate investors and developers for properties where legal secondary basement suites can be added or available land for infill, albeit most of that demand is in the under $500,000 price point as well. NOT ENOUGH NEW CONSTRUCTION: Edmonton can’t build quickly enough to meet demand, due to a skilled labour shortage. Edmonton homebuyers are responding/adapting to the housing shortage with aggressive offer strategies, bully offers and escalation clauses. This is a direct result of many sellers looking to run a multiple offer process to get the highest and best offer, where it’s imperative to have a knowledgeable and experienced agent guiding you on both sides. INTEREST RATES: On September 4, the Bank of Canada will make its next interest rate announcement. This is expected to continue driving buyer demand and confidence. Inventory is already moving quickly, so additional interest rate cuts will likely add more buyers to the market as their purchasing power increases as rates drop. Homeowners who took a three- or five-year term fixed-rate low mortgage in the fall of 2020 and 2021 post pandemic market boom, are coming up for renewals this year and next, prompting selling considerations and impacting the market. MOVE-OVER BUYERS: Edmonton’s sales are primarily driven by Ontarians moving and investing in real estate. Local buyers typically lose in multiple-offer situations to Ontarians, and out-of-province buyers are open to investing in up-and-coming areas. In addition, Calgary’s market boom seems to have levelled off somewhat, and priced out some buyers. As a result, these buyers are now looking at Edmonton as an alternative. 

Morguard reports a surge in real estate investment in Q2, with industrial and rental sectors thriving   Morguard’s 2024 Economic Outlook and Market Fundamentals Second Quarter Update reported positive momentum in the Canadian commercial real estate sector. The multi-suite residential rental property market remained stable, while industrial investment property transactions surged in the second quarter. “Both the commercial real estate and multi-suite residential rental sector exhibited a measure of resilience in the second quarter, which built on a solid foundation for growth,” said Angela Sahi, president, and chief operating officer of Morguard. She noted that easing inflation pressures and signs of potential rate cuts suggest the Canadian real estate market is on a path to recovery. The report anticipates further rate cuts by the Bank of Canada and easing inflationary pressures throughout 2024. Investor confidence is expected to grow as monetary policy becomes less restrictive, despite slower economic growth. Keith Reading, senior director, Research at Morguard, added, “Real estate investors will continue to exhibit a measure of confidence in Canada's commercial real estate sector as evidenced by the uptick in transaction volume in the second quarter.” He suggested this confidence will persist as the sector recovers from the recent economic slowdown. The multi-suite residential rental market-maintained investor confidence in the second quarter of 2024. Strong long-term fundamentals and a positive rent growth outlook supported the sector’s stability. Although borrowing rates remained high, optimism grew following the Bank of Canada's 25-basis-point overnight rate cut in June. The sector is expected to continue performing positively. Industrial property transactions surged by 48.1 percent in the second quarter across five major markets, boosting overall Canadian investment volume. However, industrial leasing demand slowed as construction increased, raising the national availability rate. The office leasing market made progress, driven by pre-leased spaces in newly constructed buildings. Toronto and Montreal saw positive absorption rates in the second quarter, reflecting a preference for high-quality, amenity-rich office space. Retail leasing activity also grew as retailers sought premium physical spaces. However, retail property investment slowed, as institutional buyers remained selective in acquisitions. Canada’s economy grew modestly in the second quarter, despite the combined impacts of high interest rates, inflation, forest fires, and labour disruptions. Inflation pressures eased, with the Consumer Price Index falling below 3.0 percent. The Bank of Canada’s rate cut in June was a response to this inflation drop and the slowing labour market. Further rate cuts are anticipated in the second half of the year.

If you’re not a Canadian citizen or permanent resident, buying a home in Canada may be off the table for the next couple of years. On January 1st, 2023, the foreign home ownership ban—formally known as the Prohibition on the Purchase of Residential Property by Non-Canadians Act—went into effect in Canada. On its face, the ban is simple: In an effort to address the current housing crisis, the act prevents non-Canadians, and corporations controlled by non-Canadians, from purchasing residential property in Canada for two years. The idea is that the ban will prevent non-Canadians from buying homes, freeing up those properties to Canadians. But, like many laws in Canada, the ban’s rules, implications and effects are more complicated than you may expect. We look at why and how the act came into effect, what percentage of homes are bought by foreign individuals and corporations and whether this act will help increase supply or have other unexpected effects. What is the Foreign Home Ownership Ban? The act prevents non-Canadians and foreign corporations from buying residential property in Canada for two years. But what does “non-Canadian” mean in this context? The act defines non-Canadians as those who are not: Canadian citizens Permanent residents of Canada Persons registered under the Indian Act As for foreign corporations, non-Canadian corporations are defined as those that are: Privately held Not listed on a stock exchange in Canada Controlled by someone who is considered a non-Canadian under the act A  person or corporation defined as non-Canadian can’t buy property, either directly or through trusts, partnerships or similar entities. When it comes to the control of a Canadian property, the regulations in the act define “control” as, “direct or indirect ownership of shares or ownership interests of the corporation or entity representing 3% or more of the value of the equity in it, or carrying 3% or more of its voting rights, or control in fact of the corporation or entity, whether directly or indirectly, through ownership, agreement or otherwise.” In other words, non-Canadian participants in corporations cannot be  majority shareholders. Thankfully for those who may assume they are affected by the ban,  there are some exceptions to the regulations when it comes to owning Canadian property. If a non-Canadian ends up with an interest in a residential property due to separation, death or a divorce, they are not subject to the ban. They are also not subject to the ban  when the transfer of the property is from exercising the interest or secured right by a secured creditor and also when the property is being rented by a tenant. There are also other exceptions to the ban. Some people who are not technically citizens or permanent residents can still buy property over the next two years. These exceptions include: Non-residents married to a citizen Diplomats and members of international organizations who are living in Canada Refugees and those with temporary resident status Workers who have worked and filed tax returns in Canada for three out of the four years before buying property International students who have spent most of the previous five years in the country (they can buy property up to $500,000) What Types of Properties are Affected by the Ban? What does the act mean by “residential property”? It’s defined as a building with up to three dwelling units and can include detached homes, semi-detached houses, units in a rowhouse and residential condo units or similar premises. According to the Canadian Mortgage and Housing Corporation (CMHC), the ban only applies to properties in a census defined metropolitan area or census defined agglomeration. The census defines a metropolitan area as a place with a population of at least 100,000 people with at least 50,000 people living in its core. An agglomeration is a place with a core population of at least 10,000 people. The ban also applies to land considered vacant but zoned for residential or mixed use. However, places with a core population of under 10,000 people remain unaffected by the ban. A cottage or lakehouse also isn’t considered part of the ban and the ban doesn’t explicitly affect the purchase of large buildings with many units inside. Still, any non-Canadian who violates the ban will be fined up to $10,000 and may have to sell their property. Anyone who knowingly helps a non-resident violate the ban may also be fined. Why Did the Ban Come Into Effect? The idea that home ownership is dominated by non-residents driving up housing prices has solidified among politicians and the Canadian diaspora, but looking at the numbers actually suggests otherwise. The CMHC says the goal is to make housing affordable, a sentiment that has been echoed by Canada’s  federal political parties. However, the statistics show that while there is a housing affordability crisis, the percentage of foreign homeowners is small, sitting at less than 6% in Canada’s  big cities, like Toronto and Vancouver. Will the Act Increase the Housing Supply? It’s too early to tell, as the ban has just come into effect. However, economists and real estate professionals doubt it will make a significant impact, as non-resident purchases make up such a small number of the overall transactions in the housing market. Plus, there are other tactics that can be taken to affect the availability and affordability of housing in the Canadian market. These include increasing supply by raising the number of houses built and curbing house flippers. A new tax law also commenced on January 1 that affects potential home buyers. The law affects anyone who sells their home after they’ve owned it for less than 12 months. These sellers won’t be able to use the principal residence exemption when it comes to capital gains tax. This exemption was used to shelter the capital gains on the sale of the home, providing it went up in value. Instead, the gains would be 100%  taxed as business income. The only exception is if you sold due to separation, a work relocation, disability or death. As the ban begins, mortgage interest rates have increased. There were seven increases in 2022 and the Bank of Canada has indicated that more increases are expected in 2023. The increase in the prime rate has led to a rise in both fixed and variable interest rates. As a result, more people aren’t passing the mortgage stress test and can’t purchase a home. Then there is the issue of supply versus demand, especially in popular locations such as Toronto, including the surrounding Greater Toronto Area, and Vancouver. Up until 2022, there has been more demand for housing than availability, leading to bidding wars and bully offers. A Message for Hopeful Homebuyers So, in the end, what can a hopeful homebuyer do? Right now, keep an eye on prices—as high interest rates are causing a slowdown in the market—and see if you  can pass the mortgage stress test. We won’t know if the foreign homebuyers’ ban, combined with the other limits on the housing market, will have any effect for a while, so don’t take the ban as the new status quo just yet.

Some long-unaffordable pockets of Canada’s housing market could open up to first-time homebuyers this fall as interest rates decline but experts expect prices will hold relatively flat. Activity in the Canadian housing market has largely been muted through much of the spring and summer despite the start of rate cuts from the Bank of Canada, which delivered its third consecutive 25-basis-point drop on Wednesday. Toronto-based realtor Pritesh Parekh tells Global News that while the summer is seasonally a slower time for home sales, he also believes the June and July rate cuts were not enough to change the narrative for buyers still boxed out of the housing market. Declines in the central bank’s policy rate lower the bar of entry for would-be homebuyers, many of whom have been sidelined as they struggle to qualify for a mortgage to break into the ownership market. “Now that we’re at the third consecutive rate cut this year alone, I think it’s something where more conversations are going to start for first-time buyers,” he says. TD Bank economist Rishi Sondhi says that he’s expecting a “fairly healthy sales gain” in the fourth quarter of 2024, thanks in part to lower interest rates. He notes that activity is still likely to lag behind the pre-pandemic pace as borrowing costs and home values are still elevated. TD Bank joins other major lenders predicting the Bank of Canada will lower its policy rate to a resting point around 2.5 per cent in 2025. Parekh notes that with growing confidence of a downward path for interest rates, there’s a tendency for buyers to hold out in hopes of securing the lowest rate or a bigger mortgage. That could limit the number of buyers flooding back into the market this fall, even as others reach a point where borrowing costs fit with their homebuying plans. “There will be a group of consumers who want to hold a little bit longer to try to take advantage of more cuts,” he explains. “And then there will be those who are just on the cusp, and this is going to be enough to tip them over to make the decision.” Will more buyers drive up prices? An uptick in active buyers could intensify competition on properties in the market. Bank of Canada governor Tiff Macklem acknowledged this week that home prices could climb as the policy rate drops and conditions soften in the bond market, bringing down mortgage rates on offer. “It wouldn’t be surprising if, as interest rates come down, as activity in the housing market strengthens, you see some pickup in housing prices,” he told reporters Wednesday. Re/Max Canada published its fall housing market outlook on Tuesday calling for home prices to rise modestly through the end of the year in most Canadian cities. The report expects price growth between one and six per cent in roughly three quarters of markets across Canada, as compared to the first quarter of 2024. But some markets — particularly some of Ontario’s most expensive — are still projected to see price dips through the remainder of the year. Re/Max forecasts a two per cent drop in the average Toronto-area home price through to the end of the year. The market has already seen values drop this summer, with the latest August housing figures released this week showing a 0.8 per cent annual decline in prices as well as a year-to-year slowdown in sales. Christopher Alexander, president of Re/Max Canada, tells says he believes the recent rate cuts are “encouraging” more and more buyers to head back out into the market where supply is often outweighing demand. “Most potential buyers have put their plans on hold for the better part of two years, and now they see that there’s an opportunity where there’s still a good amount of inventory and choice,” he says. “Buyers have room to negotiate with sellers, especially in the condo market in Toronto. And I think we’re on our way to a much more healthy market state.” While Parekh says that lower interest rates are likely to drive up prices in the long run, he’s less sure about how the next two or three months will go. With lower interest rates and a seasonal uptick in buyers expected, any movement on price will depend if the trend of rising listings continues and supply growth offsets demand. Sondhi says he predicts housing affordability will improve into the fall but remain “strained” in most markets. Interest rates are still elevated even after a few cuts, and home prices have not receded much yet despite the slowdown in sales. “We do see affordability improving, not just in the fall but going forward as rates come down. But we do think it’ll still remain near historic worsts,” he says. Opportunity for 1st-time buyers with condos Experts who spoke to Global News say the glut of condos currently up for sale in Toronto could be set for a price correction, marking an opportunity for first-time buyers this fall. Sondhi said in a report released Thursday that average prices in the “oversupplied” Toronto condo market have fallen five per cent since the third quarter of 2023. He projects further value drops in mid-to-high single digits through early 2025 as new condo completions hit the market and declining rents push investors to list their properties. At the same time, a softening labour market could hold back buyers if households start to see broader hits to their income. ‘There’s too little demand chasing too much supply. When you tend to see that, you tend to see prices come down,” Sondhi says. There are risks to that outlook, Sondhi adds. Investors could pull their condos off the market if they’re not securing the price they need, and buyers could prove more reactive to lower interest rates, rushing in to snap up listings. Condos are the logical starting point for new buyers because they’re typically at the bottom of the market’s price ladder. Alexander says he sees a “tremendous opportunity” for first-time buyers looking for condos in Vancouver and Toronto as borrowing costs and prices potentially fall at the same time. But he also notes that those aren’t the only markets in Canada to break into the ownership market, and that conditions are expected to normalize in cities across the country this fall. “There’s lots of incredible communities with great quality of life across Canada, in Ontario that aren’t Toronto, that aren’t Vancouver, where you can find a really good property for a reasonable price,” Alexander says.  

  While experts say the Bank of Canada’s previous two rate cuts did little to stimulate the housing market, opinions differ on whether the latest cut will increase activity. The Bank of Canada cut its key policy rate by 25 basis points to 4.25 per cent on Wednesday, marking the third consecutive cut after two previous quarter-percentage-point cuts in both June and July. Text of the Bank of Canada’s decision to cut its key interest rate target In a statement to BNNBloomberg.ca Wednesday, RATESDOTCA mortgage and real estate expert Victor Tran said the reduction in borrowing costs is “good news” for the housing market, but it may take some time for the impact to be felt. “Housing market activity in major urban centers like Toronto and Vancouver has not picked up nearly as much as we had expected in recent months. The reality is the math just doesn’t make sense for many people who want to purchase a home,” Tran said. “Mortgage rates have not come down nearly fast enough to stimulate much activity in the housing market. It’s just not affordable for people.” Going forward, he added that it will “likely take several more decreases in the overnight rate” to spur activity in Canada’s housing market. Penelope Graham, a mortgage expert at Ratehub.ca, said in a statement to BNNBloomberg.ca that a cumulative 75 basis point reduction in the Bank of Canada’s policy rate could “start to incentivize” buyers to re-enter the housing market. “Given there’s strong anticipation of further cuts to come, many buyers may stick it out a little longer, especially as many of Canada’s housing markets remain very well supplied, and favourable towards buyers,” Graham said. However, she noted that the previous two rate cuts in June and July did “very little to move the dial on real estate demand” and said potential buyers were waiting for mortgage rates to decrease further. Paul Shelestowsky, a senior investment advisor at Meridian, said in a statement to BNNBloomberg.ca that mortgages are becoming more affordable, but remain about double what they were compared to 2022. He said that has been a “huge stressor” for Canadians planning to refinance in 2024. “As interest rates fall, and mortgages are easier to obtain than they were six months ago, housing markets are expected to re-energize – especially as lower interest rates are also providing relief with loans and lines of credit,” Shelestowsky said. “This is important since Canadians borrow almost twice as much as a ratio of income compared to Americans.” Phil Soper, president and CEO at Royal LePage, said in a statement to BNNBloomberg.ca that home values have mostly plateaued this year and lower borrowing costs have improved affordability. He added that first-time buyers will have to assess whether to buy now or wait in the current market. “Once the backlog of sidelined buyers is released into the market, pent-up demand will drive prices higher. This fall, we can expect more cautious Canadians to take the plunge, while those willing to take on the risk might hold out for further rate cuts,” Soper said. Commercial real estate Adam Jacobs, the head of research at Colliers Canada, said in a statement to BNNBloomberg.ca Wednesday that the Bank of Canada’s move to lower borrowing costs was widely anticipated by economists and forecasters. “This continues to be a positive sign for many people, especially borrowers, real estate professionals, developers and investors,” he said. “However, the commercial investment and development market remains slow due to high interest rates and other factors such as land prices and elevating construction costs.” Mortgages Alana Riley, head of mortgage, insurance and banking at IG Wealth Management, said in a statement to BNNBloomberg.ca Wednesday that the Canadian bank prime rate is expected to fall from 6.7 per cent to 6.45 per cent following the Bank of Canada’s rate cut. “This rate cut is expected to provide further relief to Canadian households with variable-rate mortgages, Home Equity Lines of Credit (HELOCs), and unsecured lines of credit, as it will reduce borrowing costs,” she said. Riley added that the rate cut is expected to “help somewhat mitigate the sticker shock for homeowners facing higher rates upon renewal.” Clay Jarvis, a spokesperson and real estate expert at NerdWallet Canada, said in a statement to BNNBloomberg.ca that while the rate cut may spur interest in variable-rate mortgage products, affordability issues persist. “Today’s cut might get home buyers more excited about variable-rate mortgages, but will they be able to qualify for them?” he said. “Variables are still well above five per cent, so getting past the stress test and nailing down an affordable mortgage payment could require a larger down payment than most buyers have access to.” According to Jarvis, fixed rates have been moving toward four per cent over the past few weeks and if buyers were not able to qualify for a cheaper fixed-rate mortgage before Wednesday’s rate announcement, “they’re not in any better shape today.”

The government has no plan to immediately introduce the promised personal tax cut   Alberta’s first-quarter fiscal update shows the government expects a surplus of $2.9 billion but won’t have surplus cash this year and will need to borrow hundreds of millions of dollars. Finance Minister Nate Horner said it’s an accounting surplus, meaning the money is tied up, so in the meantime the province will need to take on $641 million in short-term borrowing. “After adjustments and calculations, we forecast we will be left with no surplus cash at the end of 2024-25,” he said Thursday. “That means we must be more measured and responsible in making budgetary decisions,” he said.“We can’t spend beyond our means today.” The government has no plan to immediately introduce the personal tax cut Premier Danielle Smith promised in the 2023 election that could cost $1.4 billion. “We’re working on bringing in the personal income tax cut, hopefully by the next budget,” said Horner.The increase in the estimated surplus, up by $2.6 billion from only $367 million originally forecast, is being driven largely by income taxes and higher-than-expected oil prices. The province is pegging the average price of West Texas Intermediate oil to be US$76.50, up US$2.50 per barrel than what was forecast at budget. In 2024-25, the government plans to spend $73.3 billion — up $101 million from budget — and rake in $76.2 billion in revenues. Population growth in the province is expected to increase to 4.6% in 2024, and will continue to put pressure on hospitals, schools and other services. “We remain steadfast in our promise to strengthen the health-care system and provide access to top quality education,” said Horner. NDP Opposition finance critic Samir Kayande told reporters the United Conservative government’s spending isn’t translating into effective services for Albertans. “I think it’s a very reasonable question for the people of Alberta to be asking, ‘Where’s all this money going?'” Kayande said. “It’s not showing up in the classrooms, it’s not showing up in the hospitals. People don’t have family doctors. So what am I getting for all this?” As wildfires continue to hit the province, the cost of firefighting and emergency assistance costs is now at $573 million so far this year, leaving about $1.4 billion in a contingency fund for disasters. Debt-servicing costs are set to be $3.2 billion, down $181 million from the budget. Taxpayer-supported debt is estimated to be $86.1 billion as of March 2025, down $1.7 billion.

Housing activity continues to move away from the extreme sellers’ market conditions experienced throughout the spring. Easing sales, combined with gains in supply, pushed the months of supply above two months in August, a level not seen since the end of 2022. Rising new home construction and gains in new listings are starting to support a better-supplied housing market   Detached Detached home sales fell by 14 per cent compared to last year, as gains in homes priced above $600,000 were not enough to offset declines in the lower price ranges, which continue to struggle with low supply levels. In August, there were 2,011 detached homes available in inventory, with over 85 per cent priced above $600,000.The improving higher-end supply compared to sales helped push the months of supply up to nearly two months. While market conditions are still tight, this is a significant improvement from the under-one-month supply experienced in the spring. Shifting conditions are relieving some pressure on home prices. In August, the unadjusted detached benchmark price was $762,600, slightly lower than last month but still over nine per cent higher than last year.  Semi-Detached With 297 new listings and 172 sales, the sales-to-new-listings ratio in August dropped to 58 per cent, which is more consistent with pre-pandemic levels. This shift supported a rise in inventory levels, and the months of supply rose to nearly two months.While conditions remain relatively tight, the boost in new listings has helped ease some of the pressure on prices. In August, the unadjusted benchmark price was $681,200, a decline from last month but nearly 10 per cent higher than last year.  Row New listings row for homes priced above $400,000, contributing to year-to-date growth of nearly 16 per cent. At the same time, slower sales over the past three months have contributed to inventory gains. In August, there were 660 units available, a 75 per cent increase over the exceptionally low levels reported last year. While inventories are still low by historical standards, as with other property types, this shift is helping ease pressure on home prices.The unadjusted benchmark price in August was $461,700, slightly lower than last month but over 12 per cent higher than last August. Monthly adjustments were not consistent across districts, with adjustments in the City Centre, North West, North, and West districts mostly driving monthly declines. Despite the monthly adjustments, year-over-year prices remain higher than last year across all districts and range from a low of 10 per cent in the City Centre to a high of 26 per cent in the East district.  Apartment Condominium New listings in August reached 1,001 units, a record high for the month. The gains in new listings were met with a pullback in sales, causing the sales-to-new-listings ratio to drop to 60 per cent and inventories to rise to 1,476 units. Unlike other property types, overall condominium inventory levels were relatively consistent with longer-term trends for the month.Rising inventory and easing sales caused the months of supply to increase to nearly two and a half months, not as high as levels seen before the pandemic but an improvement over the extremely tight conditions seen over the past 18 months. In August, the unadjusted benchmark price was $346,500, similar to last month and nearly 16 per cent higher than last year’s prices.   Courtesy CREB Communications

Houses for sale in a new subdivision in Airdrie, Alta., Friday, Jan. 28, 2022. THE CANADIAN PRESS/Jeff McIntosh   CALGARY — The Calgary Real Estate Board says August home sales dropped 19.5 per cent from last year's record levels as activity continues to move away from the extreme sellers’ market conditions seen in the spring A total of 2,186 properties changed hands last month, down from 2,716 in the same month last year. The board says the benchmark price across all home types was $601,800 for August, slightly lower than the previous month but 6.3 per cent higher than August 2023 It's a sign that the pace of price growth is starting to slow after stronger-than-expected gains earlier in the year, according to the board. Ann-Marie Lurie, chief economist at CREB, says rising construction of new homes and more new listings hitting the market are contributing to increased supply. "This trend is expected to continue throughout the remainder of the year, but it’s important to note that supply levels remain low, especially for lower-priced properties," Lurie said in a press release. "It will take time for supply levels to return to those that support more balanced conditions." There were 3,536 new listings on the market in August, 13 per cent more than a year earlier. The board says August inventory levels reached 4,487 units, a 37.3 per cent gain from last year but still nearly one-quarter lower than long-term trends for the month. Higher-priced properties mostly drove supply gains, while sales declines were driven by homes priced below $600,000. Among property types, apartments recorded the biggest price jump at 15.8 per cent last month, reaching $346,500, while the benchmark price of row houses grew 12.5 per cent to $461,700. Semi-detached home prices rose 9.6 per cent to $681,200 and detached prices increased 9.5 per cent to $762,600. This report by The Canadian Press was first published Sept. 3, 2024.

A new report from CalgaryHomes.ca is putting the spotlight on rapidly increasing home prices in municipalities across Alberta. The report analyzed house sales data from the Alberta Real Estate Association (AREA) and the Canadian Real Estate Association (CREA) from February 2023 to February 2024. In Red Deer, the price of an average home valued at $312,031 a year ago spiked nine per cent, or about $28,000 to $340,114. “There are a number of factors that could account for the significant increase in house prices in Alberta. One reason is the issue of the supply and demand imbalance: there’s a limited supply of housing, especially in desirable urban areas like Calgary, and the high demand is driven by factors like population growth, immigration, and investment. This has led to increased competition for available properties, driving prices up,” a spokesperson for CalgaryHomes.ca says. “Another reason is the low interest rates. The low interest rates set by the Bank of Canada have made borrowing more affordable, fueling demand for mortgages and encouraging buyers to enter the market, thereby driving up prices.”   Calgary went up 15.1 per cent, while Medicine Hat jumped 14.2 per cent, Edmonton increased 10.3 per cent, and Lethbridge is up 7.1 per cent. Grande Prairie is also up 4.1 per cent, while Fort McMurray saw a more modest hike of 2.5 per cent. Interestingly, Deputy Prime Minister Chrystia Freeland announced last week, ahead of this week’s Budget 2024 unveiling, that first-time home buyers will now be able to pay off their mortgage over 30 years instead of 25. As well, Budget 2024 proposes to increase the amount one can withdraw using the Home Buyers’ Plan, the mechanism which allows Canadians to use their RRSP to make a down payment. That will go from $35,000 to $60,000 if approved “Anything helps but we have to keep in mind that the things announced for first-time home buyers is for new homes only. With drawing RRSP money, I don’t know that too many first-time home-buyers have a ton of money in their RRSPs to pull out,” says Allan Melbourne, chair, Central Alberta Realtors Association. “It’s a start but I think what would’ve been more helpful is if they would have said this applies to any home purchase rather than just new homes. We’ll have to wait and see before we know whether it’s good, bad or indifferent.” Melbourne says central Alberta continues to be a desirable place to live, judging by the supply and demand situation. “We’ve seen over the past 18 months, folks moving here from all parts of B.C., from Ontario, we have some from Calgary and Edmonton. It’s a lot of retirees or family situations,” he says. “We’re running at about a 1.7 months’ supply [of homes available to purchase], which is drastically low. Normally, it’s three or four months, so builders right now can’t build fast enough to satisfy the demand. Some people, if they want to upsize or downsize, are thinking, ‘If we sell our house, where are going to go?’ because there’s such low inventory.” He agrees build-outs of new areas like Red Deer’s Evergreen is positive, but that’s a prime example of the overall market still not being able to keep up with actual demand. Melbourne does believe, however, that availability is a bit better in Red Deer than it is elsewhere in Alberta. The CARA, he adds, has advocacy committees, and is currently working with all levels of government to implement more measures that will help in all aspects of the housing crunch.

Project Collector halts Cross-Canada money laundering Calgary… A professional money laundering organization, working in support of some of Canada’s largest crime groups, has been dismantled following an unprecedented investigation by ALERT and the RCMP. Project Collector is a three-year financial crime investigation conducted jointly between ALERT Calgary’s financial crime team and RCMP Federal Serious and Organized Crime (FSOC). The investigation began in Calgary and led to the dismantling of a nation-wide criminal organization involved in money laundering. Seven suspects have been charged, with arrests taking place in Calgary and Vancouver. In addition, more than $16 million in bank accounts, real estate holdings, and vehicles have been placed under criminal restraint. Proceeds of crime from some of Canada’s largest criminal organizations were allegedly being transported between Ontario, Alberta, and British Columbia. In a one-year period alone investigators identified the transfer of $24 million in cash, while the group’s money laundering activities date back to at least 2013. Project Collector began in July 2018 after $1 million in cash, that was destined for Vancouver, was intercepted in Calgary. ALERT and RCMP launched an extensive investigation that relied heavily on intelligence from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Project Collector revealed that the group operated pseudo-bank branches at either side of the country, which while holding large cash reserves, allowed organized crime groups utilizing its service to transfer funds while avoiding the detection of financial banking institutions and authorities. The money laundering was primarily connected back to drug trafficking proceeds. In total, 71 criminal offences are being pursued against the money laundering organization. Charges include participation in a criminal organization, laundering proceeds of crime, and trafficking property obtained by crime. Charges were also laid under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The arrests took place in September 2022: Lien Ha, 42-year-old from Calgary, Donald Hoang, 26-year-old from Vancouver; Van Duc Hoang, 64-year-old from Vancouver; Van Thi Nguyen, 62-year-old from Vancouver; Cynthia Nguyen, 42-year-old from Calgary; Yuong Nguyen, 43-year-old from Calgary; and Grace Tang, 25-year-old from Vancouver. During the course of the investigation, search warrants were executed at a total of 10 homes in the Calgary region, Toronto area, and Vancouver. Project Collector relied on the assistance of a number of police agencies and specialized units, including: Calgary Police Service, Canada Revenue Agency, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Forensic Accounting Management Group (FAMG), Vancouver Police, Toronto Police, Edmonton Police, Halton Police, Seized Property Management Directorate, and RCMP units in Ontario and British Columbia. Members of the public who suspect drug or gang activity in their community can call local police, or contact Crime Stoppers at 1-800-222-TIPS (8477). Crime Stoppers is always anonymous. ALERT was established and is funded by the Alberta Government and is a compilation of the province’s most sophisticated law enforcement resources committed to tackling serious and organized crime.

Alberta is calling not just residents, but real estate agents, too. As Canadians continue to flock to the province in search of better value in the real estate market, so too have agents looking to profit off of the increased interest. The surge of not only residents but also licensed professionals is a mixed bag according to some local agents on the ground.   Dramatic rise in applications for Alberta licensing   “There’s an unbelievable amount of people currently in the system looking to get their license in Alberta,” says Brad McCallum, realtor and owner of the McCallum Group, which is with Real Broker and based in Calgary. “Five or six months ago, it was anywhere from 3,500 to 4,500 people, or maybe even a higher number, enrolled in some part of their process to get licensed in Alberta.”  A rush of new agents is joined by those who are interested in transferring. From January 2018 to December 2020, the Real Estate Council of Alberta (RECA) received 399 mobility applications from agents, already licensed in one province, looking to get a license in Alberta. That number rose dramatically from January 2021 to February of this year, with 1,385 applications across both real estate and mortgage. The majority came from British Columbia and Ontario.   Calgary: A competitive market for both buyers and agents   “Being a brand new agent in this market is probably tough,” says McCallum. “There’s very low inventory in the city and only so many transactions. This year was a slightly slower start, but our team of five is catching up now. There are lots of deals going on conditionally. It’s atypical business.” Alberta in general is trending alongside the rest of the country, with a 2024 buying season well underway, where inventory is minimal, sales are brisk and bidding wars continue to pop up on occasion. Calgary in particular remains a competitive market, drawing interest from those in Vancouver and Toronto especially.  According to the Calgary Real Estate Board, compared to the year before, February saw sales increase (22.8 per cent) and the benchmark price increase (10.3 per cent). In the same period, average days on market decreased (26.8 per cent) and inventory decreased (14.2 per cent). It adds up to a competitive market not just for buyers, but for agents as well.   A ‘capitalistic’ strategy ‘based on a scarcity mindset’   John Carter, broker/owner of Re/Max River City in Edmonton, is wary of agents who are working in Alberta without physically being there. He sees it as selfish, with these out-of-towners looking to profit from an interest in the province without doing the hard work on the ground. “It’s very capitalistic,” says Carter. “It’s not about serving clients. It’s based on a scarcity mindset.” He says the vast majority are “with some brokerage no one has ever heard of” and have a 647 or 416 area code.  “They’re writing an offer sight unseen,” and, in his opinion, “There’s a lot of negligence … They’re not practicing to their realtor’s code in Alberta, and not cooperating well with realtor colleagues.” Carter supports the idea of mobility among provinces: he was licensed in Ontario from 2011 to 2014 and has been licensed in Alberta since 2002. However, he wonders if the process is too simple and can be taken advantage of.  “That’s failing right now,” he continues. “I like the idea of mobility, but we’re finding I would say less than 20 per cent of agents in my firsthand experience are relocating.” According to Carter, “The vast number of professionals feel the barrier of entry to be too simple, too easy.” As a result, he says, “There are too many that aren’t following the rules.”  Carter references examples of agents from out of town without access to the local board who call the listing agent, as well as others who don’t want to refer clients so they don’t give up a commission. While he doesn’t necessarily think all of these actions are predatory, sometimes it’s a lack of knowledge about rules and competency on the part of the agent.   Some try to skirt RECA’s rules but ‘the low road isn’t going to raise your business’   Arthur Chan, real estate broker at Re/Max Hallmark Toronto, is among those who recently got licensed in Alberta. When asked about the main reason for doing so, he says, “To sell, promote pre-construction projects in Calgary. “I wanted to offer my clients and investors an entry-level price of homeownership that’s more affordable vs Toronto. I’ve relocated over six families in the past eight months.”  Chan, who’s been an associate at Re/Max Central in Calgary for about 18 months, says he uses Zoom, Google Maps and other software to assist clients remotely, but he also makes sure to get on the ground.  “As for my clients wanting to buy resale, I fly down with them and conduct showings in person. They can get a better sense and feel of the neighbourhood and dwelling before making the purchase, and that type of feeling can only be evoked in person.” Chan does note there are those trying to skirt the rules. “Some agents have been channeling (hiding) through builder’s referral agreements. However, that’s circumventing RECA’s strict policy and a major violation.” McCallum acknowledges that there may be some bad actors but that their way of doing business simply won’t succeed. “There’s always going to be those realtors in the marketplace, but the low road isn’t going to raise your business. Consumers are pretty smart and people are doing a lot of research.”   Being on the ground: A huge advantage   His group is particularly active on social media and YouTube and credits some of its success to attracting those from out of province to come to Calgary.  While McCallum has been in Calgary for many years, he’s happy to serve residents as well as those looking to move there. An increase in remote work and shifting social priorities make Calgary attractive to many in B.C. and Ontario, contributing to his success. “I’ve only got a business because the world is willing to change,” he points out. Part of the reason the McCallum Group is doing well is that they’re on the ground, which is a huge advantage compared to agents working remotely. “If you’re not there, if you don’t have someone on the team in the marketplace, someone to turn off the lights, lock the door, be present for a showing, there are definitely challenges.” In such a tight market, Carter sees the lack of presence as negligence, putting the client at a disadvantage and susceptible to overpaying more or losing out on bids entirely simply because they could be alone with a listing agent there to support the seller, not the potential buyer. “How can you do comparables, pricing and strategy?” In addition to providing the best service to clients by being physically in Alberta, there’s another reason Chan doesn’t mind flying out to Calgary. “I find it’s more laid back,” he says. “No one seems to be in a major hurry.”

The average price to buy a detached home in Lethbridge rose to $438,325, but it's still well below the provincial average, making the city an enticing place to buy and invest.   The average price of a home in Lethbridge has jumped by more than 19 per cent over the past year, statistics indicate. That number, $391,104, is based on the price of all types of homes in the city, according to the Alberta Real Estate Association. The association says Alberta's home prices(opens in a new tab) increased last month by 8.3 per cent. The strongest price gains in Lethbridge are being seen in detached homes, which rose by 14.6 per cent to an average $438,325. A realtor CTV News spoke with said one of the biggest drivers of home sales in Lethbridge is inter-provincial migration. As prices are also increasing in Calgary and Edmonton, buyers are flocking to the southern Alberta centre. "Lethbridge always seems to follow Calgary," said Jennifer Brodoway with Team View Lethbridge. "When you get a boom in Calgary and then everything gets bought up there, investors and home owners start looking to see where they can get a little more bang for their buck. A lot of them have gone to Lethbridge and, of course, that has raised prices in our area." Despite the increase, Lethbridge still comes in below the average Alberta price of $493,000. In July, 199 homes were sold in Lethbridge, bringing the total annual sales in the city to 1,240.

A recent BMO report indicated that Albertans are holding back on buying homes until interest rates come down. Photo by Michael Vi /Getty Images/iStockphoto Most Canadians in Alberta are holding off on buying a home until interest rates come back down. “Rates have a long way to fall still before affordability is restored to recent norms,” said Robert Kavcic, senior economist at BMO Capital Markets, in a news release. BMO released its real financial progress index in late April which revealed some hesitant homebuyers in Wild Rose Country. The report indicated that nearly two-thirds of Albertans looking to buy a home were waiting for interest rates to drop. Their reluctance amid the high interest rates stemmed from a few factors. BMO’s report said some of the top reasons buyers cited were concerns were the cost of living, inflation, and an overall discomfort with their financial situation. With all the uncertainty, BMO found that Albertans are opting to sit on the sidelines of the market until interest rates change. The Bank of Canada held its key interest rate at five per cent through April and the next update is expected in June. While many homebuyers might not be jumping into the market right now, BMO indicated that it remains one of the biggest aspirations in the lives of Albertans with 68 per cent aspiring to own a home. Sadly, more than half (58 per cent) believe that homeownership is unattainable. Nearly half of the respondents (46 per cent) said that they were planning to buy a home in the near future, but fewer respondents expected it to be in 2024. Just 15 per cent said that they were planning on purchasing a home in 2024, with just over one-third saying that they are looking at 2025 or later. Although Albertans might be waiting on the real estate market, the index suggested that the vast majority (87 per cent) of Albertans believe they are making “real financial progress.” That said, there were still economic stressors weighing on the financial minds of Albertans. Most are concerned about unexpected expenses and housing costs at 86 per cent and 74 per cent, respectively.   Despite apprehension by prospective homeowners, real estate continues to rise in Alberta with sales up more than 20 per cent year on year compared to 2023, according to a report from the Alberta Real Estate Association. While Albertans may be hesitating due to the interest rates, residents from other provinces are taking advantage of the market’s proportionally lower prices compared to other areas in the country like Ontario and British Columbia.   Alberta’s exploding real estate is especially true in Edmonton, which sold 2,168 homes in April — a 58 per cent leap compared to April 2023. Edmonton’s home prices are also significantly lower than Calgary, with a median price of $400,000 to Calgary’s $565,500. BMO’s real financial progress index was launched in February 2021 and is meant to show how consumers feel about their personal finances and their financial progress. The goal of the index, BMO said, is to spark a dialogue to help consumers reach their financial goals.   The index is created from research conducted by Ipsos, who contacted roughly 2,500 Canadians for the index.   Some Canadians in Alberta may be holding out for lower interest rates but the longer they wait the more they are likely to pay if the current trend continues. While interest rates may come down, an inventory decrease of more than 14,000 and sales activity climbing means the prices of Alberta homes is less likely to come down.

FRASER VALLEY — The Fraser Valley Real Estate Board says two interest rate policy cuts by the Bank of Canada weren’t enough to revive lagging home sales in the Fraser Valley during the summer. According to a statement from the board, the Fraser Valley residential resale market slowed again in August as prospective homebuyers face affordability challenges that aren’t going away anytime soon. FVREB says it recorded 1,067 sales in August, down by 13 per cent over last month and by 30 per cent over the 10-year seasonal average. August sales were the second slowest seasonally adjusted sales in a decade. Inventory levels in the Fraser Valley dropped slightly in August with active listings at 8,626, down one per cent from July, but 37 per cent higher than a year ago in August 2023.   “Despite two policy rate cuts by the Bank of Canada, buyers are still feeling the squeeze of overall affordability challenges in BC,” said Jeff Chadha, chair of the Fraser Valley Real Estate Board. “With prices for single-family homes, townhouses and condos holding relatively flat year-over-year, many continue to face challenges buying their first home or moving up in the market, as reflected in seasonally slow August sales.”   New listings dropped nearly 20 per cent in August, to 2,778. With a sales-to-active listings ratio of 12 per cent, overall market conditions are just shy of a buyer’s market. The market is considered balanced when the ratio is between 12 per cent and 20 per cent. The last time the Fraser Valley dipped into buyer’s market territory was spring 2020. “Buyers continue to wait on the sidelines in anticipation of more cuts to the Bank of Canada’s policy rate,” said FVREB CEO Baldev Gill. “However, we encourage anyone looking to get into the market to speak with their realtor and lending professional to fully understand where interest rates may be heading in the coming months to determine the optimal long-term strategy.” Across the Fraser Valley in August, the average number of days to sell a single-family detached home was 33, while for a condo it was 32. Townhomes took, on average, 28 days to sell. Benchmark prices in the Fraser Valley dipped again in August, with the composite benchmark price calculated at $992,800. MLS® HPI Benchmark Price Activity Single Family Detached: At $1,523,500, the benchmark price for an FVREB single-family detached home decreased 0.4 per cent compared to July 2024 and decreased 0.4 per cent compared to August 2023. Townhomes: At $846,300, the benchmark price for an FVREB townhome decreased 0.3 per cent compared to July 2024 and increased 0.1 per cent compared to August 2023. Apartments: At $546,200, the Benchmark price for an FVREB apartment/condo decreased 0.9 per cent compared to July 2024 and decreased 0.8 per cent compared to August 2023. The Fraser Valley Real Estate Board is an association of 5,207 real estate professionals who live and work in the BC communities of Abbotsford, Langley, Mission, North Delta, Surrey, and White Rock.    

Buildings and people can stay cool with these techniques, design professionals say EDSA designed the Conrad Orlando to incorporate trees and umbrellas that help shade the pool area. They also used lighter materials on the pool deck that emit less heat. (EDSA) As temperatures inch up and concerns grow about climate change, it’s not just people who sweat and suffer: Buildings feel the heat as well. Some real estate planners, owners and designers are making investments now to keep their properties and the people who use them cooler. While hoteliers in particular are already adapting to higher temperatures and added outdoor demand since the pandemic with more outside weddings, networking events at hotel rooftop restaurants and hotel pool cabana rentals, further changes are underway. Owners are adopting steps that include using more sustainable building materials, adding shade and reducing fossil fuel use. And with more heat comes more stress across various building types: Owners of single-family homes are facing insurance rate hikes as storms increase, while industrial property developers are seeking cooler locations for factories and shipping centers. But as temperatures become more extreme — this July was the hottest recorded in the National Oceanic and Atmospheric Administration’s 175-year database — demand is skyrocketing for design and building practices that minimize heat, keep people comfortable and help both align with sustainability goals. Derek Gagne, principal at planning, landscape architecture and urban design company EDSA, said the heat that comes with climate change has devastating effects across the board, for both people and properties. EDSA designs hospitality, commercial, mixed-use and other projects around the world, including in notoriously warm climates in the Middle East, Florida and the Caribbean. Climate change and sea level rise serve as "imminent threats to the longevity of those projects," so it's top of mind from the beginning of planning and plays out in every part of the project to ensure human comfort and sustainable, cost-effective real estate that is part of the solution, not the problem. While significant hurdles still stand in the way of the fast, widespread adoption of these practices — namely, costs and compliance — heat-efficient hotel projects are finding success when owners, designers and operators align on long-term goals. Start with planning   Gagne said higher temperatures have fundamentally affected how design and architecture firms plan their projects to reduce heat and be more sustainable. This requires extra consideration of location, materials and shading to keep both the buildings and the people who use them cooler. Technology plays a big role today as well. Hotels and resorts are a big part of EDSA’s portfolio. The company designed the St. Regis Bahia Beach Resort in Puerto Rico, Four Seasons Hotel Bahrain Bay in Bahrain and 1 Hotel & Homes South Beach in Miami Beach, Florida, among others. EDSA uses 3D models and geographic information systems to aid in the planning of not just a property's structure, but its location. The team analyzes sun and shade levels and considers whether rooms should be in line with the light and heat of the sun or if they should be shaded. "We're able to really assist in making sure that even just the location of the architecture on the site is done in a way that is going to be conducive to human comfort," he said. "At the highest level, that's how we can affect climate on a site. … It’s understanding the buildings and how they're going to actually function on a site." This software also allows EDSA to test environmental conditions before making any final decisions, he said. Becky Zimmermann, president and CEO of international design studio and urban planner Design Workshop, said her company uses artificial intelligence tools to model wind and solar output at a given location. This technology allows architects to model certain materials and see which ones emit more or less heat. Design Workshop’s projects include hotels such as The Little Nell hotel and residences in Aspen, Colorado; urban mixed-use projects such as Scottsdale Quarter outside Phoenix and the Cherry Creek North retail and arts district in Denver. AI modeling has been "invaluable," Zimmermann said. "What might've taken weeks takes hours." Focus on human comfort Gagne said EDSA has always tried to approach its hospitality work in particular from a sustainability point of view, but it ultimately comes down to the operator, owner and developer when it comes to the materials they use. Especially at higher-end hotels and resorts, owners often have interest in sourcing local products. The cost of these local materials can be higher, but there are some cost savings in the long run since good materials require less upkeep and maintenance over time, he said. It's common for clients to ask about the solar reflectance index, or SRI, of materials, which indicates how much heat will stay on the site compared to how much it'll reflect, Gagne said. The goal is for more of the heat to reflect. The Conrad Orlando features lighter materials to keep the ground cooler, cabanas and trees to help with shading, and artificial turf to be more sustainable. (Hilton)   "Creating human comfort ... on everything we're doing is the primary goal," he said. "It comes down to every material that you're touching, walking on, sitting on, sitting beside. Evaluating all those materials, for us, has become pretty commonplace on any project that we're doing in these hotter areas of the world." The Conrad Orlando, which opened in January, is one example of these elements coming together, Gagne said. EDSA used as many natural materials as possible to help with SRI levels. Designers also used plants to both soften the architecture style and add as much natural shade for functionality and sustainability. Lighter colors on rooftops and pool decks also help reflect heat. White chaises and white umbrellas line the pool. Another surprise cooling element? Artificial turf. It may not count as a natural material, but turf instead of real grass at outdoor wedding venues and on event lawns is cooler and requires less water and maintenance in the long run, Gagne said. Water is of course the obvious natural cooling agent, and Gagne called it a main way of changing microclimates and keeping spaces cooler, not just when you're in the pool. "Proximity to water, obviously the ability to be in water, but water itself is a huge factor in changing everything from the humidity, the air level, the quality of air around those spaces, and obviously the touch-and-feel factor," he said. Zimmermann said designing to combat heat at any outdoor space requires paying close attention to shade and using those lighter-colored materials. At hotels and resorts, pool cabanas have skyrocketed in popularity over the past several years and provide not just shade, but additional revenues for these properties, she said. For restaurants and any outdoor seating areas around pools and retail corridors, she prefers to use portable umbrellas instead of permanent awnings so people can choose to capture the sun or add more shade. In addition to hotels and resorts, Design Workshop also works on urban/downtown district projects. Reducing heat at these projects comes with the help of shade from a tall friend: trees. Domain Northside in Austin, Texas, has a bountiful amount of trees lining the sidewalks to provide shade. (D.A.Horchner / Design Workshop, Inc.) "It starts with trees. Maturing trees are really the best way to combat heat," she said. "One of the [biggest] considerations is just thinking about trees as necessary infrastructure, just like you would the sidewalk and water and wastewater and electricity, and giving them the best condition to grow, especially in an urban environment." Shading has even become a consideration at Design Workshop's ski resorts, with ice rinks needing additional shade in the winter season, something that wasn't a consideration in the past, she said. The company’s ski projects include developing a sustainability plan for Whistler, in British Columbia, designing the Lake Songhua Resort in Changchun, Jilin Province, China; and resort- and master-planning Salt Lake City’s Snowbasin Resort. Zimmermann said data trends are pointing to climate change shortening the ski season, especially at the beginning of the season. While the process of creating artificial snow has become more sustainable, it's still a use of resources, and getting resorts ready for opening dates around Thanksgiving has only increased the need for making this snow. Moving forward The Hotel Marcel New Haven made headlines when it opened in 2022 as the first U.S. hotel to operate fully on renewable energy. Part of Hilton’s Tapestry Collection, the building was originally designed as headquarters of the Armstrong Rubber Company and opened in 1970 as an example of Bauhaus architecture. Fast-forward half a century and the building found new life as a hotel and model for sustainability-minded real estate in the future, according to the Hotel Marcel’s owner, architect and developer Bruce Becker. High-performance windows, exterior insulation, continuous air-sealing and heat recovery technology reduces the energy needed for both cooling and heating at the property by up to 80%, Becker told Hotel News Now in an email interview. On the sustainability front, Hotel Marcel is an all-electric building with no use of fossil fuels, making it the first hotel in the U.S. that "operate[s] in a way that does not make the climate crisis worse." It’s only a matter of time before the widespread adoption of energy-efficient, all-electric operations takes place, Becker said. The Hotel Marcel New Haven in Connecticut is the first U.S. hotel to use 100% renewable energy. The property is part of Hilton's Tapestry Collection. (Hotel Marcel)   “What we offer can be replicated cost-effectively across the industry,” he said. “If our replicable toolkit of decarbonization ideas is adopted broadly by other hotel owners, brands and operators, it will have a rapid and transformative impact on the hospitality industry to reduce its carbon footprint.” But it’s not just the hospitality industry facing these challenges. Governments across the United States are implementing mandates in response to climbing temperatures. Buildings account for 39% of global energy-related carbon emissions, according to the World Green Building Council, making real estate a focus for carbon-curbing measures. California, Colorado and New Jersey are among states with benchmarking laws for public and commercial buildings, requiring the submission of annual energy and water data into a national database: the EPA Portfolio Manager. In New York City, the largest city in the U.S. by population, emissions from buildings comprise nearly two-thirds of total city emissions, according to Carbon Direct. Building owners are required to submit their energy usage, with roughly 1,400 buildings at risk of annual fines if they’re not in compliance when the measure goes into effect next year, according to the city. In Denver, buildings and homes account for 64% of greenhouse gas emissions, according to the city’s Office of Climate Action, Sustainability and Resiliency. The city’s Energize Denver program aims to reduce commercial buildings’ energy use by 30% by 2030. Some carbon-cutting requirements across the country include LEED certification, energy performance standards and solution-based upgrades such as solar panels or electrification of heating and cooling systems. Some of the first steps building owners and developers can take to becoming more sustainable include adding EV charging stations, installing solar canopies above parking lots, replacing gas ranges with induction ranges and using batteries rather than a generator for emergency power, Becker said. Zimmermann said her firm is setting goals now aimed at achieving sustainability and a climate-resilient future. This means working toward 100% renewable electricity, reducing greenhouse gas emissions and creating carbon-free buildings. "For those of us who are really committed to that in the design profession, these are all things that we've set goals around," she said. We are "working with cities and developers and hotel operators to achieve [these goals] going forward and hopefully accomplishing a lot of this even in the next five years." Over the years, Gagne said what qualifies a property as sustainable has changed. Brands have started to move away from the trend of checking sustainability boxes by receiving a LEED certification to prioritizing human comfort and mental wellness through sustainable projects. By taking a holistic approach that shows an effort to provide a more sustainable product, guests can feel better about their stays. "It's kind of insane to just think about what the tourism and hospitality industry does to the carbon footprint, but I think that when people can leave these properties knowing that these brands and these operators are conscious of that, and they're trying to offset that and they've approached the project with that in mind, there's a feel-good takeaway from that that lets people vacation and retreat in a way that's more responsible," he said.

An impressive property is up for sale in the Township of Langley, which the listing states is a “famous Hollywood movie” filming location.   We’re still trying to determine exactly what movies were filmed at 558-248 Street in Langley, which was built in 1996 and is currently listed for $9,450,000. The listing we spotted on the BC Homes for Sale website, says the property is a five-bedroom, seven-bath country estate, but it almost resembles an Ivy League university. According to an aerial view of the property on Google Maps, it’s located in a fairly remote part of Langley and is gated off. The property features an enormous 12,367 sq ft of space. According to the listing, this “one-of-a-kind” property, which the listing also describes as a “majestic manor,” features 47.35 acres of land “set on one of the best streets in South Langley.” “Incredible setting, one-of-a-kind property that can not be replaced due to the new provincial laws restricting new home builds on ALR land to under 5400 square feet,” the listing adds. Since 2017, the property has been listed 11 times. The highest asking price was in 2020 when it was listed for $16,900,000. It was last sold back in 2011 when it sold for $3,595,000. Meanwhile, BC Assessment places a value of $7,173,000 on the property as of this year. Sadly, there’s only one exterior shot of the property, and we can’t see pictures of the interior.  

Toronto housing market may have seen a steep decline from its former glory, but buyers still need to earn more than a hefty $200k per year to be able to nab the typical house or condo in the city, which still averages around $1.1 million, even while no one is biting. Those who were holding out hope that a dearth of sales activity might foster greater affordability will not likely want to hear that prices in the region are only starting to heat back up for some homes—but there are still many places in the province where one can easily buy a property for under the dreaded $1 million mark. In its fall 2024 forecast, realty giant RE/MAX says prices will creep up in most parts of Canada, except for places like Toronto, Hamilton, Burlington and Kitchener-Waterloo. Unfortunately, the 6ix and other GTA cities are perennially overpriced, even amid a market downturn, so this doesn't mean much for the average buyer. However, the firm does predict what properties will cost in various parts of the province by year's end and shows where they will still remain cheap (by Toronto standards). While a Toronto home is anticipated to cost around $1,093,483 when 2024 comes to a close, homes in nearby cities like London, Peterborough and Niagara will be going for much less, RE/MAX's experts say.   More northerly places like Timmons ($277,217), Thunder Bay ($392,569) and Sudbury ($506,435) will, as always be the least expensive, but Windsor ($579,260), London ($650,553), Kingston ($661,462) and Ottawa ($680,740) are also set to boast average price tags under $700k — less than most downtown condos. Prices in Muskoka ($711,769), Niagara ($711,731), Peterborough ($711,769), Kitchener-Waterloo ($758,335), Hamilton ($785,308), Barrie ($806,606) and Durham Region ($943,340) are also slated to stay under seven figures by New Year's. Prices for homes in different Ontario markets from RE/MAX's fall 2024 outlook Still, many Canadians are justifiably pretty low on hope that they will ever be able to own anything in this country.  "Despite some consumer confidence starting to return to the market this season, the reality is Canadians are still grappling with some serious housing affordability challenges rooted in lack of supply," RE/MAX writes. "Yes, borrowing is becoming less expensive, but this won't make housing affordable in the long run."