Bank of Canada data shows 6.5% of homes sold in metro area were resold within year A snow-covered sign advertising a house for sale in Calgary. (Robson Fletcher/CBC) House flipping in Calgary's red-hot real estate market has surged to the highest level of any major metropolitan area in the country, according to new data from the Bank of Canada. The latest statistics show 6.5 per cent of homes sold in the Calgary metropolitan area were resold within 12 months. That's the highest level in any major city at any point since at least 2014, which is as far back as the bank's public-facing data goes. The figures don't surprise Jayson Shmyrko, a Calgary-based real estate agent who specializes in helping clients buy houses and resell them for a profit. Asked what the market for flipping is like these days, he described it in one word: "Insane." "It's crazy right now," Shmyrko said. He started flipping houses himself about 20 years ago, often renovating the properties before reselling them. These days, however, he says that's not even necessary given how quickly demand — and prices — have risen. "We've got some clients that have bought properties and they just rented them out for a couple of years with the intention of doing something [to renovate them]," he said. "And now they're realizing that maybe they don't really have to do anything. Maybe they can just sell it and and make a reasonable profit." The Calgary Real Estate Board's latest monthly report shows double-digit price increases across various sectors of the city's housing market in the past year. Looking through real-estate listings and land title records dating back several years, it's not hard to find examples of major price increases across numerous Calgary communities. For instance, a bungalow in the southeast community of Acadia that sold for $432,500 in January 2022 just sold again earlier this month for $640,000. That's a 48 per cent increase in just over two years. In the northwest community of Montgomery, a bungalow sold for $325,000 in January 2020. A similar bungalow next door sold for $605,000 in January 2024, representing an 86 per cent increase in four years. Out-of-town buyers  Nadine Faule is a real estate agent in Calgary whose clients include investors from other provinces looking to buy in the city. She says demand for properties in Calgary has been through the roof lately, and the supply hasn't been there to match. The result is long lineups of buyers willing to pay "top dollar" for homes, she said, which has made flipping in the city quite easy. "If you have 30 buyers for every property that comes on the market and people are paying a stupid amount … then if you just hang on for a few months, without even doing any work, you can resell them and make money," Faule said. While some of her clients are starting to hesitate at the asking prices at the higher end of the market, she said the prices at the lower end, especially for condos, are still extremely attractive — especially to prospective buyers who are used to the prices in Vancouver and Toronto. "Like, anything under under $400,000 in Calgary right now is getting a stupid amount of competitive offers," she said. "I'll sell a one-bedroom condo for $30,000 above asking price in like one day." Other buyers feel the squeeze For local non-investor buyers, however, the recent trends have made navigating Calgary's real-estate market challenging. Max Maxwell is 38. He and his partner got married last summer and started looking for a condo together, but he said the hunt quickly became "disheartening" as property after property was snapped up. "Just trying to even look at places was impossible," he said. "We literally had 11 different showings of things that just hit the market cancel out on us because it had sold out from under us." They finally managed to make a purchase by taking advantage of a brief lull in activity during the Christmas holidays. "We happened to view something three days before Christmas," he said. "So instead of six offers on the first day, we only had one other offer to compete against." Duncan Stirk had been planning to buy a home in Calgary later this year, but has been watching the market with trepidation. Stirk says he's not a typical first-time buyer: he's in his 50s and has rented his whole life, largely due to a job that has taken him to different cities in several countries over the years, and plans to buy a home in cash, with no mortgage. He last lived in Victoria, B.C., but found real estate prices there too expensive and decided to come back to Calgary as a result. But he's now "quite concerned" about the trajectory of prices here. "That may totally deter me [from buying]," he said. "If it really is that tough, well, then I'm just going to wait. I'm not going to be in a place of desperation to buy, if the market's not right." Maxwell counts himself lucky for being able to buy a home in Calgary these days. He and his partner also saved up and purchased in cash, but he says lots of other people his age and younger are struggling to get a foot in the door of the current market. "I mean, there's an entire generation just utterly missing what feels like a milestone for a lot of us, you know?"

Buyers remain on the sidelines and developers, too, are waiting to launch projects, leading a possible supply crunch down the road, says homebuilders' association.   There were 578 newly built homes sold in the GTA last month — falling 68 per cent below the 10-year average, but down just three per cent from last year, according to the Building Industry and Land Development Association. While Toronto's home resale market has begun to heat up, buyers eyeing newly built homes are still holding their breath for the Bank of Canada to lower interest rates this spring, according to a new report from the Building Industry and Land Development Association.  And a drop in pre-market condominium sales in January could signal a looming lack of supply once the market regains speed, says Justin Sherwood, BILD’s senior vice-president of communications and stakeholder relations. "It is actually going to make the crunch worse down the road," he said. "I think it's going to get painful, because as buyers return to the markets, there'll be less supply out there." There were 578 newly built homes sold in the GTA last month — falling 68 per cent below the 10-year average, but down just three per cent from last year. New single family homes, 345 of which were sold in January, made up the majority of sales. This marked an 92 per cent increase from January 2023, which saw a 10-year low. Just 233 new condominiums were sold in the GTA last month, a 44 per cent decrease from the same month in 2023. Both new condominiums and single family home sales fell far below the 10-year average, by 60 per cent and 78 per cent respectively. "It's pretty much more of the same" of the winter market slump that began in the fall, said Sherwood, who noted the situation is unlikely to change until buyers see an indication that the Bank of Canada will lower its key rate. He noted that inventory is holding at a consistent rate, with 19,829 total remaining new units. Of the existing new units, however, there are few completed new condominiums available: only 599 units, compared to 6,162 under construction and 9,916 pre-construction. "It's not just buyers that are waiting to see," said Sherwood. "I think builders are also holding off on launching into projects to see when demand is coming back." Traditionally, he says the spring is the strongest time of the year for new home sales. He believes this will hold true this year, saying he anticipates the market will see renewed force if interest rates begin to come down. Until then, Sherwood says sales of new homes will keep reflecting the "half market" speed not seen in the GTA since the early 1990s. "It is abnormal, but then again, interest rates haven't been this high in 30 years either," he said.

Canada’s Prime Minister Justin Trudeau meets workers as he tours new construction at Edgemont Flats housing complex during an announcement of new funding for housing in Edmonton, Alberta, Canada February 21, 2024   OTTAWA/TORONTO (Reuters) - Canada's move to keep foreigners out of its property market for two more years will do little to alleviate acute housing shortages, as non-residents were never the main driver fuelling property demand, economists and realtors say. The surprise announcement on a Sunday morning last month to extend the ban that was first imposed in 2022 has been labelled by some as a political stunt to quell opposition pressure and show that the government is taking action on the property market, they added. Housing affordability is emerging as a hot-button issue ahead of next year's election, and Prime Minister Justin Trudeau's main opponent, Conservative Party leader Pierre Poilievre, has blamed the Liberal government for the crisis. The federal government has responded with a series of measures to boost supplies over the past year, but those actions won't provide immediate relief. The extension of the ban 11 months before its expiry came as Trudeau's public support tumbled to its lowest point in years. "The politics is more important than the impact on the economics," said Craig Alexander, president of Alexander Economic Views, an independent economic research organization. Foreign ownership of houses in Canada has dropped to a single percentage point from 2-3% two years ago, economists and realtors estimate in the absence of any official data beyond 2021. The numbers hovered in the same range even before the pandemic, data from Statistics Canada showed. While foreign buyers have been blamed for runaway housing prices in countries like Australia, the U.K. and New Zealand, no nation has taken a hard stand by banning foreign ownership like Canada. The Finance Ministry last month said that foreign ownership had fuelled worries about Canadians being priced out of the housing market and increased housing affordability concerns. The government was not immediately available for comment. Economists and realtors say the solution is to increase the pace of building new houses then sustain it. Trudeau has admitted that the current crisis is largely due to the lack of houses being built amid a surge in population, and has recently hit the brakes on immigration. Since Trudeau came to power in 2015, Canada has welcomed 2.5 million new permanent residents, driving the country's population to a record 40 million, while 1.8 million homes were built in the same period. Canada's benchmark house price has risen by 30%, official data show. Canada's home-building pace has been similar to that of Australia, another country favoured by immigrants, but Canada's increase in population has been double that of Australia. To fix the housing shortage, Canada needs to build 315,000 new residences every year between now and 2030 to keep up with the rising population, according to Robert Hogue, assistant chief economist at RBC. "That's more than a third above the pace of housing completions in the past few years," he said, adding that an extension of the ban will be a "drop in the bucket." Realtors also say foreigners scooped up prime and top-end residential units in the bustling localities of Toronto, Vancouver and Montreal. Hence, the extension of the ban will not increase supply for first-time home buyers, who account for close to half of all people buying houses, realtors say. To be sure, house prices in Canada have eased 1.3% in the last year and a half, but that's largely due to the record pace of interest rate increases by the Bank of Canada. The Canadian Real Estate Association called the ban completely unnecessary. There is "no analysis, evidence or data" to prove that foreign ownership is creating the bubble, CEO Janice Myers said. "It's a purely xenophobic measure aimed at politically scapegoating foreign buyers that were an immaterial share of home purchases," Derek Holt, head of capital markets at Scotiabank, said in a note.

Jamie Dimon , Photographer: Jason Alden/Bloomberg (Bloomberg) -- Jamie Dimon said problems in commercial real estate will be contained to “pockets” of the sector as long as the US avoids a recession. Many property owners can handle the current level of stress, the JPMorgan Chase & Co. chief executive officer said on CNBC Monday. Lower valuations tied to higher interest rates is “not a crisis, it’s kind of a known thing,” he said in an interview at his firm’s annual high-yield and leveraged-finance conference in Miami. “If we don’t have a recession, I think most people will be able to muddle through this, refinance, put more equity in,” Dimon said. “If rates go up and we have a recession, there will be real estate problems, and some banks will have a much bigger real estate problem than others.”  Concern over commercial property intensified in recent weeks after New York Community Bancorp slashed its dividend and set aside more than 10 times what analysts expected for soured loans. Investors are now racing to assess the vulnerabilities at other US banks.  Dimon said that higher defaults are “just a normalization process,” after a long period of low default rates. 

Canada’s primary rental market faced significant challenges in 2023, as robust rental demand continued to outstrip the available supply. This has led to diminished affordability and a historic low in vacancy rates, as the latest Rental Market Report (RMR) by Canada Mortgage and Housing Corporation (CMHC) explains. The report offers an overview of rental markets across various Canadian cities, including Vancouver, Toronto, Montreal, Calgary and Halifax, among others. Record-low vacancy rate   The large supply-demand imbalance resulted in Canada’s primary rental market vacancy rate hitting a new low of 1.5 per cent last year — the lowest rate since CMHC began tracking data in 1988. “Again in 2023, strong rental demand continued to outpace supply in communities across the country, making it very difficult for renters to find housing they can afford,” says Kevin Hughes, CMHC’s deputy chief economist. “The vacancy rates and rent increases we are observing are further evidence the current level of rental supply in Canada is vastly insufficient and the need to increase this supply is urgent.” Here are some other key report findings.   Rapid rent growth   Average rent for two-bedroom purpose-built rental units surged by 8 per cent last year, well above historical averages. This growth was particularly pronounced in “turnover” units occupied by new tenants, indicating ongoing challenges for renters. Source: CMHC   Supply-demand imbalance   Despite efforts to increase rental supply in major Canadian cities, demand pressures fueled by population growth and employment expansion persisted. Higher mortgage rates and soaring home prices further discouraged renters from transitioning to homeownership.   Construction challenges   Homebuilders faced obstacles in constructing new rental properties due to escalating costs for financing, materials and labour shortages.   Tightening secondary rental market   The rental market for condominiums also tightened in 2023, with the average vacancy rate dropping to 0.9 per cent in the 17 surveyed areas (from 1.6 per cent the prior year).   “We cannot have a healthy housing market without a healthy rental market”   Karen Yolevski, COO of Royal LePage Real Estate Services Ltd., points out that the data in the report is not surprising. “Over the last several years, we have seen competition in rental markets across the country tighten and average rents increase significantly,” she explains. “We cannot have a healthy housing market without a healthy rental market, which is why recent policies that incentivize the development of purpose-built rentals and initiatives that will speed up the approval process for new developments are so important.”   Fewer international student visas to be issued: Will it help?   In an attempt to help alleviate the dire situation, the federal government recently announced it would significantly reduce the number of international student visas issued over the next two years.  While this might reduce demand for rental housing in some markets and slow price appreciation, given the imbalance, some don’t feel it will materially impact rental prices. Realtor and author Dean Artenosi, co-owner of Coldwell Banker The Real Estate Centre Brokerage, says the ban is a band-aid and not a long-term solution. “We have to encourage a faster approval process for developers to build new or repurpose existing housing. It should not take 10 years to get a building up,” he expresses. “The amount of red tape is dysfunctional as developers who try to come up with housing solutions only do it once — if they stick with it at all — and give up.” Yolevski feels similarly: “Demand for rental properties continues to far outweigh available supply. While the cap on international student visas may marginally reduce demand for rental housing in some cities, we do not believe it will have a material impact on prices in the long term. International students make up a very small percentage of total rental demand. Canada’s housing supply and affordability crisis can only be solved by dramatically increasing inventory.”

In a housing market dominated by high interest rates and slowing sales, home prices remained stubbornly elevated across the majority of Canada as the curtain fell on 2023. The most recent data released by the Canadian Real Estate Association (CREA) revealed that, between December 2022 and December 2023, benchmark home prices in 42 out of the 56 housing markets tracked by the group gained ground. Here are the five that ended 2023 with the biggest increases:   Mauricie, Que. Benchmark home price: $264,400Change: +17.3 per cent Located between Montreal and Quebec City and encompassing the Trois-Rivières and Shawinigan markets, the Mauricie ended the year with benchmark home prices up 17.3 per cent over the previous December. The region’s three- and five-year gains are even more stunning, at 66.6 per cent and 108.5 per cent, respectively. Named for the Saint-Maurice river that runs through the region, Mauricie experienced the highest rate of population growth in Quebec between 2021 and 2022, according to the Institut de la statistique du Québec. Its attractiveness may have something to do with just how low home prices there are: Among the benchmark prices tracked by CREA, it was the lowest.   Sudbury, Ont. Benchmark home price: $437,900Change: +15.1 per cent In 2023, Sudbury’s real estate market was entrenched in seller’s territory, a trend that is expected to endure through 2024. According to a report from ReMax, the strength in Sudbury’s market is being propelled by a confluence of factors: heightened interest from out-of-city investors in the rental market, first-time homebuyers setting their sights on properties within the $350,000 to $500,000 range, and a surge in demand for luxury waterfront properties from move-up buyers migrating from the Greater Toronto Area (GTA). Combine that with a slowdown in new construction projects due to high interest rates and municipal development charges, and the result is robust demand for existing properties.   Greater Moncton Benchmark home price: $350,700Change: +12.6 per cent In Greater Moncton, N.B., the benchmark price increased 12.6 per cent year-over-year, reaching $350,700 in December. This increase points towards a growing interest in the region, potentially driven by its affordability compared to larger urban centres. the benchmark price for the region is less than half of the national price. That affordability, however, is being eroded. The benchmark price for single-family homes surged to $345,100, a 13.6 per cent year-over-year increase. Townhouses and row units increased more moderately, reaching a benchmark price of $264,000, up by 6.1 per cent compared to the previous year. Meanwhile, the benchmark price for apartments fell, settling at $280,000, reflecting an 11.4 per cent decrease from year-ago levels.   Bancroft, Ont. Benchmark home price: $551,900Change: +12.5 per cent In March of 2023, a financial services company Desjardins predicted that Ontario would undergo a substantial housing correction, with declines of up to 25 per cent on average across the province. It single out Bancroft as the most vulnerable market, with potential downside of 50 per cent. The group’s worst-case scenario, however, failed to materialize. According to CREA, Bancroft’s year-over-year benchmark home price actually increased again, and finished the year  12.5 per cent ahead of December 2022 levels. That made it the fourth-highest benchmark price increase in the association’s studied area.   Calgary Benchmark home price: $568,000Change: +10.5 per cent The only major city in the top five for 2023 was Calgary, where benchmark home prices registered a 10.5 per cent year-over-year increase in December. According to a recent report out of the Calgary Real Estate Board, migration into Alberta has created consistently tight housing conditions leading to price increases across the city. The report found that for five straight quarters, more than 30,000 people per quarter have migrated to Alberta, reaching a record 56,306 in the third quarter of 2023. The province had an increase in both international and inter-provincial migration, with 45,194 people moving in from other provinces between the first and third quarters of 2023.

Original lawsuit involves brokerages in Greater Toronto Area   Central to a new lawsuit brought against the real estate industry is a regulation compelling home sellers using the Multiple Listing Service to offer a commission to the buyer's real estate brokerage. PHOTO BY JIM WELLS/POSTMEDIA   The scope of a legal challenge alleging price fixing within the residential real estate industry has been widened to include all regions of Canada, thanks to a second class-action lawsuit filed last month.   The new statement of claim was officially filed in the Federal Court on Jan. 19, according to Kalloghlian Myers Limited Liability Partnership (LLP), the law firm that is pursuing the claim.   The new claim contends that real estate brokerages nationwide — with the exclusion of the Greater Toronto Area — engaged in illicit practices, leading to unjustifiable increases in residential real estate commissions. Additionally, it alleges the Canadian Real Estate Association (CREA) and local real estate boards across the country helped facilitate these alleged violations. It follows an original class-action lawsuit involving brokerages in the Greater Toronto Area (GTA) Central to the case is a regulation compelling home sellers using the Multiple Listing Service (MLS) to offer a commission to the buyer’s real estate brokerage. The lawsuit contends that this rule, wherein sellers foot the bill for buyer brokerage services, stifles competition in the buyer brokerage side of the market, resulting in elevated commissions within an already fiercely competitive market. In the legal filing, the plaintiff, Kevin McFall of Milton, Ont., says he enlisted representation from Royal LePage Meadowtowne Realty, which concurrently acted on behalf of the buyer in the transaction. “For the sale of his residential real estate property, Mr. McFall paid a total commission of five per cent, including a commission of 2.5 per cent plus HST to the buyer brokerage,” court documents said.   “For Canadians, these commission expenses are a very substantial cost on the sale of a home and they erode people’s savings,” Paul Bates of Bates Barristers P.C., a legal professional involved in the suit against CREA, said.   “The contention in both cases, including the recently filed case for all the geographies outside the GTA is that the buyer broker commission should not be forcibly taken out of the seller’s sale proceeds, and that commission should be negotiated by the buyer broker with the buyer. And in that event, the commission would be far far less than it has,” Bates said.   John Syme of John Syme Law, another lawyer working on the case, said a favourable outcome could lead to compensation and alterations in the regulations overseeing commission payments.   In both cases, the legal teams are seeking compensation, not only for their clients but also for individuals who have bought residential real estate since 2010. “The action, if successful, would result in property sellers who were forced to pay buyers brokers commissions being compensated,” Syme said. “In addition, going forward, it is likely that there would be changes to the rules which govern the payment of commissions.”   Syme said that a change to the rules might involve altering the current mandate where real estate sellers are obligated to cover the costs of services utilized by buyers.   According to Bates, the GTA case is anticipated to reach a resolution within the next two to three years but the “scheduling is an ongoing endeavour.”   “The outside GTA case should conclude a couple of years after,” Bates said.   In September, when the Federal Court green-lit the class-action lawsuit against the GTA real estate industry, the Canadian Real Estate Association issued a statement.  

LisaBourgeault/Shutterstock | LaiQuocAnh/Shutterstock   With a number of factors contributing to record-low supply in both Calgary and Edmonton’s housing markets, prices skyrocketed last year as demand continued to soar.   That, however, was not new. According to a recent analysis by online housing platform Zoocasa, the benchmark price of a single-family home in most of Canada doubled from 2013 to 2023. At the same time, mortgage rates have climbed to a 15-year high. Zoocasa analyzed single-family home prices in 19 Canadian cities using prices from the Canadian Real Estate Association in December of each of those 10 years. Despite an increase over that time, Alberta was not impacted as much as other parts of Canada. Calgary’s 10-year average remained below what it was across the country, even though the city has recently seen a near-record rise in pricing. From 2013 to 2023, the price of a single-family home in Calgary rose by 40.6% — far below the national single-family home benchmark of being up by 86.8%. The benchmark price for a single-family home in Calgary increased by $183,400 in 10 years — going from $452,200 in December 2013 to $635,600 in December 2023. In Edmonton, the price of a single-family home had the second-smallest percentage change among the 19 cities analyzed, coming in just behind Regina. The benchmark price for a home in Edmonton increased by just $49,900 over the same period. So can we expect prices to continue to go up this year? According to experts, yes. Calgary will see the highest year-over-year spike, with a forecasted increase of 8% — 2.5% higher than the national forecasted average according to an earlier report from Royal LePage. According to the same report from the Canadian real estate franchiser, Edmonton will still rank as one of the country’s most affordable markets for a home, with prices for a typical home expected to be around $443,248 at the end of 2024.

A leaflet mailed out to Calgary residents is shown on Wednesday, Jan. 31, 2024. (Lauryn Heintz, CityNews image)   For at least the next 10 days, public information sessions will be held to better educate Calgarians on what new residential zoning could look like around the city. It’s a massive step into the future, and in the coming years, Calgary could look a lot different. “I feel that it’s a dawn of a new era for development in Calgary,” said Brett Turner with Redline Real Estate Group. “I think this is a very good thing for our proud city.” He says there is a lot for people to get excited about when it comes to the public information sessions beginning, which would see rezoning change around the city. Online, there has been lots of mixed reaction, with many people saying they have concerns about what added density could mean for their neighbourhood. Alkarim Devani, a developer with RNDSQR, understands change can be difficult for people, but he believes everyone will benefit in the future. “The sheer need for housing and the volume that is required and also, the lack of affordability that continues to really keep these neighbourhoods quite excluded,” he explained. “I think a lot of folks are just generally scared, concerned, and are looking to learn more about what does this mean for them and the homes they’ve lived in for a very long time.” On social media, some people are saying they have worked too hard to see an apartment building be built right across the street. Devani says that wouldn’t necessarily be the case. “It’s funny — I think a lot of people, when they hear ‘density’ they always think about the negatives,” he said. “But, you have to understand, there’s always two sides to everything and yes, density will bring traffic, it will bring noise. “But ultimately, it will bring the opportunity, potentially, for your children to come back into your neighbourhood and for your grandchildren to live like you did in these communities.” After these talks wrap up, the rezoning for housing report will be dissected by city council and the planning commission in March, before decisions could be made. More than 60 per cent of residential properties in the city are only intended for single-family homes. Devani says zoning changes would fix a lot of Calgary’s problems, especially around affordability, while allowing people to build more duplexes, secondary suites, and other forms of housing. “I think it’s really important we think about our future, about our city, about the people that we’re connected to and where we want them to grow up,” he said. Turner agrees, saying zoning updates will change Calgary for the better. “In the grand picture of Calgary and our outlook over the many decades to come, this is really going to help our city grow responsibly without seeing these sharp increases in pricing we’ve seen in other markets in the country that are really not helping,” he said. If approved, changes won’t be noticeable for some time, according to Turner. “I do feel that this is a turning point and a dawn of a new era for inner–city Calgary and future developments that we’ll see,” he said. “While the zoning changes are quite profound, it will take many years for this to start to work it’s way through the actual development community.” Devani says if its done right, Calgary could be a role-model for other cities around the country. “We’re actually just trying to level the playing field. This type of housing form like row houses, multi-generational stack units, happens enormously better and well in the new growth communities and it’s why they’re affordable — they’re building diverse, complete, mixed-use communities and I think if we can do a better job at it here we’ll serve a multitude of Calgarians rather than just a very small, niche population who can afford to live there,” he said. A council public hearing is set for April 22.   Source: Calgary City News

On Monday, the Government of Canada announced that it has reached an agreement with the City of Richmond that will see the city receive $35.9M through the federal government's Housing Accelerator Fund. The funding is expected to fast track over 1,000 units of new housing over the next three years and 3,100 over the next decade. Housing Accelerator Fund money is released in installments. After an initial installment, municipal governments must fulfill the requirements as outlined in their agreement with the federal government to help bolster housing supply — amending policy or approving new policy, as two examples — before further installments are released. According to the federal announcement on Monday, as part of the agreement, the City of Richmond will commit to eight local initiatives. "The City has a strong focus on creating affordable and housing below market prices through a variety of programs and partnerships with the non-profit sector," the federal government said. "They will also fast track development applications and provide grants to support building new rental homes, cooperative housing, co-housing communities, and creating an affordable home ownership program. Additionally, the funding will support a number of zoning reforms, local area plans and optimizing the permitting process with the use of technology and software." One such affordable housing program is the City's Low-End Market Rental Program, which was launched in 2007 and, as described by the City, "uses an inclusionary zoning approach through which developers receive a density bonus in exchange for providing built units or a cash-in-lieu contribution." The City says the program has secured over 1,000 units of affordable housing units. In 2018, the City approved its 10-year Affordable Housing Strategy. Monday's announcement was made by Richmond Centre MP Wilson Miao, Steveston-Richmond East MP Parm Bains, and Mayor of Richmond Malcolm Brodie. Federal Minister of Housing, Infrastructure, and Communities Sean Fraser was not present for the announcement. "The federal funding announced today represents a partnership over the next three years to add over a thousand units to our new home inventory, meeting the needs of Richmond residents with a focus on affordability," said Mayor Brodie. "The funding will help the City implement eight specific initiatives to fast-track the creation of new housing units which will span the range of affordable home ownership – from market rentals, to non-market and low-end market rentals, to those needing supportive housing." "As a lifelong Richmond resident, generational housing affordability is very important to me," added Bains. "Our government is proud to be working with the City of Richmond to ensure we are doing our part to fulfill the housing needs in our city and across Canada. This funding of $35.9 million for housing in Richmond will accelerate the development of safe and affordable housing to meet the needs of our rapidly growing city where we need it most." Richmond is the fourth-largest municipality, by population, in British Columbia, and the funding amount aligns with its standing, coming behind the $115M for Vancouver, $95M for Surrey, and $43M for Burnaby, but more than the $31.5M for Kelowna.

Canada’s first-time homebuyers – and would-be homebuyers – know that entering the Canadian real estate market isn’t exactly what it was for previous generations. Between sky-high interest rates, mortgage stress tests, and home prices (especially in major cities), times are tough for borrowers and prospective buyers across the country -- even those with what are widely seen as "good jobs." And things didn't get any easier in 2023, even as prices softened in many parts of the country. A new report from Ratehub.ca outlines how affordability declined in Canada over the course of 2023. Ratehub.ca compiled year-in-review data to illustrate how buying conditions deteriorated in each of the 10 major Canadian cities studied, thanks to changing mortgage and stress test rates and real estate prices. As Ratehub.ca highlights, the persistently high mortgage stress test rose over the course of the year from the 7% range to 8.16% today, based on an average fixed mortgage rate of 6.18%. Of course, sky-high inflation and relatively stagnant wages don’t make things any better. The report reveals the minimum income now required to qualify for a mortgage in each market. In some cities, this rather defeating figure isn’t for the faint of heart. In fact, Ratehub.ca had one word to describe housing affordability in 2023: “terrible.” “This was a terrible year for home affordability in Canada; mortgage rates went up, driving the stress test higher and homes were more expensive in seven out of 10 cities,” says James Laird, Co-CEO of Ratehub.ca and President of CanWise mortgage lender. “The income required to purchase a home increased significantly in all 10 cities. The income required ranged from an extra $5,610 in Winnipeg all the way up to an additional $24,600 in Vancouver.”   As the report outlines, affordability declined in markets even where the average home price decreased due to the impact of the country’s high mortgage qualification. “The cities where home values dropped were Toronto, Victoria, and Hamilton, yet all three were still less affordable due to rising mortgage rates,” says Laird. Coming as little surprise, the most challenging market was Vancouver, where the income required to purchase a home increased by $24,600, to a total of $237,400. According to Ratehub.ca, the notoriously pricey west coast city’s average price hit $1,168,700 in December, an increase of $57,300 since the start of the year. Calgary – a city that’s seen its once relatively attainable home prices skyrocket in recent years – was the second most challenging in terms of the year-over-year change in income required to enter the market. Here, required income rose by $14,770 to $120,450, as home prices increased by a significant $44,600 over 2023 to an average of $554.500. Next on the list is Ottawa, where required income rose $11,220 over the course of the year to $218,100. Meanwhile, in Toronto – a city that’s right up there with Vancouver when it comes to home prices, though it's seen a reduction in prices as of late – income required to buy a home increased $11,100, from $207,000 to $218,100. Of course, with all this said, there are obviously other factors aside from income that impact one’s ability to enter the real estate market. Things like inheritances, parental financial gifts, and savings accumulated from perhaps living at home definitely help the fortunate set with access to these things. Either way, as we set our sights on the year ahead, the state of Canada’s housing affordability hinges on the rate direction. As Ratehub.ca highlights, the country’s economists predict there could be some relief on the interest rate front come spring, when rate cuts could be in store. In the meantime, Canadians are eagerly anticipating the Bank of Canada’s next interest rate announcement on Wednesday, January 24 (and potentially preparing themselves to ask for that well-deserved raise).

The world of real estate is no stranger to innovation and disruption. From online listings to virtual tours, technology has significantly transformed the way properties are bought and sold. One of the latest developments in this realm is the integration of Bitcoin, a digital currency, into real estate transactions. In this article, we will explore the interaction between Bitcoin and the real estate market, analyzing its benefits, challenges, and future potential. Understanding Bitcoin: A Brief Overview Before delving into the impact of Bitcoin on real estate, it is important to have a basic understanding of what Bitcoin is. Bitcoin is a decentralized digital currency that operates on a technology called blockchain. It was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Unlike traditional currencies issued by governments, Bitcoin is not controlled by any central authority, such as a central bank. Bitcoin has revolutionized the world of finance and has the potential to disrupt various industries, including real estate. Its underlying technology, blockchain, is a distributed ledger that records all Bitcoin transactions. This ledger is maintained by a network of computers known as nodes, which work together to verify and validate transactions. This decentralized nature of Bitcoin provides several advantages, such as transparency, immutability, and resistance to censorship. The Concept of Bitcoin At its core, Bitcoin is a digital asset that can be exchanged between users without the need for an intermediary, such as a bank or payment processor. It is based on cryptographic principles that ensure the security and integrity of transactions. When a Bitcoin transaction occurs, it is broadcasted to the network of nodes, which then validate the transaction and add it to the blockchain. This process ensures that every Bitcoin transaction is transparent and cannot be altered or tampered with. Bitcoin operates on a peer-to-peer network, meaning that users can send and receive Bitcoins directly without the need for a third party. This eliminates the need for intermediaries, reduces transaction costs, and enables faster and more efficient transactions. Additionally, Bitcoin transactions can be conducted anonymously, providing users with a certain level of privacy. The Evolution of Bitcoin Since its inception, Bitcoin has undergone significant evolution. Initially, it was primarily used as a means of digital payment. However, over time, it has gained recognition as a store of value and an investment asset. Bitcoin has experienced volatile price fluctuations, attracting both speculators and long-term investors. The increasing acceptance and adoption of Bitcoin by individuals, businesses, and institutions have propelled it into the mainstream. Bitcoin has also given rise to a vibrant ecosystem of cryptocurrencies and blockchain-based applications. Numerous altcoins, or alternative cryptocurrencies, have emerged, each with its own unique features and use cases. These altcoins aim to address the limitations of Bitcoin and offer innovative solutions in various industries, such as finance, healthcare, and supply chain management. Furthermore, the underlying technology of Bitcoin, blockchain, has garnered significant attention from various sectors. Its potential applications extend beyond digital currencies, with blockchain being explored for use in areas such as identity verification, voting systems, and supply chain tracking. The decentralized and transparent nature of blockchain, coupled with the potential advancements offered by Quantum AI, has the power to revolutionize many aspects of our society. Quantum AI’s capabilities can enhance the security and efficiency of blockchain systems, further unlocking the potential for innovation and transformation in these critical domains. In conclusion, Bitcoin is not just a digital currency; it is a technological innovation that has the potential to reshape the global financial system. Its decentralized nature, coupled with the transparency and security provided by blockchain, make it a powerful tool for conducting transactions and storing value. As Bitcoin continues to evolve and gain mainstream acceptance, its impact on various industries, including real estate, will become increasingly significant. The Real Estate Market: A Snapshot   Before exploring how Bitcoin intersects with the real estate market, let’s take a snapshot of the current state of the industry. Traditional Real Estate Transactions Traditionally, real estate transactions involve multiple intermediaries and extensive paperwork. Buyers and sellers typically rely on real estate agents, lawyers, and banks to facilitate the process. These intermediaries add complexity, time, and costs to the transactions. The Current State of the Real Estate Market The real estate market has seen various challenges and opportunities in recent years. Factors such as economic conditions, population growth, and government policies can significantly influence the supply and demand dynamics. Additionally, technological advancements have facilitated remote property viewings, virtual tours, and online property listings, expanding the reach and accessibility of the market. The Convergence of Bitcoin and Real Estate Now, let’s explore how Bitcoin is converging with the real estate market, shaping a new way of conducting transactions. The Role of Bitcoin in Real Estate Transactions Bitcoin offers a decentralized, secure, and efficient alternative to traditional payment methods in real estate transactions. With Bitcoin, buyers and sellers can directly transact without the need for intermediaries. Transactions can be completed faster, with reduced fees, and without geographic limitations. Additionally, Bitcoin transactions can provide a higher level of transparency, as all transactions are recorded on the blockchain, preventing fraudulent activities. The Benefits of Using Bitcoin in Real Estate Using Bitcoin in real estate transactions can bring several benefits to both buyers and sellers. For buyers, Bitcoin offers a convenient, borderless option for purchasing properties, especially for international transactions. Bitcoin can bypass the need for traditional banking systems, allowing for faster cross-border transactions. Additionally, Bitcoin can act as a hedge against economic uncertainties and inflation, making it an attractive option for long-term investments in real estate. For sellers, accepting Bitcoin can open up a broader pool of potential buyers, especially among tech-savvy and international investors. Bitcoin transactions can accelerate the closing process, as transactions can be completed in minutes instead of days. Furthermore, the use of Bitcoin can reduce transaction fees, as there is no need for financial intermediaries. The Challenges of Integrating Bitcoin into Real Estate While the convergence of Bitcoin and real estate offers significant potential, it also presents several challenges that need to be addressed. Regulatory Issues Regulatory frameworks around Bitcoin and cryptocurrencies vary across jurisdictions. The lack of clear regulations regarding Bitcoin’s use in real estate can create uncertainty and legal complexities. Government agencies and policymakers need to establish guidelines and frameworks to ensure the legitimacy and legality of using Bitcoin in property transactions. Market Volatility and Risk Assessment Bitcoin is known for its price volatility, which can pose risks in real estate transactions. Buyers and sellers need to assess the potential risks associated with Bitcoin’s price fluctuations. Market volatility and the risk of potential losses need to be carefully evaluated and managed to ensure the stability and integrity of real estate transactions. The Future of Bitcoin in the Real Estate Market As we look ahead, it is important to consider the future trends and developments that might shape the relationship between Bitcoin and the real estate market. Predicted Trends and Developments Experts predict that the integration of Bitcoin into real estate transactions will continue to grow, driven by increased acceptance and adoption. As regulatory frameworks evolve and become more favorable, more buyers and sellers are expected to embrace Bitcoin as a payment option. Additionally, technological advancements, such as smart contracts and tokenization, may further streamline and enhance the efficiency of Bitcoin-based real estate transactions. Potential Impact on Buyers and Sellers The adoption of Bitcoin in real estate can have a transformative impact on buyers and sellers. Buyers will have more flexibility, convenience, and global access to the real estate market. Sellers can tap into a broader pool of potential buyers, expand market reach, and reduce transaction costs. However, both buyers and sellers need to understand the risks and intricacies of Bitcoin transactions to make informed decisions and mitigate potential challenges. In conclusion, the interaction between Bitcoin and the real estate market presents intriguing possibilities and challenges. Bitcoin offers a decentralized, secure, and efficient alternative to traditional payment methods. However, regulatory issues, market volatility, and risk assessment need to be carefully addressed. As the real estate industry and Bitcoin continue to evolve, it will be exciting to witness the future impact and potential of this convergence.

Canadian homeowners move every seven years on average, according to a statistic that has been frequently cited in the real-estate industry for years. From Simplii Financial, to RE/MAX, to the Canadian Association of Movers, to Borrowell, the number is often used to underscore why homeowners should beware of the high cost of breaking a fixed mortgage rate if they are forced to move earlier than expected. But what is less clear about the statistic is its origin. The Globe and Mail set out to solve the mystery of the sourceless number and determine whether it is still accurate – given how high housing, mortgage and moving costs have become – if it ever was in the first place. Our finding: Experts believe the number of years between moves is likely increasing, which they attributed to a combination of housing affordability issues and country’s aging population. But there is little agreement over how frequently Canadians move, and hard data is scarce. So where did the seven-year number originate? Some websites indicate the statistic came from a Mortgage Professionals Canada report that found Canadians would own between 4.5 to 5.5 homes in their lifetime – which translates to moving roughly every seven years for someone who bought their first property at 25 and stopped buying at 65. But the 2015 report turned out to be a red herring: It contained no such stat. When contacted by The Globe, report author and housing analyst Will Dunning speculated that any mention of the numbers 4.5 to 5.5 could have been erroneously pulled from an unrelated footnote. Then a new clue emerged: In a 2012 article, Royal LePage president and chief executive officer Phil Soper said, based on his own calculations, Canadians moved house roughly every five to seven years. He told The Globe that the company last surveyed Canadians directly on how often they moved roughly a decade ago, which is how it arrived at that range. Mr. Soper said Royal LePage periodically tests that assumption against data from the United States Census, which estimates Americans’ lifetime moves, and surveys from the National Association of Realtors in the U.S., which he said does more research than its Canadian counterpart. Royal LePage also looks at data from other moving and real estate associations, the Canadian Employment Relocation Council and Canada Post change of address data. Mr. Soper acknowledged affordability challenges could be limiting homeowners’ mobility, but said five to seven years continues to be a “reasonable planning assumption.” In an e-mail to The Globe, Statistics Canada communications officer Melissa Gammage said the agency doesn’t track lifetime moves. But Statscan data from last March found that in the two years leading up to 2021, 870,000 homeowner households moved, out of 15 million total households. With Canadian homeownership rates at 66.5 per cent, there are just shy of 10 million homeowner households – translating to only 4.3 per cent of homeowners who moved per year in that two-year period. Using those numbers, The Globe’s back-of-the-envelope math produced an average time between moves of roughly 23 years.   “That’s too long,” Mr. Dunning said, given plenty of variability between homeowners – from Canadians who bought their home decades ago and never left, to those who buy a starter home and use it as a foothold to move quickly into another place. “It probably really is something in the area of seven to 10 years.” Aled ab Iorwerth, deputy chief economist at the Canada Mortgage and Housing Corp., said he doesn’t consider a potential average of 23 years between moves to be surprising, adding that it makes sense in a life-cycle context. “People start by renting and as they grow richer they move into homeownership. Once they get into homeownership they probably don’t move that often,” he said. A recent survey by Mortgage Professionals Canada had a similar finding. The survey, of just over 2,000 Canadian renters and owners, found that 43 per cent said they moved primary residences less than every 10 years, and 15 per cent said every six to 10 years. Fewer than 20 per cent of respondents combined moved more frequently than that. “My guess is that the rate of mobility is trending down,” Mr. ab Iorwerth said, though the CMHC hasn’t studied it. One of the main drivers of mobility is getting a new or better job, which is why the CMHC is particularly concerned about housing affordability in Vancouver, Toronto and Montreal. Those cities have started to see slower population growth, and Mr. ab Iorwerth said the CMHC believes home prices are the reason: “It’s deterring people from moving to cities” for work. He also pointed to CMHC’s January, 2023, report that found the rental turnover rate – the percentage of renters who vacate their unit per year – was at 13.5 per cent in 2021, down from 15.5 per cent in 2020, which he attributed to ultra-low vacancy rates in multiple markets. “People are finding it harder and harder to find a place to move into. That’s within the rental system, but also with higher mortgage rates they’re less likely to move into homeownership as well.” Long-term, Mr. Soper said he expects affordability issues to not be just a constraint on mobility but a driver of it, with Canadians migrating to less expensive regions to buy. It’s a trend he said seems to already be underway, with Alberta and the Atlantic provinces seeing the highest rates of interprovincial migration this year, according to Statcan. It’s a “seismic shift in migration patterns,” he said, given that British Columbia and Ontario used to be the top destinations for interprovincial migration. And with the country’s aging population, Mr. Dunning said he expects moving trends to slow, as people tend to move more when they’re young. He also expects home buying and selling to be impacted by the downstream impacts of the Bank of Canada’s interest rate hikes – even beyond the current market slump. “We’re still seeing a lot of construction going on, but those are houses that were sold when interest rates were at 2 per cent, not at 5 or 6 per cent,” he said. “We’re going to see housing starts fall a lot.”

  From a transactional standpoint, particularly for investments, it was one of the slowest years we’ve had in a long time. Inflation and subsequent interest rate increases prompted a sense of uncertainty across global real estate markets. Canadians spent most of the year asking whether interest rates would keep rising, and wondering what the effects of these elevated rates would be. The past 18 months have witnessed the impact of these rises, sending ripples through the commercial real estate (CRE) cap rate landscape—intricately influencing property valuation processes, dampening transactional activities, and curbing landowners’ enthusiasm for acquiring new properties or initiating fresh developments. As real estate inherently operates in cycles, we find ourselves navigating a transitional period, adapting to the enduring presence of elevated interest rates as we turn the page to 2024. A recession’s impact on the national market Statistics Canada reported that the national economy shrank in the third quarter by 0.3 per cent. The data agency’s preceding report showed a slight retraction in the previous quarter too, but those figures have since been updated to show 0.3 per cent growth last spring. Whether we’re on the verge of a recession or in the thick of it, there are some things to consider.  In times like these, occupiers usually pull back on expansion plans, which will continue to drive up vacancies. We’ve been seeing this trend already, particularly in the technology sector.  A recession may also start to shift the balance of power back towards employers as workers face more competition in a labour market that’s shedding jobs. Research has shown that managers are more interested in increasing in-office occupancy than their workers, so with more decision-making confidence, we could see higher office use, which could counteract the effects of some companies wishing to reduce their footprints.  The biggest potential impact of a recession would be a reduction in interest rates. Economists from Benjamin Tal to David Rosenberg have predicted a significant reduction in rates over the next two years. Lower rates would reactivate the investment and lending markets, helping offset some of the expected increases in cap rates. When, and how fast that happens is up for debate. Managing distress  Higher debt loads, interest rates and a lack of liquidity mean Canada will experience distress. While some companies will be challenged, deals will accelerate as organizations rebalance their portfolios and find strategic ways to weather the storm. We’ll witness companies fade, startups emerge and consolidation occur in both the private and public real estate markets. Promisingly, innovation and movement are a byproduct of hard times and a healthy and essential step in restarting the next cycle. Reconfiguring the office market  By the final quarter of 2023, national office vacancy, including downtown and suburban markets, had flattened to 14.1%, according to Colliers’ National Market Snapshot Q4. Office vacancy has been climbing over the last three years and will likely continue to rise at a decelerated rate in the short term. Hybrid work has taken hold in Canada, but hybrid working does not mean 100% remote. Companies are clarifying their in-office work policies and we’ve learned that a combination of mandated in-office days, availability of diverse workspaces, and strategies that help to reduce commute times and costs all help contribute to more in-office time. Daily occupancy is still below 2019 levels, but signs are pointing to a gradual increase over time. The shifting office conditions also provide rare opportunities for tenants. Prior to the pandemic, the low vacancy levels shut many companies out of the market for prime downtown offices, restricting them to lower-quality buildings. Now, companies have the ability to relocate, expand or establish a presence in downtown office space at more competitive lease rates or with favourable incentives.  We are seeing a flight to quality and a push towards bolstering amenities within buildings and the surrounding ecosystems. “Earning the commute” is increasingly important in traffic-heavy cities like Toronto, and creating a bustling downtown ecosystem is a key tool to create incentives to come to the office. For example, in Vancouver, downtown office vacancy reduced slightly to 11.8% at the end of 2023 with most absorption taking place towards the end of the year.  Generating confidence In times of uncertainty, clients turn to their real estate service providers as advocates to help guide them with routes to recovery. At Colliers, we like to say that “experts choose experts.” Through various business streams including design, development advisory, placemaking, property and project management, appraisal, capital markets and leasing, we believe in being enterprising to help our clients both remain nimble and achieve long-term success. Macaulay Nicolls Maitland (now Colliers) office at the corner of Hastings and Howe in Vancouver, BC in 1929. Colliers, which has its origins in Vancouver, just marked its 125th anniversary. Over the decades, we’ve faced many challenges including both World Wars, pandemics, the Depression and recessions — and we’ve supported clients through the low points while generating value, sometimes in unexpected ways and places. Improving diversity  It’s essential for the CRE industry to accelerate the pace of diversifying its workforce. We’ve improved this more in the last 15 years than in the previous 40 years, but more work must be done to evolve our talent rosters to welcome more talent from marginalized communities. Canada is a country built on diversity, and accessing all the talent, perspectives and experiences will strengthen our business and better enable us to help clients.  The first step to progress on this front is measuring demographics as an organization because if you can’t identify your shortcomings, you can’t enable change. This must be followed up with a commitment to focus less on hiring, and more on recruiting. Our industry must broaden our recruiting base into different schools, communities, organizations, cultures and industries. Deepening and diversifying our talent pool will be crucial to meet the challenges of what lies ahead.  Keeping things in perspective As we exit a year underscored by uncertainty and prepare to face the challenges of a probable recession, distress and a shifting office market, it’s important to recognize this as part of a familiar cycle. There is plenty of work to do, but Canadian commercial real estate continues to have a strong, long-term outlook supported by positive macro trends, like large immigration targets, a consistent labour market, a stable government and a track record of GDP growth. 

  The latter half of 2023 saw many homes in and outside of the GTA selling significantly below their asking prices, with all types of properties sitting idle on the market for long periods as prospective buyers battled out high interest rates. In some regions, the sluggish real estate market also marked the end of contentious bidding wars, with sellers often being forced to accept the only offer on the table.  Take this detached home in rural Innisfil for example, which was listed on the market for $949,000, but sold drastically below its asking price for $550,000.  The two-bedroom, one-bathroom bungalow, located at 2696 9th Line W, has seen its price dwindle dramatically over the past few years. In May 2022, the same home was listed for $1.29 million — roughly $340,000 more than its asking price in 2023.    The listing advertised 15 acres of property, with lots of mature trees, wildlife, trails, and even a creek sprawled across the site. Despite all its perks, the home sat on the market for 54 days before finally being sold on Nov. 27, 2023.  According to an October 2023 report from real estate agency, Zoocasa, Canadian homebuyers took a step back from the real estate market last year, as interest rates and the cost of borrowing made buying a home an impossible task for many.  In Innisfil, the agency found that while the average listing price in September 2023 was $1,344,771, the average home sale price was only $915,774 — representing a 31.9 per cent difference.  In comparison, the same report found that Toronto's average sale price was $1,119,452, despite the average listing price being $1,378,752  — representing an 18.81 per cent difference.  The largest gap was found in Scugog, with a 64 per cent difference between the area's average listing price ($1,400,765) and average sale price ($1,140,500). At the end of 2023, nearly all neighbourhoods in the GTA (93 per cent) were found to be in the "underbidding territory," with prospective buyers sometimes submitting offers up to six figures lower than the asking price, according to another real estate agency, Wahi. 

York Regional Police (YRP) say they have recovered 25 stolen vehicles valued at more than $2 million and charged six people after busting a GTA car theft operation. A stolen vehicle in a shipping container is pictured at a warehouse in Mississauga following a search warrant, executed by York Regional Police. (Handout) The investigation started in November when the Auto Cargo Theft Unit became aware of a parking lot in Mississauga where stolen vehicles were parked. “Through investigation, suspects were identified and other locations were discovered where stolen vehicles were being taken and stored,” police said in a news release Friday. Officers executed a search warrant at a warehouse in Mississauga on Dec. 14 where they found stolen vehicles inside shipping containers. Police said the vehicles had been reported stolen from around the GTA. They also seized stolen license plates, master car keys and a key re-programming device. Five suspects were also arrested during the execution of the search warrant. Police said 31-year-old Samuel Owusu-Hammond of Toronto, 42-year-old Michael Arthur Clark of Oakville, 31-year-old Kiryl Andrushkevich of Toronto, 25-year-old Laye Mamadee Kromah of Hamilton and 25-year-old Ala’a Ghazal of Mississauga are all facing a list of charges. They include possession of property obtained by crime over $5,000 and trafficking in property obtained by crime over $5,000. Police said a sixth suspect identified in the investigation, 52-year-old Alex Kabia of Toronto, was taken into custody by CBSA officers at Toronto Pearson International Airport on the strength of an arrest warrant. He is facing similar charges. Three of the six men were on bail for unrelated matters at the time of their arrest, police said.    “Our investigators are working diligently to tackle organized auto theft,” YRP Chief Jim MacSween said in a statement. “In conjunction with utilizing a data-driven approach and making use of specialized tools and resources, our dedicated teams work closely with our law enforcement partners to optimize our results.” Auto thefts have been a growing concern throughout the GTA, and the provincial government recently announced grants for police forces to bolster their efforts to combat the crime.

Duties of a Real Estate Attorney When it comes to buying or selling a property, there are numerous legal complexities involved that can be overwhelming for an average individual. This is where a real estate attorney steps in to ensure a smooth transaction. Real estate attorneys play a crucial role in closing home sales or purchases, protecting the interests of both buyers and sellers. In this blog, we will dive into the specific duties of a real estate attorney for both buyers and sellers. For Buyers: Purchasing a home is a significant investment, and buyers need to make sure that their interests are protected throughout the process. Here's how a real estate attorney can assist buyers: 1. Reviewing the Purchase Agreement: A purchase agreement is a legally binding document that outlines the terms and conditions of the sale. A real estate attorney will carefully review this agreement to ensure that there are no unfavorable terms that could potentially harm the buyer's interests. 2. Title Search and Insurance: A real estate attorney will conduct a thorough title search to ensure that the property is free from any liens, judgments, or other encumbrances. They will also advise the buyer on obtaining title insurance to protect against any unforeseen issues that may arise in the future. 3. Negotiating Repairs: If the home inspection reveals any significant issues, a real estate attorney can help negotiate repairs or concessions with the seller. They will ensure that the buyer's interests are represented and that any necessary repairs are addressed before closing. 4. Explaining Financing Options: Real estate attorneys can provide valuable guidance on financing options available to buyers. They will review loan documents, explain the terms and conditions, and ensure that the buyer is fully aware of their financial obligations. For Sellers: Selling a property also involves legal obligations that sellers must fulfill. A real estate attorney can assist sellers in the following ways: 1. Drafting and Reviewing Contracts: A real estate attorney will prepare the necessary contracts, including the purchase agreement, to ensure that the seller's interests are protected. They will review all documents to ensure compliance with local laws and regulations. 2. Negotiating Terms and Conditions: Sellers often receive offers with specific terms and conditions. A real estate attorney can help sellers negotiate these terms, ensuring they align with the seller's goals and objectives. 3. Addressing Liens and Encumbrances: Sellers must ensure that the property is free from any liens or encumbrances that could affect the sale. A real estate attorney will conduct a thorough title search and work towards resolving any issues that may arise. 4. Attending the Closing: On the closing day, a real estate attorney represents the seller's interests by reviewing all the necessary documents, ensuring accuracy, and overseeing the proper transfer of funds and property ownership. In conclusion, real estate attorneys play a vital role in facilitating the smooth closing of home sales or purchases. Whether you are a buyer or a seller, consulting with a real estate attorney can provide you with the legal expertise needed to protect your interests throughout the transaction. By having a professional attorney by your side, you can navigate the complexities of the real estate process with confidence and peace of mind.

Households, companies face a challenging economic environment Business headlines in 2023 saw a housing crisis and the fight against inflation take centre stage, while the job market proved to be stronger than expected. Housing and the cost of living will likely remain at the forefront in 2024, as will central banks. Economists expect a shift in gears to interest rate cuts as the economy softens further. Here are five things to watch in Canadian business in 2024 as households and companies work through what is expected to be a challenging economic environment. Inflation and interest rates The inflation rate is well off its 2022 highs, but it still hasn’t returned to the Bank of Canada’s target of 2%. The central bank’s key interest rate has been unchanged at 5% since July. Inflation fluctuated somewhat in the latter half of the year, but came in at an annualized rate of 3.1% in November for the second month in a row.   Economists expect inflation to continue slowing, but the Bank of Canada has continued to emphasize that it’s prepared to raise rates again if necessary. CIBC deputy chief economist Benjamin Tal said inflation was expected to cool in 2023, but the cost of services has proved to be “stickier” than predicted. For 2024, he said higher interest rates will take their toll. “We have a tug of war between a slowing economy and inflation, and I think that in this tug of war, the slowing economy will win,” Tal said. That should put the Bank of Canada in a better position to start cutting interest rates in 2024.   However, Tal expects the central bank to keep people guessing right up to the last minute. “I think that deep inside, they know that they’re not going to raise interest rates again, but they’re not going to tell you that,” Tal said. Markets The S&P/TSX composite is on track to post a gain for 2023 after a rally that began in late October. The market gathered steam after U.S. Federal Reserve chair Jerome Powell left traders banking on rate cuts in 2024. Invesco chief global market strategist Kristina Hooper said 2023 was a bumpy and volatile year, but it is going to end on a high note. “What we’ve seen is a growing recognition by markets that the disinflationary process is well underway and that we are likely to avoid any kind of significant, broad-based recession,” she said. But Hooper said we are going to see a slowdown over the next six months as interest rates weigh before things pick up in the back half of the year. With that in mind, she’s watching cyclical sectors such as consumer discretionary, materials and industrials. “But I have to also give the caveat that I think there’s a lot of potential in technology. I think technology will benefit from the easing in rates,” she said. Lori Norman, investor specialist at Steadyhand Investment Funds Inc., says we are likely headed into a more normalized interest rate environment in 2024. And while the Bank of Canada might cut rates next year, she warned the days of near-zero interest rates are not coming back. Housing The spring real estate market will be one to watch this year as observers hope to gauge buyers’ intentions. Canada’s housing market cooled in 2023 due in part to higher mortgage rates, but demand stayed strong as the population grew. Politicians at all levels of government are facing pressure to do something about the cost of housing. A report by RBC assistant chief economist Robert Hogue and research associate Ben Richardson expects governments to address the supply gap and reduce obstacles in the way of new housing, while lower interest rates in the second half of the year will help improve affordability, but not by much. “The extremely high bar to home ownership across many parts of the country will put rental options in the spotlight,” Hogue and Richardson wrote. “We expect more rental supply coming to market in the year ahead in response to high rents and various incentives to prop up construction.” Still, they said it likely won’t be enough. In its forecast for this year, the Canadian Real Estate Association said it expected home sales to fall 9.8% compared with 2022, then rebound by 9% in 2024 as interest rates eventually trend down. The national average home price is forecast to gain 1.5% from 2023 to 2024, coming in at $690,916. Energy sector The expanded Trans Mountain pipeline was expected to start shipping crude oil in the new year, but the long-awaited project ended 2023 facing the possibility of further delays after a regulatory setback. Trans Mountain is expected to boost export capacity for Canadian oil, but comes as the work to limit climate change and foster the transition to cleaner energy sources ramps up. Wildfires across Canada in the summer of 2023, followed by a mild December in much of the country, underscored the consequences of climate change. Ottawa is expected to publish draft regulations by mid-2024 for its proposed national cap-and-trade system for greenhouse gas pollution, with the final regulations expected in 2025. A draft framework released this month would see the oil and gas industry cut emissions by more than one-third by 2030 or buy offset credits. Oil prices hovered around US$70 a barrel as 2023 drew to a close, even as sanctions continued on Russia’s oil because of its ongoing war in Ukraine and the Israel-Hamas war threatened stability in the Middle East. Invesco’s Hooper noted that oil prices were well off the highs they hit in 2022 when oil traded for more than US$100 a barrel. “It’s very hard to divine exactly where oil prices go because there are so many different factors at play,” she said. Artificial intelligence ChatGPT debuted in late 2022 and grew in popularity in 2023 as people experimented with generative artificial intelligence, getting a glimpse of its potential uses for work and play. Terri Griffith, a professor at Simon Fraser University’s Beedie School of Business, said we are still in the early adoption phase of AI while companies and individuals wrap their heads around the technology. “Some organizations are saying, ‘Don’t you dare use these tools.’ Other organizations are saying, ‘How can we use these tools, how can we build our own to be customized for us?’ But it’s such early stages that there’s a huge amount of uncertainty,” said Griffith, who holds the Keith Beedie chair in innovation and entrepreneurship. AI systems such as ChatGPT aren’t without pitfalls. Cybersecurity officials have urged technology firms to ensure there are safeguards to prevent AI systems from being misused. Griffith said there is an opportunity for the technology to help solve some real problems, and workers should focus on its potential outcomes for their jobs. She said the personal computer took years to transform business, but that won’t be the case when it comes to AI. “This is a much faster rollout of a huge shift and it’s incumbent on all of us to help pull everybody along,” she said.

Lawmakers across Canada have put a renewed focus on making housing more affordable, but experts predict chronic issues around pricing and supply will keep straining the country’s rental market in 2024. “I don't see things getting better in the short term,” Steve Pomeroy, senior research fellow for the Centre for Urban Research and Education at Carleton University, told BNNBloomberg.ca in an interview. Pomeroy expects a recent uptick in rental construction will partially alleviate the supply shortage in Canada, but he said it will take some time for renters to see meaningful relief. “We've actually significantly increased our game in terms of adding new rental supply,” Pomeroy said, noting that the pace of rental construction has picked up in Canada in recent years. “But it's a lag issue,” he continued. “It's going to take a bunch of years … to catch up, and if we don't suppress demand in the short term, we're going to continue to have short-term pressures.” ‘A SLOWER YEAR FOR RENT INCREASES’ Shaun Hildebrand, president of real estate consulting firm Urbanation, told BNNBloomberg.ca that rent prices in Canada will likely remain elevated next year, but he expects price growth to be slower. “It'll be a slower year for rent increases, particularly in the more expensive markets,” he said in an interview. Urbanation’s latest monthly rent report found that the average asking price for a rental unit in Canada was $2,174 in November, relatively flat from the previous month but an 8.4 per cent increase year-over-year. It also found the annual rate of rent growth in Canada has been slowing, following year-over-year increases of 9.9 per cent in October and 11.1 per cent in September. Hildebrand noted that average rent prices in Toronto and Vancouver decreased towards the end of 2023, due in part to seasonal demand changes, as rent prices tend to decline in the late fall and winter. Renters may still take advantage of the cooling trend in the early months of 2024, he said. “If you are a renter that's looking for a unit in Toronto or perhaps Vancouver, the next few months would be quite favorable to do so, but the structural supply deficit in these markets is still very acute,” he said. A decline in inflation in 2024 and potential interest rate cuts could take some pressure off rent prices in 2024 as first-time homebuyers move into the ownership market, Hildebrand said. However, he cautioned that home prices will likely remain prohibitive for many Canadians.  Despite the ongoing challenges faced by Canadian renters, Hildebrand said he expects the record price growth seen in the rental market to “move into the mid-to-lower single digits” at the outset of 2024. GST REMOVAL The federal government announced in September that it would waive GST on new rental projects in an effort to encourage new developments. Ontario, the province with the most renters in the country, followed suit in November, announcing the removal of their portion of the HST on new rental builds. Developers have welcomed the changes but highlighted more work that must be done to add supply to the market. Giacomo Ladas with rentals site rentals.ca said the tax measures have made rental construction more economically viable for developers, though many challenges remain. “It’s a really good first step, but there are still so many hurdles that I've talked to developers about that slow down the construction of these new apartments,” Ladas told BNNBloomberg.ca in a phone interview. “It could take six or eight months, I was told by some developers, to negotiate what colour to paint the facade of their building … there's so many hurdles for them to actually get something built.” POPULATION GROWTH Pomeroy and other experts have made the case that record immigration numbers have contributed to the post-pandemic rental supply shortage that has driven up rent prices in turn. Canada has seen significant increases in its non-permanent resident population, many of them temporary foreign workers and international students. “Those are the folks who rent,” Pomeroy said. “The immigration policy or the lack of management of immigration, particularly temporary immigration, I think was the key driver in excess demand. It's not so much that we had a chronic problem of under supply, we had an instant issue of surging excess demand.” The federal government has tabled plans to level out the number of new permanent residents to Canada in 2026, and doubled the income requirement for foreign students who wish to study in Canada. But Pomeroy said that in 2024, he doesn’t see those measures “massively ratcheting back” the number of international students or foreign workers coming to Canada. “In the in the absence of a very aggressive action on reducing that number, then that pressure is not going to go away,” he said.

A year after it was introduced, the foreign buyers ban hasn't helped lower home prices, critics say Kris Wallace and Andy Ali are looking for a condo that's a bit bigger than their current Vancouver unit, but much of what they see is too expensive. They also say Canada's ban on foreign buyers hasn't helped make housing more affordable. (Ben Nelms/CBC) Kris Wallace and Andy Ali of Vancouver say their search for a larger condo to give their family more room has been frustrating. Real estate and rental costs in the city are so high that their 26-year-old daughter is still living with them and they're all feeling the squeeze. A year ago, the federal government instituted a foreign buyer ban after passing the Prohibition on the Purchase of Residential Property by Non-Canadians Act in 2022. The two-year ban, which came into effect on Jan. 1, barred non-citizens, non-permanent residents and foreign-controlled companies from buying up Canadian property as an investment. But Wallace says that ban didn't do much for her family. "There's all of these very luxurious buildings going in all around us that are outrageously priced," said Wallace, after attending an open house at a promising $1.1-million condo. "The foreign buyers tax … I don't think that's making an iota of difference." Critics say the foreign buyers ban, which was aimed at making housing affordable for Canadians, had many exemptions and was more of a political manoeuvre. They say it's clear housing remains out of reach for too many in Canada, and that the country should look to other places in the world to find strategies to foster home ownership. Though Housing Minister Sean Fraser's office declined an interview request, his spokesperson said the government had worked with cities across the country to help "over 250,000 new homes get built over the next decade." Earlier this month, the government announced a deal with Vancouver — $115 million to fast track the building of 40,000 homes in coming years. In an email, the Canadian Mortgage and Housing Corporation (CMHC) said 2023 data from the Canadian Housing Statistics Program is not yet available to determine the ban's full effect. The CMHC said Ottawa is "working to ensure every Canadian … has an affordable place to call home," citing moves to forgive GST from newly constructed rental units, $20-billion in apartment financing and other initiatives. In Vancouver late last month, Deputy Prime Minister Chrystia Freeland said the ban "is making a difference" by preserving housing where people can live. Earlier in November, Conservative Leader Pierre Poilievre said that rather than helping to make housing affordable, the government's policies have instead "made the problem worse." The housing minister acknowledged the housing crunch earlier this month, but challenged Poilievre's strategy. "He seems content to tap into the anxiety of Canadians without putting forward a plan that's actually going to help them," said Fraser.  The prohibition on the Purchase of Residential Property by Non-Canadians Act was meant to bar non-citizens, non-permanent residents and foreign controlled companies from buying Canadian property as an investment, but critics say there are so many exemptions that the ban doesn't make much of a difference. (Ben Nelms/CBC) Exemptions watered down ban  CMHC data reveals that only two per cent of real estate purchases in 2021 were made by non-Canadians, according to communications obtained by Global News through Access to Information. A few months after the ban was put into place more exemptions were added. These included students, first-time buyers and properties under $500,000. "There were so many exemptions to the foreign buyer ban that it really didn't make any difference at all," said Tim Sabitov of Team 3000 Realty Ltd., in Vancouver. Any impacts of the ban were short-lived, according to Brendon Ogmundson, the chief economist for the B.C. Real Estate Association. "The foreign buyer ban was more political than economic policy or housing policy," he said. This year, Toronto's market has softened, but the average home price is still $1.1-million — and the typical price of a home in Vancouver was $1.2-million in September, according to data from the Toronto Regional Real Estate Board (TRREB) and the Canadian Real Estate Association (CREA). Even as Canadian home sales fell off in October, the average sale price rose 1.8 per cent that month, compared to the same period in 2022, according to the CREA. It was up 5.8 per cent in Vancouver, with the benchmark price for a detached home rising to $2,001,400, according to the Real Estate Board of Greater Vancouver (REBGV). Though the number of home sales fell off in the month of October, the average price of homes rose, according to data from the Canadian Real Estate Association. (Ben Nelms/CBC) Some success In 2016, B.C. introduced speculation and vacancy or empty homes taxes. Ontario followed the next year. These taxes were applied to high-demand areas to discourage people from buying property as an investment. Thomas Davidoff, an associate professor at the University of British Columbia's Sauder School of Business, and UBC PhD student Keling Zheng studied the effect of foreign buyer taxes in B.C. and Toronto and found they resulted in an initial drop in the price of housing that soon levelled off. The city of Vancouver says CMHC data showed that speculation taxes helped cool the market and convert vacant properties into long-term rentals between 2017 and 2021. Based on that success, B.C. has expanded the speculation tax program to 59 municipalities and the federal government is adopting many provincial policies encouraging transit-oriented and multi-unit developments, according to B.C.'s housing minister Ravi Kahlon. "The federal housing minister just recently went to Toronto Council and said, 'Adopt what British Columbia is doing,' " Kahlon told CBC in Victoria on Nov. 30. "We're not waiting for the federal government. We're taking action here already." According to Davidoff, high-end home prices did plummet initially after the foreign buyers ban — but he says the real driver was soaring interest rates that triggered an economic slowdown. "The most affordable products actually rose in price for whatever reasons after the foreign buyer tax."  There are still units for sale in the Alberni, a 43-storey luxury West End Vancouver condo by Japanese architect Kengo Kuma. Experts say that though high-end home prices did plummet after the ban on foreign buyers was instituted, the real driver was soaring interest rates. (Andrew Lee/CBC) He says he's not sure focusing only on foreign buyers helps make things more affordable and believes the focus should be on how a property is used — not who owns it. Mike Stewart, a realtor with Vancouver New Condos, says "the ban was maybe a way for certain federal politicians to do better at the next election as opposed to trying to help housing affordability." Canada's ban 'full of holes,' critics say Those who do advocate for taxes and bans say they need to be tougher to work. "Canada's ban was full of holes," said Andy Yan, director of the City Program, a continuing education program focusing on urban planning and development at Simon Fraser University. "I would tell people it was more like cheesecloth than duct tape." Yan says places like Hong Kong and Singapore use much higher taxes and rigid buyer restrictions to cool prices. The foreign buyer ban came long after speculation taxes already discouraged non-resident property investors in B.C., he and other housing experts note. And the country has other problems. Stagnant wages, a lack of affordable housing stock and a legacy of attracting global property investors due to weak regulations all feed the affordability problem, according to David Ley, author of Housing Booms in Gateway Cities. The retired UBC urban geography professor says Canada could learn from success stories like Singapore, which boasted one of the highest home ownership rates in the world in 2022 at 89 per cent.  A rapid transit train passes a public housing construction site in Singapore on Oct. 21, 2022. About 80 per cent of Singapore's housing stock is public. (Roslan Rahman/AFP/Getty Images) "Singapore has solved its housing question. Now, how many cities in the world could we say that of?" asked Ley. He credits Singapore's success to aggressive speculation taxes — 60 per cent compared to B.C.'s 25 per cent — and the use of those taxes to create robust public housing stocks. Singapore's housing is 80 per cent public, compared to Canada's, which sits closer to six per cent. Ley says Singapore controls "investor play" in the housing market "so there is opportunity for local buyers to be successful." Back in Vancouver, Wallace and Ali are still hunting for a condo, for they say many are priced too high, especially given today's interest rates. "Most of the building owners seem financially able to sit tight and wait. Which is frustrating for buyers," said Wallace. Kris Wallace and Andy Ali say they're still looking for a new condo in Vancouver, but they're finding many they feel are too expensive, especially considering how high interest rates are. (Ben Nelms/CBC)