Calgary’s housing market witnessed another strong month of sales and price growth in June 2023, as low inventory and high demand continued to drive the market. According to WOWA.ca, a real estate data and analytics platform, Calgary’s average sold price for all property types reached $554,443 in June, up 7.6 per cent from a year ago and 0.6 per cent from May. The median sold price was $500,000, up 8.7 per cent year-over-year and unchanged from May. The number of new listings in June was 5,604, up 23 per cent from last year and 10 per cent from May. The number of sold listings was 2,888, up 23 per cent year-over-year and nine per cent month-over-month. The active listings at the end of June were 7,906, down seven per cent from last year and up four per cent from May. The months of inventory (MOI), which measures how long it would take to sell all the current listings at the current sales rate, was 2.7 in June, down from 3.6 in June 2020 and unchanged from May 2023. The MOI indicates that Calgary’s housing market is still favouring sellers overall, but with some variation by property type and price range. The average days on market (DOM) for all properties was zero days in June, down from six days a year ago and unchanged from May. The median DOM was also zero days, down from five days last year and unchanged from May. The DOM indicates that homes are selling very quickly in Calgary’s hot market. The sale-to-list ratio (SLR), which measures how close homes are selling to their asking prices, was 100 per cent for all properties in June, up from 97 per cent a year ago and unchanged from May. The SLR indicates that sellers have strong bargaining power and buyers have little room to negotiate. WOWA.ca also provides a breakdown of sales and prices by property type and number of bedrooms: Detached homes: The average sold price was $732,000, up 10.9 per cent year-over-year and one per cent month-over-month. The median sold price was $650,000, up 10.2 per cent year-over-year and unchanged from May. The number of new listings was 2,364, up 23 per cent from last year and 10 per cent from May. The number of sold listings was 2,865, up 23 per cent year-over-year and nine per cent month-over-month. The MOI was 2.5, down from 3.4 in June 2020 and unchanged from May 2023. The average DOM was zero days, down from six days a year ago and unchanged from May. The median DOM was also zero days, down from five days last year and unchanged from May. The SLR was 101 per cent, up from 98 per cent a year ago and unchanged from May.Townhouses: The average sold price was $602,000, up 11 per cent year-over-year and two per cent month-over-month. The median sold price was $550,000, up 10 per cent year-over-year and unchanged from May. The number of new listings was 1,023, up 16 per cent from last year and nine per cent from May. The number of sold listings was 789, up five per cent year-over-year and eight per cent month-over-month. The MOI was 3.9, down from 5.2 in June 2020 and down from four in May 2023. The average DOM was zero days, down from six days a year ago and unchanged from May. The median DOM was also zero days, down from five days last year and unchanged from May. The SLR was 100 per cent, up from 97 per cent a year ago and unchanged from May.Condos: The average sold price was $254,300, up 6.6 per cent year-over-year and one per cent month-over-month. The median sold price was $230,000, up seven per cent year-over-year and two per cent from May. The number of new listings was 857, up 48 per cent from last year and 13 per cent from May. The number of sold listings was 667, up three per cent year-over-year and nine per cent month-over-month. The MOI was 3.9, down from six in June 2020 and down from four in May 2023. The average DOM was zero days, down from six days a year ago and unchanged from May. The median DOM was also zero days, down from five days last year and unchanged from May. The SLR was 99 per cent, up from 96 per cent a year ago and unchanged from May. Source: www.zolo.ca

The Calgary Real Estate Board (CREB®) has released its 2023 Forecast Calgary and Region Yearly Outlook Report, which provides a detailed analysis of the economic and housing market trends in Calgary and surrounding areas for the upcoming year. According to the report, elevated lending rates are expected to weigh on sales in 2023, bringing levels down from the record high in 2022. However, with forecasted sales of 25,921 in 2023, levels are still expected to be higher than the activity reported before the pandemic. “Higher commodity prices, recent job growth, record high migration and relative affordability are expected to help offset some of the impacts higher lending rates are having on housing demand. At the same time, we are entering the year with low supply levels which are expected to prevent significant price declines in our market,” said CREB® Chief Economist Ann-Marie Lurie. Supply levels declined to the lowest levels seen in over a decade as gains in higher price properties did not offset the supply declines occurring in lower-priced homes. This has left our market in a situation where lower-priced properties still face sellers’ market conditions while higher-priced homes are seeing more balanced to buyers’ market conditions. The shift between supply and sales by price ranges is expected to create divergent trends in prices depending on property type and price range. Overall, price declines in the upper end of the market are expected to offset gains reported in the lower ranges, causing an annual decline of less than one per cent. “With much of the pandemic behind us, 2023 reflects more of an adjustment into more typical conditions and a pause on price gains following 12 per cent growth in 2022. While other markets in the country are forecasted to see more significant price and sale declines in 2023, Calgary did not face the same gains as those markets, as prices only recovered from the 2014 highs in 2021,” added Lurie. Source: www.creb.com

If you’re looking to buy a home in Calgary, you might be feeling overwhelmed by the current market conditions. With record-high sales, low inventory and rising prices, finding your dream home can be challenging and stressful. But don’t worry, we’re here to help you navigate the hot market and make your homebuying journey easier and more enjoyable. Here are some tips and resources to help you prepare, plan and purchase your home in Calgary. Tip #1: Know your budget and get pre-approved Before you start looking for homes, you need to know how much you can afford and what kind of mortgage you qualify for. Getting pre-approved by a lender will give you a clear idea of your borrowing power and help you narrow down your search criteria. A pre-approval will also show sellers that you’re serious and ready to buy, which can give you an edge in a competitive market. Plus, it will lock in your interest rate for a certain period of time, which can protect you from any potential rate hikes. To get pre-approved, you’ll need to provide your lender with some financial information, such as your income, assets, debts and credit score. You’ll also need to decide on the type of mortgage you want (fixed or variable rate), the term (how long you’ll pay it off) and the amortization (how long it will take to pay off the entire loan). Tip #2: Work with a REALTOR® Buying a home is one of the biggest financial decisions you’ll ever make, so it’s important to have a professional guide you through the process. A REALTOR® is a licensed real estate agent who can help you find the right home for your needs, negotiate the best price and terms for you, and handle all the paperwork and legal aspects of the transaction. A REALTOR® will also have access to the latest market data and trends, as well as the Multiple Listing Service (MLS®), which is the most comprehensive database of homes for sale in Canada. They can also connect you with other professionals, such as home inspectors, appraisers, lawyers and movers, who can assist you along the way. To find a REALTOR® who suits your style and preferences, you can ask for referrals from friends and family, search online or visit the Calgary Real Estate Board (CREB®) website. You can also interview different REALTORS® and ask them about their experience, credentials, services and fees. Tip #3: Do your research and be flexible Once you have a budget and a REALTOR®, you can start looking for homes that match your criteria. You can browse online listings, attend open houses, or ask your REALTOR® to set up private showings for you. As you look at different homes, you should do some research on the neighbourhoods, communities and amenities that interest you. You can use tools like CREB®’s Community Profiles to learn more about the demographics, schools, transit, recreation and lifestyle of each area. You should also be flexible and open-minded when searching for homes. In a hot market, you might not find everything you want in one home or location, so you might have to compromise on some features or aspects. For example, you might have to settle for a smaller home, a longer commute, or a higher price than you initially expected. Tip #4: Make a strong offer and be ready to act fast When you find a home that you love and want to buy, you need to act fast and make a strong offer. In a hot market, homes can sell quickly and receive multiple offers, so you need to stand out from the competition and show the seller that you’re the best buyer for their home. To make a strong offer, you should consider the following factors: The market value of the home: Your REALTOR® can help you determine the fair market value of the home based on recent sales of similar homes in the area. You should offer a price that reflects the value of the home and your budget.The seller’s motivation: Your REALTOR® can also help you find out why the seller is selling and what their needs and preferences are. You should offer terms that match the seller’s goals and timeline. For example, if the seller wants to close quickly, you should offer a short closing date. If the seller wants to stay in the home longer, you should offer a longer closing date or a rent-back option.The market conditions: You should also consider the supply and demand of homes in the area and how they affect the competition and negotiation power. In a seller’s market, where there are more buyers than sellers, you might have to offer more than the asking price or waive some conditions to win the bidding war. In a buyer’s market, where there are more sellers than buyers, you might have more room to negotiate or ask for concessions from the seller. To be ready to act fast, you should also have your financing, deposit and documents ready. You should also be prepared to respond quickly to any counter-offers or requests from the seller. Tip #5: Hire a home inspector and finalize the deal After your offer is accepted by the seller, you need to hire a home inspector to check the condition of the home and identify any potential issues or defects. A home inspection is usually a condition of your offer, which means that you can back out of the deal or renegotiate if the inspection reveals something unacceptable. A home inspector will examine various aspects of the home, such as the structure, foundation, roof, plumbing, electrical, heating, cooling and ventilation systems. They will also look for signs of water damage, mold, pests or asbestos. They will provide you with a detailed report of their findings and recommendations. You should attend the home inspection with your REALTOR® and ask questions along the way. You should also review the report carefully and decide if you want to proceed with the purchase or not. If you do, you need to remove the inspection condition from your offer and finalize the deal with your lender and lawyer. Source: calgaryherald.com

Calgary’s real estate market continues to defy expectations as it set another record for sales in June. According to the Calgary Real Estate Board (CREB), there were 3,146 sales in June, up 10.9 per cent from the same month last year and 65.7 per cent above long-term averages. The strong demand was driven by a surge in apartment and condo sales, which increased by 48 per cent year-over-year and accounted for 27 per cent of total sales. Meanwhile, detached home sales rose by three per cent year-over-year and represented 54 per cent of total sales. The high sales activity was accompanied by low inventory levels, which kept the market conditions tight by historical standards. The months of supply, which measures how long it would take to sell all the current listings at the current sales rate, was 1.7 in June, down from 3.8 in June 2020. As a result, prices continued to rise across all property types. The benchmark price, which represents the typical home sold in an area, reached $455,200 in June, up 11.1 per cent from last year and 6.4 per cent from January. The benchmark price for detached homes was $537,200, up 13.1 per cent year-over-year and 7.4 per cent year-to-date. The benchmark price for apartments was $254,300, up 6.6 per cent year-over-year and 4.2 per cent year-to-date. CREB chief economist Ann-Marie Lurie said that the market is showing signs of moderation as the economy reopens and more listings come on the market. However, she cautioned that the supply-demand imbalance is still significant and could persist for the rest of the year. “Ultimately, prices are driven by supply and demand,” she said. “And if supply continues to remain this low relative to demand, we could see some of the largest price increases recorded since 2014.” Source: www.msn.com

Chris Alexander, president of Re/Max Canada, talks to the Financial Post’s Larysa Harapyn about how the recreational real estate market has returned to normal levels after the feverish pace of 2020 and 2021, and what to expect from the market across the country this summer. Canada’s national stats agency is pouring a bucket of ice water on the country’s speculative markets. The Canadian Housing Statistics Program (CHSP) crunched housing supply numbers from 2019 to 2021. The Statistics Canada (Stat Can) program found that both Toronto and Vancouver Census Metropolitan Areas (CMAs) saw its housing supply grow much faster than its population. That means the rapid escalation of home prices was due to overly loose credit and narrative. Whoops!   Toronto & Vancouver Have Seen Housing Outpace Population Toronto, Canada’s largest city, has more than kept up with housing supply, it’s an allocation issue. Stat Can found that Toronto CMA saw its population rise 1.3% (+84,480 people) between 2019 and 2021. At the same time, its housing stock increased 3.5% (+61,320 properties).  The numbers work out to roughly 1 home for every 1.3 people—half the city’s average household size. Unless a single-person pod was built right across Toronto and its surrounding regions, that implies housing wasn’t nearly as scarce as it seems.   Vancouver, Canada’s most expensive city and a traditional immigration hub, is a little tighter. Still, Stat Can points out that Vancouver CMA’s housing stock rose 3.6% (+28,085 homes) from 2019 to 2021, with its population climbing just 2.1% (+55,655 people) over the same period. That’s 2 people per home, about 26% lower than the average household size in the region.  Canadian Real Estate Prices Have Been Driven By Credit & Narrative Sure, but that’s just a few years. Canada has had a chronic shortage of supply, right? That’s not what the data has shown. BMO argues the country’s housing supply outpaced household formation for two decades. There may not be a ton of extra housing, but Canada’s 30-plus-years of exuberant price growth isn’t based on a shortage. A perceived shortage tends to get manufactured when home prices are rising the sharpest, with supply throttled, since who the heck sells a rapidly appreciating asset?  During this period, where the supply outpaced population, these markets saw nearly record price growth. The narrative was a shortage of supply, but the reality was due to cheap credit flooding the market. That’s not just our opinion we’re hoping to debate, but one taken by the international monetary system.  The Bank of International Settlements (BIS), a central bank for central banks, found that home prices across the world surged due to rates being too low for too long.   That likely won’t surprise the Bank of Canada (BoC). No, not because the BoC governor was also the head of the BIS Governors’ Council at the time. The central bank’s own research found that low rates boosted home prices for 30 years, and actually made housing less affordable despite the narrative. Hilarious, right? Canada Didn’t Have A Supply Shortage, But Its Gov Wants One A few of Canada’s Big Six banks haven’t been convinced of the shortage, but they see one brewing. BMO argues Canada didn’t have a shortage of supply, but the Federal Government is trying to manufacture one. It’s using aggressive population growth as a demand stimulus, helping to bolster its coffers.  By intentionally growing the population faster than it can produce adequate housing, they’re attempting to establish a price floor for what global banks are calling “the world’s largest real estate bubble. Scotiabank has also chimed in, stating that interest rates need to surge higher to stabilize housing. While housing isn’t a primary objective of the BoC, the only way to offset instability caused by the Federal government’s population-demand strategy is by throttling credit. In their opinion, the decline in home prices would be a smaller risk than home prices continuing their current trajectory. 

In just a day or two, North York-based interior design and home staging firm, A Lady’s Touch (ALT), can completely transform a room, outfitting it with fresh furniture, better lighting, or a completely different design style. And they can do so without any heavy lifting, so to speak. “We started offering virtual staging at the onset of COVID actually, in March 2020,” says Farah Dhalla-Singh, ALT’s CEO and Founder. “Real estate didn’t stop, people were still transacting, and our clients then needed us to still provide marketability through images.” As the world returned to some semblance of normalcy over the past few years, the mark virtual staging made on the business of property marketing is in many ways indelible. Virtual staging was not mentioned by the National Association of Realtors in their 2021 Profile of Home Staging, but in the subsequent 2023 version of the same report, nearly 50% of buyers’ agents and 34% of seller’s agents said virtual staging was of some importance to their clients, alongside photos, videos, and virtual tours. It’s not hard to see why the practice is catching on. The efficacy of traditional staging is tried and true, but virtual staging is cheaper and faster than traditional staging — ALT can prepare virtually staged photos within 24 to 48 hours, at a price point of $50 to $100 per photo — and these days, it’s extremely accessible. With the advent of AI, virtually staged photos can be generated “without any human help,” notes Dhalla-Singh. But what ALT offers is a far more bespoke approach to the practice, with all photo editing handled by an in-house design team. “We offer a hybrid where we can physically stage primary rooms and then offer virtual staging for secondary bedrooms and things like that.” The Ethics Of The Matter Although there’s no regulatory body that dictates what you can and can’t do when virtual staging a property, there seems to be some consensus amongst purveyors (and users) of the service when it comes to maintaining certain ethical standards. Dhalla-Singh says that her designers never change the structure of the building, hide windows or doors, or add windows or doors. “That can be misleading. And that doesn’t help sell the property because that’s what people are hoping to see when they show up,” she says. “Instead, we’re accentuating what’s already there.” And while editing in furniture is the name of the game, manipulating pieces to fit in a given space — think shrinking a 12-seater dining table to fit in a space that in reality cannot accommodate one — is another ethical grey area. A Lady’s Touch “Another thing that we’ve been asked to do is to change the colour of the wall, change the flooring. The realtor might be just saying to us, ‘We want to show them what it could look like with renos,’” Dhalla-Singh continues. “We can make a farm look like a mansion — it just needs to be with a disclaimer that suggests what’s real and what isn’t.” Tanis Fritz, an agent with Sotheby’s International Realty Canada, says that she tends to disclose the use of virtual staging within her realtor remarks. In a recent instance where she opted to change the functionality of a room using virtual staging, she also chose to highlight what the space looked like pre-stage in the listing. “I showed those photos side by side. So I showed a photo of the room performing as an office, and then I also showed it digitally staged to look like a dining room,” she says. “Virtual staging can be very aspirational. You can use aspirational furniture or design in virtual staging that you may not be able to use in a physical space because of access issues or budget issues.” Going The Budget-Friendly Route Fritz uses a service called Brownie Box, which charges anywhere from $2 for basic retouching to $5-10 for item removal to $30 for virtual furnishing of an empty room. For $5, they offer the option to tweak the sky. “They do a beautiful twilight sky or a sunset sky, which can really bring a cover image to life and help photography really pop,” she says. Bella Staging Budget-friendly options were hard to come by four years ago, says Fritz, which is around the time she used a virtual staging service for the first time. The user-friendliness of those more economical options has also improved. “You can choose the style of furniture you want or the vibe that you’re going for, whether it’s modern, contemporary coastal, rustic,” she says. “So there’s less back and forth and, ultimately, you end up happier with the final product.” Meanwhile, Jessica Kee, an agent with Right At Home Realty, is typically more inclined to work with freelance contractors, who she finds on platforms like Fiverr and Upwork. But when working with a lesser-known designer, she stresses that the onus is on the agent to do their homework. “Look at their previous work, look at their reviews before deciding to work with someone,” she says. “You don’t want the photos to end up looking fake.” Bella Staging As Kee touches on, quality, low-cost options are certainly out there, but they can be the riskier choice. “When virtual staging is done in a hurry or on a budget, there are definitely some aspects of it that take away from the effectiveness,” says JD Lloyd, Business Development Manager for Bella Staging — a Vancouver-based virtual staging service, where all imagery is curated in-house by a team of interior designers, graphic designers, and real estate experts. Lloyd points to tell-tale signs like mismatched lighting between the actual room and the stage furniture or missing shadows or reflections. “Some companies will use generic templates. They’re focused on getting it out as quick as possible at a lower cost,” he continues. “If you’re not representing the property well, it can really do more damage than good for the property.” Virtual Staging In The Leasing Space In addition to working with buying and selling clients, Kee also works with investment property owners looking to fill tenant vacancies. “Because staging takes a long time and costs so much money, it just doesn’t really make sense with the way the leasing market is right now to physically stage,” she says, adding that virtual staging presents an option to stage — at a low cost and quickly — where it wasn’t pragmatic to do so before. Going the virtual route also allows for units to be staged while they are occupied, although there are limitations associated with doing so. Dhalla-Singh, for instance, says that using virtual staging to declutter or depersonalize a space can sometimes result in the images becoming pixelated. She adds that today’s tech is most effectively used on empty rooms or rooms that have been decluttered as much as possible. Bella Staging As far as virtual staging has come in the past couple of decades, it still has a long way to go. And as technology adapts to the demands of the time, the finished product stands to be increasingly believable, and as such, more applicable to a wider range of end users — “anyone in an upsell service,” adds Lloyd. “As we look forward, I think there’s going to be more AR and VR integration. And then there are possibilities for AI technology to be able to recognize certain aspects of the room, certain pieces of furniture, and if someone really enjoyed a sofa that we’ve virtually staged, you can send them a link to where to buy it,” he continues. “It’s a very interesting industry, it’s definitely growing, and it’s really exciting to see the technology advance and see the public and consumers start to utilize it in big ways.”

Younger households bearing the brunt of the financial pain, says Statistics Canada The rising cost of living is squeezing Canadians’ finances. PHOTO BY GETTY IMAGES/ISTOCKPHOTO Inflation, higher interest rates and declining real estate values are worsening wealth inequality in Canada, with younger households bearing the brunt of the financial pain. The richest 20 per cent of households controlled 67.8 per cent of net worth in the country in the first quarter, while the bottom groups accounted for 2.7 per cent, Statistics Canada reported Tuesday in Ottawa. That difference of 65.1 percentage points was 1.1 points higher than the same period a year earlier. It’s the fastest increase in records dating back to 2010, although the wealth gap is still slightly narrower than in 2020. The widening wealth gap is a challenge for Prime Minister Justin Trudeau, whose government has pledged to reduce inequality only to see it expand by a rapid rise in house prices during the pandemic. It also highlights a consequence of the Bank of Canada’s aggressive increases to interests rates to combat inflation, which are squeezing the country’s indebted households. The least wealthy were affected more by recent economic pressures, seeing their net worth drop by 13.8 per cent, more than triple the rate of decrease for the wealthiest. The gap in the share of disposable income between households in the top and bottom 40 per cent reached 44.7 percentage points, up 0.2 percentage points from a year ago. The decline in net worth for all households was due almost entirely to real estate, with the average value falling by 8.6 per cent from a year ago. The least wealthy group saw their mortgage debt rise at a much faster rate than the overall value of their property holdings. Debt-to-income ratios for younger and core working-age groups were also at record highs, and well above pre-pandemic rates. The ratio for the youngest households reached 207.5 per cent, up 13.4 percentage points from a year ago. For those aged 35 to 44 years, the ratio jumped 16.6 percentage points to 275.8 per cent. Younger households have recently increased their share of Canada’s total population, accounting for 47.3 per cent of all growth since the third quarter of 2021, due primarily to high levels of immigration. “Persistently high interest rates and inflation are likely to continue to strain households’ ability to make ends meet without going further into debt, especially vulnerable groups, such as those with the lowest income, the least wealth and those of younger age groups,” the statistics agency said.

Homebuyers, lawyers say proposals a step in right direction, but have concerns Homebuyer Jennifer LeFeuvre says she is in a sort of limbo after developer Briarwood Development Group told her they were tacking on an extra $175,000 charge for her new home, on top of the initial cost laid out in a contract she signed. (Doug Husby/CBC) The Ontario government is proposing new rules aiming to crack down on developers who cancel or hit pre-construction buyers with big price hikes as they wait for their new homes to be built. The move comes after CBC News reported on cases of Ontario developers trying to force buyers to pay more than they initially agreed or lose their homes-to-be, with developers sometimes citing rising building costs. Amounts have often been tens of thousands of dollars higher than initially agreed. Premier Doug Ford vowed that his government would do more to tackle these types of situations, in 2021 chastising developers who engaged in the practice, “Nothing burns me up more than that — some developer just trying to make extra money off the backs of hard-working people.” The province is now launching consultations to try and tackle price escalations and offer consumers more opportunities to get a clear picture of what they are signing up for when they enter an agreement to purchase a home. But also in the consultation paper is an indication the government is exploring how a developer can raise prices within limits, causing concern for some that the government may be about to miss the mark.  Home buyer wants government to get tougher on price hikes Home buyer Jennifer LeFeuvre knows what it’s like to be asked for a massive price hike after signing an agreement to purchase. She told CBC Toronto she is in a sort of limbo after Briarwood Development Group told her she could either withdraw from a purchase agreement or the developer would be tacking on a $175,000 charge for her new home in Stayner, Ont., about 130 kilometres northwest of Toronto. CBC Toronto tried without success to contact Briarwood Development. Ontario homebuyers stunned by extra $175K charge from developer, call for government action After years of incurring expenses living elsewhere just waiting for her home to be ready, LeFeuvre says she doesn’t want a cap on how much a developer can raise your home by after the agreement of sale is signed, she wants the government to get tougher on price hikes of any kind. “Why is Doug Ford allowing his ministry to do this?… I feel like the ministry is going totally against what he’s saying,” she said after reading the proposals. “I can go to Walmart and buy pots and pans there and I have more protection with buying pots than I do with buying the largest purchase in my lifetime,” she said. LeFeuvre says she wouldn’t expect to get a late stage discount from developers if the price of lumber falls, so it shouldn’t happen the other way around. Real estate lawyer Blair Drummie Shares these concerns.  Lawyer Blair Drummie, says he doesn’t think a developer should be allowed to raise prices after an agreement of sale is already signed. (CBC) “I want to see us go back to a state of normalcy, where the price was the price,” he said. “Pre-2020 builders just didn’t even comprehend increasing the purchase price.” Colin Blachar, a spokesperson for the Ministry of Public and Business Service told CBC the government welcomes direct input from Ontarians through the consultations, reiterating that better protecting buyers is the goal. “Under Premier Ford, our government has zero tolerance for any bad developers making money off the backs of hard-working Ontarians.”  Cooling-off period gets thumbs up from lawyers Drummie praised other elements proposed, saying allowing for a cooling-off period is “a great idea.” It would allow the purchaser who could be under pressure to sign quickly at a site to take the document back to a lawyer and say, “What have I signed here, what are the ins and outs of this, please explain it to me?” “It gives the opportunity to negotiate,” he said. John Brennan, the partner and founder of JBrennan Law, says he’s glad to see proposals that would make it transparent to researching home buyers if a company has cancelled agreements or had related issues in the past, through publicly available data. John Brennan says he doesn’t think the government acted quickly enough to capture a growing problem. (Submitted by John Brennan) He is also in favour of mandatory legal reviews, which he says will not only help buyers understand potential risks and liability, but may prevent exploitative terms from being added into contracts in the first place. Too late for some, but ‘step in the right direction’ Brennan says while these aren’t finalized regulations, it doesn’t look like what’s being proposed will help people like LeFeuvre because it appears not to consider retroactive cases. He says he doesn’t think the government acted quickly enough to capture a growing problem. “The imbalance has been there for longer than what most homeowners would view as being acceptable,” he said.  But, he said, as long as the proposals are enforceable they are, for the most part, “a step in the right direction.” CBC reached out to multiple developers involved in situations where prices have increased after a purchase of sale agreement was signed, but did not receive a reply on Monday. The Ministry of Public and Business Service Delivery says it is seeking input on the topic until August 13..

Office towers, condos and apartment buildings are seen in downtown and the west end of Vancouver, on Thursday, January 19, 2023. A report by commercial real estate firm CBRE says the national office vacancy rate in Canada climbed in the second quarter to its highest level since 1994.THE CANADIAN PRESS/Darryl Dyck The national office vacancy rate in Canada climbed in the second quarter to its highest level since 1994, according to a report by commercial real estate firm CBRE. The firm said Tuesday that the national office vacancy rate rose to 18.1 per cent in the second quarter, up from 17.8 per cent in the first quarter. It was the highest level since the first quarter of 1994 when it was 18.6 per cent. “Canadian office markets are grappling with a perfect storm of a recession threat, interest rate hikes, tech sector weakness, tenants rightsizing and new supply of office space,” CBRE said in a news release.  “All of this is compounded by the continued uncertainty around remote work.” The increase in the overall rate came as the downtown office vacancy rate in the second quarter rose to 18.9 per cent compared with 18.5 per cent in the first quarter. The suburban office vacancy rate was 17.1 per cent, up from 16.9 per cent. CBRE said downtown vacancies in the second quarter inched higher in all major centres across the country except for Calgary and the Waterloo region in Ontario. The downtown vacancy rate in Vancouver was 11.5 per cent in the second quarter, up from 10.4 per cent, while the rate in Toronto was 15.8 per cent, up from 15.3 per cent in the first quarter. Montreal saw its downtown rate rise to 17.0 per cent from 16.5 per cent. Meanwhile, the downtown vacancy rate in Calgary was 31.5 per cent, down from 32.0 per cent in the first quarter. Waterloo Region’s downtown rate was 21.5 per cent compared with 22.0 per cent in the first three months of the year. CBRE said Calgary has benefited from the expansion of the engineering, construction and education sectors.  “Calgary is also working its way through several office building conversion projects, which will reduce inventory,” the firm said. CBRE said that before the pandemic, Canada claimed the two lowest-vacancy office markets in North America in Toronto and Vancouver, where downtown vacancy hovered around two per cent for several years. The company said there is 11.5 million square feet of office space under construction including 6.2 million in Toronto, 2.7 million in Vancouver and 1.9 million in Montreal. This report by The Canadian Press was first published July 4, 2023. This is a corrected story. An earlier version incorrectly stated the national overall, downtown and suburban office vacancy figures for the first quarter.

In the face of a housing crisis, recent reports suggesting that the Greater Golden Horseshoe (GGH) has enough land to meet the Ontario government’s target of building 1.5 million housing units by 2031 have overlooked a critical aspect — the availability of shovel-ready sites.  A recent study conducted by the Toronto Metropolitan University Centre for Urban Research & Land Development sheds light on the shortage of approved and serviced sites as a significant contributor to the housing shortage, the resulting surge in prices and how it could undermine efforts to meet the Ontario government’s target.  Insufficient shovel-ready land supply for ground-related housing The study’s findings reveal a severe shortage of shovel-ready land for ground-related housing, including single-detached and semi-detached houses and townhouses.  The Provincial Policy Statement 2020 (PPS) guidelines mandate municipalities to maintain a minimum three-year supply of shovel-ready land at all times. However, the study found the current supply falls significantly short, with only 1.9 years’ worth of land available, well below the required minimum of 4.0 years — a 72.5 per cent shortfall. This shortage equates to a deficit of 4,817 net hectares (10,346 net acres) of shovel-ready land for ground-related housing. Adequacy of shovel-ready sites for apartments While the supply of shovel-ready sites for apartments surpasses the minimum requirement set by the PPS, the study’s authors note that it is crucial to consider other housing options that can serve as close substitutes for ground-related housing. Ground-related housing refers to residential units directly connected to the ground or have their own individual plot of land.  Stacked townhomes, garden apartments, and quadruplexes are highlighted as potential solutions that provide more affordable alternatives. By emphasizing the availability of these housing options alongside high-rise apartments, the housing needs of the diverse population in the GGH can be better addressed. Disaggregating municipal housing targets One of the notable shortcomings of provincial initiatives is the failure to disaggregate municipal housing targets by unit type. The study emphasizes that understanding the demand for different types of housing, including ground-related options, allows municipalities to allocate their resources more effectively and cater to the specific needs of their communities. By encouraging a range of housing options, potential homebuyers and renters are afforded more choice and flexibility. Monitoring and maintaining an ample supply of shovel-ready land To ensure a competitive land marketplace that allows for choice and flexibility, maintaining an ample supply of shovel-ready land is paramount. The study recommends that municipalities regularly monitor their inventories of shovel-ready land to comply with the PPS policy.  Additionally, the provincial government should prioritize the availability of affordable options that serve as substitutes for ground-related housing. Promoting the development of stacked townhomes, garden apartments, and quadruplexes can contribute to a more diverse housing market and help alleviate affordability concerns. Addressing the housing crisis The report acknowledges the efforts made by the Province to increase the supply of new housing through initiatives aimed at simplifying the planning system and encouraging more land availability. These initiatives include establishing ambitious housing targets, encouraging intensification around transit stations, promoting gentle densification in existing communities, and simplifying the land use planning process. However, the report emphasizes the need for disaggregated targets by unit type and regular monitoring of shovel-ready land inventories by municipalities.

More than one-third of Ontarians who plan to purchase a pre-construction or newly built home were born outside of Canada, according to Tarion’s New Home Buyers Report. Of the Ontario residents who intend to buy a new home within the next year, 35% were born in another country, while 4% were born in a different province. Regarding the former group, the majority were well-established in Canada, with an average of 17 years since their immigration. Conducted by Environics Research Group in late 2022, the online survey included responses from 526 Ontario residents between the ages of 25 and 75 who plan to buy a new home in the next 12 months. The report defined a “new home” as either a pre-construction property or an existing abode that was built within the last five years. Seeking to draw a detailed portrait of Ontarians who are buying new homes, the survey found that 35% are first-time buyers, while the remaining 65% are repeat purchasers. The latter tended to be older, with 86% identifying as a baby boomer and 79% falling into the Gen Xer generation, married or in a common-law relationship (69%), and born in Ontario (71%). Meanwhile, first-time buyers were more likely to be millennials (46%), single (54%), and newcomers to Canada (74%). David MacDonald, Group Vice President, Financial Services, at Environics Research, told STOREYS that immigrants are driving a significant portion of real estate activity in Ontario, and across Canada. “Saving for a down payment and buying their first home in Canada […] is a very important milestone for immigrants and new Canadians,” MacDonald said. “They’ve taken a big risk by moving to a new country, and buying a home is a great indicator of success. I see new Canadians being a great driving engine of the new home construction market going forward.” In 2021, more than 8.3M people, or nearly one-quarter of the Canadian population, were immigrants or permanent residents. The federal government welcomed more than 431,000 new permanent residents in 2022, and aims to attract 465,000 newcomers in 2023, 485,000 in 2024, and 500,000 in 2025. Immigrants tend to settle in and around large cities, like Toronto, where significant new construction is taking place. One-third of survey respondents intend to buy their new home in the neighbourhood they currently live in, while just over half plan to stay in the same city or town. A new home offers less risk than a resale property — it’s unlikely you’ll have unexpected furnace issues or need to replace the roof in a year or two — and is covered by the Tarion new home warranty program. These added layers of protection make newcomers feel more confident to purchase a new home, MacDonald said. Newcomer or not, confidence was key when buying a newly built abode. Half of all survey respondents said buying a home built within the last five years would give them the greatest peace of mind, while 39% said a pre-construction property would soothe their stresses. A builder’s reputation (92%) and the property’s warranty protection (91%) were two of the top factors buyers considered during their new home search. Energy efficiency was also a key issue, as noted by 96% of respondents, a phenomenon MacDonald said relates to the increase of remote work — 73% of respondents wanted space to work from their new home. But, at 98% and 97%, respectively, the most important factors when shopping for a new home were the size and price of the property. Fully detached homes were the most sought-after property type, with 66% of new home buyers preferring such an abode, followed by semi-detached homes and townhomes, both at 38%, while 32% of respondents preferred condos. “People want a home they can trust,” MacDonald said. “They want to buy with peace of mind, and they get that with new homes because of the protections that are in place.”

The former Windsor Star printing facility, listed at $7.4 million, was sold recently, pending the closure of the sale later this summer. Experts said that and other sales indicate strong demand in Windsor’s industrial, commercial and investment (ICI) real estate market. (Dale Molnar/CBC) Like the summer weather, demand for industrial real estate in Windsor is heating up. The former Windsor Star printing facility was just one major industrial site to sell recently after just six weeks on the market. With an asking price of $7.4 million and nearly 56,000 square feet of space, the sale is set to close later this summer.  While the real estate agent handling the deal couldn’t comment on the particulars of the deal — including the final sale price — ahead of the closing, experts say the demand for industrial real estate is high, driven in part by the NextStar battery plant destined for Windsor.  Stephen MacKenzie is the president and CEO of Invest WindsorEssex. He said demand for industrial real estate has been strong. (Dale Molnar/CBC) “There’s quite a demand and there has been for quite a while now,” said Stephen MacKenzie, the CEO of Invest WindsorEssex. “Windsor is on the rise with the recent investment in the battery plant, some of the supply chain companies coming in,” he said. “There’s a very high demand for industrial space right now and there’s not a lot left on the market.” MacKenzie said Invest WindsorEssex is working with at least a dozen potential buyers all looking for space in the tight real estate market. Other developers, he said, are looking to build industrial space.  As Windsor-Essex looks to add more homes, municipalities already face building inspector shortageTruck driving simulator gives students confidence behind the wheel of a big rig There’s lots of reasons for companies to look to to existing industrial sites, said Greg Atkinson, acting planner for the City of Windsor.  “These older sites are often serviced by existing roads, sewers schools, fire stations,” Atkinson said. “So when they sit vacant it’s under-utilization of land. “There’s a big incentive for the city and for the general and taxpayers as a whole to reuse these properties and get some tax generating uses on there.” Mark Lalovich a broker with ReMax in Windsor. He said the city is playing “catch-up” when it comes to the demand for industrial property.  Mark Lalovich is a broker with ReMax in Windsor. He said demand for industrial real estate, especially smaller industrial spaces, is outpacing supply. (Dale Molnar/CBC) “The demand is there, but we’re short on the supply. So as a result, we have to catch up to the demand side at this point,” Lalovich said.  He said of the industrial, commercial and investment  markets — so-called ICI markets — industrial is currently the strongest in Windsor. The challenge is inventory, he said.  While parts of some larger industrial sites have recently sold, Lalovich said the demand is particularly high for slightly smaller facilities in the range of 10,000 to 30,000 square feet.  Lease rates for industrial space are also up as much as 30 per cent, Lalovich said — roughly matching the increase in the cost per square foot to build. With skilled trades workers in high demand — young students and guidance counsellors are part of the solutionStellantis negotiations moving in positive direction, government sources say All of that, he said, means a strong market for Windsor.  “The demand right now is clearly there,” Lalovich said, noting the recent stall in negotiations between provincial and federal governments and Stellantis on the NextStar plant has put “a bit of a pause” on the booming market. “But we do believe that’s going to get resolved and soon, from everything we see and hear, and we think the market [will] continue to resume its flight over the last few years.”

Increasing the apartment rental pool with office conversions may prove quick response to wave of immigration expected in coming year. Calgary’s efforts to transform office buildings — struggling with high vacancy rates — into thriving residential rentals has garnered plenty of attention lately as an example of how to revitalize downtowns across North America after the pandemic. In the past few months, nearly half a dozen conversion projects have been launched in the city. As well, Calgary was recently lauded in an op-ed in the Washington Post for incentives facilitating conversions. Given the market conditions, one company behind one of the first conversions in Calgary a few years ago sees potential for more projects not just for the city but for troubled downtown office markets across Canada. “It really shortens the timeline to add housing supply,” says Michael J. Williams, managing partner and head of real estate development at Hazelview Investments. These projects typically have faster timelines to completion — with design and construction times nearly cut in half — compared with entirely new purpose-built rental projects, he adds. Nearly a decade ago, Hazelview began redeveloping a low-rise office building in the city’s Beltline, long before the office conversions hit their fever pitch today. “We pioneered the idea,” Williams says about Lofts on First, a 72-unit rental conversion. “Our challenge was the timing; we got the project underway during a market that was really frothy that drove construction costs and land values up.” Yet when the project launched, the city was mired in an economic downturn, and vacancy soared for office. Since the mid-2010s, office vacancy has remained persistently high. Even amid the economic recovery, vacancy downtown was the highest among all major cities in Canada at nearly 33 per cent by the end of last year as the work-from-home trend that exploded during the pandemic continued to weigh on office. At the same time, housing demand surged this year as Calgary’s economy and relatively affordable home prices have led to high migration. City of Calgary estimates show Calgary’s population is likely to see a net increase of about 33,000 people this year (April to March) from migration alone, followed by lesser but still strong flows of about 15,000 migrants annually through to 2027. A strong economy and high migration have buoyed the city’s resale market even in the face of higher mortgage rates. In turn the city’s real estate market saw new records for sales and benchmark prices in May, Calgary Real Estate Board data shows. Yet higher prices, continuing low supply and rising borrowing costs have also meant more potential buyers are renting, notes Ann-Marie Lurie, CREB’s chief economist. “It’s not just the resale market with tight conditions,” she says, adding new homes for ownership and the rental market also are marked by high demand and low supply. Canada Mortgage and Housing Corp. numbers, for example, show vacancy in the city’s purpose-built rental market fell from 5.1 per cent in fall 2021 to 2.7 per cent by October 2022. In part, this also reflects Calgary’s relatively small pool of purpose-built rentals. CMHC figures show Calgary has about 48,000 units for rent. By comparison, Edmonton has nearly double that figure. “The challenge in Calgary is there are not a lot of purpose-built rentals, but the office market isn’t doing well,” Williams says. These conditions make Calgary potentially fertile ground for conversions, he adds. “It just gives municipalities like Calgary more options to boost housing supply.” Source by calgaryherald.com

RBC Economics report finds sales growth in some Canadian markets while listings remain tight. Buyers flocking back to the resale market this spring have sped up the recovery in Canadian residential real estate, a new report suggests. RBC Economics looked at May data across six major markets, including Calgary, finding sales growth year over year in the two largest cities jumped significantly. The report noted that although many markets saw a “material rise in new listings in May” month over month, the increases likely made only “a small dent in tight demand-supply conditions.” From a year-over-year perspective, rising demand led to markets like Toronto seeing sales grow nearly 25 per cent while new listings fell about 19 per cent. Similarly, Vancouver saw sales increase 16 per cent while new listings decreased nearly 12 per cent. Calgary, considered one of the hottest resale markets so far this year, had modest sales growth in May, up 1.9 per cent year over year. Still, the 3,120 sales that took place set a record for the month. At the same time, new listings fell more than 14 per cent. Edmonton is one of the least active markets with sales and new listings decreasing, down seven and 17 per cent respectively, the report found. The demand surge in May among cities like Toronto as listings declined also led to price increases, at least month over month. Average prices in all markets, except Calgary, have yet to see year-over-year increases. In Calgary, the MLS Price Index grew 2.6 per cent year over year. Meanwhile, the index fell nearly six per cent in Vancouver, seven per cent in Toronto and more than eight per cent in Edmonton year over year Source by calgaryherald.com

It’s been 18 years since the late Don Jung and a number of his business and church friends stood proudly at the grand opening of Wing Kei Crescent Heights, a nursing home they had planned, raised financing for and built to preserve and improve the quality of life for seniors. Located on Centre Street N. at the corner of 11th Avenue, there was an immediate waiting list for the 145 long-term care units, and there has always been a list of 50 plus people hoping to live there. The need continued to grow and in 2014 Wing Kei Greenview was built on 35th Avenue N.E., just west of Edmonton Trail, and Greenview II was opened on adjacent land in 2018. The three Wing Kei facilities provided a total of 320 units, but the organization was constantly hounded to provide more extended care units to meet the physical, spiritual and emotional needs of seniors. The publicly funded, not-for-profit organization that welcomes seniors regardless of religious or ethnic background, took another huge step forward in purchasing the original Centre Street Church at 41st Avenue N.E. and took over the building in 2017. The vision was to develop Wing Kei Village on the three-acre site as an integrated community for seniors, families and children. The first phase of the project will provide 180 suites for residents requiring long-term care, hospice and senior care. Vincent Leung was one of the original founders and longtime board chair who recently stepped down, but has taken on the huge responsibility of Wing Kei trustee. He says a development committee was formed last year to administer the three phases of Wing Kei Village, which will construct a six-storey building for long-term care, a nine-floor seniors’ supportive-living residence, and an eight-storey, mixed-use retail/office/market value apartment block. Groundbreaking for the first building is planned for this fall with a construction schedule by Clark Builders that will see residents move in by 2025. Calgary-based S2 Architecture was responsible for the master plan of the site and design of the campus-style development. Brian Corkum, principal of S2, says his team has enjoyed the challenge of designing a pedestrian-focused project navigable by walkers and wheelchairs over a steep slope down 41st Avenue. The existing church building welcomed 126 students and executive director Michelle Cochrane and her staff of the Wing Kei Montessori School in ground level space in 2020. The daycare will be a first-floor tenant in Phase 1 of Wing Kei Village, providing intergenerational programs and activities that will enhance the well-being of the senior residents. Also on the main level will be a chapel garden and the administrative offices of Wing Kei Care Centres. The hospice area will be located on half of the second floor and will include space for family members to gather as well as a children’s play area. A centralized kitchen will provide meals for all residents and each floor will have common dining areas for use by residents. Corkum says lots of attention has been focused on making the floors friendly and homelike with the use of warm finishes and textures, as opposed to a cold, institutionalized feeling. Each resident will have a private room and their own bath, but the floors have the ability to be divided in case of the need to quarantine. There will also be a dedicated isolation room with its own mechanical air system and separate air valuation system. Wing Kei Care Centres has around 500 full and part-time employees; hiring, training and retention is a huge challenge, and many more will be needed to staff the new building. Leung says a partnership with Bow Valley College is working well, providing health-care aides with a practicum experience at one of its centres. The University of Calgary has also joined with Wing Kei in a two-year research study to develop a tool kit to care for seniors of different ethnic backgrounds. The board of Wing Kei, under its new chair, Dr. Harry Zhou, and Kathy Tam, who has been CEO since 2007, are excited about the progress of the Village and confident that it will be able to raise an additional $5 million to complete financing for Phase I. Source by calgaryherald.com

“Home ownership has shifted from an aspiration for most to a privilege for the few” Calgary’s real estate market may continue to break records but the dream of home ownership is becoming harder to reach for many first-time homebuyers. A report Thursday by Royal LePage shows 69 per cent of first-time homebuyers are worried their down payment may not be enough to get the house they want — up from 42 per cent in 2021. Meaghon Reid, executive director of Vibrant Communities Calgary, said it’s not even about the house people want to buy; it’s about buying one, period. “Home ownership has shifted from an aspiration for most to a privilege for the few,” she said. After a white-hot start to 2022, the real estate market cooled somewhat in the back half of that year. It has heated back up this year with the Calgary Real Estate Board reporting a record sales month in May. Detached homes hit a benchmark high of $674,000; semi-detached pushed above $600,000 for the first time; row houses hit a record-high benchmark of $390,500; and, condos had recovered to 2014 prices after nine years of depression at $298,600. It’s not just a Calgary issue, as similar concerns are coming to the forefront across the country for first-time homebuyers, with 74 per cent in Toronto, 71 per cent in Vancouver and 67 per cent in Montreal concerned about their down payments. Nearly 40 per cent of first-time homebuyers have received loan or gift from parents to help Doug Cabral, a realtor for Royal LePage Benchmark in Calgary, said it’s not all “doom-and-gloom” for first-time homebuyers. He said people, however, need to adjust their expectations and make sure they have all their ducks in a row when they get to the bidding process. This may include going to the bank of mom and dad for a loan or gift; 38 per cent of current first-time homebuyers in Calgary have done this while 34 per cent are receiving help with their mortgage payments. According to the report, only 29 per cent did not receive any form of help with their down payment. Compromises will need to be made on the type of property for entry. Due to the competition for properties, Cabral said if someone is approved for a $600,000 mortgage, they should be looking at properties in the $540,000 range so they have room to outbid their competition. He also stressed a need to be patient and resilient in the process, especially as conditions start to be peeled off of offers making the proposition riskier. “Homeownership is completely attainable,” he said. “It may take more than one kick at the can, but eventually they will secure something. That’s the important piece here. Secure something, become an owner, start building equity, because down the road interest rates may come down. Prices, I don’t see them easing off, but the environment — in terms of the activity — that eventually might slow down a bit.” Cabral said the market is similar to the end of 2021 and early 2022. He noted people were waiting out the interest rate hikes at the end of last year to see if it would impact prices, but prices didn’t move and buyers have jumped back into a market lacking stock. He said he expects market prices to continue to rise steadily over the next three to five years in Calgary. ‘What we see is a policy mismatch of epic proportions’ Reid said Canada’s benchmark price has gone up 54 per cent in the last two years and 130 per cent in the past decade. This is just one part of the inflation equation. Meanwhile, the average Calgary salary has gone up roughly one per cent in the past 24 months. What is exacerbating the situation in Calgary is the record influx of newcomers to the city at the behest of the province’s Alberta is Calling campaign which underscores opportunity and a lower cost of living. There just isn’t the available housing in the city. This puts more pressure on an already maxed-out rental market as rents continue to skyrocket. “What we see is a policy mismatch of epic proportions,” said Reid. “It is a great policy to invite immigrants, refugees, and even other people from across the country to our province. . . . However, it’s in direct contradiction of our policy reality when it comes to affordable housing. And in order for those types of campaigns to be effective, we need to make sure that the numbers line up in a really basic way.” She added policymakers need to address this situation now, not down the road. She said we are in a housing crisis and it is more expensive and difficult to address the situation once people become priced out of housing and are homeless. The average rent for a two-bedroom apartment in Calgary as of March, according to the Calgary Housing Company, was $1,920, which means a household income of $79,000 is required to make this price point affordable. Reid said there are mental health and economic impacts to transitioning people from renting to homeownership, including invested capital for retirement and financial leverage to unlock additional capital while building in financial and psychological stability. “Renters are having to wonder every year . . . and sometimes in a month-to-month basis what they’re going to be looking at in terms of an increase,” she said. “It’s more of a negotiation if you’re a homeowner, which provides a lot of stability and when you are finished paying that house off, it is yours. The stability of being able to stay in one place and have that being your choice — and you are the person who decides if and when you want to move — can’t be underestimated.” Source by calgaryherald.com

A local property developer is taking a big bet on a high-profile location in Calgary’s Kensington neighbourhood along the Bow River. Dubbed “The Kenten,” the property sits at the corner of Memorial Driveand 10th Street Northwest. “We are transforming this corner. It’s going to be a redevelopment like Calgary’s never seen,” said Sam Boguslavsky, president of the Sable Group of Companies. The plan is to tear the apartment tower down, add reinforcements, and rebuild it to nine storeys and an expanded footprint for 50 residences that will feature luxury finishes and premium amenities. Some floor plans span up to 4,715 square feet. Units start at the $1-million mark and plan to be completed by 2026. “When we look at only 50 residences, we want to make sure that families are able to be here comfortably and spend time entertaining, being around friends, around this community,” Boguslavsky said. Ward 7 Coun. Terry Wong said the development will add housing diversity to the area. “There’s a push for people wanting to downsize and move back into the downtown core, whether it’s a smaller, 600- to 700-square-foot place or something larger,” the area councillor said. “This is intended to be a larger footprint, which is rare to do.” Work is expected to start in spring 2024. Boguslavsky said Sable has been in regular contact with the residents of the existing Kensington Gate Apartments, saying they’ve become “friends” with the company headquartered in the same building. “They know what the predictable future looks like, and we’ll work with them to help them as they move or make other arrangements for their own lives,” he said. Boguslavsky said the vision for the building is to enable a lifestyle his company thinks is possible in the trendy Kensington neighbourhood. “I think Calgary’s ready for this. And we’re really fortunate to have been operating here for the last 20 years, to be able to dream, and to bring this to this capacity.” Source by globalnews.ca

While $1M is well below the average home price in Canada’s most expensive real estate markets, the price point leaves you spoiled for choice in several other cities across the country. From coast to coast, major real estate markets harbour houses — not condos — below the $1M mark. While a seven figure budget goes a lot further in Calgary, and offers far more options, it can still get you a semi-detached home in Toronto. From Vancouver to Halifax, here’s what $1M homes look like in five major Canadian cities. Address: 11 Ozark CrescentBedrooms: 2+1Bathrooms: 2Property type: Semi-detachedPrice: $999,000Listed by: RE/MAX Hallmark Richards Group Realty Vancouver Address: 7321 Celista DriveBedrooms: 3Bathrooms: 2Property type: TownhouseSize: 1,155 sq. ftPrice: $738,800Listed by: eXp Realty Calgary Address: 88 34 Avenue SWBedrooms: 4Bathrooms: 3Property type: DetachedSize: 1,585 sq. ftPrice: $764,900Listed by: CENTURY 21 Bamber Realty Montreal Address: 3820 Av. Prud’hommeBedrooms: 3Bathrooms: 2+1Property type: Semi-detachedSize: 1,112 sq. ftPrice: $850,000Listed by: Royal LePage Elite Global Heritage Halifax Address: 6286 Duncan StreetBedrooms: 3Bathrooms: 1Property type: DetachedSize: 1,575 sq. ftPrice: $849,900Listed by: Red Door Realty

A housing development on the edge of the Ontario Green Belt in the Greater Toronto Area of Bradford West Gwillimbury, Ont., on May 25.says Exorbitant construction costs for residential real estate across much of Canada are exacerbating the country’s housing affordability crisis and creating maintenance and insurance headaches for homeowners. The cost of building homes and apartment complexes across 11 major Canadian cities was up 54 per cent in the first three months of 2023 compared with the same period in 2019, according to Statistics Canada data released last month. Building costs rocketed up during the pandemic and continue to head upward, industry watchers say. Even as the supply chain snags linked to COVID-19 ease off, labour shortages persist, materials are still expensive and rising interest rates have increased financing costs for developers. At the same time, demand for new housing remains strong amid record immigration and a resilient economy. Lofty home building expenses are trickling down to both buyers and owners. For those hoping to buy a home, high building costs are pushing up already stratospheric real-estate prices in many parts of the country. They’re also discouraging some developers from starting on new construction, complicating efforts to ramp up home building and ease the country’s current housing shortage. For those who already own a home, the trend generally means higher price tags for anything from building a new deck to fixing a leaky roof – and that’s assuming someone is available for the job in the first place. High building costs are also putting upward pressure on home insurance premiums. Those who have an older home may want to review their policy: The cost of rebuilding may have risen beyond their coverage cap, experts warn. The increases are especially striking in Toronto, with costs up around 85 per cent for single-detached houses and townhomes, and 64 per cent for apartment buildings. But costs for residential real estate overall were also up by 64 per cent in Calgary and around 60 per cent in Edmonton and the Ottawa-Gatineau region, according to Statscan’s building construction price index, which captures the value of materials, labour, equipment, overhead and profit for developers constructing a new building. Not everyone agrees on the exact magnitude of those increases, which are notoriously tricky to gauge. David Schoonjans, senior director of development advisory at real estate firm Altus Group, said data collected by his company on construction costs for condominiums shows a lower overall increase, with appreciation rates moderating after the pandemic. But “keep in mind that prices haven’t gone down, they’re still going up – just going up at a slower pace,” Mr. Schoonjans said. Even if costs stopped rising, they’d be plateauing at “obscenely expensive prices,” he added. The cost of materials for a typical 2,400 square feet home is around $67,000 higher than it was pre-pandemic, with lumber alone accounting for roughly $24,000 of that, said Kevin Lee, chief executive officer of the Canadian Home Builders’ Association, citing a national average. The higher construction costs are contributing to higher prices for new buildings, which, in turn, also affects the value of existing homes, as “they’re all selling into the same market,” Mr. Schoonjans said. But developers’ ability to pass on at least some of the extra costs has limits. With pricier mortgages making it harder for prospective buyers to absorb higher home prices, some builders are refraining from starting new projects on which they wouldn’t be able to turn a profit at the moment, Mr. Schoonjans said. Expensive materials also make for higher overhead for small independent contractors and trades workers, said Richard Lyall, president of the Residential Construction Council of Ontario. That increases the financial incentive for contractors to take on bigger and more lucrative projects over small home repairs in a market where owners are already struggling to find tradespeople, he added. Insurers are feeling the pinch as well. It’s not just that pricier materials lead to higher claim costs: The scramble to line up workers can both push back and raise the cost of major repairs covered by insurance or of rebuilding a home after an accident or natural disaster. Delayed repairs can sometimes lead to additional damage as well as extended periods of renting by the owner if the home isn’t habitable, said Rhonda Kelly, vice president of the Insurance Brokers Association of Nova Scotia. Those costs also add up for insurers, she said. Increased claim costs, in turn, tend to push up insurance premiums. While it’s difficult to quantify the potential increase, “the insurance industry continues to face replacement cost claims nearly twice the rate of inflation and longer cycle times to complete repairs,” said Anne Marie Thomas, director of consumer and industry relations at the Insurance Bureau of Canada in an e-mail. For some households, though, a bigger risk lurks. In some cases, it’s possible that sky-high costs have pushed the price tag associated with rebuilding a home after events such as a devastating fire or flood beyond the owner’s coverage cap. While insurers adjust the home building value of a property every year to account for cost changes, sometimes those increases aren’t enough. Luckily, for the majority of homeowners, that isn’t an issue, according to Ms. Thomas. Most insurance policies provide something called “guaranteed replacement cost,” which allows you to rebuild your home, even if the damage exceeds your policy’s limits. But Canadians with older homes and structures such as barns and sheds who don’t qualify for such coverage could find themselves underinsured, Ms. Thomas cautioned. “It’s important for homeowners to understand what their policy covers and have a conversation with their insurance professional,” she said. Are you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes, listen to our award-winning Stress Test podcast.

Competition among homebuyers in the Greater Toronto Area (GTA) reached new heights last month as more neighbourhoods entered the realm of overbidding.  According to a recent analysis by Wahi, 68 per cent of GTA neighbourhoods experienced overbidding in May, up from 57 per cent in April, reflecting a persistent upward trend throughout the year.  Wahi compares the differences between list and sold prices for all types of homes, including condo units and houses, to identify overbidding and underbidding neighbourhoods each month.  Neighbourhoods with fewer than five transactions in a given month are excluded. Based on these criteria, 222 of 326 neighbourhoods were in overbidding territory last month.  Markham tops the list for overbidding Markham continues to dominate the list of neighbourhoods experiencing overbidding, with four out of the top five spots. Seaton Village, located in Toronto, is the only outlier.  1. Wismer, Markham Overbid: 25 per centMedian overbid amount: $300,000Median sold price: $1,393,000 2. Raymerville, Markham Overbid: 22 per centMedian overbid amount: $303,000Median sold price: $1,718,800 3. Cathedraltown, Markham Overbid: 20 per centMedian overbid amount: $305,000Median sold price: $1,735,000 4. Seaton Village, Toronto Overbid: 20 per centMedian overbid amount: $266,000Median sold price: $1,481,800 5. Buttonville, Markham Overbid: 14 per centMedian overbid amount: $240,000Median sold price: $1,828,000 Factors such as low inventory levels and sellers and their agents listing homes below market value have contributed to the overbidding trend observed in Markham. Underbidding territory In the midst of widespread overbidding, a handful of neighbourhoods fall into the category of underbidding territory.  1. York University Heights, North York Median sold price: $630,000Median underbid amount: -$4,000 2. Yorkdale, North York Median sold price: $646,000Median underbid amount: -$4,500 3. Erin Mills, Mississauga Median sold price: $660,000Median underbid amount: -$14,000 4. Concord, Vaughan Median sold price: $670,000Median underbid amount: -$9,000 5. Smithfield-Clairville, Etobicoke Median sold price: $695,500Median underbid amount: -$4,900 Beyond the top five, neighbourhoods with lower median prices tend to have a higher concentration of condo units, which contributes to the overall affordability. 1. Corktown, Old Toronto Median sold price: $700,000Median underbid amount: -$9,000 2. St. Lawrence, Old Toronto Median sold price: $710,000Median underbid amount: -$9,900 3. Fort York, Old Toronto Median sold price: $715,000Median underbid amount: -$11,500 4. Thornhill, Markham Median sold price: $718,500Median underbid amount: -$4,000 5. Liberty Village, Old Toronto Median sold price: $721,250Median underbid amount: -$3,400 High-end neighbourhoods lead underbidding charge While the majority of neighbourhoods in the GTA experienced overbidding or sold at the asking price, some affluent areas saw underbidding activity.  1. Hoggs Hollow, North York Underbid %: -5%Median underbid amount: -$92,750Median sold price: $1,705,000 2. Southwest Oakville Underbid %: -4%Median underbid amount: -$84,000Median sold price: $1,842,500 3. Old Oakville Underbid %: -3%Median underbid amount: -$79,000Median sold price: $2,350,000 4. Vales of Humber, Brampton Underbid %: -3%Median underbid amount: -$63,500Median sold price: $2,300,000 5. Forest Hill, Old Toronto Underbid %: -2%Median underbid amount: -$62,500Median sold price: $3,220,000 These neighbourhoods are known for larger detached homes and tend to have smaller price differences between list and sale prices.