Supply is central to price growth in Canadian real estate – analysis – Mortgage Broker News

A comprehensive report released last week argued that contrary to the popular notion of foreign demand as the prime mover of price growth in Canada’s real estate markets, the dearth of housing supply is primarily to blame.

 

In its September 23 news release, Fortress Real Developments pointed out that the drastic reduction in the supply of single-detached housing in Canada over the past few years coincided with the acceleration of growth in average home prices across the country.

 

“Municipalities pushed right against the Greenbelt like Aurora, King City, Richmond Hill, Vaughan and Whitchurch-Stouffville are experiencing a shortage of single-detached homes, and high price growth,” according to the press brief, which was released via
Canada NewsWire
.

 

“Until recently, the lack of residential unit supply has rarely been discussed as a factor influencing high house prices,” the news release added. “Factors that lead to a decreased housing supply include vehicle transportation and commuting, bodies of water and natural boundaries, obstructive planning policies and disruptive taxes.”

 

Other possible influences are advocacies preventing the smart usage of more land, Fortress explained.

 

“Anti-development groups have been successful in reducing housing supply, while driving up the values of their homes.”

 

Rarely have supply-side aspects like development costs, environmental protection, urban containment, and undue regulation been discussed, according to Fortress senior vice president of market research and analytics Ben Myers.

 

“For the sake of homeowners and potential home buyers, both demand and supply must be part of any debate going forward by governments looking to improve the short and long term health of the Canadian housing market,” Meyers stated.

 

The full report can be accessed
here
.

Related Stories:

Decline in luxury sales pulls down Vancouver value—think tank

Calls for federal intervention on housing situation intensify

 

What marijuana legalization could mean for Canada’s real estate market – CBC.ca

Imagine if every Canadian adult was allowed to grow marijuana at home. What would this do to our real estate market?

The answer depends on who you ask.

In Colorado, where pot has been legal since 2014, homeowners can keep up to half a dozen pot plants indoors — and that’s causing a “green boom” in cities like Denver.

“A lot of people are into the grow-your-own movement out here in Colorado and most of my people are growing cannabis for medical use,” said Rona Hanson, a longtime realtor in Denver who runs a grow-friendly listing called Need Room to Grow

“I find houses that have areas in them or spaces that people can have small home gardens, whether it’s for growing cannabis or just doing herbs or whatever they like,” said Hanson, adding homes with proper greenhouses tend to sell more quickly.

“We have 120,000 people moving to our state each year for reasons that include the cannabis freedom that we have.”

Mould, vermin, chemical contamination concerns

If you want to grow cannabis at home (for medical use only) north of the border, you have to apply for a licence through Health Canada.

The Access to Cannabis for Medical Purposes Regulations came into effect in August 2016. Because these personal licences involve sensitive medical information, it’s difficult to find out who is growing at home and where.

As the Liberal government moves ahead to legalize marijuana in 2017, the scope of the law could very well expand.

And, if we go the way of Colorado, home buyers best start looking for a good house inspector.

“The marijuana plant requires a lot of humidity for it to prosper,” said Gary Barnes, president of Western Site Technologies in Calgary.

“Even for six plants, that is ultimately going to cause problems unless you have proper air exchange.”

mould marijuana grow-op

‘The marijuana plant requires a lot of humidity for it to prosper,’ says Calgary environmental consultant Gary Barnes. (Western Site Technologies)

Good airflow costs money, and Barnes doubts most homeowners would actually pony up the cash for a small weed operation.

“I don’t think you’re going to put in a multi-thousand-dollar air exchange system in your house in order to control that. Therefore you’re going to get mould.”

And mould is not good.

“Depending the extent of the damage, whole walls might have to be ripped out,” said Adam Jackson, who works with government officials to oversee the remediation of grow-op homes in Alberta.

But mould is just the tip of the iceberg in terms of potential damages.

“There are a number of nuisances that take place,” said Jackson.

“It can be anything from the chemicals and fertilizers being dumped down the drain, or they’re leaching through the carpets and the walls. Bugs are another big thing. People will use pesticides.”

Buyer beware, especially during transition period

In the past, when someone grew pot at home, that person was breaking the law. Police had every right to bust the criminal.

But now that some Canadians have been given private licences to grow at home, it has become a confusing, transitional period — and Barnes said law enforcers are more reluctant to crack down.

Marijuana grow-op

Along with mould damage, pesticides and fertilizers used to grow marijuana indoors can leach through carpets and walls. (Western Site Technologies)

In the past, Alberta Health Services appointed Western Site Technologies about 60 remediation cases per year. This year, the company has received two.

“I’m sure there are houses on the market right now that have been grows that are going to have no disclosure and it’s buyer beware,” Barnes said, adding that this is an issue that affects any type of house.

“You think you’re going to into an upscale neighbourhood and buy a house that’s a million dollars and you figure nobody’s going to put a grow on that? You’re wrong.”


With files from the Calgary Eyeopener

Goodbye Vancouver: Foreign buyers now flooding Seattle and Toronto real estate markets – Globalnews.ca


A
A

Foreign buyers are leaving Vancouver en masse, instead heading to cities like Seattle and Toronto to invest in real estate, according to numbers provided to Global News from Chinese realty website Juwai.com.

Juwai.com is “where Chinese find international property” according to their website. They claim to have over 2.4 million real estate listings across 58 countries and have for a long time, marketed Vancouver to their clientele as an attractive place to purchase homes.


Global News

But the allure of Vancouver may be fading, according to numbers from the company that suggest there was an 81 per cent drop in buying inquiries in Vancouver in August compared to August 2015.

The recorded drop comes the month after a 15 per cent foreign buyers tax was introduced in Metro Vancouver to thwart off the foreign demand that has helped to fuel an unprecedented rise in home prices across the region.

READ MORE: Real estate sales help boost B.C. budget surplus

The demand may have shifted south of the border and to other cities across the country, according to Juwai.

Seattle property searches on the site grew by 143 per cent year-over-year in August, making it the third busiest month in the last three years for number of inquiries in the city.

In Seattle’s King County, the median home price increased 11 per cent to just under 0,000 in August, according to Northwest MLS.

Juwai said Seattle is the number one city in North America for Chinese buyer inquiries. The U.S. National Association of Realtors reports Chinese buyers bought .6 billion worth of real estate in Washington state in 2015. That’s out of billion spent across the country that year.

In comparison, data from the B.C. government found that international buyers invested billion into B.C. real estate over five weeks from June to July.

READ MORE:  million in Vancouver’s Point Grey real estate owned by ‘students’: NDP housing critic

Foreigners hoping to purchase in Canada are now looking at Toronto, Calgary and Ottawa.

Toronto saw a 142 per cent increase in property inquiries in August compared to 2015, according to Juwai.

“Vancouver has been losing local and overseas buyers all year,” Matthew Moore, president of the Americas for Juwai.com, said. “The shift is towards cities with similar appeal but lower entry prices.”

He added that August was the single-highest ranked month for searches in Toronto in the last three years.

Tom Gradecak of Vancouver’s Westside Realty has multiple properties on the market listed for over million. A foreigner purchasing a home at that price would incur a million tax on top of the existing Property Transfer Tax.

READ MORE: Vancouver empty homes tax to go into effect in 2017

Prior to the tax, he said the majority of interest for a home at that price came from foreign buyers.

“We definitely noticed the slowdown, there’s no question,” Gradecak said.

He suspected that the proportion of foreign buyers on the Westside was as high as 25 per cent, much higher than the data provided by the provincial government.

He now says his wife has an American client who wants to sell his downtown penthouse because “he doesn’t feel welcome.”

“He brought a tech company up here from Silicon Valley… and moved a bunch of employees up here, and he’s basically saying that he’s out of here. He wants to sell his penthouse and likely move his business back down south.”

West Vancouver realtor Brent Eilers says he too has witnessed a “dramatic drop.”

According to Eilers, he has a waterfront property currently listed that has seen a little interest from offshore buyers. Had it been listed in May, he said, buyers would be bidding at over the asking price. Now, they’re asking how much under the asking price they could get it for.

“Foreign buyers are pissed off right now.”

MLS sales data obtained by Global News for a selection of homes sold under asking across Burnaby, Richmond, and Vancouver over the last 10 days show price drops between 3.5 and 20 per cent.

READ MORE: Two-thirds of B.C. residents say foreign ownership tax won’t cool real estate market: poll

Sotheby’s International Realty Canada reported this week that Toronto is set to lead Canada in the number of million-plus residential sales this fall.

The city experienced the greatest year-over-year gains in sales over million during the first half of 2016 with a 65 per cent increase in sales volume. Vancouver grew by 26 per cent.

“The two cities that have been at the forefront of the Canadian real estate market have been Toronto and Vancouver, and we are going to see a clear divergence between their performance this fall,” Brad Henderson, president and CEO of Sotheby’s Canada, said in a statement.

“Vancouver’s record-setting sprint will return to a more moderate pace, but Toronto’s market cadence is set to accelerate.”

While the long-term effect of the foreign buyers tax remains to be seen, evidence shows offshore money may be on the move elsewhere, but even Moore admits Juwai’s data may be premature.

“There can be big variations in the data from month to month, so trends sometimes aren’t truly apparent until after six, 12 or even 18 months. Looking at a short period like this may not give us an accurate view of long-term trends,” Moore said.

The B.C. government is expected to release more data on the impact of the foreign buyer tax on Metro Vancouver real estate next week.

© 2016 Global News, a division of Corus Entertainment Inc.


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Alberta Real Estate: These Are The Cheapest Homes For Sale Around The Prairies – Huffington Post Canada

Home prices haven’t really budged despite the slump in Alberta’s housing market.

That being said, there are still some bargains to be had around the Prairies.

The average price of a home sold in the province of Alberta in August was 0,615, according to the Canadian Real Estate Association.

For that price, you could buy a few of these homes, most of which cost less than half of a family’s total median income, according to Statistics Canada.

Here’s a look at the cheapest homes for sale in Alberta and Saskatchewan, courtesy of Point2 Homes:

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The Cheapest Homes For Sale In The Prairies (September 2016)

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What marijuana legalization could mean for Canada’s real estate market – CBC.ca

Imagine if every Canadian adult was allowed to grow marijuana at home. What would this do to our real estate market?

The answer depends on who you ask.

In Colorado, where pot has been legal since 2014, homeowners can keep up to half a dozen pot plants indoors — and that’s causing a “green boom” in cities like Denver.

“A lot of people are into the grow-your-own movement out here in Colorado and most of my people are growing cannabis for medical use,” said Rona Hanson, a longtime realtor in Denver who runs a grow-friendly listing called Need Room to Grow

“I find houses that have areas in them or spaces that people can have small home gardens, whether it’s for growing cannabis or just doing herbs or whatever they like,” said Hanson, adding homes with proper greenhouses tend to sell more quickly.

“We have 120,000 people moving to our state each year for reasons that include the cannabis freedom that we have.”

Mould, vermin, chemical contamination concerns

If you want to grow cannabis at home (for medical use only) north of the border, you have to apply for a licence through Health Canada.

The Access to Cannabis for Medical Purposes Regulations came into effect in August 2016. Because these personal licences involve sensitive medical information, it’s difficult to find out who is growing at home and where.

As the Liberal government moves ahead to legalize marijuana in 2017, the scope of the law could very well expand.

And, if we go the way of Colorado, home buyers best start looking for a good house inspector.

“The marijuana plant requires a lot of humidity for it to prosper,” said Gary Barnes, president of Western Site Technologies in Calgary.

“Even for six plants, that is ultimately going to cause problems unless you have proper air exchange.”

mould marijuana grow-op

‘The marijuana plant requires a lot of humidity for it to prosper,’ says Calgary environmental consultant Gary Barnes. (Western Site Technologies)

Good airflow costs money, and Barnes doubts most homeowners would actually pony up the cash for a small weed operation.

“I don’t think you’re going to put in a multi-thousand-dollar air exchange system in your house in order to control that. Therefore you’re going to get mould.”

And mould is not good.

“Depending the extent of the damage, whole walls might have to be ripped out,” said Adam Jackson, who works with government officials to oversee the remediation of grow-op homes in Alberta.

But mould is just the tip of the iceberg in terms of potential damages.

“There are a number of nuisances that take place,” said Jackson.

“It can be anything from the chemicals and fertilizers being dumped down the drain, or they’re leaching through the carpets and the walls. Bugs are another big thing. People will use pesticides.”

Buyer beware, especially during transition period

In the past, when someone grew pot at home, that person was breaking the law. Police had every right to bust the criminal.

But now that some Canadians have been given private licences to grow at home, it has become a confusing, transitional period — and Barnes said law enforcers are more reluctant to crack down.

Marijuana grow-op

Along with mould damage, pesticides and fertilizers used to grow marijuana indoors can leach through carpets and walls. (Western Site Technologies)

In the past, Alberta Health Services appointed Western Site Technologies about 60 remediation cases per year. This year, the company has received two.

“I’m sure there are houses on the market right now that have been grows that are going to have no disclosure and it’s buyer beware,” Barnes said, adding that this is an issue that affects any type of house.

“You think you’re going to into an upscale neighbourhood and buy a house that’s a million dollars and you figure nobody’s going to put a grow on that? You’re wrong.”


With files from the Calgary Eyeopener

The Housing Bubble Is Over: Trouble Is Brewing – The Motley Fool Canada

A rising tide lifts all boats. In Canada’s case, rising home prices have lifted the entire economy, even in the face of lower energy and metal prices.

While oil-rich havens such as Alberta and Saskatchewan have struggled mightily, other regions such as Ontario and British Columbia have picked up the slack–almost completely due to their rapidly rising real estate markets.

Compared to 2015 levels, the Vancouver area has seen average home prices increase by 25% with the median selling price topping million. This year, Royal LePage expects Vancouver prices to rise a total 27% along with a 15% rise in the Toronto market.

?I…

The Housing Bubble Is Over: Trouble Is Brewing – The Motley Fool Canada

A rising tide lifts all boats. In Canada’s case, rising home prices have lifted the entire economy, even in the face of lower energy and metal prices.

While oil-rich havens such as Alberta and Saskatchewan have struggled mightily, other regions such as Ontario and British Columbia have picked up the slack–almost completely due to their rapidly rising real estate markets.

Compared to 2015 levels, the Vancouver area has seen average home prices increase by 25% with the median selling price topping million. This year, Royal LePage expects Vancouver prices to rise a total 27% along with a 15% rise in the Toronto market.

?I…

Elko real estate agent named president of trade association – KTNV Las Vegas

ELKO, Nev. (AP) – An Elko real estate agent is now the head of a statewide trade association.

The Elko Daily Free Press reports that Greg Martin of Coldwell Banker Algerio/Q-Team Realty has been named president of the Nevada Association of Realtors. His one-year term will begin in 2017.

Martin says as Elko is a small community within the state, a local agent being named president of the association is a high distinction. The last time an Elko real estate agent held the position was in 1995.

The Nevada Association of Realtors has approximately 15,000 members throughout the state and has five local associations.

Alberta Real Estate: These Are The Cheapest Homes For Sale Around The Prairies – Huffington Post Canada

Home prices haven’t really budged despite the slump in Alberta’s housing market.

That being said, there are still some bargains to be had around the Prairies.

The average price of a home sold in the province of Alberta in August was 0,615, according to the Canadian Real Estate Association.

For that price, you could buy a few of these homes, most of which cost less than half of a family’s total median income, according to Statistics Canada.

Here’s a look at the cheapest homes for sale in Alberta and Saskatchewan, courtesy of Point2 Homes:

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The Cheapest Homes For Sale In The Prairies (September 2016)

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Toronto luxury home sales surge as Vancouver market tanks – MetroNews Canada

Sotheby’s International Realty Canada

The owners are asking .495 million for this Rosedale home. The Sotheby’s listing promises buyers will be “mesmerized,” by “the perfect blend of historical elements with the space and flow for today’s living.” Leaded and stained glass, hardwood and paneled wall accents are among its charms.