Real Estate discussions

[whatnext]

Originally Posted by Changing City

See? No mention of Boomers.

These days, there are more Millennials and Gen X owning their homes than Boomers. And far more have mortgages.

As Warren pointed out recently, Boomers are mostly retired, collecting their CPP and OAS. They can afford to lose some equity far more than Gen X or Millennials who are relying on the the value of their home not dropping, as it's a huge part of their potential for retirement and future nest egg.

….Baby Boomers are the biggest homeowner age group, accounting for over 40% of all homeowners in Canada. Just under 60% of new homes were owner-occupied in 2021.Jun 11, 2024…

https://madeinca.ca/homeownership-st...ed%20in%202021.

And regardless if Gen Xers are creeping up, the fact remains the government has painted us into a corner in that housing prices can’t come down to be “affordable” and interest rates can’t come down without risking more inflation.

[whatnext]

Bad news for new developments along Georgia/Alberni.

Luxury condo sales declining in Toronto and Vancouver, Sotheby’s says
-Demand for single-family homes is dominating the high-end housing market
Author of the article: Audrey Pridham, Special to Financial Post
Published Oct 24, 2024

Luxury condominium sales declined throughout Toronto and Vancouver in the third quarter due to the demand for single-family homes dominating the high-end housing market, according to a recent report by Sotheby’s International Realty Canada.

The report said excess listings inventory, price drops and favourable terms for investment-minded buyers mean current conditions for luxury real estate purchasers are now at their most favourable since 2017, when the federal government first introduced the minimum mortgage “stress test” threshold.

Don Kottick, chief executive of Sotheby’s, said single-family homes are in particularly high demand, but they are not being built in major markets such as Toronto or Vancouver. This means fewer properties are coming on the market....

....Residential properties priced at more than $4 million rose 18 per cent year over year to 45 properties sold between July 1 and August 31.

In Vancouver, however, such sales fell 13 per cent in the same time period. Sotheby’s said some of the factors for that decline included economic and political uncertainty, increased living costs and concerns about public safety and urban disorder in key neighbourhoods.

In Vancouver, 86 per cent of total sales were single-family homes, down from 89 per cent last year. Sales in September declined 52 per cent year over year, and there were no condominium sales of more than $4 million....

https://financialpost.com/real-estat...ouver-sothebys

[LeftCoaster]

What year is that article from? Lux condo has been in the tanks for a while now.

[whatnext]

Originally Posted by LeftCoaster

What year is that article from? Lux condo has been in the tanks for a while now.

Published last week, I assume based on a recent Sotheby's report.

[LeftCoaster]

Yes thanks, I can read the published date in the post. My comment was more related to the relevance of the article since the news is years old.

[djmk]

Originally Posted by LeftCoaster

Yes thanks, I can read the published date in the post. My comment was more related to the relevance of the article since the news is years old.

based on Sotheby Fall 2024 Luxury Report

[whatnext]

Originally Posted by LeftCoaster

Yes thanks, I can read the published date in the post. My comment was more related to the relevance of the article since the news is years old.

The trend is years old yet we still have council deferring CACs for select developers for their high end projects? Make them fish or cut bait then.

[LeftCoaster]

Why would a developer pay CACs to support infrastructure for new residents when the residents are not in yet and they don't have project financing. It makes no sense and will only discourage new housing development.

Common sense says that CACs should be due on the commencement of construction as by then project financing is in place and the municipality can begin work on the new amenities and be complete in a similar timeframe as the new units.

[WarrenC12]

Originally Posted by LeftCoaster

Common sense says that CACs should be due on the commencement of construction as by then project financing is in place and the municipality can begin work on the new amenities and be complete in a similar timeframe as the new units.

Common sense would also dictate the City be on the hook to complete in time just like the developer.

[whatnext]

Originally Posted by LeftCoaster

Why would a developer pay CACs to support infrastructure for new residents when the residents are not in yet and they don't have project financing. It makes no sense and will only discourage new housing development.

Common sense says that CACs should be due on the commencement of construction as by then project financing is in place and the municipality can begin work on the new amenities and be complete in a similar timeframe as the new units.

Is this not the same rule every other developer plays by?

Maybe Anthem should be forced to just abandon their planned luxury condos for offshore buyers and convert this to a residential rental project as others have done with their sites. They shouldn't be getting deferrals and special treatment so they can peddle goods that no longer have a market.

[LeftCoaster]

Why not push back against a rule that doesn't make any sense. Moves everyone towards a policy that makes more sense. I applaud Anthem to taking a step to a better policy for delivering more housing in Vancouver, luxury or not.

[GenWhy?]

Originally Posted by whatnext

Is this not the same rule every other developer plays by?

Maybe Anthem should be forced to just abandon their planned luxury condos for offshore buyers and convert this to a residential rental project as others have done with their sites. They shouldn't be getting deferrals and special treatment so they can peddle goods that no longer have a market.

No rental here. I want that CAC money for a new pool and rec centre. No one lives here yet either so the payment of a CAC for growth isn't really relevant.

[whatnext]

Not just luxury condos struggling apparently:

Condo market slowdown underway in Vancouver, says report
Investors pulling back, leading to ‘grinding halt’ in condo sector
Jami Makan
Nov 8, 2024

The new condo market in Vancouver, and Canada more broadly, is struggling as developers encounter challenging conditions in the form of higher costs and reduced demand.

The condo market in major Canadian markets, including Vancouver, is freezing over due to the current interest-rate environment and increasing costs to build a project, according to a Nov. 7 Emerging Trends in Real Estate 2025 report from PricewaterhouseCoopers LLP (PwC) and Urban Land Institute (ULI).

“In markets like Toronto and Vancouver, a significant market slowdown is underway as it becomes too costly for many developers to proceed with condo developments,” said the report. “Developers are also facing challenges on the revenue side as investors, who make up a large portion of new condo buyers in many markets, pull back.”

While the issue may be more acute in Toronto, the report said pre-sale activity in Vancouver is also depressed, as investors may lose money on renting out units and unsold inventory accumulates. Some buyers may also have trouble closing on purchases of new condos....

....PwC and ULI said the net result has been a bifurcation of the industry. On one hand, there are well-capitalized developers with strong balance sheets and sizable land banks. On the other hand, small- and mid-sized developers may not have the reserves to navigate growing pressures. The latter can consider pivoting to purpose-built rentals or negotiating financial arrangements allowing them to retain land holdings.

The report cited the possibility of more real estate receiverships in 2025. On the bright side, the authors said pent-up demand could lead to an eventual market recovery, with a new focus on end users rather than leveraged investors.

https://www.westerninvestor.com/real...report-9783221

[whatnext]

Well, you learn something new about Vancouver RE every day. I'd always assumed the Lee Building was rental and not a strata with an unusual ownership structure:

Shared ownership structure complicates sale of low-cost condo
Kerry Gold
Vancouver
Special to The Globe and Mail
Published February 21, 2025

The Lee Building at East Broadway and Main Street is an east-side landmark that has stood on the busy Mount Pleasant corner since 1912. It has long been a draw for creative types who value community and a great location. The converted condo building with retail spaces on the ground level has had extensive plumbing and window upgrades, but the historic charms are preserved on the exterior and in the lobby...

... The price was low because the ownership structure is a unique one – all owners are on title together – and buyers must pay in cash. Obtaining a mortgage with such complicated shared ownership wouldn’t be possible, said listing agent Dwayne Launt, who’s sold several units in the building over the years....

https://www.theglobeandmail.com/real...ow-cost-condo/

[jollyburger]

Originally Posted by whatnext

Well, you learn something new about Vancouver RE every day. I'd always assumed the Lee Building was rental and not a strata with an unusual ownership structure:

Shared ownership structure complicates sale of low-cost condo
Kerry Gold
Vancouver
Special to The Globe and Mail
Published February 21, 2025

The Lee Building at East Broadway and Main Street is an east-side landmark that has stood on the busy Mount Pleasant corner since 1912. It has long been a draw for creative types who value community and a great location. The converted condo building with retail spaces on the ground level has had extensive plumbing and window upgrades, but the historic charms are preserved on the exterior and in the lobby...

... The price was low because the ownership structure is a unique one – all owners are on title together – and buyers must pay in cash. Obtaining a mortgage with such complicated shared ownership wouldn’t be possible, said listing agent Dwayne Launt, who’s sold several units in the building over the years....

https://www.theglobeandmail.com/real...ow-cost-condo/

The maintenance fees include a portion that go to pay off the mortgage. Owners can lump sum pay it off as well.

https://royalpacific.com/officelisti...t-1w2.90211807

They said the elevator sucks and it's pain to move in/out.

[whatnext]

Originally Posted by jollyburger

The maintenance fees include a portion that go to pay off the mortgage. Owners can lump sum pay it off as well.

https://royalpacific.com/officelisti...t-1w2.90211807

They said the elevator sucks and it's pain to move in/out.

Interesting. Even with the mortgage included the maintenance fees are pretty low. An amazing price for that location now that a station will be right there.

[djmk]

Originally Posted by whatnext

Well, you learn something new about Vancouver RE every day. I'd always assumed the Lee Building was rental and not a strata with an unusual ownership structure:

Shared ownership structure complicates sale of low-cost condo
Kerry Gold
Vancouver
Special to The Globe and Mail
Published February 21, 2025

The Lee Building at East Broadway and Main Street is an east-side landmark that has stood on the busy Mount Pleasant corner since 1912. It has long been a draw for creative types who value community and a great location. The converted condo building with retail spaces on the ground level has had extensive plumbing and window upgrades, but the historic charms are preserved on the exterior and in the lobby...

... The price was low because the ownership structure is a unique one – all owners are on title together – and buyers must pay in cash. Obtaining a mortgage with such complicated shared ownership wouldn’t be possible, said listing agent Dwayne Launt, who’s sold several units in the building over the years....

https://www.theglobeandmail.com/real...ow-cost-condo/

lots of buildings that were built before strata law came into existence have "shared ownership". However, it's usually a corp that owns the building and the shareholders are the ones living in the units. it's the share ownership that is linked to a unit in the building.

banks hate this and won't lend money to purchase the shares.

[whatnext]

Maybe it is bleak news for those involved selling real estate but I'd say this is good news for those wanting sanity to return to real estate prices:

Bleak outlook for B.C. real estate as TD predicts prices to drop
Sales growth to slow as uncertainty weighs on residential market
Ish Sharma
about 23 hours ago

B.C.’s housing market is looking bleak following tariff-related uncertainty during the first quarter, according to a TD Economics analysis.

“2025 home price forecasts have been cut the most in B.C. and Ontario, where we now think that prices will decline in annual average terms this year,” TD economist Rishi Sondhi wrote in a March 26 note....

https://www.biv.com/news/real-estate...-drop-10466778

[GenWhy?]

Bleak for those building it and wanting to buy as well.

Good news for already built housing stock, maybe. Going to be a lot less ownership product on the market though overall.

Construction prices only going up...

[whatnext]

Originally Posted by GenWhy?

Bleak for those building it and wanting to buy as well.

Good news for already built housing stock, maybe. Going to be a lot less ownership product on the market though overall.

Construction prices only going up...

Then maybe overly inflated land prices will have to give.