How will Canada’s residential and commercial property fare in a post-production world?

Housing prices are just like wages. They are “sticky”, which means, like wages, you will rarely see a large drop in the market pricing. You really cannot draw a straight line from the slowdown in sales to lower home prices because it doesn’t work that way. As well, less listings on the market offsets the slower sales because there are fewer homes for buyers to choose from.

If you enjoy podcasts, listen to Financial Post columnist and Ryerson University real estate management professor Murtaza Haider as he assesses the pandemic’s impact on housing and rental prices, how the shift to working from home could affect real estate in downtown cores and a rethinking of the suburbs on “Down to Business”.

Update on Canada Emergency Commercial Rent Assistance Program

The Canada Mortgage and Housing Corporation published more information on the Canada Emergency Commercial Rent Assistance Program (“CECRA”). Highlights include:

• Commercial Rent Landlords must have declared rental income on their tax returns for 2018 and/or 2019 to qualify.
• Landlords must apply before the deadline of August 31, 2020. 
• The Government loans are forgivable if the landlord complies with all applicable program terms and conditions
• Landlords cannot seek to recover rent abatement amounts after the Program is over
• The Government loans to the landlord will cover 50% of the gross rent owed by a qualifying small business tenant during April, May, and June 2020
• Landlords can apply retroactively for this Program provided that the landlord can prove eligibility during April, May, and June 2020.
• Landlords must refund any amounts paid by the small business tenant for that period. The refund can be a credit for future rent if agreeable by the tenant and the landlord.

Small business tenants to qualify if:

• The $50,000 maximum in monthly gross rent is per location and defined in a valid and enforceable lease agreement, and
• The small business cannot generate more than $20 million in gross annual revenues calculated on a consolidated basis (at the ultimate parent level).

Reference: http://www.mondaq.com/canada/landlord-tenant--leases/938232/cmhc-comments-on-the-canada-emergency-commercial-rent-assistance-program

Consumer Price Index and Deflation in Canada

Consumer prices fell in several segments of the Canadian economy in April. They included transportation, clothing and footwear, recreation, and education. Gasoline and clothing both experienced the largest decline in the history for those components on record. Statistics Canada (Stat Can) data shows the consumer price index (CPI) fell in April.

Deflation is when consumer prices fall. That is a good thing. After all, who does not want to pay less for things? Declines at certain times, especially if due to decreasing manufacturing costs, can be terrific. Consumers have more money they can spend or invest.

While the Bank of Canada does not want to see sustained deflation (see link for more information about why), they do not deem small price declines over short periods of time to be a problem.

Greater Victoria Neighbourhoods – Triangle Mountain

Looking for a home with an out-of-town feel in a central location that has inspiring ocean and mountain views? Look no further than Triangle Mountain.

Situated outside of Colwood, Triangle Mountain is immersed within Vancouver Islands forests and natural beauty, yet it is a five-minute drive to coffee shops, restaurants and grocery stores, and a 10-minute drive to the Juan de Fuca recreation centre and Q-centre; the athletic hub of Colwood. The recreation centre houses a gymnasium, pool, skating rink, soccer fields, and tennis courts. The Q-centre is the home rink for the Victoria Senior A Lacrosse Shamrocks and the Victoria Grizzlies Junior A hockey team.

The area features custom-built homes with panoramic mountain and ocean views to the east; Mount Baker, Haro and Georgia Strait, and the Olympic Mountains.

If you are a hiker, you will want to head up Havenwood Park to Lookout Lake. Go up the mountainside and the flights of stairs and you will find yourself at Lookout Lake high up on Triangle Mountain. The lake is a local favourite for swimming, picnics, hikes, and shoreline fishing and is regularly stocked with rainbow trout and smallmouth bass. Bald eagles regularly join fishermen to catch fish!

The area first got its name ‘Triangle Hill’ during World War II because it was part of the coastal defence system as a command post. It was used as a navigational aid and point of triangulation for ships entering the harbours. “There were 20 locations across the entrances to the Victoria and Esquimalt harbours,” says Kate Humble, curator at Fort Rodd Hill. “They were like studs on a belt and they all had different purposes…some were gun batteries; some were observation posts and all of them working together was called a fortress defence system.”

Today, the area boasts lovely views and a peaceful serene setting that belies the origin of its name.

Single-Family and Condo Values in Victoria Core

The Multiple Listing Service® Home Price Index benchmark value for a single-family home in April 2020 increased by 4.6 % to $882,700, from its April 2019 value of $843,500, and increased 0.6 % from its previous month value in March 2020 of $877,700.

The MLS® HPI benchmark value for a condominium in April 2020 increased by 3.5 % to $530,700 from its April 2019 value of $512,700, but 0.2 % less than its previous month value in March 2020 value of $531,900.

Why Real Estate Was Deemed an Essential Service

"Real estate services and REALTORS® were declared an essential service by our province in March in order to protect consumers who need to make real estate transactions during this time," says Victoria Real Estate Board President Sandi-Jo Ayers. "Technology has allowed us to move much of our work online. Now you can participate in an open house from the comfort of your couch and manage your contracts and negotiations securely online.”

At some point in the process, we will need to meet, so I and local Realtors are ensuring we adhere to the advice of the Provincial Health Officer. Talk to me to learn the best procedures and strategies when you need to buy or sell your home.

Victoria Real Estate Board’s Report for April 2020

“The available inventory of properties for sale remains lower than in April last year,” says Victoria Real Estate Board President Sandi-Jo Ayers. Greater Victoria saw 2,305 active listings at the end of April, which was 16.2 % fewer properties than the total available at the end of April 2019 but 2.4 % more listings that at the end of March 2020. “Like so many other industries, much of the real estate market is watching, waiting and adapting."