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- 📉 Is this the bottom?
📉 Is this the bottom?
Major markets continue to struggle, Burnaby high-rise site faces foreclosure, Toronto leads the office market, CREA is being investigated, iconic Surrey property sells for $18M, and more news from across Canada.
Recap Team
October 04, 2024
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Good morning!☀️ Ready to kickstart your day? Take 5 minutes to recap all the major news headlines from this week.
⚡ Top Story
Fraser Valley Sales Drop to Decade’s Second Lowest Level
The Fraser Valley market saw sluggish sales and rising inventories in September, moving toward a buyer’s market. Sales dropped 10.7% year-over-year, with only 982 homes sold. New listings rose 17%, while overall inventory increased 39%. Benchmark prices fell 1.5% for detached homes, 1.6% for townhomes, and 0.2% for condos.
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🗞️ BC News
34-Storey Burnaby Project Faces Foreclosure
The planned 34-storey Willingdon Rose project in Burnaby, with 362 market and 98 non-market rental units, is under foreclosure. Terrapin Mortgage Investment Corporation initiated proceedings, seeking over $12.6 million. The project received conditional approval in December 2022. Despite ongoing legal issues, the property is under contract with a buyer.
Victoria’s Real Estate Market Shows Some Balance
Victoria saw 571 property sales in September, a 15.8% increase from last year, with condos up 21.9% and single-family homes rising 19.3%. Active listings grew by 24.5%, signaling a balanced market. The benchmark price for single-family homes fell 2.8% to $1,279,700, while condos dropped 5.1%.
Iconic Pink Palace in Surrey Sold for $18M
The iconic Pink Palace Hotel in Surrey has been sold for $18 million. Previously known as the Pacific Inn Resort, it will likely be revived as a hotel by the new owners, who specialize in the hotel and development business. Built in 1992, the building features 150 rooms and event spaces.
Buyer and Seller Disconnect Keeps Okanagan Activity Low
In September, the AIR market saw 1,025 residential sales, an increase of 0.3% year-over-year, but lower than August. New listings dropped 6.7%, while active listings surged 27.1%. The South Okanagan region performed the worst, seeing a 2.5% drop in single-family home prices and a 9.8% decline in condo prices.
Demand for Hotel Rooms Surges in Metro Vancouver
Metro Vancouver’s hotel market is seeing high room rates, averaging $358.35 per night in July, with an occupancy rate of 85.7%. A record 59 hotel projects are underway across BC, including 21 in Metro Vancouver. New supply aims to alleviate high rates and tight occupancy caused by increasing demand.
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🗞️ Ontario News
GTA Home Prices Drop and Sales Pick Up
In September, GTA home sales reached 4,996, up 8.5% year-over-year, driven by interest rate cuts and mortgage policy changes. Detached home sales rose 10.5%, townhomes by 14.3%, while condos saw a slight 0.8% increase. The average home price dipped 1% to $1,107,291, with new listings up 10.5%.
Toronto’s Purpose-Built Rental Housing Starts Drop 50%
CHMC data shows Toronto’s purpose-built rental housing starts dropped by 50% in the first half of 2024 due to high financing costs and declining rental demand. The broader region saw rental starts decrease by 40%, while condo starts also fell, particularly within the city. Suburban condo starts, however, surged.
NCC Reveals 3 Design Concepts for New Alexandra Bridge
The NCC has revealed three potential designs for the new Alexandra Bridge. These concepts aim to replace the aging structure that links Ottawa and Gatineau. Public feedback is being encouraged to help determine the most favoured option, focusing on design, pedestrian and cyclist accessibility, and sustainability.
Mississauga Approves Proposal for 56 Detached Homes
A 56-home development project at 1720 Sherwood Forrest Circle in Mississauga has replaced a previously controversial proposal. The new plan includes detached homes with double-car garages on a private road, maintaining natural areas. While some concerns about tree removal remain, 146 new trees will be planted.
Live Nation Unveils Plans for Temporary Rogers Stadium
Live Nation has announced plans for a temporary Rogers Stadium. Designed as a 50,000-capacity open-air venue, it will address the city’s growing live performance demand and relieve the Rogers Centre’s scheduling pressures. The stadium, located at the former Downsview Airport, will operate for five years and host major concerts.
📅 Save These Dates
October 11, 2024, 5:30am | Unemployment Rate
October 15, 2024, 5:30am | Inflation Rate
🗞️ National News
Toronto Leads Canadian Cities in Office Space Absorption
A CBRE report shows suburban areas in Canadian cities are driving a resurgence in office space demand. Toronto led with over 650,000 square feet of positive net absorption in Q3 2024. Meanwhile, downtown office vacancy rates are rising, especially for older buildings, though high-quality “trophy” properties are in demand.
CREA is being Investigated for Anti-Competition Practices
The Competition Bureau has obtained a court order to investigate potential anti-competitive practices by the Canadian Real Estate Association (CREA). The probe focuses on whether CREA’s rules discourage lower commission rates and impact competition. It also examines if CREA’s agent cooperation policy favours larger brokerages.
💭 Quote of the Day
"The best way to predict the future is to create it."
Peter Drucker
You’re all caught up! Enjoy the rest of your day.✅
😯 Random Fact of the Day
Did you know Google's first investor wrote a $100,000 check? In 1998, Andy Bechtolsheim gave Google its first significant investment, which helped propel the company to success.