commercial real estate news Archives

Rising Mortgage Approvals a Sign of Positive Market Growth

21/05/202321/04/2025dansa

According to the most recent data released by the Bank of England, the number of mortgage approvals rose for the first time in six months between January and February of this year.

This period saw a rise from 39,647 to 43,563, following a sustained decline in the latter half of 2022. Although this signifies a gradual return to previous norms, February approvals remained a third lower than 12 months previous, so there is still quite a way to go to reach last year’s monthly average of 62,700.

Mortgage approval rates increased by a further 18% in March of this year to 52,000, which is good news for those seeking a loan who were previously struggling to get one.

This recent upward trend also appears to be aligning with UK house price forecastswhich predicts a return to growth by the beginning of next year in most areas.

As mortgages again become more accessible and the housing market begins to regain its strength, property investors should start to benefit from capital growth in a healthier and more stable market over the next few years.

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You’d need a raise of almost $20K to afford the same Calgary home you didn’t buy last year

04/05/202321/04/2025dansa

Sometimes, waiting can be a pricey move.

A buyer in Calgary today will need to earn $18,820 more in annual income to purchase the same house, compared to this time last year, according to a fresh report from Ratehub.ca, an organization that analyzes real estate and financial data.

As well, Calgary is the only city in the study to see an increase in the average price of a home from March 2022 to March 2023. It’s gone from $523,100 to $528,700.

A longtime real estate agent says Calgary is an anomaly.

“What we are seeing this year, in January, we were all anticipating there would be more inventory coming on the marketplace,” Len T. Wong of Greater Property Group told CBC News in an interview.

“And then in February, we started to realize that sales volumes were down 47 per cent and inventory levels were down as low as 2006, an all-time low.”

Len T. Wong is a Calgary realtor with Greater Property Group. — Len T. Wong is a real estate agent at Greater Property Group in Calgary. (Anis Heydari/CBC)

Inventories of single-family homes in the city are low, and that’s a double-edged sword.

“I think part of it is interest rates,” Wong said.

“There’s a little bit of a concern

Analysis-Banking crisis scars struggling US real estate stocks

29/04/202321/04/2025dansa

By Lewis Krauskopf

NEW YORK (Reuters) – US real estate stocks are struggling this year after a rough 2022, as fears that banks will tighten lending standards pile pressure on a sector already hit by higher interest rates.

After slumping 28% last year, the S&P 500 real estate sector has gained about 1% in 2023, lagging an 8% rise for the overall S&P 500. Real estate is the only one of the 11 S&P 500 sectors to underperform the benchmark index in both 2022 and so far in 2023.

Driving this year’s struggles are fears that tumult in the banking sector following the collapse of Silicon Valley Bank in March will make it more difficult for real estate companies to access debt, as banks become more stringent on lending. The real estate sector has slumped 2% since SVB’s troubles came to light on March 8, compared to a 4% rise for the S&P 500.

“There is nothing about the current banking situation … that made life easier for real estate companies,” said Peter Tuz, president of Chase Investment Counsel. Because banks have lost deposits, “they will be just more careful who they lend money to,” he said.

With the S&P

Housing market downturn a top risk to Canada’s financial system, regulator says – National

24/04/202321/04/2025dansa

A potential downturn in Canada’s housing market and adjusting to rapid increases in interest rates are among the biggest risks to Canada’s financial system this fiscal year, the country’s financial regulator said on Tuesday.

The Office of the Superintendent of Financial Institutions (OSFI) said it was ensuring that federally regulated financial institutions were alert to changing market conditions in its first annual risk outlook report for the year ending March 31, 2024.

“OSFI is preparing for the possibility, but not predicting, that the housing market will experience sustained weakness through 2023,” said Peter Routledge, Superintendent at OSFI.

The regulator also said the adjustment to higher interest rates “may not be completely smooth” and that it was intensifying monitoring of market liquidity.

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(Reporting by Maiya Keidan and Ismail Shakil)

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Could The Housing Market Collapse Again? Recovery Talk ‘Premature’ After Mortgage Rates Surge Past 7%

09/04/2023dansa

Topline

As fears of inflation push mortgage rates back toward multi-decade highs, economists are warning the resurgence in borrowing costs will deal another blow to the precarious housing market, driving home sales to new lows and proving the recent recovery many hoped would mark a turning point may instead be a short-lived “mirage.”

The recent bounce in housing activity is likely a “mirage,” says one economist.

Education Images/Universal Images Group via Getty Images

Key Facts

The average rate on the popular 30-year mortgage jumped back above 7% this week for the first time since October—once again approaching the highest levels in 20 years—after a string of worse-than-expected inflation data fueled the expectations of the Federal Reserve will intensify its rate-hiking agenda.

This surge in rates “dealt a fresh blow” to mortgage demand, says Pantheon Macro chief economist Ian Shepherdson, adding he’s been “puzzled” by claims the housing market is starting to recover and instead expects total home sales will plummet to a new multi- year low by May if rates remain close to 7%.

After collapsing more than 35%, home sales have remained relatively flat since November, but Comerica Bank economist Bill Adams calls the recent response in the housing

Liverpool Has Been Voted One of The UK’s Top Student Cities

16/03/2023dansa

Considering Liverpool is one of the biggest cities in the UK, prices for both rent and property are very affordable.

The average house price in Liverpool as of December 2022 was £183,512, over £100k below the national average of £295,000. This means Liverpool is one of the most affordable places to buy property in the country, making it an ideal place for student property where lower costs are key.

This affordability translates to the rental market as well. Home.co.uk reports that Liverpool has a median average rent of £745 per calendar month, again below the national average while still being high enough to offer investors attractive rental returns.

For both students and those investing in student property, this affordability is a key selling point for Liverpool. Students want cheaper rents so they don’t have to spend the majority of their student loans on accommodation, and investors want lower costs so they can have higher rental yields.

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What Does the Latest UK House Price Index Mean for Investors?

05/03/2023dansa

According to the latest UK House Price Index, property values saw a subtle yet significant rise over the course of 2022, ending on a December average of £294,329 – an increase of over £21,000 from the opening January price.

Having closed the year with an average property value of over £26,000 more than the previous December, 2022 signified another healthy growth period for the UK market.

The summer months brought them the most movement with a decrease in the average property price of 5.3% between May and June, before a significant 7.4% rise between June and July.

Regionally, the South East saw the biggest increase in property value (£29,185) between January and December 2022, with London not far behind with a rise of £25,760 between the start and end of the year.

Notably, however, property prices in these regions are well above the UK average, with London property currently valued at least £250,000 more than the rest of the country.

Of more interest to investors should perhaps be the more affordable Midland and Northern regions. The East Midlands, for example, saw a rise in property prices of £24,292 between the start and end of the year, with property values peaking

RioCan Real Estate Investment Trust (TSE:REI.UN) PT Raised to C$26.00

20/02/2023dansa

RioCan Real Estate Investment Trust (TSE:REI.UN – Get Rating) had its target price lifted by stock analysts at TD Securities from C$25.00 to C$26.00 in a research note issued on Friday, BayStreet.CA reports. The brokerage currently has a “buy” rating on the real estate investment trust’s stock. TD Securities’ price objective would suggest a potential upside of 16.54% from the company’s current price.

Other equities research analysts also recently issued reports about the company. Scotiabank lowered their price target on RioCan Real Estate Investment Trust from C$26.25 to C$26.00 in a report on Friday. CIBC increased their price objective on RioCan Real Estate Investment Trust from C$24.00 to C$25.00 and gave the stock an “outperform” rating in a report on Friday. BMO Capital Markets decreased their price objective on RioCan Real Estate Investment Trust from C$24.75 to C$22.75 in a report on Monday, November 7th. Finally, National Bank shares increased their price objective on RioCan Real Estate Investment Trust from C$23.00 to C$24.00 and gave the stock an “outperform” rating in a report on Monday, January 30th. One research analyst has rated the stock with a hold rating and four have assigned a buy rating to the company. According to

How to say 2023 housing look for Utah? Not as good as 2024.

15/01/2023dansa

It’s just two weeks into 2023, and Utah real estate agents are already being told to look to 2024 for things to improve.

Hundreds of them broke into a slow nervous laugh Friday when one of the state’s top housing economists offered them advice after delivering a series of forecasts of more interest rate hikes, falling home sales and other bleach markers this year.

“Just hang in there,” Jim Wood of the University of Utah’s Kem C. Gardner Policy Institute told them as they gathered for an annual look into their crystal ball. “2024 will be better.”

Historically wild swings in housing markets that started with the COVID-19 pandemic and have since wrought havoc in tandem with the state’s long-standing housing shortage still have a few quarters to go, Wood and other economists added — at least.

Here’s some of what they say to expect:

• Utah probably won’t see a recession, though the big job gains it has been enjoying will likely slow down.

• Home prices are dropping relative to their big run-up since 2020 — and nearly a decade before that, for that matter — and they’ll probably keep ticking downward well into this year. But sustained

Local real estate heads see ‘return to normalcy’ in 2023

09/01/2023dansa

The head of the local real estate association said we’re seeing more of a balanced market, and there’s more interest being seen from potential buyers to at least explore moves

The president of the Guelph and District Association of Realtors sees the local real estate market returning to normal next year.

A recent survey by Royal LePage is predicting a one per cent drop in the aggregate price of a home in Canada by the fourth quarter of 2023, to an estimated $765,171. That’s a drop from the $772,900 for Q4 this year.

Broken down, it’s seeing a two per cent decline in aggregate housing prices in the Greater Toronto Area, from $1,078,300 to $1,056,734.

The report didn’t discuss Guelph specifically in its forecast, but local association head Tyson Hinschberger noted Guelph and southern Ontario are always influenced by the GTA market.

So what does this all mean for Guelph?

“Certainly I think that at the end of the day, it speaks more to a return to normalcy and stability than probably a lot of the frenzy that we’ve seen over the last 12 to 18 months,” he said.

Speaking on behalf of the association, he believes the worst is