Real Estate News

Why is Real Estate an Essential Service?

Written by PR&Content Manager Re/max Canada – Lydia McNutt (remax.ca)

With social distancing advisories and non-essential business closures in place, many people – some real estate agents included – are scrutinizing whether real estate is an essential service as it has been classified in many regions across Canada and the US; including here in British Columbia. Those who argue against the essential classification are coming from a good place, with hopes that more-stringent lockdowns will stop the spread of COVID-19. On the surface, shutting down such real estate services as those provided by agents, lenders, lawyers and land registry offices may seem like the sensible thing to do given the current climate. However, the unintended consequences would be detrimental to many people and for many reasons.

Real Estate as an Essential Service

The fact is, real estate is an essential service. This is something that RE/MAX leadership has lobbied hard for, for the right reasons. Alongside food, water and clothing, shelter is one of life’s basic necessities. As Dave Ramsay says; “Shelter is one of the main 4 pillars of life.” 

When Moving is a Must

Someone has already sold their home, and must now find a new place to live. Many of Canada’s housing markets were in seller’s territory in early 2020, prompted by low housing supply and growing demand. This motivated many homeowners to list.

A homeowner has to sell their existing home to finance the new home they’ve already agreed to purchase. Precluding homeowners from selling would have a detrimental domino effect.

A family is living in a precarious place, with no choice but to move. Factors such as neighbourhood crime or unsafe conditions inside the home itself may have forced a decision to move.

A homeowner has to liquidate their home equity in order to finance their business or their life. Social distancing measures mean many businesses are suffering huge losses. Furthermore, Canada’s unemployment rate in March 2020 rose to 7.8 per cent, up from 5.6 per cent in February 2020. Incomes are down and bills are continuing to roll in.

Those who were already in the thick of the re-homing process as the pandemic set in are now finding themselves stuck between a rock and a hard place – and homelessness is not an option. With that said, this spring real estate market is anything but “business as usual.” RE/MAX, along with other real estate brands and association, has strongly advised against open houses and in-person showings. The real estate industry has responded in an incredibly responsible way, limiting face-to-face contact and facilitating real estate transactions virtually.

Agents Are Doing Business Differently

Recognizing the need to proceed with real estate transactions, agents have adapted their business practices to meet social distancing measures. This include digital listing presentations, virtual open houses and showings, video conferences, e-signatures and e-transfers, among other things. RE/MAX agents are increasingly completing 100-per-cent digital transactions, and their clients are open to this new approach.

It’s understandable that people are on edge, as they come to terms with the shaky ground beneath us and the uncertain road ahead. Together, we will get through this and as always, RE/MAX professionals are here to provide guidance to Buyers and Sellers, to help them meet this most basic of human needs.

Kamloops Building Permit Values up in 2019

Building permit values are up considerably in 2019 compared to the previous year. Driving the increase over the past two months are two big permits for the downtown area. A new 140 unit rental apartment building is under construction on the between 4th and 5th on St Paul Street, the site of the old Movie Mart rental store. The $21 million permit was issued in July, the building will be a 6 storey made up of ground floor commercial space and 5 storeys of rental units. 12 subsidized units have been designated for seniors; which is great news for the aging population that is living on limited funds.

Royal Inland Hospital also pulled a $33.6 million foundation permit for the new patient care tower in the past quarter which has driven the total values up. Construction has already begun on the foundation as seen by driving down Columbia Street.

Other sizeable projects beginning work around Kamloops is the roof repairs for Sagebrush Theatre (1 million), construction of Marshalls (1.5 million) as well as site servicing for the new apartment building on Robson Drive, located behind Sahali Ridge, the new multi-family units in Juniper on Qu’Appelle Boulevard and multi-family development on Ord Road.

In July alone the city issued 886 building permits valuing $178.6 million, compared to this same period last year when permits valued $158.2 million. While we are just over 50% through the 2019 calendar year, it’s easy to see why we will surpass the previous year’s totals – in 2019 the total permits issued were $285 million.

With the latest zoning amendments for legal suites, carriage & garden suites, I anticipate we will see a steady increase of permits issued as more owners jump on board ahead of 2020.