Rising real estate insolvencies to surpass levels of the financial crisis and the Home of the Week: Canadian real estate news for August 16

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Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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Real estate insolvencies in Canada set to surpass levels of global financial crisis

Residential property developers are facing rising insolvencies as they struggle with higher borrowing and construction costs – and industry experts warn the trend is likely to worsen as interest expenses remain elevated, writes Rachelle Younglai. The number of insolvent real estate companies and projects has been rapidly climbing over the past year and is now on track to surpass levels of the global financial crisis, according to data from the federal Office of the Superintendent of Bankruptcy. From January to May this year, there was an average of 20 real estate, rental or leasing insolvencies in Canada every month. Sam Mizrahi’s luxury downtown Toronto condo tower The One has been one of the highest profile projects to default on its loans, with lenders owed $1.6-billion. And dozens of other developers have faced similar pressure from their lenders or have filed for bankruptcy protection.

B.C.’s new eviction rules put home sales in jeopardy despite tweaks, real estate industry warns

In July, new eviction rules were introduced in British Columbia, which increased the notice that tenants are required to receive when being evicted for their landlord’s personal use or the sale of a home, from two months to four. But the province is now backtracking following complaints from the housing industry that the new rules were detrimental to homebuyers, writes Salmaan Farooqui. As of next week, the notice period will be cut to three months on evictions related to home sales, but evictions relates to a landlord’s personal use remains four months. Both real estate experts and affordable housing advocates say the new rules — and their quickly-made changes — have confused homebuyers and renters who will have to decipher which rules apply to them. Prospective homebuyers have said they’ll be avoiding rented properties when looking for a home, and could be discouraged from renting out their homes in the future.

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Flashy designs, fresh amenities: Building owners eye upgrades amid return-to-office

Vacancy rates are slowly stabilizing, and commercial real estate companies hope to entice more businesses back into the office with new amenities, writes Alicia Cox Thomson. Updating amenities, which include everything from boutique gyms and sleek dining options to bike storage and shower facilities, to entice employees to return to office is just one trend highlighted by the CBRE in its recent report on Canadian office figures. The CBRE report also found that older, less premium buildings — which are also referred to as Class B and C buildings — have had to assume the higher costs to upgrade their facilities in an effort to get their buildings closer to Class A status. The gap between vacancy rates for Class A and B/C buildings has widened in downtown locations, with Class A buildings showing a vacancy rate of 16.4 per cent and Class B/C buildings showing one of 25 per cent.

National home sales fall in July despite lower interest rates, real estate association says

Although the Bank of Canada reduced its benchmark interest rate in both June and July, would-be buyers have not noticed much of a change in the cost of a new mortgage, and are still staying out of the market, writes Younglai. As mortgages remained relatively expensive, the volume of sales fell 0.7 per cent from June to July after removing seasonal factors, according to the Canadian Real Estate Association. Interest rate changes only have an immediate impact on variable rate mortgages, not on the fixed-rate mortgages – variable mortgages are currently the more expensive option, and real estate experts say the cuts haven’t been providing any relief for now. Realtors and economists expect buyers to start jumping back into the market only after several more interest rate cuts.

Home of the Week: Pre-Confederation settler’s home hugs a rolling landscape

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6090 County Rd. 50, Campbellford, Ont. – Full gallery here

Built in 1849, this five-bedroom home has been well-preserved through the years. The high ceilings and large casement windows bring a lot of light and air to the house and the floorplan has changed very little over two centuries — the original staircase, doors, double-sided fireplaces and wide plank pine floors are still in place. The rolling landscape of the property provides privacy and lots of opportunities for year-round activities, including hiking in the summer and cross-country skiing in the winter. And in case you just feel like staying in, the previous owners installed an in-ground pool, as well as a cabana and a stand-alone sauna.