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2021 home sales will rival 2016 boom year, says B.C. Real Estate Association – Vancouver Sun

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Last summer, real estate agents described pent-up demand for detached homes following the pandemic shutdown. They said this trend has been sustained as some buyers who want more space, often because they are now working at home, also have more purchasing power with lower interest rates. Overall, however, they weren’t seeing the dynamics of the boom years of 2015, 2016 and 2017.

Now, some of them are starting to sense a boom.

“The market is really hot right now and it’s not slowing down,” said Vancouver real estate agent Steve Saretsky. “Most of the froth is in the single family housing market. It’s insanely competitive and comparable to 2016. The condo market is much more balanced though, and buyers can take more time to sift through the inventory.”

“Single family inventory for sale is near record lowest on record. If you’re looking for a house under $2m, there’s 1.6 months of supply. That’s insanely tight and is creating bidding wars. People are seeing prices getting bid up, and now there’s a fear of being priced out.”

Marion Chekaluk, co-founder of Ecom Appraisals Inc. said mid-December to mid-January is usually a very slow time of year for the appraisers and lawyers who process real estate transactions.

But in recent weeks, everyone in her office has been “absolutely run off their feet. I’m getting lenders calling constantly. I had three this (Monday) morning, saying ‘a deal is supposed to happen,’ that ‘subjects need to be removed today. And we’re waiting on this report. You saw the property on Friday.’ They’re asking our appraisers not to take a weekend and I’m saying to them, ‘no, you take your weekend. Because if not, you’ll get burned out.”

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Greater Toronto Area real estate approaching ‘buyer’s market’: BMO – Global News

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In the midst of the COVID-19 pandemic, Canadians hoping to buy homes have had to brave a sizzling seller’s market where waiving inspections, blind bidding, and dozens of competing offers are the norm.

Now, BMO’s chief economist says what many potential house-hunters are hoping for — a balanced or, better yet, buyer’s market — may finally be arriving.

Read more:

Canada needs new homes built, but construction industry headed for retirement wall

In a new data snapshot issued by the bank on Tuesday morning, Doug Porter said there’s been a “quick fall” in the sales-to-new-listing ratio which is a key part of assessing who holds more power in the Canadian real estate market.

That ratio dropped from 76 per cent to 66 per cent last month, a level not seen since June 2020.

The Canadian Real Estate Association (CREA) said Monday that level is “right on the border between what would constitute a seller’s and a balanced market.”

As a result, CREA noted home prices have just seen their first monthly decline in two years.

When it comes to the Greater Toronto Area (GTA) specifically, Porter raised the possibility of a buyer’s market.

“The GTA sales-listing ratio plunged to just 45 per cent in April, which is suddenly getting into buyers market terrain,” Porter wrote in the BMO snapshot data assessment.

In contrast, he said that number has been around 70 per cent over the past year, making for a “firmly seller’s market.”

“And what the ratio is now telling us is that prices are about to go from 20%+ gains to a sudden stall. And that’s assuming the sales/listings ratio doesn’t fall further in the coming months.”

Read more:

Bidding war no more: How to make an offer in Canada’s cooling housing market

The decision by the Bank of Canada to keep interest rates at rock-bottom levels during the pandemic has been attributed as one significant factor fuelling Canada’s surging home prices over recent years.

But the shift in market sentiment comes as the central bank is in the midst of a series of rate hikes taking aim at rampant inflation, which has hit 30-year highs as a result of reopening economies, supply chain problems and Russia’s invasion of Ukraine.

A lack of housing supply has also prompted growing political pressure on governments of all levels to increase construction — a challenge, given a wave of retirements poised to hit the construction sector.

Right now, though, BMO economist Shelly Kaushik said in a separate data snapshot on Tuesday that new home construction is increasing, with the industry “firing on all cylinders.”

Whether and for how long that will continue remains to be seen.

© 2022 Global News, a division of Corus Entertainment Inc.

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Ontario housing market: What $1 million will get you | CTV News – CTV News Toronto

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Both the Canadian and Ontarian real estate markets saw a record-breaking first quarter in 2022, with housing prices reaching new heights and sellers remaining well-positioned.

As of March, the average price of an Ontario home was $1,052,920. In the Greater Toronto Area, the average price is sitting at $1,269,900.

The Greater Toronto Area isn’t the only area breaking real estate records in the first quarter of the year either — prices of detached homes in the four Golden Horsehsoe communities — Barrie, Cambridge, Kitchener-Waterloo and Oshawa  — all surpassed $1 million for the first time.

The rise in prices is indicative of a larger national trend. Since last year, the national average home price climbed by more than 20 per cent to hit a record $816,720 in February.

With so many price tags hovering around the $1-million mark, buyers might be wondering how far a budget of that amount could get them across Ontario’s real estate markets.

Well, it depends on where you’re looking.

Here are a selection of Ontario real estate listings for under $1 million.

TORONTO

117 North Bonnington Ave can be seen above. (RE/MAX)

Address: 117 North Bonnington Avenue, Toronto, ON.

Property type: Townhouse

Asking price: $999,900

Bedrooms: Three

Bathrooms: Two

KITCHENER

22 – 93 Gage Ave can be seen above. (RE/MAX)

Address: 22 – 93 Gage Avenue, Kitchener, ON.

Property type: Condo

Asking price: $829,000

Bedrooms: Three

Bathrooms: Three

WINDSOR

533 Mountbatten Crescent can be seen above. (RE/MAX)

Address: 533 Mountbatten Crescent, Windsor, ON.

Property type: Detached home

Asking price: $999,900

Bedrooms: Four

Bathrooms: Three

NORTH BAY

59 Janey Avenue can be seen above. (RE/MAX)

Address: 59 Janey Avenue, North Bay, ON.

Property type: Detached home

Asking price: $779,900

Bedrooms: Five

Bathrooms: Three

OTTAWA

711 Spring Valley Drive can be seen. (Google Maps)

Address: 711 Spring Valley Drive, Ottawa, ON.

Property type: Detached home

Asking price: $999,900

Bedrooms: Four

Bathrooms: Three

NIAGARA-ON-THE-LAKE

23 Windsor Circle can be seen above. (RE/MAX)

Address: 23 Windsor Circle, Niagara-On-The-Lake, ON.

Property type: Townhouse

Asking price: $999,900

Bedrooms: Four

Bathrooms: Four

THUNDER BAY

2316 Falconcrest DrIve can be seen above. (RE/MAX)

Address: 2316 Falconcrest Drive, Thunder Bay, ON.

Property type: Detached home

Asking price: $969,000

Bedrooms: Four

Bathrooms: Four

HEARST

908 Halle Street can be seen above. (RE/MAX)

Address: 908 Halle Street, Hearst, ON.

Property type: Detached home

Asking price: $750,000

Bedrooms: Four

Bathrooms: Two

LONDON

1177 Crumlin Sideroad can be seen above. (RE/MAX)

Address: 1177 Crumlin Side Road, London, ON.

Property type: Detached home

Asking price: $999,000

Bedrooms: Five

Bathroom: Three

BARRIE

207 Dunsmore Lane can be seen above. (RE/MAX)

Address: 207 Dunsmore Lane, Barrie, ON.

Property type: Detached home

Asking price: $999,000

Bedrooms: Six

Bathrooms: Four

With files from CP24’s Chris Fox. 

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Real estate in Canada: Home sales down in April, CREA says – CTV News

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OTTAWA –

Increasing mortgage rates slowed home sales in April from the frenzied pace they started the year at, the Canadian Real Estate Association said Monday.

The association found the number of homes sold dropped by 25.7 per cent to 54,894 last month from 73,907 in April 2021, when the country set a record for the month.

On a month-over-month basis, sales in April were down 12.6 per cent compared with March, but still ranked as the third-highest April sales figure, just behind 2021 and 2016.

“The demand fever in Canadian housing has broken and, who would have thought, all it took was a nudge in interest rates by the Bank of Canada to change sentiment,” said BMO Capital Markets senior analyst Robert Kavcic, in a note to investors.

CREA attributed much of the slowdown to fixed mortgage rates, which have been on the rise since 2021, but have been more impactful in recent months. The association pointed out that typical discounted five-year fixed rates have leaped from about three to four per cent over the span of a month.

The rate is also weighing on how buyers fare with the mortgage stress test, which oncerequired those with uninsured mortgages — borrowers with a down payment of at least 20 per cent — to carry a mortgage rate of either two percentage points above the contract rate, or 5.25 per cent, whichever is greater.

For fixed borrowers, CREA said the stress test just moved from 5.25 per cent to the low 6 per cent range, another roughly one per cent increase in a month.

“People are nervous. They are thinking, ‘if I take on this mortgage, when mortgage rates are going up and the price to (live) is more, what is going to happen?” said Anita Springate-Renaud, a Toronto broker with Engel & Volkers.

She noticed that many homes were still getting multiple offers last month, but instead of 20 offers, two or three was becoming the norm.

Properties are also taking longer to sell. Homes that used to find a buyer in three or four days are now sitting for two weeks, in some cases, she said.

Many other realtors have found buyers and sellers holding off on purchasing or listing properties until they see how much of an effect mortgage and interest rate changes have on the market.

“For buyers, this slowdown could mean more time to consider options in the market,” said Jill Oudil, CREA’s chair, in a news release.

“For sellers, it could necessitate a return to more traditional marketing strategies.”

This shift in sentiment was reflected in the number of newly listed homes, which, on a seasonally adjusted basis, fell by 2.2 per cent to 70,957 last month from 72,557 in March.

On a non-seasonally adjusted basis, new listings amounted to 91,559 last month, down 10.5 per cent from 102,294 in April 2022.

Even though CREA reported slowing sales and fewer listings, Canadians were shelling out even more for homes than they did in 2021.

The national average home price was a little over $746,000 in April, up 7.4 per cent from about $695,000 during the same month last year.

Excluding the Greater Toronto and Vancouver areas from this calculation, cuts $138,000 from the national average price, CREA said.

However, on a seasonally adjusted basis the national average home price slid by 3.8 per cent to $741,517 last month from $771,125 in March.

The home price index benchmark price hit $866,700 last month, down 0.6 per cent from a month ago but up 23.7 per cent from a year ago and 63.9 per cent from five years ago.

The benchmark price was lowest in Saskatchewan, where it totalled $271,100 and highest in B.C.’s Lower Mainland, where it amounted to more than $1.3 million.

Kavcic found Ontario markets “weakening most and fastest, especially further outside the core of Toronto (these were also the hottest markets in the country during the pandemic).”

Ontario’s suburban markets are the “shakiest” because of how prices have fallen from February peaks, but he said single-detached and townhomes look to be cooling quickest.

“Sales in the province slid 21 per cent in April and are now back in-line with pre-pandemic activity levels,” he said.

“The market balance has gone from drum tight with ‘not enough supply,’ to one that resembles the 2017-19 correction period.”

Within the province, TD Economics economist Rishi Sondhi found Toronto to be an outlier because sales and prices dropped more there than in the country overall.

Sondhi believes the Toronto market is now close to tipping in favour of buyers, but in the coming months, expects prices to continue falling nationally, reflecting the cooler demand backdrop.

This report by The Canadian Press was first published May 16, 2022

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