Real eState

Albertans more anxious about real estate than other Canadians – Calgary Herald

Published

3 years ago

April 15, 2022

Calgarians struggle with the quick shift from ice-cold to red-hot market, says realtor

Calgarians are adjusting expectations as market moves from a slump to a hot market. Photo by George Socka /Getty Images/iStockphoto

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A recent survey of attitudes about real estate reveals Albertans are more worried than the average Canadian, leading one Calgary realtor to suggest the findings reflect whiplash market conditions in the city over the last several months.

“Calgary’s shift in the market has happened so fast over the last 10 months that buyers have had a hard time keeping up,” says Doug Cabral, realtor with Royal LePage Benchmark Real Estate.

“That’s because Alberta, unlike most parts of Canada, was in a recessionary market pre-COVID.”

Yet the market in Calgary has completely turned around with consecutive all-time records for sales set in February (3,305) and then in March (4,107), along with the benchmark price of a home reaching a record $518,600.

Cabral adds surging demand and prices have served as a shock particularly for first-time buyers, which is likely reflected in the recently released annual RBC Home Ownership Poll.

Among its findings are that 62 per cent of Alberta respondents indicated rising house prices forcing them to consider moving farther away from friends and family. That’s compared with the national average of 54 per cent.

Notably, the Alberta figure is higher than in Ontario (57 per cent) and Vancouver (59 per cent) even though benchmark prices in Toronto and Vancouver for March reached $1,376,000 and $1,360,500 respectively.

“Those affordability questions — like ‘What can I afford, when and where? ’— have resulted in some distinct differences in Alberta compared with the national average,” says Andrea Metrick, senior director of home equity financing at RBC.

The findings can even seem counter-intuitive, given Calgary’s relative affordability, she adds.

Notably, 39 per cent of Albertans who are first-time buyers stated having to live with their parents longer to afford a home.

In contrast, the figure was 30 per cent nationally, 30 per cent in British Columbia and 34 per cent in Ontario.

As Cabral sees it, Calgary first-time buyers “had to quickly readjust their expectations both on price and strategies to compete for a home over the course of the pandemic.” At the start of the pandemic, prices had been falling since 2015.
In early 2020, Calgary Real Estate Board figures show the benchmark price of a home was about $420,000.

Since, the price has climbed almost 25 per cent with most of the increase occurring in recent months with the March benchmark price surging almost 18 per cent, year over year.

Albertans are also more anxious about rising interest rates compared with most Canadians.

The survey found 69 per cent of Alberta respondents indicated concerns about rising borrowing costs, compared with 60 per cent nationally. As well, 50 per cent noted inflation could negatively affect home affordability whereas only 48 per cent nationally cited that as a worry.

Cabral notes these anxieties likely are being borne out in recent market activity.

“Buyers were panic buying earlier this year, driving sales, fearing they would get priced out of the market.”

Yet as more inventory comes with the busy spring market, panic buying should subside, Cabral says.

“That’s because the frantic pace was driven by a lack of inventory.” In Feb. and March supple was about one month, according to CREB data.

Still, anxieties are likely to remain for some buyers, he adds.

“It remains to be seen how much inventory will come, and how fast interest rates will rise for the rest of the year.”

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Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

4 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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