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Average house price hit record $748,450 in January — up 21% in past year – CBC News

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3 years ago

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Cold weather did little to chill out Canada’s red-hot housing market in January, with new data Tuesday showing average house prices have increased by 21 per cent in the past year to $748,450 — the highest on record.

The Canadian Real Estate Association (CREA), which represents more than 100,000 Realtors across the country, said Tuesday that the volume of homes being sold has plateaued, largely because of a lack of inventory. But prices continue their record-setting ascent.

After a brief lull early in the pandemic, Canada’s housing market has been on fire for the better part of two years now, as buyers have taken advantage of record-low interest rates to buy larger and more expensive homes.

January is typically a slow month for the housing market, as buyers and sellers tend to stay on the sidelines until the spring. But COVID-19 has done away with those seasonal trends: January 2021 was the busiest January for home sales on record, CREA says, and 2022 was the second busiest ever.

CREA notes that the average selling price can be misleading, because it can be skewed by sales in large, expensive markets like Toronto and Vancouver. So the Realtor group touts a second figure, known as the Multiple Listings Service House Price Index (HPI), as a better gauge of the market, because it is adjusted based on the type of housing sold in every market.

But the HPI, too, has never been higher. It increased by 2.9 per cent in January alone — another record. And on an annual basis, it’s up by 28 per cent — also the highest it’s ever been.

While house prices are up sharply just about everywhere, they aren’t rising at the same pace across the country. Ontario and British Columbia are the biggest factors in the increase, with some markets in both provinces clocking 30 per cent gains in the past year.

That contrasts with the Prairies, where prices have increased by about 10 per cent in Alberta, Saskatchewan and Manitoba since last January. 

Some buyers are trying to leverage that imbalance by moving from pricey markets to comparatively cheap ones. Calgary Realtor Ezra Malo says he’s seeing an influx of buyers from outside Alberta right now.

WATCH | Calgary Realtor explains the city’s housing market right now:

Calgary realtor describes hot market

3 hours ago

Duration 0:35

Ezra Malo says sales are booming in Calgary, partly driven by an influx of buyers from elsewhere in the country. 0:35

“We’ve got … a surge of buyers that seem to be coming in from outside of the province, as well as a lot of home first-time home buyers that are trying to get in,” he said.

While many have blamed record low interest rates for inflating a bubble, CREA says the biggest problem is that there simply aren’t enough homes for sale right now to keep up with demand.

The total inventory of homes for sale on CREA’s online database, the Multiple Listings Service, was at just 1.6 months in January, meaning that’s how long it would take to sell the homes currently listed. That ties the lowest level on record.

“The ideal situation between now and the summer would be that a huge surge of sellers come forward looking to sell,” CREA’s chief economist Shaun Cathcart said.

“If that were to occur, similar to 2021, we’d likely see a massive number of sales take place which would get a lot of frustrated buyers into home ownership, and we’d likely see some cooling off on the price growth side.”

Torrid pace

Nationally, January’s increase was the fastest pace seen since 1989, TD Bank economist Rishi Sondhi noted — which is why the pace likely can’t last.

“Affordability is clearly worsening quickly, which should make it tougher for first-time homebuyers to jump into the market,” he said. “Moving forward, we expect higher interest rates and the tough affordability backdrop to cause home price growth to slow significantly, particularly in the second half of 2022.”

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Carry On Canadian Business. Carry On!

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2 days ago

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October 22, 2024

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business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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2 days ago

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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2 days ago

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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