B.C.’s housing sales downturn deepened in October as interest rate hikes and economic uncertainty sidelined potential buyers.
Real eState
B.C. real estate: Housing sales slump, but prices not declining in all markets
The sales slow down means prices are also taking a hit.
“Sales activity remains slow across the province and inventories appear to be plateauing,” said BCREA chief economist Brendon Ogmundson in a news release. “While prices have fallen from peak levels reached in early 2022, average prices have recently levelled off.”
While monthly industry reports show sales and prices falling, some real-time gauges of median prices show sharper falls.
And even in areas such as Powell River that were outliers and showed a significant year-on-year price increase of 9.3 per cent, according to benchmark prices used by real estate boards, real estate agents on the ground say that prices are now falling as buyers face tougher conditions.
“Our prices are falling like all other markets in the province,” said Warren Behan, a Powell River-based real estate agent.
Another real estate agent in Powell River said the area had been behind in prices for many years. In the spring of 2021 and even until earlier this year, buyers from other areas, who had cashed out of their properties elsewhere, came to Powell River.
Now, he is noticing that many deals are “subject to sale” of another property. He said there are still “outside” buyers, but it’s mostly local ones who are downsizing or moving.
Behan said the market has always had a mix of local buyers and ones from elsewhere. He said that with a low number of total sales, it’s easy for a relatively small number to skew percentage increases.
The steepest year-on-year sales decline for October was 61 per cent in Chilliwack where year-on-year prices for all property types fell by 11.9 per cent. The next sharpest decrease in benchmark price was seen in the Fraser Valley where it was 8.3 per cent, according to the real estate board.
Proponents of median prices, which is the middle price in a list of sales numbers from high to low, say these can be a more accurate reflection of a market where prices are moving quickly.
The Greater Vancouver area in October posted a slight 0.7 per cent increase in benchmark price to $1,231,805 compared to the previous year, according to the real estate board.
Meanwhile, the median price for Greater Vancouver in October was $978,000, which is a decrease of 5.7 per cent compared to the previous year, according to HouseSigma.
Within Greater Vancouver, however, the median price for all properties in North Vancouver increased by 13.6 per cent and in Burnaby by 4.4 per cent and in Coquitlam by 5.8 per cent, according to HouseSigma.
chchan@postmedia.com
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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.
The Canadian Press. All rights reserved.
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.
The Canadian Press. All rights reserved.
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.
The Canadian Press. All rights reserved.
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