Real eState

B.C. real estate: Looking ahead to 2024

Published

11 months ago

January 3, 2024

The latest housing assessment figures in British Columbia show residential property markets softening across the province, but analysts say it may not bode well for affordability in the coming year.

The concerns stem largely from the potential drop in interest rates later this year, which may spur homebuying activity while housing supply remains limited, driving up prices.

“There are a lot of buyers on the sideline right now,” said Central 1 Credit Union chief economist Bryan Yu.

“Once that certainty arises that rates are stabilized or are falling, we do expect to see that more buyers are going to come back and look into purchasing.”

BC Assessment said Tuesday that the vast majority of markets in Metro Vancouver, the Lower Mainland, Sunshine Coast, Greater Victoria and the Okanagan saw the typical 2024 valuation of a single-family home stay within a five-per-cent increase or decrease in price.

It is “notably” less volatile than what the Vancouver area has seen in recent years, the Crown corporation said.

The assessed value of a single-family home in Vancouver which reflected the market on July 1, 2023, rose four per cent to just above $2.2 million, while strata properties remained nearly unchanged at $807,000.

“Across the Lower Mainland and throughout B.C., the overall housing market has generally stabilized in value,” said Bryan Murao with BC Assessment in a statement, although he added commercial and industrial properties are seeing a higher rate of value increase due to the lack of land for such uses.

In Metro Vancouver, the only community with a shift beyond the five-per-cent range was the Village of Belcarra, which saw its typical single-family home value rise nine per cent to just over $2 million.

Assessments in Sechelt and Harrison Hot Springs were down by six per cent, while Hope dropped by 13 per cent.

No communities in the Okanagan or Greater Victoria surpassed five per cent in growth.

“For 2024, most homeowners can expect generally flat values including a mix of small decreases or only modest increases, reflecting the softening real estate market,” said Vancouver Island deputy assessor Matthew Butterfield in a written statement.

Thomas Davidoff, an associate professor at the University of British Columbia Sauder school of business, said the appearance of a less volatile housing market may be deceptive.

“A five-per-cent change a year is actually a lot,” Davidoff said. “If every year prices went up or down five per cent, within 15 years prices would have fallen in half or doubled. So, it’s not a tiny effect, but smaller than we’ve seen recently.”

He said that given the challenges with inflation and rising cost of living since 2022, the fact that property values are holding or even increasing slightly is evidence that B.C. homeowners are holding on to their homes and making adjustments elsewhere to make ends meet.

It may also mean that, when situations become more favourable, prices will resume an upward trend.

“Given the general increasing population in Canada and the ongoing challenge in adding housing supply, I think it is very likely that when rates come down we’ll see an increase in prices,” Davidoff said.

Overall, in the Lower Mainland and the Sunshine Coast, BC Assessment said total assessments have risen to nearly $2 trillion this year from about $1.94 trillion last year.

Increases were also observed from last year on Vancouver Island from $385 billion to over $386 billion, in the southern Interior from $303 billion to almost $315 billion, and in the north-central region from about $90 billion to more than $95 billion.

The assessments are used by government to provide homeowner grants, giving some relief on property tax bills ranging from $570 to $1,045 on homes that are valued at under $2.15 million.

Yu said the lack of new housing starts could also contribute to less affordability in B.C.

He said there were a large number of housing starts last year, driven by multi-family projects such as condos that had been planned years before the current economic challenges.

Yu said a slower housing market may be less enticing for new construction of homes, adding to the supply-side squeeze while higher levels of immigration feed stronger demand.

“My concern is that as you move forward, despite the fact that governments are pushing to drive new home supply higher, we’re actually going to see a significant decline in housing starts over the next year to two years,” he said.

“That’s going to set the stage for another leg up in home price – and, again, a further deterioration of affordability.”

BC Assessment said a lack of housing supply is playing a role in the Village of Port Alice on northern Vancouver Island, where single-family home values increased by 34 per cent to $349,000.

Other north and central B.C. communities also saw higher rates of fluctuation, with Haida Gwaii reporting a 22-per-cent spike to $283,000, while Prince Rupert dropped by eight per cent to $409,000.

This report by The Canadian Press was first published Jan. 2, 2024.

Source link

Real eState

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

Published

1 week 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.

Source link

Real eState

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

Published

3 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.

Source link

Real eState

Here are some facts about British Columbia’s housing market

Published

4 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.

Source link