Real eState

Calgary real estate market forecast to build on momentum gained in 2021 – Calgary Herald

Published

3 years ago

January 7, 2022

Author of the article:

Joel Schlesinger • for the Calgary Herald

“We should expect another very brisk spring market,” says Corinne Lyall, broker and owner, Royal LePage Benchmark. Photo by Gavin Young /Postmedia

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More price growth is ahead for the city’s resale real estate market, a new report suggests.

Royal LePage recently released its 2022 forecast for major markets in Canada, including Calgary, revealing the average price of a Canadian home is expected to rise more than 10 per cent, year over year, to about $860,000.

Calgary is forecast to see another banner year, too, building on 2021 which saw sales records set as well as near new highs for prices. The report predicts Calgary’s resale market will see the average price of a home grow by six per cent to about $611,000 by year’s end.

“Following a busy fall, and for that matter most of last year, real estate demand remains very strong, and we should expect another very brisk spring market,” says Corinne Lyall, broker and owner, Royal LePage Benchmark.

Lyall further notes the market is still being fuelled by pandemic drivers that include low interest rates and high demand for single-family homes, which should remain in relatively short supply.

In fact, the lack of inventory is likely remain the biggest headwind for the market, pushing up prices as demand is expected to continue to be strong.

The forecast further notes single-family detached home prices in the city will increase about 6 per cent to a median price of about $689,000 while the median price for condominiums will rise only about 2 per cent to $229,500.
The dramatically lower cost for multi-family homes in the city is one reason Calgary will be an attractive draw for young families and professionals from larger centres like Toronto and Vancouver looking to get a toehold in real estate, Lyall says.

“Calgary is really attractive to young Canadians looking for affordable homes, good job opportunities and a more balanced lifestyle,” she says, adding proximity the Rocky Mountains add to its attractiveness.

Additionally, new infrastructure investment in light rail transit and a revitalizing downtown should boost economic activity and jobs growth, further accelerating migration to the city.

Local realtor Tim Jones says Calgary and its surrounding regions, like Airdrie and Cochrane, could see even stronger growth than predicted by the Royal LePage report.

“Calgary and the surrounding counties may see price growth of 10 per cent or more for residential real estate in 2022,” says Jones, broker and owner of Re/Max Prime.

The region did not see the same large price gains experienced in other major centres in Canada last year and, in turn, has a lot more room for prices to grow sustainably even amid low supply, he says.

In addition to factors driving housing price growth in 2021 — pent-up buyer demand, low inventory and cheap borrowing costs — international and inter-provincial migration should increase to more historical levels, adding to housing demand, he says.

Despite expected price growth for Calgary’s resale market, Lyall notes even the city’s soaring single-family detached homes market remains affordable compared with the Greater Toronto Area, which is forecast to see the average price of a single family home rise by 10 per cent to almost $1.6 million. The Greater Vancouver Area is forecast to hit even pricier heights with a single-family home expected to increase in price by 12 per cent to almost $1.9 million.

By those measures, Lyall adds, “Calgary should remain an affordable place to live.”

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Real eState

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

Published

3 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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