Real eState

Calgary real estate market sizzles as newcomers flock to Alberta – Calgary Herald

Published

1 year ago

July 8, 2023

“I think we’ve been a bit surprised at how strong it’s been,” said the chief economist for the Calgary Real Estate Board

CP, The Canadian Press

Amanda Stephenson

Published Jul 07, 2023 • 4 minute read

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Thunder clouds build to the west behind Calgary’s downtown skyline on Monday, May 15, 2023. Gavin Young/Postmedia

As the curtain rises on the 10-day extravaganza that is the famed Calgary Stampede, homebuyers are also stampeding to snap up real estate in Alberta’s largest city.

This summer, the hottest commodity in town isn’t the perfect pair of cowboy boots or a well-broken-in Stetson — it’s a detached home on a nice lot or a perfect downtown condo with a view.

“It started taking off around February, and it’s been like this all year,” said Calgary real estate agent Matt Halladay, who has been helping buyers navigate what has become Canada’s hottest real estate market in 2023.

That means homes selling often the day they’re listed, he said, for well over the asking price — and occasionally sight unseen, as sellers accept a bid before the scheduled viewings even start.

“It’s common to see anywhere from four to 17 offers (on one listing),” Halladay said.

“The most I’ve heard of, on one that we lost out on, was 26 offers.”

The frenzy in Calgary — the city set an all-time record for home sales in June, up 11 per cent year-over-year, with apartment sales alone up an eye-popping 48 per cent — flies in the face of what’s happening nationally.

The real estate story across the country for most of the year thus far has been a decrease in activity due to the impact of higher interest rates.

While home sales in major markets like Toronto and Vancouver started picking up steam again this spring, home sales nationwide in May — the most recent month for which national statistics are available — were up just 1.4 per cent year-over-year, compared with Calgary’s 11 per cent.

And while prices have fallen nationwide — the Canadian Real Estate Association’s (CREA) aggregate composite home price index for the month of May sat 8.6 per cent below 2022 levels — they are sizzling in Calgary.

The average selling price of a home in Calgary last month increased by almost seven per cent from a year earlier to $552,273, according to the Calgary Real Estate Board.

“I think we’ve been a bit surprised at how strong it’s been,” said Ann-Marie Lurie, chief economist for the Calgary Real Estate Board.

“And how strong activity has been even in the upper (price) ranges, in spite of the interest rate increases.”

Part of the reason that Calgary’s housing market is outperforming the rest of the country is that it has more room to grow.

Unlike Toronto and Vancouver, whose overheated housing markets have been a topic of national conversation in recent years, Calgary is coming out of a years-long slump that began with the oil price crash of 2015.

That year alone, home sales in Calgary plunged 26 per cent. In the city’s condo and apartment market, it has taken eight years for prices to recover to their 2014 levels.

But with the higher commodity prices that began last year in the wake of the invasion of Ukraine, the city’s oil-and-gas-based economy is rebounding.

Over the past twelve months, the Alberta labour market has outperformed the rest of the country in terms of job gains, and a recent report from Deloitte predicts the province will experience the strongest economic growth in the country this year at 2.1 per cent.

People are also flocking to the province, in particular the city. Statistics Canada says Alberta saw the largest net interprovincial migration of all the provinces during the first three months of the year, with more than 15,000 people arriving from other parts of the country — in particular, Ontario, B.C. and Saskatchewan.

Another 100,000 people moved to Alberta from other countries, according to Statistics Canada.

“A lot of that growth coming into Alberta is funnelling into Calgary. Calgary’s market is performing more than other markets (in the province),” Lurie said.

She added that while job opportunities are a major factor drawing people to the province, some people who have been priced out of other markets may be looking to Calgary as one of the last major Canadian cities where home ownership is still affordable.

“That can be an advantage to Calgary and attracting people here _ especially when we have a fairly strong jobs market and continue to see jobs growth, especially in areas like professional services and other higher-paid industries.”

But while the influx of people is good news for the province’s economy — and for the Alberta government, which has been trying to entice new residents from other parts of the country through its “Alberta Is Calling” marketing campaign — it can make for a stressful home-buying experience.

Kalida Manarin and her husband Stephen have been looking for a house in their inner-city Calgary neighbourhood of Marda Loop for six months, but have had no luck yet.

“We’ve seen a couple that we liked, but by the time we got to the point of putting in an offer, they had already accepted other ones,” Manarin said, adding that in the meantime, prices have continued to rise.

“I wish we would’ve bought when we started looking, but we kept thinking, ‘The price will go down, it’ll be fine,’ ” she said.

“That being said, I’m still optimistic. I still think that now is a great time to buy in Calgary. I don’t necessarily think (the market) is going to go down.”

This report by The Canadian Press was first published July 7, 2023.

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Real eState

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

Published

2 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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