Real eState

Calgary real estate predicted to moderate this year, with hot spring demand – Calgary Herald

Published

3 years ago

July 23, 2021

Harry Miller

Homes listed above $600,000 are starting to see sales and prices pick up

Author of the article:

Joel Schlesinger • for the Calgary Herald

Royal LePage expects Calgary’s home prices to grow by 7.5 per cent this year. Photo by Gavin Young, File /Postmedia

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The forecast is calling for hotter conditions — only not as heated as this past spring.

That’s not a prediction about the weather. Rather it’s a forecast for Calgary resale real estate prices.

Royal LePage recently released its Housing Price Survey and Market Forecast predicting home prices and sales across Canada will remain strong throughout the rest of the year — just not as heated as the sizzling hot markets seen in spring.

“It’s not sustainable,” says Corinne Lyall, broker/owner of Royal LePage Benchmark in Calgary, about sales and price growth that occurred in the second quarter.

As the report notes, from April to the end of June, the aggregate price of home in the city increased by 9.7 per cent year over year to $568,500, a record high.

The price acceleration was driven by record sales, including an all-time resale record for any month, set in April of more than 3,200 homes, Calgary Real Estate Board figures show.

Driving the market in the second quarter were single-family detached home sales. The median price for this housing type grew by more than 10 per cent year over year to $638,000, the study found.

Yet even the sagging condominium market saw growth, jumping by 4.1 per cent over the same span in 2020 to $226,000.

“One thing were are seeing is a bigger impact in the $600,000-plus whereas, years previous, all the sales were under $500,000,” Lyall says. “This is the first year I can remember since 2014 that we actually saw sales grow and an increase in price (in this range) because people were competing for these properties.”

Price growth has been even stronger nationally, the report notes, with the aggregate price of a home rising by about 25 per cent in the second quarter over the same period in 2020 to $727,000.

In fact, 89 per cent of regions surveyed saw double-digit percentage gains. Royal LePage forecasts sales will remain strong for the year, driving prices higher — just not at the pace seen in the spring.

The aggregate price nationally is expected to grow to more than $771,000, up 16 per cent from the end of last year. Montreal is forecast to be the hottest market with a year over year price gain of 17.5 per cent.

Calgary is also projected to see price growth, though more moderate at 7.5 per cent, year over year.

Veteran realtor Wendy Morrow with Real Estate Professional Inc. in Calgary says the price growth amid the pandemic is hardly surprising, given rising demand and limited supply.

“Inflation has risen above what we expected this spring and summer due to pent up demand,” she says.

But this problem is not unique to real estate, she adds. Inflation is rising throughout the economy due to bottleneck supply issues.

Yet supply in the resale market should grow in the months ahead, Morrow says. “This will soften the real estate market prices somewhat.”

Still, uncertainty remains with COVID variants and vaccine rollout, among other concerns like job growth.

“None of us have a crystal ball as to what will happen,” Lyall adds.

What is certain is the city remains an attractive place to call home, she says.

“Calgary is a great place to raise kids, be close to the mountains… and so there’s a really great lifestyle here that a lot of people are attracted to.”

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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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Real eState

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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Real eState

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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