Real eState

Calgary real estate sets April record for sales – Calgary Herald

Published

3 years ago

May 3, 2022

Conditions have pushed the benchmark price per unit to $526,700 in Calgary, up two per cent from March and 17 per cent from last year. Photo by Gavin Young/Postmedia

Calgary’s real estate market continued on its blistering pace in April, but there are finally signs that it may start to cool off.

After setting all-time records for sales in a month in March, the sector fell off that pace but still set a new mark for the month of April with 3,401 sales — a gain of six per cent year-over-year.

“We did expect to see some pretty strong conditions in the spring, just given the lack of supply going into the year,” said Ann-Marie Lurie, Calgary Real Estate Board’s chief economist. “But as we go forward and the interest rates get more aggressive, I do think that we will see the market return to … levels that are still strong, but maybe not quite at those record levels. That pace of growth should continue to ease as we move into the later part of the year.”

Still driving the sellers’ market is the lack of inventory with 4,850 units available citywide at month’s end. The market is also partially being pushed by the increase in interest rates by the Bank of Canada, as people try to get in before the rates — as being widely forecasted — jump to two per cent or higher by the end of 2022.

The conditions have pushed the benchmark price per unit to $526,700, up two per cent from March and 17 per cent from last year.

In the detached segment, year-over-year sales slowed for the first time since the spring of 2020, but there were still 1,815 units sold, which is still out-pacing long term trends. The decline is due in part to a lag in sales for homes under $600,000, which amounts to a supply issue. With the benchmark rising to $628,900 — 19 per cent above last April — there was still growth in sales over $600,000. There is currently only 1.3 months supply, creating a tight market. Inventories have not been this low in April in 15 years for detached homes.

It’s a similar situation with semi-detached homes. A decline in new listings in April aided in slower sales than in March, but they were still up 30 per cent over April 2021. This led the benchmark price to rise to $487,900, up two per cent over the previous month and up 16 per cent over the last 12 months.

Row house sales were down but a new April record was still set. The market was aided by 781 units being listed in April, a gain of 24 per cent and the highest level ever seen in April. It was not enough to bring balance to the sector but still helped keep prices more controlled as they were already being influenced by the lack of demand in other sectors. Prices were up two per cent since March and 17 per cent year over year.

Apartment condo sales continue to flourish, building off of momentum in previous months, bringing life to the segment not seen in years. There were 642 units sold in April, up 42 per cent over last year and set a record for the month. This was helped by 893 new units hitting the market, bringing supply up to almost two months.

The gains are still below the record prices of 2014 for the segment, but the gains are important for owners who have been holding on to properties in a stagnant market for years.

“It’s really the last segment where we are waiting to see the price recovery start to play out,” said Lurie. “It has been a struggle for many years; it is a shift in this market that, especially for sellers, it’s nice to see.”

While interest rates should help cool the market later this year, Lurie said the biggest salve will be new housing starts, creating more stock for those cashing in on the selling of their homes in a hot market or those moving to Calgary looking to buy. The solution, however, is still years in the building.

“It’s going to take some time to see enough supply come on in the entire housing market before we see these conditions return to a more balanced level,” she said.

There is not much relief for those looking for a deal outside of Calgary’s city limits. Airdrie, Cochrane and Okotoks remain tight markets with benchmark prices jumping in all three locations year-over-year. Airdrie is up 29 per cent to $480,600 with less than one month supply; Cochrane is up 21 per cent to $530,900; and Okotoks was up 13 per cent to $538,300 with less than a one month supply.

jaldrich@postmedia.com

Twitter: @JoshAldrich03

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Real eState

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

Published

4 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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