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Real eState
Calgary’s real estate market gradually becoming more affordable
Calgary’s housing market has become more affordable over the past few months, though slightly less so than other major cities, according to a new study comparing average home costs with the income required to afford it based on mortgage qualifying rates.
“Rates have gone up just a little bit since June, but home prices have come down more substantially, making homes more affordable in Canada overall,” says James Laird, co-chief executive officer of Ratehub.ca.
In June, for example, the average price of a home in Calgary was $530,500, requiring $108,050 of annual income to qualify for a mortgage rate of 5.21 per cent, or effectively 7.21 per cent under the federal stress test.
Although a silver lining for buyers, the drop in income required was the least among Canadian cities in part because prices in Calgary have held up better, Laird says.
By comparison, Victoria saw the largest increase in affordability between August and October. There, the income required to qualify for a mortgage for the average priced home ($915,300) fell more than $4,800 from $183,7000 to $178,890.
Victoria’s market also saw the most significant decrease in the average price, falling by $38,500. By comparison, the average price in Calgary only fell $8,300.
Yet a buyer there required an income of nearly $212,000 to qualify for a mortgage. That’s compared with August and June when a buyer needed about $214,000 and nearly $227,000, respectively.
Slight improvements aside, buyers and sellers are still adjusting to the new market conditions, says a local realtor.
“There is a double-whammy where people must adjust to higher borrowing costs and lower pricing,” says Justin Havre, realtor with Justin Havre and Associates of Re/Max in Calgary.
In turn, some house-hunters are reluctant to buy amid falling prices, fearing their newly purchased home’s value will continue to fall.
“In the short-term, pricing can be a bit of a rollercoaster, but over the long-term real estate remains a sound investment,” Havre notes.
Similarly, sellers must adjust their expectations.
“They can’t shoot for the stars, pushing the boundaries of what the market supports,” Havre says.
Overall, pricing has held up amid declining sales because inventory has fallen off even more, and that is unlikely to change anytime soon, Havre adds. “People now are reluctant to move right now — unless they have to — because they are waiting to see what happens.”
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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.
The Canadian Press. All rights reserved.
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.
The Canadian Press. All rights reserved.
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.
The Canadian Press. All rights reserved.
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