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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.”
Real eState
National housing market in ‘holding pattern’ as buyers patient for lower rates: CREA
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
Real eState
Two Quebec real estate brokers suspended for using fake bids to drive up prices
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
The Canadian Press. All rights reserved.
Real eState
Montreal home sales, prices rise in August: real estate board
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
The Canadian Press. All rights reserved.
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