‘We haven’t seen spreads narrow like this … since 2006,’ said the Calgary Real Estate Board’s chief economist
Low inventory and rising prices became common refrains in Calgary’s housing market last year — a trend the city’s real estate board says will likely continue in 2024.
The city’s benchmark price landed at $570,100 in December, say new data from the Calgary Real Estate Board (CREB), to end a year in which buyers increasingly shifted toward more affordable apartment-style homes.
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“A consistent theme throughout 2023 is that we have struggled with supply — especially affordable supply,” said Ann-Marie Lurie, CREB’s chief economist. Overall, Calgary is averaging a 44 per cent decline in inventory over its 10-year average.
That theme is expected to persist among homes where the need is greatest: There’s consistently been one month’s supply or less for single-detached homes selling for less than $600,000, which Lurie said is around the lower end for Calgary’s market.
“Conditions are still really tight in the lower end of the market,” she said.
The same goes for apartment condos: Those going for less than $200,000 have less than a month of supply, and $300,000 to $400,000 units have less than two months of supply.
The only segment that improved inventory in 2023 were high-end, single-detached homes going for more than $700,000, Lurie said. “That’s where we actually have some supply,” she said.
Those rising prices for single-detached homes encouraged more buyers to apartments and condominiums, according to the CREB report. Apartment-style properties were the only type to report a gain in sales over 2023, notching a record 7,884 sales — and subsequently resulting in record-high average prices.
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As of December, apartment and condominium units surpassed Calgary’s 2014 record high, hitting $321,400 — a 13 per cent increase over the previous year.
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Largely thanks to rapid population growth in Alberta over the past two years, Calgary bucked national trends that generally saw major housing markets simmer amid a high-interest environment.
The steep increases in interprovincial migration welcomed new buyers who experienced runaway housing prices in provinces such as Ontario and B.C., Lurie said, which helped offset the intended effects of high interest rates.
“In a higher interest rate environment, you wouldn’t expect to see the sales growth and the higher price points, but we continue to have activity improve here,” she said. “I think that’s kind of a reflection of that interprovincial migration.”
Overall, Calgary’s benchmark price slowed compared to 2022 levels, which grew 12 per cent that year. For 2023, the benchmark rose six per cent. Still, Calgary remains affordable relative to markets such as Toronto and Vancouver, Lurie said.
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In the early days of 2024, Lurie said she’ll be keeping a close eye on new inventory coming online, with early-year conditions already tight.
“One of the things I like to look at is the relationship between sales, new listings and inventory,” she said, “and we haven’t seen spreads narrow like this . . . since 2006.”
At that time — around 18 years ago and shortly before the 2008 financial crisis — Alberta was also seeing strong migration and the economy was also strong.
“It wasn’t just about people coming here for affordability. People were coming here for work back then . . . overall, our economy was doing really well, and that attracted a lot of people here for jobs,” she said.
Calgary is expected to see an eight per cent rise in aggregate housing prices this year, a recent Royal LePage report said, noting Calgary is bucking national trends amid a high-interest environment due to rapid population increases over the past two years.
Those increases would see the aggregate home price reach $711,612.
Condominiums and apartments’ increasing popularity are reflected in those projections, too. Condos are expected to increase 9.5 per cent by year’s end, hitting $286,562.
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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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