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Canada real estate: Average home price to stay flat through rest of 2023, says Re/Max

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A new Re/Max housing market outlook report expected average home prices in Canada expected to remain flat for the rest of 2023. (THE CANADIAN PRESS Jonathan Hayward)

A higher interest rate environment and lack of inventory will continue to weigh on the housing market in the fall, according to a new Re/Max housing market outlook report, with average home prices in Canada expected to remain flat for the rest of 2023.

The report said interest rates and inventory levels will likely result in a softer market for the remainder of the year, something some Canadians may look to take advantage of going into 2024, says Re/Max Canada president Christopher Alexander.

“If the fall market is an early indicator for 2024 activity, we may see a very active first quarter as buyers and sellers take advantage of easing prices into the earlier part of next year,” he said in a statement.

“While we wait for governments to implement a tangible national housing strategy to boost Canada’s supply of both affordable and diverse housing, the market is starting to ease in some regions. This is bringing some much-needed relief from the sky-high prices we’ve experienced over the past couple of years.”

Still, while the national average home price is expected to be flat, some regions across the country will not see reprieve from higher prices. The report estimates that 44 per cent of housing markets in Canada are expected to be sellers’ markets through the remainder of the year, while the rest are a mix of balanced and buyers’ markets.

Many prospective buyers and sellers appear to be waiting on the sidelines to see how the interest rate environment plays out. According to a Leger survey commissioned by Re/Max as part of the report, 33 per cent of Canadians interested in buying or selling a home in the next 12 months said they would wait to see how interest rate changes play out before buying.

Where home prices will rise and fall across Canada

In Western Canada, the majority of markets are expected to see average residential sale prices to increase in the fall by between 0.7 per cent and 4.5 per cent. The regions that are expected to see price increases include Calgary, Edmonton, Red Deer and Winnipeg. At the same time, the Greater Vancouver Area and Kelowna in B.C. are expected to see sales soften by between two and three per cent.

In Ontario, 53 per cent of the market will likely be sellers’ markets through the fall, while 40 per cent will be balanced and just seven per cent are expected to be buyers’ markets. Areas that are expected to see prices rise include Burlington (up 1 per cent), Lakelands and Oakville (up 2 per cent), York Region (up 2.2 per cent), the Greater Toronto Area (up 2.5 per cent) and Sudbury (up 5 per cent.) Seven regions are expected to see home prices decrease through the rest of the year, including Hamilton, Ottawa and Windsor (down 2 per cent), North Bay (down 3 per cent), Kitchener-Waterloo (down 4 per cent), Durham Region and Peterborough (down 5 per cent).

In Atlantic Canada, Halifax and the Charlottetown Area will see prices fall between one and two per cent, while prices are expected to increase three per cent in Moncton. Most markets in the region are considered sellers’ markets, Re/Max said, with the exception of Charlottetown which is considered balanced.

Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.

 

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

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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.

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Homelessness: Tiny home village to open next week in Halifax suburb

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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.

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Here are some facts about British Columbia’s housing market

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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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