Canada real estate Home sales down 40%
Home sales in Canada plummeted 40 per cent last month compared with a year ago, with new listings and prices also dropping in what one economist called “hints of a bottoming process.”
The plunge in sales came as prices declined 18.9 per cent compared with the all-time record posted in February 2022, the Canadian Real Estate Association said Wednesday.
The actual average home price in Canada was $662,437 in February, down from $816,578 a year earlier, the association said, referring to figures that had not been seasonally adjusted.
Compared with January, CREA said national home sales rose 2.3 per cent in February, powered by gains in Toronto and Vancouver, while the number of newly listed properties dropped 7.9 per cent month over month.
The drop in transactions in February brought sales in line with what was recorded in 2018 and 2019, suggesting the rise in interest rates over the past year “has blown off some of the pandemic era froth in Canada’s housing market,” BMO chief economist Douglas Porter said.
Despite sluggish sales last month, he said market dynamics showed signs of improvement in February.
“Canadian existing home sales activity remained deep in the doldrums in February, although there are hints of a bottoming process,” Porter said in a client note.
“There are signs that sales activity and prices may be close to a nadir,” he said. “The recent sudden plunge in global bond yields, alongside the Bank of Canada’s step to the sidelines, look to provide some support for housing, as does the ongoing job market strength.”
Still, while prices have softened to some degree almost everywhere across Canada, Calgary, Regina, Saskatoon, and St. John’s stand out as markets where home prices are barely off their peaks, the real estate association said.
Overall, prices began to stabilize last fall in the Maritimes, and some markets in Ontario seem to be doing the same now, the association said.
Jill Oudil, chair of the real estate association, said February’s data suggests the potential of a more robust market to come.
“But to repeat the bottom line from last month, we won’t know what the 2023 market has in store until the spring,” she said in a statement.
“While we’re not seeing it in the sales or listings data just yet, I would expect homeowners are getting properties ready for the market and prospective buyers are getting mortgage pre-approvals.”
Shaun Cathcart, the association’s senior economist, said similarities between 2023 and 2019 continued to emerge in February, with sales up, the market tightening, and month-over-month price declines getting smaller.
“But the biggest similarity was a sharp drop in seasonally adjusted new listings,” he said. “Future sellers, many of whom will also be buyers, are likely biding their time until the optimum time to list and buy something else.
“For most, that’s in the spring,” Cathcart said. “Will buyers jump off the fence to snap homes up in 2023 once they finally start to hit the market? They did in 2019.”
This report by The Canadian Press was first published March 15, 2023.
Three unique real estate listings that caught our eye this week – Western Investor
Western Investor is famous for the breadth of its commercial real estate listings. It is perhaps the only publication in Canada where investors can find a high-rise office tower, a remote waterfront lodge, a golf course, an industrial warehouse or a small-town bowling alley for sale within its pages.
We often have unique listings and there are three this month that stood out.
First is an entire city block for sale in downtown Calgary.
The 2.83-acre site borders the popular East Village, and the land is rezoned for a high-density mixed-use project with a generous floor-ratio-area (FAR) of 20.
Flexible commercial zoning allows for residential rentals, condos or hotel and a variety of commercial uses. Current visions include four high-rise towers, but all options are on the table. It is listed by Goodman Commercial, Vancouver, and NAI Commercial, Calgary, at an asking price of $32.4 million.
Second is a rare listing in B.C.’s Central Okanagan.
The property is the 11.3-acre Vibrant Wine vineyard estates in east Kelowna. The property includes a luxury 9,000-square-foot Italian-style villa. The eight-acre vineyard was named the No.1 winery on Trip Advisor and its product was ranked the Best White Wine in the World in 2013. A proven venture that can be expanded, the entire property and equipment is co-listed by HM Commercial and Jane Hoffman Realty, Kelowna, at $13.5 million.
Third of the unique listings is a productive gold mine.
With a private residence and a two-title acreage in the Cariboo, the property covers 3.2 acres near the original Gold Rush town of Likely, B.C.
The land includes an updated three-bedroom house, but the attraction is the operating gold mine. A two person operation on a five-year renewable permit that covers a 100-acre bench, only nine acres have been worked so far, but there has been a consistent average return of 1 ounce of gold per 100 yards mined, with the highest return of 8 ounces in under 100 yards. Note: the price of gold now is around US$1,980 per ounce. The entire operation, including all the mining machinery, is listed by 3A Group, Re/Max Nyda Realty in Agassiz, B.C., at $1.45 million.
Simcoe County's real estate market shows signs of recovery – CTV News Barrie
Real estate experts paint a cautiously optimistic outlook after a year of downward market trends across the country.
Trends in Simcoe County show an increase in viewings and buyers re-entering the market after key interest rate hikes from the Bank of Canada warded off many last year.
Lance Chilton, the broker of record at Re/Max Hallmark Chilton Realty, calls the local market “more or less balanced.”
“Inventory conditions are the same as they once were in 2018,” he noted.” From 2020 to 2022, prices rose to about 43 per cent, which was rather rapid.”
Chilton said key interest rate hikes eventually bottomed out the local market by about September – that’s when home prices that peaked at around $1 million dropped to about $730,000.
“Since then, it’s recovered by about five per cent,” Chilton said. “In fact, we actually saw showings increase for the first time in about six months.”
The Barrie and District Association of Realtors (BDAR) confirms that showings have picked up again, with people getting that “spring fever.”
However, the one key issue that remains is low inventory.
“We saw prices dip because of interest rates and people pulling out of the market, but we never saw that supply come back online,” said Luc Woolsey, BDAR president, adding the situation creates multi-offer bids.
“So there’s still a lot of people having to come in firm, waiving conditions and inspections because they’re having to compete.”
‘Million Dollar Listing’ star warns CA mansion tax will deliver ‘hardest hit’ to market since 2007 – Fox Business
Though it’s home to some of the most luxurious and expensive real estate listings in America, California is readying to pass a housing bill that one “Million Dollar Listing” agent warned could create the “hardest hit” to the market since the 2007-08 crash.
“In about ten days or so, there’s a measure called the ULA measure that’s going to go into effect, which is going to be probably the hardest hit to the real estate market that we’ve seen since 2007,” broker and television personality Josh Altman said on “Varney & Co.” Monday.
Altman’s comments come in response to the recently-passed “United to House L.A.” (ULA) measure in California, which adopts a so-called “mansion tax” on property sales or transfers over a certain value to pay for affordable housing.
Properties sold above $5 million but below $10 million are subject to a 4% sales or transfer tax, while properties that sold for more than $10 million will face a 5.5% tax, according to the city clerk’s voter information pamphlet.
‘MILLION DOLLAR LISTING’S’ JOSH ALTMAN GIVES INSIDE LOOK AT ‘BOTCHED’ STAR PAUL NASSIF’S $27.9 MILLION HOME
At least 92% of taxpayers’ money would “fund affordable housing under the Affordable Housing Program and tenant assistance programs under the Homeless Prevention Program,” the pamphlet also clarified.
“The way that this ULA measure was passed is just mind-boggling to me,” Altman added, “and I think it’s one of the most ridiculous bills that I have ever seen in my entire 20-year career.”
The Los Angeles city administrative officer estimated the proposed tax could generate $600 million to $1.1 billion in revenue each year. However, he noted it would “fluctuate” based on how many property transactions with values within the scope of the tax actually occur.
While those who support the measure argue it could help solve L.A.’s housing affordability and homeless crisis, others like Altman caution the tax policy would lead to higher home prices and bureaucracy.
“Think about these people that bought houses three years ago for $5 million and they want to sell now,” Altman hypothesized. “The market’s down, rates are up, that happens. But now they got to cut a check for $200,000 out of their own pocket because there’s no profit on that. So it’s really going to rock the real estate market that we’re in here in Los Angeles.”
California’s real estate market, the “Million Dollar Listing” star further argued, is on “a race to the bottom” over the next 10 days as buyers try to close deals before the mansion tax is enacted.
“I’m seeing deals get done that should never have gotten done,” the L.A. agent said. “I’ve even done as much as, on a $28 million listing that I have, we have offered a $1,000,000 bonus for anybody who buys and closes before April 1.”
The “main issue” with the ULA measure remains its “trickle down” effect — not on mansion or luxury homeowners, but on working and middle-class California families.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“People who voted who said, ‘Oh, I don’t have a $5 million house,’ which by the way, is not a mansion in L.A., we’re talking about a four-bedroom, 4,000 square-foot house in L.A. is $5 million, so this isn’t a mansion tax,” Altman said.
“This isn’t a $30, $40, $50 million house tax – these are regular people that work bill to bill, that have to pay their mortgage just like everybody else, and now they’re being penalized here.”
FOX Business’ Aislinn Murphy contributed to this report.
Federal budget to focus on clean economy, support for low-income Canadians, Freeland says – The Globe and Mail
4 Ways Social Media Normalizes Unhealthy Spending And How To Break Out Of The Cycle – BuzzFeed
Canadian momentum build continues at women's curling worlds with wins over Italy, Scotland – CBC.ca
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Search for life on Mars accelerates as new bodies of water found below planet’s surface
Media18 hours ago
Elon Musk roasted for bizarre social media posts about Taylor Swift: ‘Stay away from her’
Sports21 hours ago
Quick Reaction: Raptors 111, Bucks 118
Business18 hours ago
Investors punish UBS after Credit Suisse rescue, shares plummet
Science19 hours ago
Scientists Identify Intense Heatwaves At The Bottom Of Ocean
Investment18 hours ago
Enbridge: Investment Grade Company Offering 7.6% Bond (NYSE:ENB)
Tech14 hours ago
YouTuber Spends $22,000 to Buy Every Wii U and 3DS Game Ahead of Nintendo eShop Shutdown
Politics22 hours ago
Algorithms are moulding and shaping our politics. Here’s how to avoid being gamed
News17 hours ago
Biden’s Canada visit is long overdue, expert says