Canadian real estate sales printed yet another record during the pandemic. Canadian Real Estate Association (CREA) data shows home sales in January 2021 hit a record. The new high for January sales came with a little slow down for growth. However, things have been so heated, even a double digit drop in growth is one of the fastest rates in history.
Canadian Real Estate Sales Hit Record For January
Canadian real estate hit a new all-time record number of sales last month. There were 36,897 unadjusted sales on the MLS in January, up 35.2% from the same month as the year before. Seasonally adjusted, that number is 61,371, up 2.0% from a month before. The unadjusted number is a record for any January. During a pandemic.
Canadian Real Estate Sales
The unadjusted sales for all home types, as reported through the Canadian MLS. Source: CREA, Better Dwelling.
Canadian Real Estate Sales See Growth Slow, But Still At 35%
The numbers are getting so big, it’s going to be hard to scale sales from here. Last month’s 35.2% year-over-year change is a lot smaller than the 47.2% seen in December. That wasn’t entirely unexpected. One month lower doesn’t make a trend though, even if it’s a 12 point drop. Only 8 months in the past two decades have seen larger 12-month growth. Of those, 6 of them were the year before the Great Recession.
Canadian Real Estate Sales Change
The annual percent chage of unadjusted sales for all home types, as reported through the Canadian MLS. Source: CREA, Better Dwelling.
Canadian Real Estate Sales More Than Just Pent-Up Demand
The pandemic created restrictions on sales activity, which pushed sales into later quarters. By averaging the sales, we can smooth some of the months where home sales were artificially low. The 12-month rolling average is still 46,506 for January, up 13.9% from a year before. This is a record high, even when the trough is smoothed. This is more than just pent-up demand. It’s also pulled forward demand, commonly attributed to record low mortgage rates.
Canadian Real Estate Sales: Rolling Average
The 12-month rolling average of Canadian real estate sales. Source: CREA, Better Dwelling.
The growth rate of sales is expected to slow after the pandemic’s forced trough that ended in June. The Bank of Canada (BoC), as well as other organizations, have forecast sales will soften in the coming months. They believe cheap money has motivated more detached home sales as a temporary trend. As the effect of cheap money fades, they see less buying. The BoC did also quietly take their foot off the gas for cheap money, which should help with the fade.
Like this post? Like us on Facebook for the next one in your feed.
Canada's million dollar real estate club grows | Watch News Videos Online – Globalnews.ca
Move over Vancouver there’s a new member of the million dollar real estate club. A day after Vancouver reported a 73 percent jump in sales for February , Toronto numbers jumped over 50 percent with the average price of a home topping the million dollar mark. Financial analyst Michael Campbell has the details.
Ottawa real estate market sets record in February – CTV Edmonton
Ottawa’s real estate market remained red hot during a cold and snowy February, setting a record for properties sold during the month.
“Resale properties are virtually flying off the shelves,” Ottawa Real Estate Board president Debra Wright said in a news release.
The board reports 1,390 residential properties were sold in February, up from 1,134 in February 2020.
The sales volume for residential properties and condos in Ottawa was $885,592,105 in February, 54 per cent higher than the same month last year.
“Even though our inventory is significantly lower than 2020 – a combined 46 per cent decrease in housing stock for residential and condos – we witnessed a record number of sales in February 2021,” said Wright.
“How is that possible? Simply put, properties that come onto the market are selling very quickly.”
February’s sales included 1,028 in the residential-property class, and 362 condominium-properties.
The Ottawa Real Estate Board says the average number of days on the market for a property declined from 30 days in February 2020 to 14 days last month.
The average sale price for a residential-class property was $717,914, an increase of 27 per cent from a year ago. Condominiums sold for an average of $407,671, an increase of 17 per cent from February 2020.
“There is no denying that scarcity is leading to a more rapid price acceleration,” said Wright about the sales volume for residential and condo properties.
“This scarcity combined with buyer’s willingness to pay and compete in this market will continue to drive up the sales prices.”
Greater Victoria real estate sales, prices surge amid 'mobs' of buyers, low inventory – Times Colonist
“Mobs” of buyers are viewing homes for sale across the region, putting in offers well above asking prices and waiving inspections as the real estate market continues surging during the pandemic and traditional slower winter months.
Home sales of all types hit a record 863 during February, smashing the previous mark of 780 in 1992, and sailing past the 772 sales in 2016.
And prices are climbing.
The average price of a single-family home in the capital region breezed past the $1-million mark in June as the inventory of available homes for sale withered.
February’s single-family home average price hit $1.16 million — up from $888,000 during the same month a year ago. Last month’s average was beefed up by the sale of 30 properties that sold for more than $2 million — with 12 of those selling for asking prices and above, said Dustin Miller of 8X Real Estate in Victoria.
He said an equestrian farm in Central Saanich listed for $6 million went $155,000 over asking and there were three condominium sales for more than $2 million each, including the penthouse at Hudson Place One, the tallest building in Victoria.
The Victoria Real Estate Board said the benchmark value — or median price without the high and low end of sales — for a single-family home in the region’s core municipalities during February increased year-over-year by 9% to $948,200, a 1.7% increase from the previous month.
The benchmark value for a condominium in the core remained close to last year’s value at $525,400.
Real estate board president David Langlois said the market is caught between constrained inventory and high demand.
“The good news is that we have seen some stabilization in listings and condo pricing between January and February, but we continue to see huge pressure on single family homes,” said Langlois. “New listings are snapped up as soon as they are listed.”
That’s resulted in pressure on single family homes, where there is significant competition for desirable homes. “And in our marketplace most homes are desirable … and people are competing for properties and pushing prices up.”
There were 1,318 active listings for sale on the board’s Multiple Listing Service at the end of February — 38% fewer than the same period a year ago.
Miller said there are fewer than 400 single-family homes available across the entire system right now. “In a typical year we will see the most amount of inventory go online in April and May, but if the current trend continues, we will see only around half of the number of new listings compared to what was normally seen in the past.”
Kevin Sing of DFH Realty listed a modest, three-bedroom no-step rancher in East Saanich on Thursday for $759,000 and has shown it to nearly 50 prospective buyers over four days. He’s scheduled appointments from dawn until dusk and has received several offers, some unconditional, and several well over the asking price.
Sing said although the federal government’s mortgage stress test has put many younger buyers out of the single-family-home market, empty nesters, older couples who are downsizing or families with students at nearby Camosun College and the University of Victoria are lining up for the East Saanich home.
The demand for real estate seems insatiable, said Sing, and it isn’t just Greater Victoria.
“It’s worldwide,” he said. “I get on regular Zoom calls and everyone is experiencing the same thing, from Manhattan to the Grand Caymans. Unless you’re in a war zone, the demand for housing right now is just ridiculous.
“It’s hard to explain … it seem we have collectively decided [during COVID] that nesting is what we want to do.”
Langlois said the theme for 2021 is going to be inventory — “where does it come from and how much new supply can be approved — so that this situation does not persist.”
“We’ve seen the government attempt to influence the housing market in hopes of dampening the demand for home ownership,” he said. “The foreign buyer tax has changed nothing … our market continues to zoom forward with almost no foreign buyers. The government adjusted mortgage qualification rules, those are absorbed by the market and buyers adjust.”
Langlois said concerns about housing prices and availability should be addressed by supporting new developments in municipalities. “Be vocal with your local council or neighbourhood association,” he said. “These stakeholders hold the power in these negotiations and help to make space in your community. Gentle density and the building of new homes are the only pathway to moderate housing prices in our area.”
Miller said buyers and sellers should expect a competitive trend, including “mob-like numbers of people” showing up to see new listings.
He noted “bully offers” being submitted within hours of a property being listed and the waiving of all buyer protection contingencies such as home inspections.
SpaceX sticks 75th Falcon rocket landing after launching 60 more Starlink satellites – Spaceflight Now – Spaceflight Now
Pandemic Toll on Toronto's Visitor Economy Surpasses $8 Billion – Canada NewsWire
Apple faces antitrust probe in the UK over its Apple Store rules – CNBC
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Galaxy M31 July 2020 security update brings Glance, a content-driven lockscreen wallpaper service
Health13 hours ago
Here's who will get the AstraZeneca COVID-19 vaccine in Ontario – CTV Toronto
Sports6 hours ago
Which Countries are Experiencing a Boom to Their Gaming Industries?
Sports11 hours ago
Canadiens’ Bergevin fired goalie coach midgame Tuesday
Health8 hours ago
Ontario to launch coronavirus vaccine pilot project in selected pharmacies – CP24 Toronto's Breaking News
Sports23 hours ago
5 Raptors ruled out for rescheduled game vs. Pistons due to COVID-19 protocols – CBC.ca
Health11 hours ago
COVID-19 vaccine pilot project coming to some Ontario pharmacies – CTV Toronto
Health19 hours ago
Ontario reports 958 new coronavirus infections, 17 more deaths – CP24 Toronto's Breaking News
Sports19 hours ago
Tuesday night’s win showcased how good Jesperi Kotkaniemi can be – Habs Eyes on the Prize