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Lack of listings pushes Alberta real estate into a sellers' market – Calgary Herald

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High demand in Calgary and Edmonton, paired with continuing low supply, will likely drive prices higher in the year ahead, says Zoocasa

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Amid the success of the real estate market is a sore spot that could drive up prices more than expected, and that’s low inventory in the coming year, according to one national realty firm.

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While the pinch of low supply is most acute in larger centres like Toronto and Vancouver, Alberta is also “feeling the inventory pinch,” says Rachel Rehkopf, spokesperson for Zoocasa Realty Inc. in Toronto.

She points to December total sales rising by 27 per cent in Alberta while new listings remained stagnant.

That “pushed the entire province into sellers’ market conditions.”

The province sits at 2.5 months of residential inventory. That essentially means if no new homes came to market over the next two and a half months, and current demand for housing continues, Alberta would have no more homes for sale.

It’s a scenario that’s unlikely to happen, of course, and the overall supply-demand picture is better in Alberta than other parts of the country, she adds.

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In Ontario, for example, supply is 0.6 months while the metric is 1.7 months in British Columbia.

Yet Alberta’s supply is significantly lower than last year when it had four months of supply, she says.

Calgary is the tighter of the two large markets in the province with only 1.5 months of supply, while Edmonton actually added new listings in December, growing by about 10 per cent, year over year. Still, sales in Edmonton outpaced new listings, resulting in a 14 per cent decrease in inventory.

Overall, high demand in both cities paired with continuing low supply will likely drive prices higher in the year ahead, she notes.

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B.C. Real Estate: Five homes for sale under $200000 – Vancouver Sun

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Trail, Port Hardy, Richmond and Tumbler Ridge among communities with homes in this price range

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According to a report released by a U.S.-based property management software company, around 10 per cent of all active home listings in Canada right now are priced at less than $200,000.

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There are no listings for less than $200,000 in the Lower Mainland (except in Richmond).

Here are five residential properties in B.C. that are for sale at less than $200,000.


Richmond 106/7240 Lindsay Road

The living room of a Richmond apartment priced at $199,000.
The living room of a Richmond apartment priced at $199,000. Photo by zealty.ca

This 630 square foot apartment is almost 50 years old and has a monthly maintenance fee of $460.

It is on the ground level and a key reason that it is priced at $199,000 is because it is built on leased land. The lease is prepaid until 2087.


Sonora Island Lot 30 Owen Bay

Sonora Island
Sonora Island Photo by Zealty.ca

This 1.26 acre lot comes with a small older cabin that is livable and is priced at $129,000. It has solar and wind power. There is a dock a ten-minute walk away.

Sonara Island is one of the Discovery Islands where Johnstone Strait joins the Georgia Strait.

The closest large community is Campbell River on Vancouver Island. Sonora Island is not serviced by B.C. Ferries.

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Port Hardy 7/7077 Highland Drive

An apartment in Port Hardy that is listed at $169,000.
An apartment in Port Hardy that is listed at $169,000. Photo by Zealty.ca

There are four apartments in different locations within Port Hardy on the top end of Vancouver that are priced at less than $200,000.

This one has two bedrooms and has been updated with new laminate floors and is south facing. It is priced at $169,000.

As a base for ferries to Prince Rupert, Port Hardy sees a lot of tourists in the summer.


Trail 2075 Topping Street

The view from a home in Trail, B.C., that is priced at $199,000.
The view from a home in Trail, B.C., that is priced at $199,000. Photo by Zealty.ca

Trail, the site of Teck Resources zinc and lead smelting and refining complex, was a decade ago a place you could buy a home for $50,000.

It’s now a place where you can get a detached home for less than $200,000. Despite the smelter that looms over the city, Trail is close to excellent skiing and recreation.

This 1,300 square-foot home has views of the Columbia River with a serviceable kitchen and even has a new washer-dryer. It is priced at $199,000.

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Tumbler Ridge 103 Ash Crescent

This home in Tumbler Ridge is for sale at $183,000 and has been on the market for two years.
This home in Tumbler Ridge is for sale at $183,000 and has been on the market for two years. Photo by Zealty.ca

Tumbler Ridge in the Peace River region was built from scratch in the early 1980s to create a community for coal mining companies in the area.

As a result, it’s a lovely town that’s well laid out and has great amenities. It is, however, beholden to coal demand, that has led to a slump in real estate prices.

With an asking price of $183,000, this 2,100 square foot home is on a large corner lot. It has three bedrooms and comes with a new furnace. It has been on the market for over two years.


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Quit judging people who bought houses at the peak of the real estate market and overpaid – The Globe and Mail

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A sale sign in Toronto in May, 2021. The national average resale house price peaked at $816,720 in February and has since come down to $746,146 in April.Christopher Katsarov/The Globe and Mail

The most positive financial development of 2022 so far is the end of the housing frenzy.

House prices went up too much, too fast. A lot of money has been made in real estate and a lot of economic activity generated, but we need a pullback to restore a degree of economic rationality.

Expect some ugliness as we make the transition from boom to whatever lies ahead for housing – stagnation, mild decline or bust. Canadians have so much invested in housing, both financially and emotionally. Seeing housing deflate will not bring out the good in people.

A prediction on the first to be judged: people who bought at the top of the market. Already, we have the phrase “buyer’s regret” making the rounds in media stories.

Stress Test podcast: Young Canadians on trying to buy in a wild real estate market

With rising interest rates, large mortgage payments are a new hurdle for homebuyers

The national average resale house price peaked at $816,720 in February and has since come down to $746,146 in April. Average prices last month were more than 50 per cent higher than the same time in 2020 and up 7.4 per cent over April, 2021. But housing has sprung a leak for sure. Economists say a price decline of as much as 10 per cent to 20 per cent is possible.

As recently as a month or two ago, we lived in a bid-till-you-bleed real estate market. Prices kept rising no matter how much people paid, so no deal was a bad deal if it got you into the market.

This was intergenerational thinking, not the whim of an inexperienced young generation trying to get into the housing market. Consider all the parental money that went into building down payments for first-time buyers. A CIBC Economics study last fall said almost 30 per cent of first-time buyers got down payment money from parents, and these gifts averaged $82,000 in value.

The home ownership imperative was also fuelled by the evolution of houses into a commodity to invest in, such as oil, metals or gold. In this financialization of housing, investment companies bought houses to rent out and new ventures emerged to allow people to buy fractional shares in houses and buildings.

Housing hardly needed a cheerleading section, but it had one in a real estate industry that was masterly in how it explained away the fundamental problem of house prices rising far ahead of incomes. Immigration justified prices. A lack of supply was the problem. The same goes for red tape holding up construction of new housing.

In Canada, every social cue tells young people to buy a house. Your parents don’t want you to miss out, your friends are buying and Instagramming their new lives and renters are maligned as patsies paying their landlord’s mortgage. In fact, renters pay a legitimate cost for shelter and save a bundle by not owning, money they can use to invest.

Excitement about housing used to be a Toronto and Vancouver thing. The mania later spread to places located within commuting distance of these urban centres and, in the COVID-19 pandemic, to far-flung communities that offered bigger houses for less money. A national consensus emerged: Housing was an unstoppable force. If you could afford to buy, you pushed until you scored a house.

Skeptical voices on housing spoke out along the way, some of them in the real estate business. But house prices steamrolled everyone and everything in their path, including a global pandemic. It sure looked like housing was an exception to the gravitational law of investing, which says everything that goes up in price must come down at some point.

Housing fought the law, and the law won. Now, what?

A few points for all to consider:

  • Rising interest rates make it more expensive to buy a house now compared with earlier this year, even as prices fall.
  • Immigration levels will help sustain demand for housing.
  • Labour shortages will restrain construction of new housing to satisfy this demand.
  • Staying five to 10 years in a house puts you in a position to see any near-term price declines turn into the next leg up for housing.
  • Buying a house you could afford at peak price levels was only a mistake if you planned to flip it.

House prices coming down is good for the country. It doesn’t have to be bad for recent buyers.

Are you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes, listen to our award-winning Stress Test podcast.

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New listings in Kawartha Lakes real estate market hit five-year high last month – The Peterborough Examiner

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The number of new listings on the Kawartha Lakes real estate market in April 2022 hit a five-year high.

If the numbers in April are any indication, the real estate market in Kawartha Lakes may be returning closer to normal in terms of inventory after the number of new listings hit a five-year high last month.

There were 221 new listings on the market in April, more than 22 per cent higher than the five-year average for the month and an almost one per cent increase from the year before, according to Kawartha Lakes data from the Canadian Real Estate Association.

The number of active listings was up more than four per cent from April 2021, but still almost 40 per cent below the five-year average. Months of inventory rose to 1.2, compared to 0.8 in April 2021, but well below the long-run average of 3.3 months.

In Kawartha Lakes 125 homes were sold, a significant drop of more than 31 per cent compared to April 2021, but still up more than 14 per cent compared to the five-year average.

In spite of the large decrease in the number of homes sold compared to last year, the total dollar value of those homes, $110.3 million, was down just over 13 per cent, due to significantly higher house prices.

The MLS home price index composite for a single-family home was $783,100 in April for Kawartha Lakes, an increase in the benchmark price of more than 32 per cent from April 2021.

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