Real eState

LACKIE: Stable times ahead for Toronto real estate? – Toronto Sun

Published

3 years ago

August 7, 2021

Author of the article:

Brynn Lackie

A real estate sign that reads “For Sale” and “Sold Above Asking” stands in front of housing in Vaughan May 24, 2017. Photo by Mark Blinch /REUTERS

For those closely following the Toronto real estate market, July’s sales figures, released this past week by the Toronto Regional Real Estate Board, likely brought very little in the way of surprises.

Following almost 18-months of near insanity in the market culminating in a March peak, all indications since the snow began to melt suggested some moderation was setting in.

It was hard not to see it coming as prices butted up against affordability, lockdown restrictions began to ease, and more anecdotally, buyers and sellers no longer appeared wholly caught up in the momentum of the last year’s wild ride through pandemic real estate.

The numbers have been consistently drifting downwards through the spring and into the summer.

Many predicted that we were likely to witness a return to seasonal market conditions – which, for those unfamiliar, is a market absolutely hopping in spring and fall, that slows right down in summer and winter.

The most recent numbers certainly bear this out.

According to TRREB data, nearly 9,400 home sales were reported in July, down 14.9% compared to July 2020, which set a record for housing sales in the summer month and was, in fact, the second strongest month last year.

Noteworthy here is the fact that we finally have our first true negative variance since the pandemic market kicked-in, nearly 10,000 sales in a July is objectively noteworthy — that’s a very strong result for a summer month.

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It would appear that the market has started to calm and stabilize.

And thank goodness; March, April and May were big months with lots of activity — that momentum needed to slow its roll.

It’s a safe bet that August will be more of the same. And in line with a return to a more seasonal real estate market, we can expect a discernable uptick in September.

While we may have now moved past the frenzied stage, the structural aspects of our market have not changed; interest rates are still rock-bottom, household savings though the pandemic have been robust, and inventory remains tight which means that competition is still going to be the strongest element driving prices.

“The annual rate of price growth has moderated since the early spring but has remained in the double digits. This means that many households are still competing very hard to reach a deal on a home,” said TRREB Chief Market Analyst Jason Mercer in a statement.

“This strong upward pressure on home prices will be sustained in the absence of more supply, especially as we see a resurgence in population growth moving into 2022.”

All signs indicate that we are now on the other side of the reactive pandemic real estate market conditions.

It’s essential to remember that in March 2020, Toronto was on a great run, experiencing a record-setting month in terms of sales volume and average sale price.

Almost overnight, the pandemic appeared and what a wild ride it has been. But to predict doom and gloom for what comes next would be a mistake – a safer bet would be that the other side of Labour Day will bring a return to pre-pandemic “normal.”

The true measure will come when we see September numbers; until then, let’s watch, let’s wait, let’s enjoy the sure-to-be brief reprieve.

On Twitter: @brynnlackie

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Real eState

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

Published

6 days ago

November 6, 2024

Anne Joseph

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.

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Real eState

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

Published

3 weeks ago

October 24, 2024

Anne Joseph

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.

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Real eState

Here are some facts about British Columbia’s housing market

Published

4 weeks ago

October 17, 2024

Anne Joseph

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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