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Local real estate gains better than alternative – Medicine Hat News

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By COLLIN GALLANT on January 12, 2021.

The Medicine Hat real estate market saw sales remain steady and house prices rise in 2020 following dire predictions about the effect of the coronavirus pandemic on economic confidence.–NEWS PHOTO COLLIN GALLANT

cgallant@medicinehatnews.com@CollinGallant

Medicine Hat’s real estate market managed to make gains in 2020, but largely missed an unexpected updraft in activity that lifted Canadian home values beyond all expectation in a pandemic year, said the new president of the Medicine Hat Real Estate Board.

“There’s some uncertainty still in the province and the world, obviously, but we (in Medicine Hat) were a lot more consistent with sales,” said Frank Devine, who took over the post on Jan. 1. “That’s what you want. It is better for everybody.”

He credited low interest rates, attitudes of home buyers and Medicine Hat being relatively insulated from major job losses as the drivers of the market in 2020.

Year-end statistics for the local real estate board released this month show price gains for single-family homes on a typical number of sales – easily beating worst-case scenarios envisioned in the spring.

Some observers felt a steep drop in economic activity caused by the pandemic and lingering recovery would lead to major price reductions as stressed sellers sought to move properties.

Or, fewer sales generally would result from uncertainty about the economic outlook or job security.

Realtors were also hampered in holding open houses, or cancelled them entirely, like the local board did in December, to meet health protocols.

However, Canadian homebuyers responded to the pandemic by closing deals at prices higher.

The Canadian Real Estate Association stated this week that across Canada housing prices rose nearly 14 per cent, driven by major eastern centres. But even the regional gains in Calgary and Edmonton were around five per cent.

In Medicine Hat, year-end figures for 2020 show a steady number of sales of detached homes but at eight per cent higher value. That brought the average selling price of a single-family home in 2020 to $322,500.

Year-to-year comparisons are difficult because the local board changed its reporting format in the summer.

However, a higher number of sales in both semi-detached and row housing showed mixed results on pricing, while the condo market saw results edge lower from 2019.

The average price for a semi-detached unit sale closing price rose to $276,500, the town home’s fell to $199,500, and the average condo came in at $168,600.

At the same time, inventory on the market rose in classes outside the traditional home and lot, while those residences sold faster than new listings came on.

That is a likely result of preference changes away from more communal living environments, said Devine.

“The apartment-style housing may continue to suffer,” said Devine, stating that the fear of a huge number of homes coming on the market as the economy soured didn’t materialize.

As well, new home buyers were likely encouraged to get their situations settled.

“I think the bigger effect on the market will be low interest rates,” said Devine. “Here, you can literally buy a house and live in it for less than the cost of an apartment.”

Economists predict that prolonged periods of low interest rates may need to kindle economic activity coming out of the pandemic. To this point the lending rates have sunk below levels once thought to be the cellar floor. The nation’s best five-year closed rate was a measly 1.64 per cent, though the average was closer to 3.3 per cent. The average of floating rates was 2.4 per cent, the lowest in at least five years.

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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.

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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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