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Metro Vancouver’s residential real estate prices continue to creep up

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The Metro Vancouver residential real estate market has had a fairly strong start to the year, relative to the poor performance of one year previously, the Real Estate Board of Greater Vancouver reported February 4.

There were 1,571 home sales on the MLS in January, which is a 42.4 per cent increase over January 2019.

Traditionally the slowest month of the year for real estate sale registrations (see graph below), because there is so little home-hunting activity in December, January’s sales were a 22.1 per cent decrease from the 2,016 homes sold in December 2019.

Last month’s sales were still slightly unde long-term typical activity for the month, as the very active markets of 2015 through 2017 pushed up the 10-year sales averages. January’s total was 7.3 per cent below the 10-year January sales average.

“We’ve begun 2020 with steady home buyer demand that tracks close to the region’s long-term average,” Ashley Smith, REBGV president said. “Looking at supply, we’re seeing fewer homes listed for sale than is typical for this time of year. As we approach the traditionally more active spring market, we’ll keep a close eye on supply to see if the number of homes being listed is keeping pace with demand.”

There were 3,872 homes newly listed for sale in January, which is 20.1 per cent lower than the 4,848 homes listed in January 2019, although it’s more than double the number of homes that were listed in December 2019.

This takes the total number of homes listed for sale in Metro Vancouver, as of January 31, to 8,617, which is a 20.3 per cent decrease from January 2019 and only a 0.2 per cent higher than December 2019. The current figure is also 13.7 per cent below the 10-year January average number of active listings.

The increase in demand coupled with a relatively low supply of homes for sale is inevitably keeping home prices on the slow upward trajectory they have been seeing since summer 2019 (see graph below).

 

The composite benchmark price for all home types in Metro Vancouver is currently $1,008,700. This is a 1.4 per cent rise in the past six months, and 0.8 per cent higher than December, although still 1.2 per cent less than in January 2019.

Sales and prices by property type and area

At 439 transactions in January, Metro Vancouver’s single-family detached home sales were up 29.5 per cent year over year. However, it’s also a 26.7 per cent decline over December’s relatively strong sales, which is bringing the sector back towards buyer’s market territory.

Nevertheless, the typical price of a detached home in the region rose 0.5 per cent month over month to $1,431,200, which is a one-per-cent recovery over the past six months, but 1.7 per cent lower than January 2019.

Region-wide figures only tell half the story, however. Seven of the board’s 20 areas saw detached prices in January higher those of one year previously, led by Whistler (up 4.8 per cent) and Squamish (up 4.7 per cent). Annual declines in region’s overall detached benchmark price were led by the Sunshine Coast, (down 5.9 per cent) and Bowen Island (down 5.3 per cent). The double-digit benchmark price declines seen in areas such as West Vancouver and Vancouver West have now subdued to two to three per cent annual price drops.

In the attached-home sector, such as townhomes and duplexes, sales across Metro Vancouver rose 55.1 per cent year over year to 318 transactions. This is 12.6 per cent below December 2019’s attached home sales.

Townhomes have seen the biggest benchmark price recovery since last summer, with the typical price of an attached unit now at $782,500. This is a 1.6 per cent increase over the past six months, a 0.5 per cent increase from December 2019 and only 0.7 per cent lower than in January 2019.

Four MLS areas saw higher attached-home benchmark prices than one year previously. Like in the detached sector, Whistler and Squamish saw townhome prices increase the most, up 9.4 and 7.7 per cent respectively. Ladner (down 6.7 per cent) and Tsawwassen (down 6.5 per cent) continued to lead the annual price declines for this sector, with new townhome construction in those areas apparently exceeding local demand.

Some 814 condos traded in Metro Vancouver last month, which was a 45.6 jump year over year, and a 22.7 per cent drop compared with December.

The benchmark price of a condo in the region has risen one per cent over a month to $663,200, which is a 1.5 per cent increase over the past six months, but a drop of one per cent over the year since January 2019.

Looking at condo markets in the different areas, five MLS areas saw values hold their own from one year previously, with prices up 1.8 per cent in Port Moody and 1.2 per cent in Coquitlam. Like townhomes, the biggest annual price declines in the condo sub-markets were seen in Ladner (down 7.1 per cent) and Tsawwassen (down 8.1 per cent).

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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.

The Canadian Press. All rights reserved.

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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.

The Canadian Press. All rights reserved.

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