Real estate sales are down in Metro Vancouver but there's optimism, despite uncertain future ahead - CBC.ca | Canada News Media
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Real estate sales are down in Metro Vancouver but there's optimism, despite uncertain future ahead – CBC.ca

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Buying a home these days looks a bit like a visit to the doctor’s office.

When Vancouver real estate adviser Ammar Sedqui shows a property, there are no open house days with long lineups. Viewings — if they’re not done virtually — are made by appointment. Prospective buyers need to wear a mask, gloves, and sign a waiver stating they have no symptoms of COVID-19.

It’s a necessary process that’s added another hurdle to the process of selling a home, he said. 

“A lot of people I understand might not be comfortable with it and that decreases the number of listings in the market and affects the whole market as well,” Sedqui said. 

Spring is typically one of the busiest times of the year for the industry. This year, with the province in a recession due to the pandemic, home sales in Metro Vancouver reached historic lows in April. Then, sales decreased by more than 40 per cent in May compared to last year, according to the Real Estate Board of Greater Vancouver. 

That’s more than 50 per cent below the 10-year average for sales in May. 

People are hesitant to open up their homes during a pandemic, and Sedqui says it’s difficult to list properties that are still occupied. But real estate agents are coming up with innovative ways to show homes, and the market remains steady despite fewer listings, he added. 

“There are still a lot of people who need to buy or need to sell places for various reasons,” he said. 

‘A really unusual time’

Home sales are expected to drop by more than 20 per cent this year before rebounding by 45 per cent in 2021, according to the British Columbia Real Estate Association.

Gradual loosening of COVID-19 restrictions, low mortgage rates and pent-up demand could help the recovery, said Brendon Ogmundson, chief economist for the B.C. Real Estate Association.

This kind of recovery was seen after recessions in the early 80s, 90s and after the 2008 financial crisis, Ogmundson added. 

He expects this time to be similar, although certain factors, like a second wave of COVID-19 or slashed government support could have an impact in the months to come. 

“It’s a really unusual time and a really unusual recession,” Ogmundson said. “We’re not going to get all the way back to normal right away, but we’re on a nice path.”

The pandemic appears to have had little impact on the average price of a home in Metro Vancouver, which is now just over $1 million.

Options are slim for first time or entry-level buyers, Sedqui said.

There are too many uncertainties in the months ahead to really know when sellers will be able to show their homes more easily and attract more buyers, he added. 

“We can predict based on what’s happened previously, but none of us have been in this situation before,” he said.

“No one’s got a crystal ball to look at and see what’s going to happen.”

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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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