Real eState

Sarnia-area real estate sales rebound from September’s 10-year low

Published

1 year ago

November 5, 2023

A for sale sign is shown outside a house in Sarnia earlier this year. Photo by File photo /The Observer

Home sales in the Sarnia area rebounded “a little bit” in October, says the president of the Sarnia-Lambton Real Estate Board.

President Rob Longo, releasing the latest monthly residential real estate market activity report, said the local market saw a 10-year “record low” in the number of properties sold in September.

“I think September was kind of a perfect storm” with “a lot of people putting the brakes on” both buying and selling homes because of rising interest rates, Longo said. “That has a huge impact on people’s buying power.”

But October saw 110 properties change hands in the Sarnia area, compared to 98 the previous month.

“It has been nice to see that pick up again,” Longo said. “We’re expecting that trend to continue the rest of the year” following the Bank of Canada’s decision in late October to not increase the interest rate above the current level of 5 per cent, the highest it has been since 1996.

Over the past 19 months, the bank increased the rate from 0.25 per cent in its fight to bring down inflation.

“It sounds like there’s some confidence now they’re going to continue to hold” the interest rate “through the spring,” Longo said. “I think that’s helping to bolster consumer confidence.”

The year-to-date median home price in the Sarnia area was $487,0000 in October, down slightly from about $490,000 the previous two months, Longo said.

“It has been holding pretty steady” around about $490,000 this year, “which is right where we expect to see it,” he said. “We think that’s a good price point to keep things reasonable and competitive with the other centres around us, like Strathroy, London and Windsor.”

Home prices in those neighbouring communities are 20 to 30 per cent higher, Longo said.

The Sarnia-area market continued to see a good supply of inventory in October, with nearly 260 new listings and growth in active listings.

Year-to-date active listings sat at 373 locally last month, which matches what the Sarnia-area market experienced in 2016 and 2017, Longo said.

“We’re still in what we would call a neutral market, a balanced market,” he said. “If we continue to see that climb, we may start to trend into a buyer’s market.”

Homes were typically on the market for 22 days in October and generally sold for 98 per cent of their asking price.

“I think that’s representative of a larger shift in overall real estate transactions,” Longo said about how close listing and selling prices have been in recent times.

Buyers have become accustomed to paying near asking prices, which is something sellers need to be aware of when they list a home, Longo said.

“It’s very different than what we would have seen 10 or 20 years ago when people would typically price their homes higher on purpose, with room to negotiate down,” he said.

These days, an over-priced home can end up sitting on the market longer before it sells, he said.

With files from the Financial Post

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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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