Connect with us

Real eState

The latest real estate stats for hot markets are bad news for homebuyers – Calgary Herald

Published

 on


‘There is still a lot of demand chasing an increasingly scarce number of listings’: CREA

Article content

Here’s hoping the last six months of declining home sales didn’t give homebuyers the false impression that Canada’s real estate market has cooled. It’s still historically hot.

Advertisement

Article content

Home sales in September showed a modest month-over-month increase, according to data from the Canadian Real Estate Association . Despite only rising by 0.9 per cent, the increase was the first since March.

At this point in Canada’s seemingly inexhaustible real estate boom, when the number of homes on the market is scraping rock bottom, any increase in sales is near miraculous. But it doesn’t mean conditions have improved for buyers.

Article content

If anything, they’re just getting worse.

The national picture

Last month, home sales across Canada fell by 17.5 per cent compared to September 2020. But demand isn’t tapering off. In fact, CREA says it was the second-busiest September on record.

Fewer sales aren’t always the result of buyers leaving the market. In Canada’s case, they just have far fewer properties to make offers on than they did a year ago.

Advertisement

Article content

“There is still a lot of demand chasing an increasingly scarce number of listings, so this market remains very challenging,” Cliff Stevenson, chair of CREA, says in a statement.

One stat to keep an eye on is the sales-to-new-listings ratio, which is a solid indicator of supply-demand dynamics. A balanced market is typically in the range of 40 per cent sales to 60 per cent new listings, with 60 per cent and above for listings indicating a sellers’ market.

Article content

In September, Canada’s sales-to-new-listings ratio hit 75.1 per cent, meaning buyers snapped up more than three-quarters of new listings by the end of the month.

It’s no surprise, then, that the national average price of homes sold in September — $686,650 — was 13.9 per cent higher than a year ago.

Advertisement

Article content

Regional highlights

Ontario

Sales in Ontario were down 20.8 per cent compared to September 2020, but they were still 11.8 per cent higher than the ten-year average for the month, according to the Ontario Real Estate Association. Home sales for the first nine months of the year were up 28 per cent compared to the same period last year.

Here’s where things get ugly for Ontario homebuyers. The number of new listings was down 25.6 per cent versus last September, and was the lowest figure recorded for the month in more than a decade. Active residential listings were down 38.9 per cent year-over-year and are at their lowest point in more than 30 years.

There’s only one direction prices can move when supply is this low.

The average price of resale homes in Ontario was $887,290 in September, showing a 19.7 per cent annual increase. Three areas of the province saw the average price increase by even more:

Advertisement

Article content

  • Western Ontario (Windsor, Chatham-Kent, London, Sarnia): 27.4 per cent ($585,298)
  • Northeastern Ontario (Barrie, Kawartha Lakes, Muskoka, Peterborough): 24.1 per cent ($761,102)
  • Southern Ontario (Brantford, Hamilton-Burlington, Niagara, Guelph): 20.3 per cent ($774,626)

In the Greater Toronto Area, the average price of detached, semi-detached and townhouse properties all increased by more than 20 per cent . The average price of a detached home in Toronto’s 416 area code hit $1.8 million.

British Columbia

Canada’s second-busiest real estate market experienced a similar month as Ontario. According to data from the British Columbia Real Estate Association , sales were down 19.9 per cent year-over-year in September. The average price still managed to increase by 14 per cent, hitting $913,471 by month’s end.

Advertisement

Article content

Active residential listings were down a colossal 36.8 per cent compared to September 2020. In the Fraser Valley and Victoria, two of the province’s hottest markets, residential listings were down by more than 50 per cent.

Prices saw the most movement in Chilliwack, Powell River and Vancouver Island. The average price in each area increased by more than 27 per cent annually.

Prices in B.C.’s largest cities, Vancouver and Victoria, continue rising, but at a less scorching pace. The average price in Greater Vancouver, $1,174,305, was 6.5 per cent higher than a year ago, while Victoria’s, $889,515, showed a 5.8 per cent increase.

Quebec

Sales in Quebec are also being suppressed by evaporating supply, but buyers there have a ways to go before they’re paying prices in the same ballpark as those in Ontario and B.C.

Advertisement

Article content

Active listings for single-family homes and condos were both down by more than 25 per cent in September, which helped drive the price of each asset class higher. The median price of a detached home rose 16 per cent to hit $365,000. The median condo price increased 17 per cent to $335,000.

While prices in Quebec City fall well within the provincial averages, those in Montreal can be considerably higher. The median price of a detached home in Montreal was $504,500 in September; that of condos was $365,000.

The Prairies

Things are much more stable on the Prairies, where market softness from 2015 until 2020 has left a fair amount of excess housing stock for buyers to choose from.

The most active province of the bunch in September was Alberta . A rocking Calgary market helped increase provincial activity a healthy 8.7 per cent year-over-year, with the average detached price increasing 6.2 per cent to $473,541.

Advertisement

Article content

Sales dipped between 12 and 20 per cent in Regina, Saskatoon and Winnipeg, with the average price in Regina ($335,656) rising by five per cent and Winnipeg’s ($318,400) increasing by 11.5 per cent. Saskatoon’s average price dropped by three per cent to $327,104.

Atlantic Canada

Even though Atlantic Canada was late to the real estate bacchanal, housing markets out east are getting their share of the action:

  • New Brunswick set a new record for activity in September, with sales coming in 32.9 per cent higher than the ten-year average for the month. The provincial average price, $262,200, was 31.1 per cent higher than a year before.
  • Nova Scotia just wrapped up the second-busiest September in history, which drove the average price of homes sold to $356,757.
  • A historic increase in new listings helped make Prince Edward Island’s market somewhat more approachable for buyers. The average price still managed to rise by 13 per cent year-over-year to reach $337,801.
  • The Newfoundland and Labrador market broke its sales record for September and had its second-highest monthly sales total in history. The benchmark price for single-family homes in the province — $325,000 — was 12.3 per cent higher than a year before.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Adblock test (Why?)



Source link

Continue Reading

Business

Google real estate executive says 5% more workers coming in to office each week

Published

 on

Alphabet Inc’s Google has seen an increasing number of employees coming in to its offices each week, particularly younger workers, the company’s real estate chief said during an interview at the Reuters Next conference on Friday.

On Thursday, Google indefinitely pushed back the mandated return date for employees due to concerns about the Omicron variant. The company had previously said its 150,000 global employees could be required to come in to the office as soon as Jan. 10.

Nevertheless, David Radcliffe, Google’s vice president for real estate and workplace services, said many Googlers are returning of their own volition. About 40% of its U.S. employees on average came in to the office daily in recent weeks, up from 20-25% three months ago, he said. Globally, 5% more employees are returning to offices week after week, he added.

“People are actually showing voluntarily that they want to be back in the office,” Radcliffe said. “We’re moving in the right direction.”

Younger employees and those who joined Google more recently have been coming in at higher rates, seeking opportunities to learn from colleagues, Radcliffe added.

Google expects workers in the office at least three days a week once it mandates a new return date.

Based on feedback from those already back, it is redesigning floor plans to increase private, quiet spaces for distraction-free individual work and adding conferencing and other collaboration areas in open spaces both indoors and outdoors.

Real estate and human resources experts have considered Google a trailblazer for the past 20 years in sustainable office design and variety of workplace perks, including free meals, massages and gyms.

To extend those sustainability and wellness benefits to remote work, Google has encouraged employees to buy carbon offsets and non-toxic furniture for their home offices. It also has provided free cooking classes and discounts to fitness studios near workers’ homes.

“It was amazing how many employees had really never cooked themselves,” Radcliffe said.

 

(Reporting by Paresh Dave in Oakland, Calif., and Julia Love in San Francisco; Editing by Sonya Hepinstall and Matthew Lewis)

Continue Reading

Real eState

Calgary real estate is on a late-year roll – Western Investor

Published

 on


With $468 million in sales – not counting the $1.2-billion Bow office tower purchase that has yet to close – in the third quarter (Q3) 2021, Calgary is on track to top $2 billion in commercial and industrial real estate sales this year, according to Altus Group.

Meanwhile housing sales in November reached 2,110 transactions, just shy of the record for the month set in 2005, as the sales-to-new-listing ratio hit a blistering 100 per cent.

Altus reports that the Calgary’s commercial real estate market recorded 115 transactions for a total investment volume of $468 million in the third quarter, bringing the total investment volume for the year close to $2 billion. The total sales volume was up 37 per cent from the first three quarters of 2020.

Industrial sales led the commercial and industrial assets investment parade in the third quarter, with 27 transactions valued at $188 million. This sector was dominated by two substantial distribution logistics centre deals. These were the $69.7 million purchase of a Canadian Tire 496,000-square-foot distribution centre by Skyline Commercial Real Estate Investment Trust (REIT); and the $32.18 million sale of the Valad Construction headquarters industrial and office complex to Nexus REIT.

The ICI (industrial-commercial-institutional) land sector was the second most active in terms of dollar volume with 38 transactions amounting to $83 million, up 62 per cent from Q3 of 2020.

The multi-family rental apartment sector saw 15 transactions totalling $82 million, a 70 per cent increase from the same point last year, and only a marginal decrease from the previous quarter.

The retail sector tallied $44 million in transactions amounting to a 110 per cent increase from Q3 2020.

The biggest retail sale was the $8.35 million purchase of the Hansen Ranch Plaza, a near-12,000-square-foot retail centre in northwest Calgary, bought by local investors.

“Calgary’s beleaguered office market has remained flat, with five transactions amounting to $15 million, a negligible change from the same quarter last year,” noted Ben Tatterton, manager of data solutions at Altus, who prepared the Calgary report with national research manager Krut DSesai.

The landmark sale of the Bow office tower will be registered in a future quarter, Altus noted.

The two-million-square-foot Bow tower was purchased in August from Toronto-based H&R REIT by Oak Street Real Estate Capital, of Chicago, for $1.216 million, in a deal expected to close by the end of this year.

The Calgary Real Estate Board (CREB) reported a rush of home buyers in November.

“Lending rates are expected to increase next year, which has created a sense of urgency among purchasers who want to get into the housing market before rates rise,” said CREB chief economist Ann-Marie Lurie. She added that supply levels have tightened, causing prices to rise.

The benchmark composite home price in November was $461,000, up nearly 9 per cent from November of 2020, according to Lurie.

Adblock test (Why?)



Source link

Continue Reading

Real eState

Saskatchewan real estate market conditions making it hard for buyers: realtors – Globalnews.ca

Published

 on


Saskatoon real estate agent Warren Ens says the current real estate market conditions in Saskatchewan aren’t for the faint of heart.

“The really good houses, you pretty much have to go the exact same day as (they’re) listed, and even then you probably are going to get into a bidding war,” he said Friday.

Read more:

Saskatoon real estate market slows but still healthy, says realtors association

He adds that bidding wars over Saskatoon homes are happening at a rate he has never seen in his 11 years working in Saskatchewan.

“(Last) Friday I got into two bidding wars with two different clients,” he laughed. “That’s not something you see too much of.”

A new report from RE/MAX shows this is the case across the country, making it harder for first-time homebuyers to get into the market.

Read more:

Canada’s housing market hotter than ever — and investors are playing a big role

RE/MAX Canada Regional Executive Vice President Elton Ash says this competition could continue.

“In March, we’re anticipating the Bank of Canada to start edging the overnight rate up with inflation concerns and that sort of thing,” he said Thursday. “That’s going to push buyers suddenly, because they’ve been looking and they’re going to want to lock in at a lower rate.”


Click to play video: 'Rural Boom: Why millennials are flocking to small town Canada'



18:06
Rural Boom: Why millennials are flocking to small town Canada


Rural Boom: Why millennials are flocking to small town Canada – Nov 20, 2021

He said buyers from all across Canada are now seeing the value of an affordable new house in the Prairies.

“People are looking at that and saying, ‘Hey, yeah I might today be working in Toronto but I can work remotely and I can move back home to Saskatchewan where prices are much more affordable; family life will be better and I can work remote,’” Ash explained.

Read more:

Toronto-area home sales top November record, prices reach all time high

Ens says he’s seen this play out in his day-to-day job, with plenty of newcomers in the last year.

“We’ve seen people from Toronto, Chilliwack, B.C., places like that that are coming here,” he said.

From his perspective, the report is accurate in its prediction that houses will likely only continue to slowly increase in price, but he says a seller’s market won’t always make things easier.

Read more:

‘Not as crazy as it seems’: How COVID-19 gave rise to home-buying sight unseen

“When you have bidding wars and you have multiple offers it sounds great for a seller,” he explained. “But it’s also very tricky because you could actually lose all the offers because you do something wrong.”

The bottom line, he says, is that Canada is a seller’s market — and Saskatchewan is selling fast.

© 2021 Global News, a division of Corus Entertainment Inc.

Adblock test (Why?)



Source link

Continue Reading

Trending