Sales for new homes in the Greater Toronto Area (GTA) plummeted in August, and the steep drop-off in demand is a worrying sign of things to come as the effects of economic uncertainty on the housing market become clearer.
The GTA new home market slid in both the number of sales and inventory levels in August, falling well below ten-year averages, the Building Industry and Land Development Association (BILD) announced on Thursday.
Only 533 new condominium apartments were sold region-wide in August, the number representing an 83 per cent dip below the sales figure for August 2021, and falling 61 per cent below the ten-year average.
Even fewer new single-family homes (including detached, linked, and semi-detached houses and townhouses) were purchased during the month, with just 89 homes marking a staggering 86 per cent year-over-year decline, sitting 87 per cent below the ten-year average.
“New home sales for August slowed in both the condominium apartment and single-family sectors as buyers and builders are in a wait-and-see mode amid the swirling economic uncertainty,” said Edward Jegg, Research Manager at Altus Group.
The decline in transactions was accompanied by a drop in available inventory, with 10,412 units on the market in August. Inventory is mainly accounted for in condominium units, with 8,787, compared to 1,625 single-family lots.
BILD warns that this only represents 3.5 months and 2.7 months of respective inventory, compared with the 9-12 months of inventory expected of a balanced housing market.
The only numbers that actually increased in August were prices.
Benchmark prices for new condominium apartments surged 11.2 per cent year-over-year in August to $1,189,682, while single-family home benchmark prices grew by 22.3 per cent in the same period to $1,861,587.
“New home buyers and builders have taken a step back in the face of rising interest rates and inflation,” said Dave Wilkes, BILD President & CEO. “A useful parallel is the year 2017, when the introduction of the mortgage stress test resulted in artificially elevated interest rates.”
Of course, there are many differences between 2022 and 2017. The market has had to endure lockdowns and a major economic downturn, an urban exodus due to the rise of remote work, and most recently, rampant inflation and further uncertainty.
That “soft landing” that experts have been talking about for roughly a decade seems to have turned from a likely outcome to a remote possibility, and the market’s future seems much more turbulent than it did in that “useful parallel” year of 2017.
Recent challenges have experts now throwing around words like “crisis” and “hard landing,” a situation current and prospective homebuyers will be keeping a close eye on.
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.
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.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
