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Valley real estate sales down by nearly 50 percent in January

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The ringing in of the new year did not bring good news to the real estate market in the Ottawa Valley as the trend of declining sales that dragged down the number of sales in 2022 continued in January with only 54 units sold in the first month of the year.

According to the newest report by the Renfrew County Real Estate Board, the 54 sales represented a decline of 48.1 per cent from January 2022. To put that number into perspective, home sales were 32 percent below the five-year average and 23.6 per cent below the 10-year average for the month of January.

One notable change from 2023 is in relation to the average sale price of a home actually declined in value compared to the numbers that were listed in 2022. The average price of homes sold in January 2023 was $421,111, down 14.2 per cent from January 2022.

This drop represents the first time in 13 months that a person selling a home in the Ottawa Valley did not see a significant profit in their final numbers. The dollar value of all home sales in January 2023 was $22.7 million, falling by 55.4 per cent from the same month in 2022.

Once again the Ottawa Valley went against the trend in terms of national real estate sales.  National home sales declined by only three percent month-over-month in January compared to the 48.1 per cent registered.

Home sales recorded over Canadian MLS Systems edged back down three percent between December 2022 and January 2023, giving back all of December’s small gains and rejoining the mild downward trend observed since last summer.

Mild is definitely not a word to describe the conditions in the Ottawa Valley. The number of new listings was down by 10.5 per cent, or in real terms, 11 listings from January 2022. There were 94 new residential listings in January 2023.

This was the lowest number of new listings added in the month of January in more than three decades.

Comparatively, the actual number of national transactions in January 2023 came in 37 per cent below the second-best January ever in 2022. One trend that was similar to the national average were the January 2023 sales figure as the lowest for that month since 2009.

The stock and availability of new homes for sale is also down considerably making the choice of purchasing a home much harder for buyers. Not only are consumers still adjusting to the realities of limited supply, the average mortgage rate set by the Bank of Canada.

According to research from investment bank Keefe, Bruyette & Woods (KBW), with interest rates more than doubling in a year, many Canadians no longer qualify for pricier mortgages. Lenders are required to stress test borrowers to determine whether they can sustain payments at higher interest rates. That pressure is weighing on home buying.

Economists broadly expect that the Bank of Canada will hold off on rate cuts until the end of 2023 at the earliest, suggesting that mortgage headwinds won’t ease until next year, according to KBW analyst Mike Rizvanovic.

All these factors, combined with the newest January numbers, paint a continuation of bleak numbers for the Ottawa Valley. This is true in the area of new listings. They were 20.5 percent below the five-year average and 42.1 per cent below the 10-year average for the month of January.

Despite all the doom and gloom, there was a bit of good news contained in the most recent report. Active residential listings numbered 219 units on the market at the end of January, more than double the levels from a year earlier, jumping 133 per cent from the end of January 2022.

Active listings were 24.1 per cent below the five-year average and 59.2 per cent below the 10-year average for the month of January.

Months of inventory numbered 4.1 at the end of January 2023, up from the 0.9 months recorded at the end of January 2022 and below the long-run average of 8.5 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

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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.

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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.

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