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Western Canadian Real Estate Prices Just Won't Rise – Better Dwelling

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Canadian real estate prices are moving the most in over a year – which doesn’t say much. Canadian Real Estate Association (CREA) data shows the price of a typical home increased in November. Most of the index gains were from markets east of Toronto, which are booming after a slow few years. The drag on the index was located exclusively West of Toronto, where markets are mostly spiraling lower.

Canadian Real Estate Prices Rise Less Than 3%

Canadian real estate prices are moving higher, driven by movements in Eastern Canada. The typical price of a home reached $638,300 in November, up 2.55% from last year. The rise in prices are coming in just a clip above inflation, which CPI printed at 2.4% in the latest numbers. Last month’s 12-month increase is also the highest observed since August 2018. Not huge growth, but the highest in a long time.

Canadian Real Estate Benchmark Change

The 12 month price in change of a typical home across Canada.

Source: CREA, Better Dwelling.

Biggest Gains Are In Southern Ontario and Quebec

The Southern Ontario-Quebec corridor is seeing the biggest price gains from last year. Ottawa saw the biggest gains with a typical home hitting $443,500 in November, up 11.45% from last year. Montreal followed with prices hitting $380,000, up 8.72% from last year. Niagara came in third with prices hitting $431,200, up 7.99% from last year.

Canadian Real Estate Benchmark Price

The seasonally adjusted price of a typical home in Canada’s largest real estate markets.

Source: CREA, Better Dwelling.

Western Canadian Real Estate Markets Are The Biggest Losers

The biggest drop in prices are exclusively in Western Canada. The City of Regina made the biggest drop to $260,600 in November, down 5.52% from last year. Vancouver followed with prices hitting $1,002,700, down 4.59% from last year. Fraser Valley came in third with prices at $826,900, down 3.1% from last year.

Canadian Real Estate Price Change – 1 Year

The 1 year percent change in the seasonally adjusted price of a typical home, in Canada’s largest markets.

Source: CREA, Better Dwelling.

Most Eastern Canadian Real Estate Markets Hit New “Peaks”

Most of Canada’s large markets are now at peak prices, when they’re seasonally adjusted. Ottawa, Montreal, Niagara, Hamilton-Burlington, Toronto, Guelph, and Victoria all reached a new peak. Some segments, such as detached units, are not printing new all-time highs. Also worth a mention is many of these markets are not at all-time highs for average sales prices.

Markets Furthest From Peak Are All In Western Canada

Western Canadian real estate markets are furthest away from the peak. Regina, uh… bottom’s the list, with a typical home at  $260,600 in November, down 15.72% from peak. Edmonton follows with prices falling to $319,400, down 14.55% from peak. Calgary’s typical home price comes in third at $414,200, down 10.09% from peak. All of these markets haven’t seen peak in a few years, and were left out of the recent national price rally.

Canadian Real Estate Price Change From Peak

The percent change from seasonally adjusted peak pricing for a typical home in Canada’s largest markets.

Source: CREA, Better Dwelling.

Canadian real estate prices are back to rising, but growth is still low as an aggregate. Breaking it down regionally, we can see that Eastern Canada is seeing prices boom. This is especially true in markets that didn’t see a big jump during the national rally – such as Ottawa and Montreal. In Western Canada, things are still mostly in the dumper – accounting for most of the drag on the index. Yes, dumper is a technical term.

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Canadian Real Estate Correction Is Becoming The Deepest In Half A Century: RBC – Better Dwelling – Better Dwelling

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Canadian Real Estate Correction Is Becoming The Deepest In Half A Century: RBC – Better Dwelling  Better Dwelling



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Real estate prices continue to fall in Waterloo region – CTV News Kitchener

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The average sale price for all residential property types in Waterloo region continues to fall. The newly formed Waterloo Region Association of Realtors (WRAR) says the average price across all property types in July was $752,301.

This represents a 4.9 per cent decrease compared to June 2022, and a 1.2 per cent decrease from prices seen in July 2021.

“In the wake of July’s interest rate hike, home sales in Waterloo region continued to slow,” says Megan Bell, president of WRAR, in a media release. “We’re seeing a clear shift in the market and what people can afford to purchase or are willing to pay. On the bright side for buyers, it’s not the extreme sellers’ market it was.”

This is the fifth straight month the average home sale price in Kitchener-Waterloo has fallen.

Monthly sales by property types. (WRAR)
  • In July, the average sale price for all residential properties in Waterloo Region was $752,301. This represents a 1.2 per cent decrease compared to July 2021 and a 4.9 per cent decrease compared to June 2022, according to WRAR.
  • The average price of a detached home was $842,241, representing a decrease of 7.0 per cent compared to June 2022 and a 6.0 per cent decrease from July 2021.
  • A townhouse’s average price is $642,750, representing a decrease of 3.3 per cent compared to June 2022, but a 3.6 per cent increase from July 2021.
  • The average sale price for an apartment-style condominium was $521,731. This represents an increase of 4.1 per cent compared to June 2022 and an increase of 20.4 per cent from July 2021.
  • The average sale price for a semi was $661,087. A decrease of 5.4 per cent compared to June 2022, but an increase of 1 per cent compared to July 2021.
Average sale price in July across Waterloo Region. (WRAR)

Real estate sales in Waterloo region also saw a major decline in some property types.

Leading the way was semi-detached homes with a drop of 41 per cent in sales and only 36 sold, followed by a 39.3 per cent drop in condominium units with 65 sold. Townhouse sales dropped 32.9 per cent with 112 sold. Detached home sales dropped 30.4 per cent with 337 sales.

In total, 550 residential homes were sold through the Multiple Listing Service System of the WRAW.

LOCAL REALTOR ASSOCIATIONS MERGE

WRAR is an amalgamation of the Cambridge Association of Realtors (CAOR) and the Kitchener-Waterloo Association of Realtors (KWAR). The groups announced their amalgamation on Wednesday.

The amalgamation of the two means housing prices from Cambridge will now be included in the average monthly sales and prices of properties. Prior, KWAR only included the sales and prices of homes in Kitchener and Waterloo.

Bill Duce, who has served as KWAR’s Executive Officer since 2008, is the Chief Executive Officer of the new regional association.

“Bringing these two associations together just makes sense,” says Duce in a media release. “As one board, we can better serve the needs of our Realtor members and stakeholders and give a voice to the region’s real estate market.”

The board of directors of WRAR appointed Megan Bell as president, Christal Moura as president-elect, and Val Brooks as immediate past president as officers of the new entity.

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GTA home sales tumble nearly 50% from last year, real estate board says – CBC.ca

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The moderation of the Greater Toronto Area’s housing market intensified last month as the region’s real estate board found July sales fell 47 per cent from the same time last year and 24 per cent from this past June.

The Toronto Regional Real Estate Board revealed Thursday that last month’s 4,912 sales were almost half of the 9,339 homes that changed hands the July before and are an indication that the market is easing from the frenzied pace seen in the first half of the year and at the end of 2021.

The board and real estate agents have attributed much of the moderation to the increased cost of carrying a mortgage after Canada’s key interest rate was increased by one percentage point in mid-July, making it the largest hike the country has seen in 24 years.

The hike has encouraged people to rethink their housing intentions. Prospective buyers are holding out for further drops they and brokers anticipate could materialize in the fall, while sellers are debating making what they can from their home now or waiting for the market to turn in their favour again.

Some sellers are even terminating their listings to take advantage of the hot rental market, where vacancies are dropping and prices are up.

While January’s hot market saw 380 terminated condo listings in the GTA, real estate company Strata said June brought 2,822 — a 643 per cent increase.

The moderation taking shape within sales is taking longer to appear in home prices.

TRREB found the average home price was $1,074,754 last month, a one per cent hike from $1,061,724 in July 2021, but a six per cent drop from $1,145,994 in June 2022.

The composite benchmark price was more than $1.1 million, up by 12.9 per cent year-over-year.

Detached home prices were down three per cent on a year-over-year basis to $1,362,598 last month, while their sales dropped by 46 per cent to 2,203.

Prices of semi-detached homes were up by nearly five per cent from last July to $1,077,750, while sales fell 45 per cent to 474.

Townhouse prices crept up by six per cent to $903,899 as their sales fell by 52 per cent to 816, and condo apartment prices saw a seven per cent leap to $719,273 and a 48 per cent fall in sales to 1,365.

The market also saw a drop in new listings, which amounted to 12,046 last month, down four per cent from a year ago.

TRREB felt the numbers necessitate government intervention, including boosting housing supply and reviewing mortgage policies.

Data firm Urbanation Inc. said Tuesday that it expects almost 10,000 GTA condo units to be delayed this year as increasing mortgage rates weigh on home sales.

“Many GTA households intend on purchasing a home in the future, but there is currently uncertainty about where the market is headed,” said TRREB CEO John DiMichele, in a release.

“Policymakers could help allay some of this uncertainty.”

He recommended the government review the Office of the Superintendent of Financial Institutions’ stress test. The mandatory test set the qualifying rate on uninsured mortgages at either two percentage points above the contract rate, or 5.25 per cent, whichever is greater.

Kevin Crigger, TRREB’s president, echoed DiMichele’s plea, saying longer mortgage amortization periods of up to 40 years on renewals and switches should be explored.

“With significant increases to lending rates in a short period, there has been a shift in consumer sentiment, not market fundamentals,” he said, in a release.

“The federal government has a responsibility to not only maintain confidence in the financial system, but to instill confidence in homeowners that they will be able to stay in their homes despite rising mortgage costs.”

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