While the Real Estate Market in Greater Toronto Area, Vancouver, and Alerta, in general, is colling down, the market in our country's capital Ottawa was noticeably hot in April!
Good fulltime employment and reasonable house prices in proportion to incomes are fueling Ottawa market, this is been compound by the lack of supply and the new mortgage stress test wich affecting some homeowners who may no longer qualify to upsize their homes.
Ottawa - May 3, 2018 -- Members of the Ottawa Real Estate Board sold 2,032 residential properties in April through the Board’s Multiple Listing Service® System, compared with 1,788 in April 2017, an increase of 13.6%. The five-year average for April sales is 1,704. April’s sales included 416 in the condominium property class and 1,616 in the residential property class.
The average sale price of a residential-class property sold in April in the Ottawa area was $455,212, an increase of 4.2% over April 2017. The average sale price for a condominium-class property was $269,294, an increase of 0.3% from April 2017.*
“Full employment and reasonable house prices in proportion to incomes are fueling our market. Ottawa is not only a beautiful and dynamic capital but also one of the more affordable cities in Canada,” observes Ralph Shaw, Ottawa Real Estate Board President. “While prices and conditions do vary by area, the overall residential marketplace shows solid and steady performance on investment for homeowners, and offers a variety of property class options and price points for those looking to enter the market,” he advises.
“While sales were strong this month, certain areas in Ottawa continue to experience limited supply with both condo and residential inventory down 23.7% from the same month last year. With our low inventory, potential sellers are reluctant to put their home on the market if they are uncertain of their ability to acquire another property.”
“April’s colder than usual temperatures may have been one of the reasons potential sellers delayed listing their properties. However, there are other factors at play which are contributing to the lack of supply. Of course, the new mortgage stress test is affecting some homeowners who may no longer qualify to upsize their homes,” Shaw points out.
“Further compounding the issue within Ottawa proper is a restricted supply of serviceable land, and thus fewer new build opportunities. We need both the new build and resale inventory to be robust enough to meet demand on a consistent basis,” he explains.
“Moreover,” Shaw elaborates, “life adjustment sellers such as Boomers, lack suitable purchasing options due to urban engineering. Many of them do not want to live in downtown condominiums, preferring smaller homes with an attached garage and a decent sized yard where they can still host family BBQs and entertain. Our city council would benefit from the input of Ottawa’s long-serving REALTORS® who truly understand the variety of needs of local home buyers and sellers,” Shaw concludes.
In addition to residential and condominium sales, OREB Members assisted clients with renting 770 properties since the beginning of the year.
Toronto, May 3, 2018 -- Toronto Real Estate Board President Tim Syrianos announced that Greater Toronto Area REALTORS® reported 7,792 sales through TREB's MLS® System in April 2018. The average selling price was $804,584. On a year-over-year basis, sales were down by 32.1% and the average selling price was down by 12.4%.
The year-over-year change in the overall average selling price has been impacted by both changes in market conditions as well as changes in the type and price point of homes being purchased. This is especially clear at the higher end of the market. Detached home sales for $2 million or more accounted for 5.5% of total detached sales in April 2018, versus 10% in April 2017. The MLS® Home Price Index strips out the impact of changes in the mix of home sales from one year to the next. This is why the MLS® HPI Composite Benchmark was down by only 5.2% year-over-year versus 12.4% for the average price.
"While average selling prices have not climbed back to last year's record peak, April's price level represents a substantial gain over the past decade. Recent polling conducted for TREB by Ipsos tells us that the great majority of buyers are purchasing a home within which to live. This means these buyers are treating home ownership as a long-term investment. A strong and diverse labour market and continued population growth based on immigration should continue to underpin long-term home price appreciation," said Mr. Syrianos.
"The comparison of this year's sales and price figures to last year's record peak masks the fact that market conditions should support moderate increases in home prices as we move through the second half of the year, particularly for condominium apartments and higher density low-rise home types. Once we are past the current policy-based volatility, homeowners should expect to see the resumption of a moderate and sustained pace of price growth in line with a strong local economy and steady population growth," said Jason Mercer, TREB's Director of Market Analysis.
Home sales down, listings up across Metro Vancouver
VANCOUVER, BC – May 2, 2018 -- The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,579 in April 2018, a 27.4% decrease from the 3,553 sales recorded in April 2017, and a 2.5% increase compared to March 2018 when 2,517 homes sold.
Last month’s sales were 22.5% below the 10-year April sales average.
“Market conditions are changing. Home sales declined in our region last month to a 17-year April low and home sellers have become more active than we’ve seen in the past three years,” Phil Moore, REBGV president said. “The mortgage requirements that the federal government implemented this year have, among other factors, diminished home buyers’ purchasing power and they’re being felt on the buyer side today.”
There were 5,820 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2018. This represents an 18.6% increase compared to the 4,907 homes listed in April 2017 and a 30.8% increase compared to March 2018 when 4,450 homes were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,822, a 25.7% increase compared to April 2017 (7,813) and a 17.2% increase compared to March 2018 (8,380).
“Home buyers have more breathing room this spring. They have more selection to choose from and less demand to compete against,” Moore said.
For all property types, the sales-to-active-listings ratio for April 2018 is 26.3%. By property type, the ratio is 14.1% for detached homes, 36.1% for townhomes, and 46.7% for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,092,000. This represents a 14.3% increase over April 2017 and a 0.7% increase compared to March 2018.
Sales of detached properties in April 2018 reached 807, a 33.4% decrease from the 1,211 detached sales recorded in April 2017. The benchmark price for detached properties is $1,605,800. This represents a 5.1% increase from April 2017 and a 0.2% decrease compared to March 2018.
Sales of apartment properties reached 1,308 in April 2018, a 24% decrease from the 1,722 sales in April 2017. The benchmark price of an apartment property is $701,000. This represents a 23.7% increase from April 2017 and a 1.1% increase compared to March 2018.
Attached property sales in April 2018 totalled 464, a 25.2% decrease compared to the 620 sales in April 2017. The benchmark price of an attached unit is $854,200. This represents a 17.7% increase from April 2017 and a 2.3% increase compared to March 2018.
Alberta - Soft Sales Continue in April
City of Calgary, May 1, 2018 – Changes to the lending industry and a challenging economic recovery are weighing on sales activity in Calgary’s housing market.
Supply levels have not adjusted to the weaker demand environment, and that is preventing price recovery.
“Slower sales do not come as a surprise, given the economy has not yet improved enough to offset the impact of changes in the lending industry,” said CREB® chief economist Ann-Marie Lurie.
“While the rising inventories are being monitored, prices have remained relatively flat as gains in some areas of the city have been offset by declines in other areas.”
The easing sales trend persisted through April in Calgary’s housing market. Calgary sales totaled 1,518 units in April, which is 20% below last year and 25% below long-term averages.
The detached sector has seen the largest decline, with year-to-date sales totaling 2,991 units, 27% below the 10-year average.
Inventory levels in April totaled 7,324 units. This is a 32% rise over last year, but well below the monthly high of 10,129 units recorded in 2008. Supply compared to demand has risen, but city-wide prices have remained relatively stable, totaling $436,500 in April, a monthly and annual gain of 0.21%.
“The reality is that there’s selection heading into the active spring market,” said CREB® president Tom Westcott.
“For many sellers, they have to decide what price they are willing to accept for a lifestyle change. At the same time, buyers need to understand the supply dynamics and price movements in the specific area, as they may not align with their expectations.”
So far this year, apartment and attached sales have eased to levels that are comparable to 2016. However, rising supply in both markets has pushed months of supply to the highest levels recovered over this four-month period, which is preventing any significant shifts in pricing trends.