Market Watch - Hot Market in a Scorching July

Typically, after the busy spring, July tends to be a slower month as people take vacations and spend more time with their families, but there was no slow down this past month, In fact, the Canadian Real Estate market recorded good sales numbers this past of July in most monitored areas.

Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses, and condominium apartments. However, the single-detached market segment, which has arguably been impacted most by the OSFI stress test, has experienced a slower pace of price growth, with average detached prices remaining lower than last year's levels in some parts of the country.

 

Ontario - Hot Market in a Scorching July

Toronto, 6 Aug 2019 - Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 8,595 sales through TREB's MLS® System in July 2019. This result was up by 24.3%, compared to July 2018. On a month-over-month basis, sales were up by 5.1%, after preliminary seasonal adjustment.

New listings entered into TREB's MLS® System in July 2019 were up compared to July 2018, but by a much lesser annual rate than sales, at 3.7%. With annual growth in sales far outstripping annual growth in new listings, market conditions clearly tightened compared to last year. Active listings at the end of July were down by 9.1% year-over-year, further reflecting tightening market conditions.

As market conditions continued to tighten in July, the average selling price increased by 3.2% on a year-over-year basis to $806,755. The MLS® Home Price Index Composite Benchmark was up by 4.4%. Higher density home types continued to drive price growth, whereas detached home prices remained down in many communities throughout the GTA.

Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses, and condominium apartments. However, the single-detached market segment, which has arguably been impacted most by the OSFI stress test, has experienced a slower pace of price growth, with average detached prices remaining lower than last year's levels in some parts of the GTA.

 

Ottawa, August 6, 2019, Members of the Ottawa Real Estate Board sold 1,842 residential properties in July through the Board’s Multiple Listing Service® System, compared with 1,605 in July 2018, an increase of 14.8%. July’s sales included 1,382 in the residential-property class, up 12.3% from a year ago, and 460 in the condominium-property category, a rise of 23% from July 2018. The five-year average for July unit sales is 1,579.

“Typically, after the busy spring, July tends to be a slower month as people take vacations and spend more time with their families, but there was no slow down this past month,” observes Dwight Delahunt, President of the Ottawa Real Estate Board. “In fact, we recorded the highest number of July sales in 15 years.”

“Also, for the first time in 2019, there was an upsurge in new listings which has slightly improved housing inventory. Although this is encouraging news, it is not enough to keep up with demand. In order to bring about a more balanced market, there needs to be at least a three-month supply of listings. Currently, Ottawa is closer to a one-month supply,” he adds.

“In this type of market, it is vital that Sellers utilize the experience and advice of a REALTOR® to maximize your property’s potential — and if you are a Buyer, to guide you through the complexities this intricate market presents,” Delahunt recommends.

July’s average sale price for a condominium-class property was $299,665, an increase of 6.8% from last year while the average sale price of a residential-class property was $487,308, an increase of 10.4% from a year ago.*

“Residential house prices continue to increase; however, these are reasonable gains and are not creating a bubble by any stretch,” Delahunt maintains. “Condo prices have now recovered, and the oversupply in that sector no longer exists. Ottawa has a healthy condo market and with major developments coming online in the future, we expect these too will be absorbed in due course.”

The $350,000 to $499,999 price range was the most prevalent price point in the residential market, accounting for 42% of July’s transactions while 28% of residential sales were in the $500,000 to $749,999 range. The most active price point in the condominium market, $225,000-$349,999, accounts for 52% of the units sold.

When asked about how the upcoming federal election might affect the real estate market, Delahunt emphasizes, “We continue to believe the stress test is negatively impacting our housing market and look forward to hearing about how the various parties intend on addressing this contentious issue as the election approaches.”

In addition to residential sales, OREB Members assisted clients with renting 1,619 properties since the beginning of the year.

 

Britsh Colombia - Home sales increase in July

VANCOUVER, BC – August 2, 2019, Home buyer demand picked up across Metro Vancouver* last month, making July, a traditionally quieter month in real estate, the second-highest selling month so far this year.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,557 in July 2019, a 23.5% increase from the 2,070 sales recorded in July 2018, and a 23.1% increase from the 2,077 homes sold in June 2019.

Last month’s sales were 7.8% below the 10-year July sales average.

"While home sale activity remains below long-term averages, we saw an increase in sales in July compared to the less active spring we experienced. Those looking to buy today continue to benefit from low-interest rates, increased selection, and reduced prices compared to the heated market a few years ago." Said, Ashley Smith, REBGV president

There were 4,613 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2019. This represents a 3.3% decrease compared to the 4,770 homes listed in July 2018 and a 2.9% decrease compared to June 2019 when 4,751 homes were listed. 

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 14,240, a 17.3% increase compared to July 2018 (12,137) and a 4.9% decrease compared to June 2019 (14,968).  

For all property types, the sales-to-active listings ratio for July 2019 is 18%. By property type, the ratio is 13.5% for detached homes, 20% for townhomes, and 22% for apartments. 

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.  

“To better understand conditions in your property type or neighbourhood of choice, it’s important to work with your local REALTOR®. They can help you develop a strategy to reach your long-term real estate goals,” Smith said.  

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $995,200. This represents a 9.4% decrease over July 2018 and a 0.3% decrease compared to June 2019.  

Sales of detached homes in July 2019 reached 841, a 32% increase from the 637 detached sales recorded in July 2018. The benchmark price for detached properties is $1,417,000. This represents a 10.5% decrease from July 2018, and a 0.5% decrease compared to June 2019.  

Sales of apartment homes reached 1,243 in July 2019, a 15.2% increase compared to the 1,079 sales in July 2018. The benchmark price of an apartment property is $653,200. This represents an 8.8% decrease from July 2018, and a 0.2% decrease compared to June 2019.  

Attached home sales in July 2019 totalled 473, a 33.6% increase compared to the 354 sales in July 2018. The benchmark price of an attached unit is $770,000. This represents a nine% decrease from July 2018, and a 0.6, decrease compared to June 2019. 

 

Alberta - July's Residential Unit Sales Up 11% Year Over Year 

 Edmonton, August 2, 2019 -- Total residential unit sales in the Edmonton Census Metropolitan Area (CMA) real estate market for the month of July 2019 rose 11.49% compared to July 2018. While sales rose, the number of new residential listings dropped 10.01% from July 2018, and overall inventory in the Edmonton CMA dropped 13.58% from July of last year.

Single-family home unit sales increased by 17.79%, while condo unit sales dropped 0.89%, and unit sales of duplexes increased by 4.42% from the same period of time last year. 

All residential average prices decreased to $366,344, a drop of 1.70% from July 2018, and are virtually unchanged from June 2019. Single-family homes sold for an average of $429,717, a 1.91% year-over-year drop from July 2018, but a 1.37% increase from June 2019. Condominiums sold for an average of $222,911, a 10.3% drop year-over-year, and a decrease of 6.59% from the previous month. Duplexes dropped 2.80% from last year to $333,317, which was a 1.63% decrease from the previous month.

“Edmonton real estate unit sales in July are up year over year,” says REALTORS® Association of Edmonton Chair Michael Brodrick. “Prices remain relatively flat; however, the average price of condominiums is down over 10% year over year.” 

 

Single-family homes averaged 57 days on the market, a five-day increase from last year. Condos spent five days longer on the market, from 65 to 70 days, while duplexes averaged 66 days on market, a five-day increase from July 2018. Overall, all residential listings averaged 62 days on market, a 8.77% increase year-over-year, and a 5.08% increase from June 2019.

 




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