Toronto leads climbing Canadian home sales

Toronto, one of the biggest drivers of activity in Canada Photo: Bob Linsdell
Toronto leads climbing Canadian home sales

Toronto is leading climbing home sales across Canada, according to new figures.

New data from the Canadian Real Estate Association shows that home sales over Canada’s MLS systems edged up 1.1 per cent month-on-month in March 2017, surpassing the previous monthly record set in April 2016 by one quarter of a per cent.

More than half of all local markets saw sales rise month-on-monh, while actual (not seasonally adjusted) activity in March was up 6.6 per cent year-over-year, with gains in close to 75 per cent of all local markets. Sales in the Greater Toronto Area (GTA) posted the biggest increase, which offset a decline in the number of homes changing hands in Greater Vancouver.

Indeed, the latter has seen sales slow since last year’s decision to introduce a tax on foreign buyer purchases, which was intended to deter speculative investors from overseas and cool down the hot housing market. Now, authorities are planning to do the same in Ontario, as Toronto continues to see prices and sales heat up.

“The current strength in national home sales mainly speaks to what’s going on in and around Toronto,” says CREA President Andrew Peck. “Elsewhere, sales either remain slow or well below previous heights.”

The city’s market is “drum-tight”, agrees Gregory Klump, CREA’s Chief Economist, although he notes that other nearby cities are not necessarily exhibiting the same trends.

“Because housing market balance varies by location, federal or provincial policy measures aimed at cooling demand in Toronto risk destabilizing housing markets elsewhere,” he cautions.

There were 4.1 months of inventory on a national basis at the end of March 2017, down from 4.2 months in February and the lowest level for this measure in almost a decade.

Prices for two-storey single family homes posted the strongest year-over-year gains (+21 per cent), followed closely by townhouse/row units (+17.9 per cent), one-storey single family homes (16.6%) and apartment units (16.3 per cent).

While benchmark home prices were up from year-ago levels in 11 of 13 housing markets tracked by the MLS HPI, price trends continued to vary widely by location.

In the Fraser Valley and Greater Vancouver, prices have been recovering in recent months after having dipped in the second half of last year. On a year-over-year basis, home prices in the Fraser Valley and Greater Vancouver remain well above year-ago levels (+19.4 per cent y-o-y and +12.7 per cent y-o-y respectively).

Meanwhile, y-o-y benchmark price increases were in the 20 per cent range in Victoria and elsewhere on Vancouver Island. Guelph recorded a similar price gain, while Greater Toronto and Oakville-Milton saw prices rise in the 30 per cent range in March.

By comparison, home prices eased by 1.2 per cent y-o-y in Calgary and by 1.5 per cent y-o-y in Saskatoon. Prices in these two markets now stand 5.4 per cent and 5.1 per cent below their respective peaks reached in 2015.

 

Low supply drives Toronto condo sales to record heights

27th March 2017

Low supply levels, particularly of low-rise homes, have driven sales of new condo apartments in Toronto to record heights.

February was a historic month for new condo apartment sales in the Greater Toronto Area, according to the Building Industry and Land Development Association.

Across the entire GTA, there were only 1,001 new low-rise homes available in builder inventories at the end of last month, according to Altus Group, BILD’s official source for new-home market intelligence. A decade ago there were 17,304 of these homes which include single-detached and semi-detached houses and townhomes.

“February data demonstrates, quite clearly, that our housing supply crisis in the GTA is getting worse,” says BILD President and CEO Bryan Tuckey. “Our members are building to current provincial intensification policy and we are building less low-rise single-family housing and more high and mid-rise housing but consumer demand for low-rise homes has not dropped.”

As a result of these “unprecedented”, “almost inconceivable” scarcity, condo sales and price growth are both surging.

At the end of February, there were only 324 new detached homes available for purchase in builder inventories. In February 2007, by contrast, there were 12,064 such homes available to buyers.

As a result, February 2017 saw available new detached homes reach a new record average price of $1,469,449, while the average price for all single-family ground-related product, which also includes semi-detached and townhomes, climbed to a new high of $1,081,013.

 

Toronto drives Canadian home sales to 10-month high

17th March 2017

Canadian home sales reached their highest level in 10 months in February, fuelled by strong activity in Toronto.

New figures from the Canadian Real Estate Association shows that MLS sales rose 5.2 per cent month-on-month in February, to reach the highest level since April 2016.

While February sales were up from the previous month in about 70% of all local markets, the national increase was “overwhelmingly driven” by an increase in activity across the Greater Toronto Area (GTA) and surrounding locations.

“Homes are selling briskly throughout the Greater Toronto Area and nearby communities,” says CREA President Cliff Iverson. “Elsewhere, competition among potential buyers is less intense, so listings take longer to sell.”

“In and around Toronto, many potential move-up buyers find themselves outbid in multiple-offer situations amid a short supply of listings,” adds Gregory Klump, CREA’s Chief Economist. “As a result, they aren’t putting their current home on the market. It’s something of a vicious circle from the standpoint of a supply shortage and a challenge for first-time and move-up home buyers alike. By contrast, housing markets in urban markets elsewhere in Canada are either balanced or are amply supplied. Because housing market conditions vary by region, further tightening of mortgage regulations aimed at cooling the housing market in one region may destabilize it elsewhere.”

The number of newly listed homes rose 4.8 per cent, lead by the Greater Toronto Area, while new listings in the Greater Vancouver region, on the other hand, fell significantly from January, having retreated by nearly 25 per cent to reach the lowest level since 2001.

Overall, property values accelerated from January to rise 16 per cent year-on-year. This was again driven particularly by single family homes in and around Toronto. Indeed, the national average house price is pulled upward by activity in both Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest and expensive markets, but Greater Vancouver’s share of national sales activity has “diminished considerably” over the past year, giving it less upward influence on the national average price.

 

Canadian home sales edge down at start of 2017

17th February 2017

Sales of Canadian property cooled at the start of 2017 to their second lowest monthly level since the fall of 2015.

Home sales over Canadian MLS Systems edged down by 1.3 per cent month-over-month in January, according to the latest figures from the Canadian Real Estate Association.

Sales activity was down from the previous month in about half of all local markets, led by three of Canada’s largest urban centres: the Greater Toronto Area (GTA), Greater Vancouver and Montreal.

Actual (not seasonally adjusted) sales activity was up 1.9 per cent compared to the same month last year. While sales were up from year-ago levels in about two-thirds of all local housing markets, though, including in the GTA, Calgary, Edmonton, London and St Thomas, and Montreal, they were down significantly in the Lower Mainland of British Columbia.

“Canadian homebuyers face some challenges this year, including new mortgage rules that make it harder to qualify for a mortgage and regulatory changes that will push up mortgage financing costs,” comments CREA President Cliff Iverson. “It will take some time to gauge the extent to which these challenges will weigh on home buyers in different housing markets across Canada.”

The national average sales price grew 0.2 per cent in Janury year-on-year, while the MLS house price average jumped 15 per cent.

“The shortage of homes available for sale has become more severe in some cities, particularly in and around Toronto and in parts of BC,” adds Gregory Klump, CREA’s Chief Economist. “Unless sales activity drops dramatically, the outlook for home prices remains strong in places that face a continuing supply shortage.”

The figures arrive as both the mortgage restrictions and Vancouver’s recent foreign buyer tax weigh upon the market. Indeed, the national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets. Greater Vancouver’s share of national sales activity has diminished considerably over the past year, though, giving it less upward influence on the national average price. The average price is reduced by almost $120,000 to $351,998 if Greater Vancouver and Greater Toronto sales are excluded from calculations.

Canadian house prices continue to climb

13th February 2017

Canada’s house price growth continued in the second half of 2016, according to the Canada Mortgage and Housing Corporation, which suggests that speculative investment could be pushing up values.

The latest CMHC report shows taht house prices rose 7 per cent year-on-year in the third quarter of 2016, after adjusting for inflation. Removing Ontario from the calculation would have seen house prices remain flat through to the third quarter, notes the report, but the figures mark the second consecutive quarter of growth, which the CMHS labels as evidence of “problematic housing market conditions nationally”.

“We continue to detect strong evidence of problematic conditions in Canada. Price acceleration in Vancouver, Victoria, Toronto and Hamilton indicates that home price growth may be driven by speculation as it is outpacing what economic fundamentals like migration, employment and income can support. For this reason, home buyers should ensure that their purchases are aligned with their needs as well as the long-term market outlook,” comments Bob Dugan, Chief Economist, Canada Mortgage and Housing Corporation.

Market conditions in Vancouver and Toronto have seen strong price growth spread to neighbouring centres such as Hamilton and Victoria, notes the report, which follows the introduction of a tax for foreign buyers in the Vancouver area in the third quarter of last year, specifically designed to discourage speculative investment and cool house price growth. Feedback from the industry since then has indicated that the measure worked, with overseas activity slowing down in the ensuing months

 

Canadian home sales recover but market remains cool

19th January 2017

Sales of Canadian property recovered in December 2016, but the market remains cool, following recent mortgage restrictions.

The tightened mortgage regulations mean that in order to qualify for a mortgage, home buyers either have to save longer for a bigger down payment or purchase a lower priced home. In city centres, where houses are in short supply, the government’s measure is expected to result in fewer transactions. Indeed, sales saw their biggest decline in four years in November, according to the Canadian Real Estate Association. Combined with the introduction of a foreign buyer tax in the Greater Vancouver area, the result was a mild end to a record year.

“Sales set a new annual record last year,” says CREA President Cliff Iverson. “However, tightened mortgage regulations are expected to contribute to lower sales activity this year, though the extent to which they will weigh on housing markets across Canada will vary.”

Indeed, December saw sales rise 2.2 per cent month-on-month, with activity up in 60 per cent of markets (led by Calgary and Edmonton), but this recovered less than half of the drop seen in November. The number of homes changing hands in 2016 was up by 6.3 per cent annually, reflecting strong sales activity in the first half of the year that has softened since.

The number of newly listed homes fell 3 per cent in December 2016 compared to November, indicating the ongoing lack of stock. New listings were down in about 60 per cent of all local markets, with sizeable declines in B.C.’s Lower Mainland, Calgary and the Greater Toronto Area (GTA).

The actual (not seasonally adjusted) national average price for homes sold in December 2016 was $470,661, up 3.5 per cent from where it stood one year earlier – the smallest annual growth in almost two years. The national average price continues to be pulled upward by sales activity in Greater Vancouver and the GTA, which remain two of Canada’s tightest, most active and expensive housing markets. That said, Greater Vancouver’s share of national sales activity has “diminished considerably” over the last year, giving it less upward influence on the national average price.

Canadian home sales cool in November

4th January 2017

Sales of Canadian homes cooled in November, experiencing the largest monthly drop since August 2012.

The country’s real estate was dealt a big blow by the introduction of a foreign buyer tax in Vancouver over the summer, which saw overseas interest weaken over the following weeks. While that measure was targeted, though, the government has since introduced wider mortgage regulations, which experts warned could push first-time buyers to the sidelines.

“November was the first full month in which the expanded stress-test was in effect for home buyers with less than a twenty percent down payment,” says CREA President Cliff Iverson. “The government’s newly tightened mortgage regulations have dampened a wide swath of housing markets, including places not targeted directly by the government’s latest regulatory measures.”

As a result, the number of transactions through Canadian MLS systems dropped 5.3 per cent month-on-month in November, the largest monthly dip recorded in four years.

Activity was down on a month-over-month basis in about two-thirds of all local markets, including Canada’s most active markets.

“Canadian housing market results for November suggest that Canada’s housing sector is unlikely to be as strong a source for economic growth as compared to before mortgage regulations were recently tightened,” adds Gregory Klump, CREA’s Chief Economist. “Housing activity generates a lot of spin-off spending, which makes its weakened prospects an additional source of uncertainty as regards the outlooks for Canadian economic and job growth.”

Actual (not seasonally adjusted) sales activity held 1.6 per cent above where it stood in November 2015 – the smallest year-over-year increase since October 2015. Annual activity gains in the Greater Toronto Area (GTA) were offset by declines in B.C.’s Lower Mainland.

The actual (not seasonally adjusted) national average price for homes sold in November 2016 rose 7.3 per cent year-on-year to $489,591.

“The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets,” says the CREA. “That said, Greater Vancouver’s share of national sales activity has diminished considerably of late, giving it less upward influence on the national average price.”

 

Canada home sales up despite mortgage stress tests

17th November 2016

Home sales climbed in Canada during October, despite the introduction of new mortgage stress test rules.

The new rules require lenders to be extra sure that borrowers can afford any morgage they apply for. The rules changed in the middle of October, whch means that more time will be needed to determine its impact fully.

“The extent to which they will push first-time home buyers to the sidelines may vary among housing markets,” says Canadian Real Estate Association President Cliff Iverson.

Nonetheless, market activity was buoyant in October, with home sales rising 2.4 per cent month-month and the number of newly listed homes edging up by 1.7 per cent. On a non-seasonally-adjusted basis, sales activity rose 2 per cent year-on-year to set a new record for October.

Transactions were up from year-ago levels in about 60 per cent of all Canadian markets, with activity gains in the Greater Toronto Area (GTA) and environs offset by y-o-y declines in British Columbia’s Lower Mainland.

“First-time home buyers looking to get into the market before having to face tougher mortgage eligibility criteria had only two weeks to do so following the Finance Minister’s announcement of tighter mortgage regulations in early October,” comments Gregory Klump, CREA’s Chief Economist. “Early evidence suggests that the influence of tighter mortgage regulations on sales activity has been mixed. The federal government will no doubt want to monitor the effect of new mortgage regulations on the many varied housing markets across Canada and on the economy, particularly given the recent rise in uncertainty about economic growth prospects following the U.S. presidential election.”

Rising sales have driven up house prices once again in the country, with the MLS House Price Index jumping 14.6 per cent year-on-year and the national average sales price rising 5.9 per cent.

“The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets,” says CREA.

Greater Vancouver saw prices jump 24.8 per cent, the second largest in the country, behind the Fraser Valley (32.5 per cent). Double-digit y-o-y percentage price gains were also registered in Greater Toronto (19.7 per cent), Victoria (20.1 per cent) and Vancouver Island (15.8 per cent).

The figures are released by the CREA as the country continues to monitor the impact of a new foreign buyer tax on property in Vancouver, designed to lower activity from overseas investors and help cool house prices. Indeed, Greater Vancouver’s share of national sales activity “has diminished considerably of late”, says the CREA, resulting in it having less upward influence on the national average price. Nonetheless, the average price across the country is reduced by more than $120,000 to $361,012, if Greater Vancouver and Greater Toronto sales are excluded from calculations.

Canada house prices continue climb, despite foreign tax

21st October 2016

Canada house prices continued to climb at the start of autumn, despite the introduction of Vancouver’s new tax on foreign investors.

The 15 per cent surcharge was introduced at the start of the third quarter of 2016, in an attempt to cool down foreign speculative investment in the market, thereby cooling down price growth.

According to The Royal LePage’s latest report, though, Canadian property prices rose 12 per cent year-on-year in Q3 2016, with a quarterly rise of 30.6 per cent recorded in Vancouver. The average house price rose to $545,414, with two-story home prices climbing 13.7 per cent year-on-year to $649,635, bungalow prices rising 11 per cent to $459,481 and condo values increasing 5.8 per cent to $360,679.

Ontario is considering introducing a similar charge of its own, with prices up 13.6 per cent in the Greater Toronto Area.

Phil Soper, President and Chief Executive Officer, Royal LePage, says the Greater Vancouver climb may be “a final hurrah” for this cycle of growth.

Indeed, the tax does appear to be having some initial impact: the latest CREA research shows that the average Canadian house price rose by 14.4 percent year-on-year in September 2016, down from 14.7 per cent in August – the first deceleration in the rate of growth since March 2015.

Townhouse/row unit and two-storey single family home posted the biggest annual increases in September 2016 (16.4 per cent and 16.3 per cent respectively). Price increases were close behind for one-storey single family homes (14 per cent) and apartment units (11.1 per cent).

Greater Vancouver and the Fraser Valley led growth with price rises of 28.2 per cent and 35 per cent respectively. However, single family home prices in both of these markets dropped from the month before, marking the first significant decline since late 2012.

Sales edged up 0.8 percent month-over-month in September 2016 across the country, but having eased in each of the previous four months, national home sales remain 5.6 per cent below the record set in April 2016.

 

Canadian home buyers hunt for bargains

27th September 2016

Canadian home buyers are hunting for bargains, as house prices remain above the average budget.

According to the CREA, the average house price climbed 14.3 per cent in July 2016, the biggest annual jump since November 2006. That price surge, fuelled by a supply shortage, is led mainly by Greater Vancouver and Toronto, where the housing markets have become particularly over-heated. Price growth varies across the country, but there is a notable trend among buyers to search for more affordable homes than the market average.

New research from Point2 Homes shows that 25 per cent Canadians are now searching for homes under $300,000, which is more than $150,000 below the average of $456,722. In Toronto, almost half (47 per cent) searching on Point2 Homes were looking for three-bed homes priced between $300,000 and $500,000, below the $710,410 average, while in Vancouver, the majority were looking for two-bed homes around $750,000, below the $1 million average.

This is partly due to the age of house-hunters, with most searches being carried out by Millennials (those aged between 25 and 34), followed by Generation X (35 to 44).

 

Canadian home sales fall for third month in a row

22nd August 2016

Sales of Canadian homes fell for the third month in a row in July 2016.

Figures from the Canadian Real Estate Association show that transactions via MLS fell 1.3 per cent month-over-month in July 2016. With similar monthly declines having been posted in May and June, national sales activity in July came in 3.9 per cent below the record set in April 2016.

Sales activity was down from the previous month in slightly more than half of all markets in July, led by Greater Vancouver and the Fraser Valley. Transactions in these two markets peaked in February of this year, and have since then dropped by 21.5 and 28.8 per cent respectively. Accordingly, much of the national sales decline in recent months reflects slowing activity in B.C.’s Lower Mainland.

“National sales and price trends continue to be heavily influenced by a handful of places in Ontario and British Columbia and mask significant variations in local housing market trends and conditions across Canada,” says CREA President Cliff Iverson.

“Home sales continued to trend lower while price gains further accelerated in the Lower Mainland of British Columbia,” adds Gregory Klump, CREA’s Chief Economist. “This suggests that sales are being reined in by a lack of inventory and a further deterioration in affordability. The new 15 per cent property transfer tax on Metro Vancouver home purchases by foreign buyers took effect on August 2nd, so it will take some time before the effect of the new tax on sales and prices can be observed. That said, the new tax will do little in the short term to increase the supply of homes.”

With supply low, price rises continue to post strong results, with the aggregate composite house price index climbing 14.3 per cent year-on-year in July 2016, the biggest gain since November 2006.

For the sixth consecutive month, y-o-y price growth accelerated for all Benchmark property types tracked by the index. Greater Vancouver (32.6 per cent) and the Fraser Valley (+37.6 per cent) posted the largest y-o-y gains by a wide margin, followed by Greater Toronto (16.7 per cent), Victoria (17.5 per cent) and Vancouver Island (+11.6 per cent).

Home prices rose modestly in Regina (2.7 per cent y-o-y), Greater Montreal (1.8 per cent y-o-y) and Ottawa (1.1 per cent y-o-y). Greater Moncton recorded its largest y-o-y home price increase (8.4 per cent) among an unbroken string of gains posted every month over the past year.

 

Record property sales in Toronto – but where’s the supply?

8th August 2016

Toronto’s housing market market enjoyed a record month in July 2016, but there’s a fly in the ointment: a shortage of new listings.

According to the Toronto Real Estate Board, 9,989 home sale were completed through the MLS system in the Canadian city last month – the best result on record for the month of July.

While sales were up on a year-over-year basis, though, the number of listings was down, highlighting on ongoing trend that the TREB says is “troubling”: demand is up, but what about supply?

“GTA Realtors have been working very hard on behalf of their buyer clients to help them find a home meeting their needs,” says President Larry Cerqua. “Unfortunately, listings for single-detached and semi-detached houses and townhouses continue to be in short supply. The result has been an increase in pent-up demand and annual rates of price increases well above the rate of inflation. Housing policy is now top of mind for all levels of government. Policy makers need to be focusing on solutions to the sustained lack of low-rise inventory throughout the GTA.”

With low mortgage costs, a strong labour market and incomes rising above inflation, conditions are ripe for buyers to purchase homes, but with such a shortage of listings, that mismatch is forecast to keep pushing up prices.

Indeed, the average selling price for all home types combined was up by 16.6 per cent year-over-year in July to $709,825.

Canadian homes sales still falling, prices still climbing

18th July 2016

Canadian home sales continued to fall in June 2016, but prices keep on climbing.

The number of homes trading hands via Canadian MLS systems fell 0.9 per cent from May 2016, according to the latest figures from the Canadian Real Estate Association. This is the second monthly decline in a row, taking sales activity down to 2.6 per cent below the record set in April 2016.

Sales activity was down from the previous month in about half of all markets in June, with declines in Greater Vancouver, the Fraser Valley and Greater Toronto having eclipsed gains in comparatively less active housing markets.

“As was the case in May, the monthly decline in national sales activity was led by the Lower Mainland of British Columbia and markets in or around the GTA. In keeping with the law of supply and demand, exceptionally low inventory combined with high demand continues to translate into strong price growth in these housing markets, where year-over-year price gains have been running in double-digit territory since late last year,” says Gregory Klump, CREA’s Chief Economist.

Actual (not seasonally adjusted) sales activity was up 5.2 per cent year-over-year in June 2016. Year-over-year increases have been steadily losing momentum since February 2016.

The number of newly listed homes rose by 2.2 per cent in June 2016 compared to May. New supply climbed among a broad majority of all local markets, led by Greater Toronto, Oakville-Milton, Montreal, Quebec City, and B.C.’s Fraser Valley. The return of activity in Fort McMurray following its evacuation in May also contributed to the national increase in new listings.

With sales down and new listings up, the national sales-to-new listings ratio eased to 63.3 per cent in June 2016, compared to 65.3 per cent in May.

Nonetheless, the Aggregate Composite MLS Benchmark price rose by 13.6 per cent year-on-year to $564,700 in June 2016, the biggest gain since December 2006. For the fifth consecutive month, y-o-y price growth accelerated for all property types.

While prices in 9 of the 11 markets tracked by the MLS HPI posted annual gains in June, though, price growth continues to vary widely among housing markets.

“While national sales activity remains strong, there are still significant differences in housing market trends across Canada,” says CREA President Cliff Iverson. “While home sales activity and price growth are running strong in B.C. and Ontario, they remain subdued in other markets where homebuyers are cautious and uncertain about the outlook for their local economy.”

Greater Vancouver (up 32.1 per cent) and the Fraser Valley (35.5 per cent) posted the largest annual gains, followed by Greater Toronto (16 per cent), Victoria (15.7 per cent), and Vancouver Island (10.6 per cent). By contrast, prices were down 4.1 per cent and 1.4 per cent year-on-year in Calgary and Saskatoon, respectively.

Home prices gained further traction in Regina (3.6 percent), Greater Montreal (1.9 per cent), and Ottawa (1.0 per cent). Home prices in Greater Moncton recorded their eleventh consecutive year-over-year gain, rising 7.9 per cent.

The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets. The actual (not seasonally adjusted) national average price for homes sold in June 2016 was $503,301, up 11.2 percent y-o-y.

If these two housing markets are excluded from calculations, the average price is a more modest $374,760 and the gain is trimmed to 8.4 per cent.

Canadian home sales drop after record-breaking April

16th June 2016

Canadian home sales slipped in May 2016, following a record-breaking April.

The number of homes trading hands fell 2.8 per cent month-on-month in May 2016, according to the Canadian Real Estate Association. Sales activity dropped in May from the previous month in 70 per cent of all markets, led by those in British Columbia and Ontario, where the number of homes listed for sale has fallen to multi-year or all-time lows.

“National sales activity is still strong, even after coming off the record levels of the past couple of months,” says CREA President Cliff Iverson. “But, there are housing markets where sales continue to reflect a cautious mood among homebuyers and uncertainty about the local economy. All real estate is local, and REALTORS® remain your best source for information about sales and listings where you live or might like to in the future.”

“Many of the housing markets in BC and Ontario that led the monthly decline in national sales are also places where months of inventory have fallen to all-time lows,” says Gregory Klump, CREA’s Chief Economist. “This suggests a lack of supply may be starting to rein in sales amid a continuation of strong housing demand.”

Canadian property market has busiest ever April

24th May 2016

Canadian home sales have broken another record, following the market’s most active April ever.

Actual (not seasonally adjusted) sales activity rose 10.3 per cent from one year ago to shatter all previous records for the month of April, according to the Canadial Real Estate Association, as well as marking the second highest level for transactions for any single month.

The number of homes trading hands via Canadian MLS systems rose by 3.1 per cent month-over-month, with transactions up in about 70 per cent of all local markets – led by the National Capital Region and Edmonton. Following small declines in the previous month, activity held steady in the Greater Toronto Area (GTA) and edged lower in Greater Vancouver.

“Nstional home sales set new monthly records over the past two months, even as activity in Greater Vancouver and the GTA appears to have topped out,” says CREA President Cliff Iverson. “With almost three-quarters of all local markets posting sales gains in April, there are plenty of other places where sales are climbing as we head into the busiest time of the year for homebuyers.”

“Supply shortages and tight housing market conditions have become self-reinforcing in the GTA,” adds Gregory Klump, CREA’s Chief Economist. “The Greater Vancouver Area appears to be heading in that direction too. While significant home price gains may entice some homeowners in these markets to list their home for sale, the issue for many is that the decision to move means they would also be looking to buy while competition for scarce listings is fierce. As a result, many homeowners are deciding to stay put and continue accumulating capital gains.”

Canadian home sales hit record high

18th April 2016

Home sales in Canada have hit a record high this March, as the housing market springs forward.

Transactions rose 1.5 per cent month-on-month across the country, according to the Canadian Real Estate Association. 60 per cent of regions saw sales climb, including Victoria, Chilliwack, the Okanagan Region, Edmonton, Calgary, Woodstock-Ingersoll, Kingston, Barrie and Montreal, offsetting a decline of 0.3 per cent in Greater Vancouver and 1.8 per cent in the Greater Toronto Area.

Overall, activity climbed to an all-time high for March, with actual (not seasonally adjusted) sales up 12.2 per cent compared to March 2015. Even Canada and Toronto’s slightly declining markets remained near the record highs reached the month before.

“Greater Vancouver and the GTA are heading into the spring home buying season with soaring demand and a shortage of listings,” says CREA President Cliff Iverson. “Meanwhile, other major urban markets in Canada are well balanced or are amply supplied.”

“Single family home sales in the Lower Mainland of BC and the GTA set new records for the month of March in the range between a-half and one-million dollars – as did sales above a million dollars,” adds Gregory Klump, CREA’s Chief Economist.

“Meanwhile, sales below a half-a-million dollars, which were not subject to recently tightened mortgage regulations, are being increasingly restrained in these markets by a short supply of listings. If current sales and listings trends persist, price gains may pick up further this spring.”

Prices are already climbing, fuelled by the growing demand, with the CREA’s house price index rising 9.1 per cent year-on-year, the biggest gain recorded since June 2010.

Canadian home sales rise for second month in a row

16th March 2016
Canadian home sales have risen for a second month in a row this year, but the data hides an unbalanced market.

New figures from the Canadian Real Estate Association show that the number of homes trading hands via Canadian MLS Systems rose by 0.8 per cent in February 2016 compared to January.

The monthly increase lifted national sales activity to the highest level since June 2007.

The figures highlight the growing imbalance in Canada’s housing market, as Toronto and Vancouver continue to drive activity. Indeed, a greater number of local housing markets posted a monthly decline in sales activity than posted a monthly increase, but the latter accounted for a larger share of national transactions.

The Greater Toronto Area, Okanagan Region and Fraser Valley made the largest contribution to the monthly increase in national sales activity, offsetting monthly sales declines in Edmonton, Greater Moncton and Montreal.

“Two of Canada’s hottest housing markets look set to stay that way heading into the spring home buying season,” says CREA President Pauline Aunger. “Meanwhile, other major urban markets elsewhere in Canada are well balanced or have ample supply.”

Actual (not seasonally adjusted) sales activity rose 18.7 per cent on a year-over-year basis in February 2016, standing 12.7 per cent above the 10-year average for the month. Activity increased above year-ago levels in February in about three-quarters of all local markets. B.C.’s Lower Mainland, the GTA and Montreal contributed most to the year-over-year increase in national activity.

To highlight the uneven nature of the market’s performance, the CREA data also highlights that the number of single family home sales above one million dollars is rising in Greater Vancouver and the GTA.

“Tightened mortgage regulations apply to homes selling above five hundred thousand dollars and below a million dollars. The tighter regulations combined with a short supply of single family homes will restrain transactions below one million dollars,” comments Gregory Klump, CREA’s Chief Economist. “If recent trends continue, home sales above one million dollars will account for a greater share of activity and will further fuel year-over-year average price increases in these markets. Meanwhile, price growth will remain more modest in other housing markets that don’t have an ongoing or developing supply shortage like the kind we’re seeing in the Lower Mainland of British Columbia or around the GTA.”

Comments

comments