The Canadian Real Estate Market continued its gain in November with good sales and prices gain in November. Country's oil-producing regions the only ones showing any weakness.
An increasing number of home buyers impacted by demand-side policies over the past three years, including the mortgage stress test, have moved back into the market for ownership housing. Based on affordability and stricter mortgage qualification standards, many buyers may have likely adjusted their preferences, changing the type and/or location of home they ultimately chose to purchase.
Toronto, 04 December 2019 -- Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 7,090 sales through TREB's MLS® System in November 2019 – a 14.2% increase compared to November 2018. On a GTA-wide basis, sales were up year-over-year for all major market segments. Annual sales growth in ground-oriented home types, including detached houses, led the way.
New listings entered into TREB's MLS® System in November and the active listings count at the end of the month went in the opposite direction compared to last year, with new listings down 17.9% year-over-year and active listings down 27.2%.
"An increasing number of home buyers impacted by demand-side policies over the past three years, including the 2017 Ontario Fair Housing Plan and the OSFI mortgage stress test, have moved back into the market for ownership housing. Based on affordability and stricter mortgage qualification standards, many buyers may have likely adjusted their preferences, changing the type and/or location of home they ultimately chose to purchase," said Mr. Collins.
As market conditions continued to tighten in November 2019, with increased sales up against an increasingly constrained supply of listings, the annual rate of price growth continued to accelerate. The MLS® Home Price Index Composite Benchmark increased by 6.8% year-over-year. The average selling price increased by 7.1% year-over-year to $843,637. Both the MLS® HPI and the average selling price for the TREB market area as a whole experienced the strongest annual rates of price growth for the year in November.
"Strong population growth in the GTA coupled with declining negotiated mortgage rates resulted in sales accounting for a greater share of listings in November and throughout the second half of 2019. Increased competition between buyers has resulted in an acceleration in price growth. Expect the rate of price growth to increase further if we see no relief on the listings supply front," said Jason Mercer, TREB's Chief Market Analyst.
Ottawa, December 4, 2019 -- Members of the Ottawa Real Estate Board sold 1,288 residential properties in November through the Board’s Multiple Listing Service® System, compared with 1,161 in November 2018, an increase of 10.9%. November’s sales included 958 in the residential-property class, up 10.5% from a year ago, and 330 in the condominium-property category, an increase of 12.2% from November 2018. The five-year average for November unit sales is 1,133.
“Even with the typical winter slowdown, Ottawa’s home resale market still experienced a relatively brisk pace in November. Our inventory is not having a chance to build as it is being absorbed as quickly as it comes on the market. That’s why there are so many sales every month even though the supply stock is low,” explains Dwight Delahunt, President of the Ottawa Real Estate Board.
November’s average sale price for a condominium-class property was $313,734, an increase of 9.8% from last year while the average sale price of a residential-class property was $501,201, an increase of 16.9% from a year ago. Year to date figures show an 8.9% and 9.1% increase in average sale prices for residential and condominiums, respectively.*
“Prices have increased, and therefore there is a shortage of units available in the lower end price range of both condos and residential properties,” reports Delahunt. “That being said, the Ottawa market still remains strong and sustainable with reasonable increases in year-to-date average prices of 9% in both the residential and condominium property classes.”
The most active price range in the condominium market was $225,000-$349,999, accounting for 57.5% of the units sold while $350,000 to $499,999 represented the most prevalent price point in the residential market, accounting for 38.8% of November’s transactions. Residential properties in the $500,000 to $749,999 range increased to 32% of all residential resales.
“As for the higher end of the market, we are seeing substantial increases in the number of properties sold in those price ranges as well. In the $750K-$1M range, 65 units changed hands last month compared to 24 sales last year at this time,” reveals Delahunt. “Further, the homes in the $1M+ plus range have increased to 29 sales last month from 15 sold in November 2018.”
“Year to date totals show the larger picture with a 41% increase in the $750K-$1M range from 610 to 861 unit sales, and a 30% increase in the $1M+ range from 266 to 345 transactions compared to this time last year,” he adds.
British Columbia - Metro Vancouver home sales return to historically typical levels
After a quieter first half of 2019, home buyer activity has returned to more historically typical levels in Metro Vancouver*.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,498 in November 2019, a 55.3% increase from the 1,608 sales recorded in November 2018, and a 12.6% decline from the 2,858 homes sold in October 2019.
Last month’s sales were 4% above the 10-year November sales average.
"We started to see more home buyer confidence in the summer and this trend continues today. It’ll be important to watch home listing levels over the next few months to see if supply can stay in line with home buyer demand." said Ashley Smith, REBGV president.
There were 2,987 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in November 2019. This represents a 13.7% decrease compared to the 3,461 homes listed in November 2018 and a 26.7% decrease compared to October 2019 when 4,074 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,770, a 12.5% decrease compared to November 2018 (12,307) and a 12% decrease compared to October 2019 (12,236).
For all property types, the sales-to-active listings ratio for November 2019 is 23.2%. By property type, the ratio is 17.2% for detached homes, 24.9% for townhomes, and 29.3% 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.
“In today’s market, the intensity of home buyer demand depends on neighbourhood, property type, and price point,” Smith said. “To better understand the changing trends in your neighbourhood and property type of choice, it’s important to work with your local REALTOR®.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $993,700. This represents a 4.6% decrease from November 2018 and a 1.3% decrease over the past six months.
Sales of detached homes in November 2019 reached 825, a 59.9% increase from the 516 detached sales recorded in November 2018. The benchmark price for a detached home is $1,415,400. This represents a 5.8% decrease from November 2018, a 0.5% decrease over the past six months, and a 0.3% increase compared to October 2019.
Sales of apartment homes reached 1,222 in November 2019, a 50.9% increase compared to the 810 sales in November 2018. The benchmark price of an apartment home is $651,500. This represents a 3.8% decrease from November 2018, a 1.9% decrease over the past six months, and a 0.2% decline compared to October 2019.
Attached home sales in November 2019 totalled 451, a 59.9% increase compared to the 282 sales in November 2018. The benchmark price of an attached home is $772,800. This represents a 4.4% decrease from November 2018, a 0.8% decrease over the past six months, and a 0.2% increase compared to October 2019.
Alberta - Calgary housing market still favours the buyer
City of Calgary, December 2, 2019 – Year-to-date residential sales in the city remain just above last year’s levels due to improvements in the attached sector so far this year.
However, November sales activity eased over last year’s levels, mostly due to pullbacks in the apartment sector.
Meanwhile, new listings eased enough relative to sales to cause inventories to ease and the amount of oversupply to come down slightly compared to last year’s levels.
“Achieving more stable conditions will take time. Sales activity has been settling in at lower levels and is likely being influenced by the economic conditions and uncertainty weighing on our market,” said CREB® chief economist Ann-Marie Lurie.
“While the amount of supply in the market continues to ease, the persistent oversupply continues to weigh on prices.”
As of November, the citywide unadjusted benchmark price was $419,100. This is just below last month’s levels and two% lower than last year’s levels.
Market conditions continue to vary depending on price, location and product type. For example, prices have ranged from a year-to-date decline of nearly eight% for row products in the East district to a two% increase for the semi-detached products in the North district.
Larger price declines are often caused by high supply in the new home and resale markets relative to demand.