Market Watch - Market Momentum Continues into the Fall
Markets across the country built on momentum from the summer. While the current pace of price growth remains moderate, we will likely see stronger price growth moving forward if sales growth continues to outpace listings growth, leading to more competition between home buyers.
Ontario - Market conditions in the GTA have steadily tightened throughout 2019.
Toronto, 06 November 2019 - Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 8,491 residential sales through TREB's MLS® System in October 2019. This result represented a 14% increase compared to 7,448 sales reported in October 2018. GTA-wide, sales were up on a year-over-year basis for all major home types.
The trend of annual growth in sales versus annual decline in new listings continued in October 2019, with new listings down by 9.6% compared to October 2018. The resulting tighter market conditions compared to a year ago resulted in positive annual rates of price growth across all major market segments, from a GTA-wide perspective.
The MLS® Home Price Index Composite Benchmark was up by 5.8% on a year-over-year basis in October 2019 – the strongest annual rate of growth since December 2017. The average selling price for all home types combined was up by 5.5% to $852,142, compared to $807,538 in October 2018.
"As market conditions in the GTA have steadily tightened throughout 2019, we have seen an acceleration in the annual rate of price growth. While the current pace of price growth remains moderate, we will likely see stronger price growth moving forward if sales growth continues to outpace listings growth, leading to more competition between home buyers," said Jason Mercer, TREB's Chief Market Analyst.
Ottawa - October’s Whirlwind Resale Market
Ottawa, November 5, 2019 - Members of the Ottawa Real Estate Board sold 1,607 residential properties in October through the Board’s Multiple Listing Service® System, compared with 1,375 in October 2018, an increase of 16.9%. October’s sales included 1,211 in the residential-property class, up 15% from a year ago, and 396 in the condominium-property category, an increase of 23% from October 2018. The five-year average for October unit sales is 1,319.
“New listings are down, inventory remains scarce, and yet more homes changed hands this October than in the past decade and a half,” reports Dwight Delahunt, President of the Ottawa Real Estate Board. “It’s perplexing at first; however, when you consider the current breakneck transaction pace in the Ottawa resale market, often requiring homebuyers and sellers to make swift decisions, it makes sense.”
“October’s average Days on Market (DOM) for residential properties decreased by 10 days to 33 days, and the DOM for condominiums decreased to 28 days from the average 47 days experienced this time last year. Year to date figures show 31 DOM (down 8 days) for residential properties and 35 DOM (16 fewer days) for condominiums. Products are flying off the shelves, so to speak.”
October’s average sale price for a condominium-class property was $319,208, an increase of 18.3% from last year while the average sale price of a residential-class property was $483,405, an increase of 7.6% from a year ago. Year to date figures show an 8.3% and 9.1% increase in average sale prices for residential and condominiums, respectively.*
“We are seeing slightly above-average climbs in home prices this year, and the equity in many properties is undoubtedly increasing, which is great news for homeowners. Still, the growths are reasonable considering the state of the market and Ottawa retains its reputation of being one of the country’s most affordable cities where residents can enjoy a high quality of life,” Delahunt acknowledges.
The most active price range in the condominium market was $225,000-$349,999, accounting for 53% of the units sold while $350,000 to $499,999 represented the most prevalent price point in the residential market, accounting for 43% of October’s transactions. Residential properties in the $500,000 to $749,999 range increased to 30% of all residential resales.
“We are noticing a significant uptick in residential properties sold in the $500-750K price range. This price point now represents almost 1 in every 3 home sales.”
“Even though there are incidences of multiple offers and homes sold for over market value, the reality is that approximately 36% of homes are selling over asking, compared to 21% at this time last year. It is a phenomenon that is affecting specific pockets of the city, but certainly not every neighbourhood or property type.”
“Sellers should use the knowledge of a REALTOR® to understand the complexities of their home’s positioning. Buyers require timely guidance on how to put in an attractive offer in this fast-paced market — and both parties must understand the intricacies of the contracts they are signing,” Delahunt advises.
In addition to residential sales, OREB Members assisted clients with renting 2,334 properties since the beginning of the year.
Alberta - Sales Volumes Up, Inventories Decrease
Edmonton, November 4, 2019 - Total residential unit sales in the Edmonton Census Metropolitan Area (CMA) real estate market for the month of October 2019 increased 8.10% compared to October 2018 and decreased 3.82% from September 2019. The number of new residential listings is down, dropping 5.92% from October 2018. Overall inventory in the Edmonton CMA fell 9.26% from October of last year.
Single family home unit sales are up 3.85% and condo unit sales increased 5.30% from the same period of time last year.
All residential average prices are down slightly at $353,546, a 2.44% decrease from October 2018, and are virtually unchanged from September 2019. Single family homes sold for an average of $420,939, a 1.73% year-over-year decrease from October 2018, and they are virtually unchanged at a 0.13% decrease from September 2019.
Condominiums sold for an average of $227,802, a 2.96% increase year-over-year, and a 4.66% increase from the previous month. Duplex prices dropped 1.43% from October of last year, selling at $328,975, which was a 4.15% decrease from the previous month.
“The Edmonton market has seen little change with a slight increase in year-over-year residential sales,” says REALTORS® Association of Edmonton Chair Michael Brodrick. “Single family home pricing dropped 1.73%, duplexes are down 1.43%, and condos are up 2.96% year-over-year.”
Single family homes averaged 60 days on the market, a two-day decrease from last year. Condos spent six days more on the market, from 70 to 76 days, while duplexes averaged 63 days on market, a three day decrease from October 2018. Overall, all residential listings averaged 65 days on market, a 1.52% decrease year-over-year, and increased by two days from the previous month.
Britsh Colombia - Market Momentum Continues into the Fall
Vancouver, BC - October 15, 2019. The British Columbia Real Estate Association (BCREA) reports that a total of 6,938 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in September, an increase of 24% from the same month last year. The average MLS® residential price in the province was $697,943, an increase of 2.1% from September 2018. Total sales dollar volume was $4.84 billion, a 26.5% increase from the same month last year.
"Markets across BC built on momentum from the summer," said BCREA Chief Economist Brendon Ogmundson. "While the year-over-year increase in provincial sales was quite strong, home sales in most areas are simply returning to historically average levels."
MLS® residential active listings in the province were up 4% from September 2018 to 39,117 units and were essentially flat compared to August on a seasonally adjusted basis. Overall market conditions remained in a balanced range with a sales-to-active listings ratio of about 18%.
Year-to-date, BC residential sales dollar volume was down 12.4% to $39.7 billion, compared with the same period in 2018. Residential unit sales were 8.9% lower at 57,773 units, while the average MLS® residential price was down 3.9% year-to-date at $687,530.