Condos have been enjoying a gradual increase in popularity in Victoria, which helped keep the market’s average housing price at a moderate level during the third quarter, according to Royal LePage.
“Newly constructed developments are driving strength in Victoria’s condo sector.Units in these new builds are being sold quickly,” Royal LePage Coast Capital Realty sales representative Neil Bosdet said.
The latest Royal LePage House Price Survey showed that Victoria’s average home sales price moderated by 0.4% year-over-year, ending up at $760,475 as of Q3 2019.
By asset class, the median price of condo units grew by 6% annually during the quarter, to an aggregate average of $493,448.
“We are seeing millennial and first-time home buyers attracted to condos for their relative affordability.Younger generations are also willing to sacrifice space for a more desirable downtown location.”
Meanwhile, two-storey dwellings saw their average price fall by 1.5% to $858,658.Bungalows suffered a 0.8% year-over-year decline to $765,091.
To compare, the national aggregate housing price increased by 1.4% annually to $630,335 during the third quarter.
Royal LePage predicted that for the final quarter of the year, this aggregate price will go up by 1.5% year-over-year
Beyond the financial impact, elevated housing prices have proven to be a soul-crushing ordeal for a majority of Canadians, a new analysis by Zoocasa revealed.
In its 2019 National Housing Survey, the real estate information portal found that for 59% of respondents and 76% of renters, the housing affordability crisis has negatively affected their mental health at least once in the last 12 months.
“All groups of respondents appear to be stressed by their finances to a large extent:79% said they were their biggest source of stress at least once over the last 12 months, with 75% of homeowners and 86% of renters in agreement,” Zoocasa stated.
More than four out of five (84%) Canadians see housing affordability as a crucial issue that has significant economic and political repercussions, the study added.
Furthermore, 78% of respondents (as well as 90% of renters) said that any newly elected federal government should prioritize addressing the long-running affordability problem.
Fully 91% of respondents indicated a belief that housing prices in their locales have been rising faster than incomes, and 92% said that this price growth has made it all but impossible for the average
In a recent column for HuffPost Canada, markets observer Daniel Tencer said that the lack of sufficient student housing supply is a major factor driving higher rent rates in Canada’s top cities.
This phenomenon was especially apparent in rental spaces situated closer to educational institutions.
“These incoming foreign students need somewhere to live, and with the increased population growth, there will be pressure on the housing market in university towns,” Tencer quoted a recent analysis by the Real Estate Investment Network.
The REIN study also found that as little as 3% of Canadian university students reside in purpose-built student housing outside campus, compared to the 10% ratio south of the border and 12% in the United Kingdom.
This cohort’s Canadian presence has grown by 119% from 2010 to 2017, and is estimated to spend around $8 billion annually, including tuition and housing/living expenses.As of the end of that period, there were 494,525 international students in Canada.
Chinese students comprised around 28% of this total, while India represented 25%.Approximately 15,000 originated from the United States.
In particular, British Columbia is seeing the growing influence of these students, according to the Canadian
With demand for Toronto’s assets showing no signs of slowing down, the city’s real estate sector must learn to explore the multiple possibilities in construction, especially in the realms of co-working space and higher-density housing.
Developers should also work to manage the multiple factors influencing tenant expectations, PwC stated earlier this month.
Among the most prominent of these forces is e-commerce.This is especially because an emerging expectation for same-day delivery among consumers is driving demand for large spaces situated near major habitation and transportation hubs.
According to PwC’s Emerging Trends in Real Estate published last month in collaboration with the Urban Land Institute, this trend will magnify the already strong demand for commercial spaces in the country’s hottest metropolitan markets.
Fortunately, “the rise of e-commerce doesn’t necessarily mean the end of the brick-and-mortar presence, and in fact retail remains an important solution to last-mile delivery,” PwC Canada national real estate leader Frank Magliocco stated.
PwC director of real estate research Andrew Warren noted that as a result, mixed developments will see a much increased presence in Toronto, largely due to the needs of those residing and working in the city.
Canada’s population and consumer base has seen strong growth thanks to immigration, according to the country’s statistics agency.
StatsCan figures revealed that 82.2% of the population growth seen in 2018/2019 stemmed from immigrants and non-permanent residents.Overall, the population increased by 1.4%, which was the highest among G7 nations.
The rate of growth was more than twice as fast as that seen in both the United States and the United Kingdom (0.6% each), and was much higher than the rate seen in Germany (0.3%) and France (0.2%).
Over the past two years, Canada has admitted 313,580 immigrants, which was one of the highest volumes ever recorded.The number of non-permanent residents also increased by 171,536 during this period, representing the largest such increase in Canadian history.
“While also fuelled by rapid growth in asylum claimants, this gain was mainly led by an increase in the number of work and study permit holders.Temporary immigration assists Canada in meeting its labour market needs,” StatsCan noted in its data release.
The nation’s mortgage credit load has seen significant expansion in the wake of this population growth.Bank of Canada figures showed that the outstanding balance reached a new high
Montreal prices have enjoyed steady growth over the past few years, and even more last month if new figures from the Quebec Professional Association of Real Estate Brokers are any indication.
Single-detached housing saw 6% growth in their median price to end up at $354,990.Meanwhile, condos enjoyed an even stronger 10% growth to $290,000.
According to data released by the municipal government in early September, property values in the region have steadily grown, increasing by 13.7% from 2017.This average outstripped the 5.9% figure seen in the previous municipal roll roughly two years ago.
“The market has just completely exploded over the past few years since 2017,” residential broker Rebecca Sohmer told CTV News.
During the same period, single-family detached homes had a 20% increase to an average of $600,000.Condo values went up by 8.7% to an average of $365,000.
This accompanied a 14% year-over-year uptick in sales last month, for a total of 3,659 residential transactions.This was a new record for September and the third straight month of double-digit sales growth, according to the QPAREB.
Additionally, September was the 48th straight month of supply shrinkage, with new listings falling by
Steady growth in demand has pushed Prince Edward Island’s housing supply to its lowest point in 16 years, according to data from the Prince Edward Island Real Estate Association.
The region’s active residential listings stood at exactly 1,000 units by the end of September, dropping by 8.9% annually.
The impact of scarcity has become especially visible in Charlottetown, according to the Canadian Real Estate Association.The market has been labouring under severely intensified competition and price growth over the past few years.
CREA figures showed that the city’s average home sales price grew by 38.5% from 2016 to 2019, ending up at $277,000 as of mid-year.To compare, the pace was relatively milder in other major Canadian markets like Ottawa (21.6%) and Toronto (25.3%) during the same period.
This is despite year-to-date sales in PEI shrinking by 7.2% annually, to a total of 1,475 units.Conversely, the total dollar value of all of PEI’s residential home sales last month increased by nearly 16%.
The market’s September 2019 volume reached $46.2 million, representing 15.9% annual growth and establishing a new record high for that month.This fed into higher average prices, which grew by 17.2% year-over-year to reach
Despite signs of housing starts losing steam, Canada’s home sales remain stronger compared to last year and the early months of 2019.
“This continues to reflect strong demographic demand, both from international inflows and new households created within Canada,” Bank of Montreal senior economist Robert Kavcic told The Canadian Press.
“There’s a lot of homebuilding activity going on across the vast majority of Canada.”
The number of transactions is expected to continue growing, amid significant boosts from lower rates and a growing consumer population.
The Canadian Real Estate Association recently adjusted its 2019 resale forecast up to 482,000 units, around 5% higher from 2018.
“Canada’s housing sector is back on the front foot with resales picking up as the year progresses and homebuilding activity clearly displaying some momentum,” RBC senior economist Josh Nye stated.
“Ontario, the Prairies and Atlantic Canada are on the rebound while the trend in BC and Quebec remains strong despite slower starts in the last month or two.”
The pace of Canadian housing starts in September was markedly lower on a month-over-month basis, according to data from the Canada Mortgage and Housing Corp.
The seasonally adjusted
With much-boosted supply offsetting intensified demand, Vancouver’s housing market is steadily moving towards better balance, according to the Real Estate Board of Greater Vancouver.
A total of 4,866 homes were newly listed in September, amounting to a 29.9% increase compared to August, and a 7.8% year-over-year drop.
Sales transactions swelled by 46.3% annually last month, with a total of 2,333 homes sold.This was just 1.7% lower than the 10-year average for September, and a massive increase from the 1,595 deals closed during the same time last year.
At the same time, overall prices veered lower.The composite benchmark price across all housing types in Metro Vancouver declined by 7.3% annually and 0.3% monthly in September (to $990,600).
Single detached homes saw their benchmark price drop by 8.6% year-over-year, while condos had a 6.5% decrease.Attached home prices went down 7.2%.
Over the past few months, Vancouver prices have experienced decreases, while much of Canada has gone up.
The Teranet – National Bank of Canada House Price Index released last month showed that Vancouver’s average housing price (across all asset classes) fell by 6.63% year-over-year in August, bringing composite prices down by 6.96% from the
Multi-family housing has pushed the Winnipeg housing sector towards a very strong summer, according to the city’s real estate association.
August data from WinnipegREALTORS® showed that the month’s sales grew by 13% annually, up to 1,439 transactions.This figure was 9% higher than the five-year average for that month.
Condos represented much of this market dynamism, with the asset class enjoying a 37% annual increase in sales and ending up 19% higher than the five-year average for August.In contrast, single-detached units saw a mere 4% year-over-year uptick.
“It is not often, if at all, when we see condominium sales outperform single family to the degree they did this month,” WinnipegREALTORS® president Ken Clark said.
Sales volume for the month amounted to a total of $411 million, which was 10% greater annually and the first time that Winnipeg’s August dollar volume exceeded $400 million.
On a year-to-date basis, the total sales figure of 9,702 was 5% higher than that seen during the January-August period last year.Meanwhile, dollar volume of $2.91 billion during the same time frame was up 6% from 2018.
As for inventory, the city saw more than 6,000 listings in August, which
Toronto’s benchmark home price is edging steadily towards its historic high reached in 2017, according to the latest figures from the city’s real estate board.
Ever-stronger demand along with supply scarcity has led to a 5.2% increase in the city’s benchmark housing price in September, up to approximately $805,500.This reading was just around $10,000 lower than the record peak observed by TREB.
Market strength has been largely driven by lower interest rates and immigration-driven population growth, TREB added.
Meanwhile, the average home price grew by 5.8% to $843,115 – indeed, the highest seen so far this year.
Active listings fell by 14% annually to 17,254 units, while sales accelerated by 22% during the same time frame to 7,825 transactions.Detached homes drove much of the dynamism, with a 29% increase in sales.
However, while Toronto’s homes have remained at exorbitant prices over the past few years, tens of thousands of these dwellings remain unoccupied.
A recent report by Point2 Homes found that approximately 1.34 million homes across Canada lie vacant or merely hold temporary occupants.
The 2016 figure, the most recently available batch, represented 8.7% of the units available in the national
Landlord ownership is steadily increasing in BC and Ontario, according to Statistics Canada.
The agency reported that as of 2018, the number of multiple-property owners in BC was over 268,600.Vancouver accounted for 53.6% (143,910 owners) of this demographic.
In Ontario, there were 835,175 of these kinds of owners last year, with around 43% (359,475 owners) in Toronto alone.
The two provinces, which host the two hottest residential real estate markets nationwide, have an abundance of housing investors.Taking advantage of these cities’ desirability, many of these owners have chosen to rent out these properties.
“The number of small landlords shouldn’t surprise many.Canada’s addiction to cheap financing makes condo development more favourable,” Better Dwelling stated in its analysis of the StatsCan data.
The implications on future supply cannot be understated.In recent years, new developments have tended towards high-end offerings that solely serve the needs of wealthy domestic and foreign investors.
Realosophy Realty president John Pasalis has argued that the growing prevalence of investment-use condos is a major factor in sky-high housing prices, further adding fire to the market’s long-running home affordability crisis.
“Five years down the road, do we really need
Earlier this week, Altus Group and the Canadian Real Estate Association confirmed a renewed partnership that would expand CREA’s Multiple Listing Service® (MLS®) Home Price Index on a national level.
The stronger, wider-ranging agreement would boost the coverage of the MLS® Home Price Index from the current 18 real estate boards to all of CREA’s 90 real estate boards and associations across Canada.
“This is a reflection of the success we’ve achieved in our partnership to date, and the combination of machine learning and AVM technology delivers a powerful tool at a scale that brings greater value to everyone across the industry,” Altus managing director of data solutions Richard Simon stated.
The expansion would incorporate the work of CREA’s more than 130,000 members nationwide.
“Having greater access and visibility to data is critical in today’s competitive market and a national MLS® Home Price Index will better equip REALTORS® to address the needs of consumers across all markets,” CREA chief economist Gregory Klump noted.
CREA CEO Michael Bourque added that this alliance will provide consistent and reliable data on both the local and national levels.
“We’re excited to announce that for the first-time
The somewhat languid pace of Montreal’s luxury market so far this year might change in the very near future, according to a report by Sotheby’s International Realty Canada released last week.
Overall high-end sales during the first half of September accelerated by 38% year-over-year, paving the way for improved long-term strength.
“The City of Montreal’s top-tier real estate market is set to maintain healthy activity into the fall,” the report explained.
“Steady absorption of resale inventory from luxury condominium developments completed in recent years sustained Montreal’s luxury condominium market over the summer months, foreshadowing solid fall performance,” Sotheby’s added.“Montreal remains well-positioned to set new records in 2019.”
This is in contrast to the almost flat 1% annual increase over the summer, a pace that generally veered close to last year’s levels.
Activity in the attached home sector is also expected to help market performance.This segment enjoyed an 11% annual increase with 41 units sold in July and August this year, compared to the 37 sold during the same time frame in 2018.
Sotheby’s attributed the slow pace during summer to a lack of available high-end residential assets.
“While consumer demand remains
Over the past few months, the decline in residential pre-sales in Vancouver was much larger than anticipated, according to a new analysis of data from MLA Canada by real estate information portal Better Dwelling.
The figures showed that of the new releases in Greater Vancouver last August, only 102 pre-sales have been sold – a substantial 77.8% annual decline.
This came with a similarly dramatic 75.6% drop in new listings for pre-sales, down to 254 units.
Significant deceleration was brought about by slow absorption rates, which led to developers deferring the release of new supply.
These factors fed into Vancouver’s lower housing starts trend in August, which came amid a series of late or cancelled developments.
“Compared to the same month last year, both multi-unit and single-detached home starts declined by over 17% in the CMA,” CMHC stated in its report covering August.
Overall, however, “year-to-date starts in the CMA remained fairly stable due to a decline in singles starts which was offset by an increase in the multi-units segment.”
Total housing sales in August was 2,231 transactions, which was 15.7% greater on a year-over-year basis.
“In recent months,