The demand for ownership housing is stronger than last year despite higher borrowing costs. However, home sales were hampered last month by uncertainty surrounding the Bank of Canada’s outlook on inflation and interest rates. Furthermore, a persistent lack of inventory likely sidelined some willing buyers because they couldn't find a home meeting their needs.
Ontario - June’s Resale Market Eases Into Summer
Toronto, 05 July 2023 -- Home sales and the average selling price in the Greater Toronto Area (GTA) in June 2023 remained above last year’s levels. Seasonally adjusted sales dipped on a month-over-month basis. The seasonally adjusted average selling price and the MLS® Home Price Index (HPI) Composite benchmark were up compared to the previous month.
“The demand for ownership housing is stronger than last year, despite higher borrowing costs. With this said, home sales were hampered last month by uncertainty surrounding the Bank of Canada’s outlook on inflation and interest rates. Furthermore, a persistent lack of inventory likely sidelined some willing buyers because they couldn't find a home meeting their needs. Simply put, you can't buy what is not available,” said Toronto Regional Real Estate Board (TRREB) President Paul Baron.
GTA REALTORS® reported 7,481 sales through TRREB’s MLS® System in June 2023 – up 16.5 %compared to June 2022. The number of listings was down by three %over the same period.
The year-over-year increase in sales coupled with the decrease in new listings mean market conditions were tighter this past June relative to the same period last year. The average selling price was up by 3.2 %to $1,182,120. The MLS® HPI Composite benchmark was still down by 1.9 %on a year-over-year basis - the lowest annual rate of decline in 2023. On a month-over-month basis, the seasonally adjusted average price and MLS® HPI Composite benchmark were up.
“A resilient economy, tight labour market and record population growth kept home sales well above last year’s lows. Looking forward, the Bank of Canada’s interest rate decision this month and its guidance on inflation and borrowing costs for the remainder of 2023 will help us understand how much sales and price will recover beyond current levels,” said TRREB Chief Market Analyst Jason Mercer.
“GTA municipalities continue to lag in bringing new housing online at a pace sufficient to make up for the current deficit and keep up with record population growth. Leaders at all levels of government, including the new mayor-elect of Toronto, have committed to rectifying the housing supply crisis. We need to see these commitments coming to fruition immediately, or we will continue to fall further behind each month,” stressed TRREB CEO John DiMichele. “In addition to the impact of the listing shortage, housing affordability is also hampered on an ongoing basis by taxation and fees associated with home sales and construction as well as the general level of taxation impacting households today. Going forward, we need to look at all of the factors influencing the household balance sheet and people’s ability to house themselves,” continued DiMichele.
Ottawa - June’s Resale Market Eases Into Summer
Ottawa, July 5, 2023 -- Members of the Ottawa Real Estate Board (OREB) sold 1,658 residential properties in June through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,493 in June 2022, an increase of 11%. June’s sales included 1,234 in the freehold-property class, up 10% from a year ago, and 424 in the condominium-property category, a 16% increase from June 2022. The five-year average for total unit sales in June is 1,881.
“Although June’s transactions surpassed last year’s, the number of sales, average prices, and new listings declined on a week-to-week basis over the course of the month. Compounded by the typical summer decline in activity, the Bank of Canada’s interest rate adjustment at the beginning of the month may have also flattened the curve,” says Ottawa Real Estate Board President Ken Dekker.
The average sale price for a freehold-class property in June was $746,445, a decrease of 4% from 2022, but still on par with May 2023 prices.
The average sale price for a condominium-class property was $448,380, an increase of 2% from a year ago and up 1% over May 2023 prices.
With year-to-date average sale prices at $731,847 for freeholds and $432,885 for condos, these values represent a 10% decrease over 2022 for freehold-class properties and a 7% decrease for condominium-class properties.
“Supply is trending in the right direction. The increase in inventory is encouraging and indicates sellers have confidence in the market. A growing resale housing stock will result in more selection for buyers and more sales,” Dekker suggests.
June’s new listings (2,758) were 14% lower than June 2022 (3,212) and down 2% from May 2023 (2,822). The 5-year average for new listings in June is 2,802.
Months of Inventory for the freehold-class properties has increased to 2.1 months from 1.9 months in June 2022 and 1.5 months in May 2023.
Months of Inventory for condominium-class properties has decreased to 1.4 months from 1.6 months in June 2022, although up from 1.3 months in May 2023.
Days on market (DOM) for freeholds stayed on par with last month at 23 days and increased to 27 days for condos compared to last month (26 days).
“We are looking forward to a strong second half of 2023 in terms of sales volume and prices compared to last year. Whichever side of the transaction you are on, the advice of a professional REALTOR® who has their pulse on the week-to-week variabilities in Ottawa’s resale market is priceless.”
British Columbia - Metro Vancouver Market Highlights
Metro Vancouver, 5 June 2023 -- Residential property sales in Metro Vancouver Continuing the trend that has emerged in the housing market this year, the benchmark price for all home types in Metro Vancouver1 increased in June as home buyer demand butted up against a limited inventory of homes for sale in the region.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,988 in June 2023, a 21.1 %increase from the 2,467 sales recorded in June 2022. This was 8.6 %below the 10-year seasonal average (3,269).
"The market continues to outperform expectations across all segments, but the apartment segment showed the most relative strength in June. The benchmark price of apartment homes is almost cresting the peak reached in 2022, while sales of apartments are now above the region’s ten-year seasonal average. This uniquely positions the apartment segment relative to the attached and detached segments where sales remained below the ten-year seasonal averages." Andrew Lis, REBGV director of economics and data analytics
There were 5,348 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2023. This represents a 1.3 %increase compared to the 5,278 homes listed in June 2022. This was 3.1 %below the 10-year seasonal average (5,518).
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,990, a 7.9 %decrease compared to June 2022 (10,842). This was 17.4 %below the 10-year seasonal average (12,091).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for June 2023 is 31.4 per cent. By property type, the ratio is 20.9 %for detached homes, 38.5 %for townhomes, and 39.4 %for apartments.
Analysis of the historical data suggests 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.
“Despite elevated borrowing costs, there continues to be too little resale inventory available relative to the pool of buyers in Metro Vancouver. This is the fundamental reason we continue to see prices increase month over month across all segments,” Lis said. “With the benchmark price for apartments now standing at $767,000, we repeat our call to the provincial government to adjust the $525,000 threshold exempting first-time home buyers from the Property Transfer Tax, to better reflect the price of entry-level homes in our region. This is a simple policy adjustment that could help more first-time buyers afford a home right now.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,203,000. This represents a 2.4 %decrease over June 2022 and a 1.3 %increase compared to May 2023.
Sales of detached homes in June 2023 reached 848, a 28.3 %increase from the 661 detached sales recorded in June 2022. The benchmark price for a detached home is $1,991,300. This represents a 3.2 %decrease from June 2022 and a 1.9 %increase compared to May 2023.
Sales of apartment homes reached 1,573 in June 2023, an 18.6 %increase compared to the 1,326 sales in June 2022. The benchmark price of an apartment home is $767,000. This represents a 0.5 %increase from June 2022 and a 0.8 %increase compared to May 2023.
Attached home sales in June 2023 totalled 547, a 17.6 %increase compared to the 465 sales in June 2022. The benchmark price of an attached home is $1,098,900. This represents a one %decrease from June 2022 and a 1.5 %increase compared to May 2023.
Alberta - Another Record-high Month for Calgary
City of Calgary, July 4, 2023 – The housing market in Calgary witnessed a surge in apartment condominium sales, setting a new total residential record with 3,146 sales achieved in June. Although year-to-date sales are currently 23 %lower than last year, they remain significantly higher than pre-pandemic levels.
Notably, there has been a positive trend in new listings, providing relief and a monthly increase in inventory levels. However, despite these improvements, the inventory for June stood at 3,458 units, marking a decline of over 36 %from last year and reaching the lowest levels for June in nearly two decades.
“The demand for housing remains robust, bolstered by a healthy labour market and increased migration levels, which helps offset the impact of higher lending rates,” said CREB® Chief Economist Ann-Marie Lurie. “Although we have seen some recent improvements in new listings, particularly for apartment condominiums, it is not enough to cause any substantial change from the low inventory situation in our city. While new home starts are on the rise, it will take time to observe their impact on supply.”
With a supply of just over one month, the current market conditions continue to favour sellers, placing upward pressure on home prices. In June, the total residential benchmark price reached $564,700, representing a monthly unadjusted gain of one %and four %higher than last year's levels.
Detached- A monthly gain in new listings supported a monthly increase in inventory levels. However, with only 1,651 units available in June, levels hit a new record low for the month. Inventories declined across most price ranges, but the steepest declines occurred in homes priced below $600,000. Of all the inventory in June, only 24 %was priced below $600,000, a significant drop from last year, where that market segment represented 45 %of the supply.
Limited inventory, especially in the lower price ranges, ensured that the market continued to favour the seller, driving further gains in home prices. As of June, the benchmark price reached $685,100, an unadjusted monthly gain of nearly two %and a year-over-year increase of six per cent. Year-over-year gains were the highest in the most affordable North East and East districts.
Semi-Detached - New listings in June improved, helping support modest monthly gains in inventory levels. However, with 268 units in inventory and 240 sales, the months of supply remained exceptionally tight at just over one month. The persistently tight market conditions have contributed to further price gains for this property type. As of June, the benchmark price reached $613,100, over two %higher than last month and nearly six %higher than levels reported in the previous year at this time.
Persistently tight conditions across all districts supported price growth. Year-over-year price growth ranged from a low of 4.5 %in the city centre to a high of 17 %in the East district.
Row - Both sales and new listings trended up over the levels reported last month. Still, with a sales-to-new-listings ratio of 86 %and months of inventory below one month, conditions continued to favour the seller placing upward pressure on home prices.
In June, the benchmark price reached $400,000, over two %higher than last month and over 11 %higher than last year. Prices improved across all districts in the city, with the most significant monthly gains occurring in the East, North East and South districts. These districts have also reported year-over-year price gains of nearly 20 per cent.
Apartment Condominium - Sales in June reached 857 units, 48 %higher than last year. Over the past three months, sales growth was enough to cause year-to-date sales to rise by 11 %over last year. The gain in sales was possible thanks to improving new listings. However, persistently strong demand for affordable products has prevented inventories from improving. In June, inventory levels reached 1,116 units, the lowest level for the month reported since June 2013.
Persistently tight conditions contributed to the sixth consecutive month where prices rose. As of June, the benchmark price reached $303,200, nearly two %higher than last month and 12 %higher than last year’s levels. While unadjusted prices have hit a new record high, prices remain below the peak in the City Centre, North East and East districts.
No comments:
Post a Comment