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Market Watch - Demand For Home Ownership Remained Well Above Average

Demand for ownership housing has remained strong despite a pandemic-related lull in population growth. Of specific note is the condominium apartment market, which has seen a marked turn-around in 2021 with sales up compared to last year. First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the marketplace.


Ontario - Demand For Home Ownership Remained Well-above Average

Toronto, 04 August 2021 -- With almost 9,400 sales reported in July 2021, demand for ownership housing remained well-above average for the time of year despite being below the record July result set a year earlier. Market conditions actually tightened relative to July 2020, with sales accounting for a greater share of new listings compared to last year. The sellers’ market conditions sustained a double-digit annual rate of price growth.

“Demand for ownership housing has remained strong despite a pandemic-related lull in population growth. Of specific note is the condominium apartment market, which has seen a marked turn-around in 2021 with sales up compared to last year. First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the marketplace,” said TRREB President Kevin Crigger.

Greater Toronto Area REALTORS® reported 9,390 sales through TRREB’s MLS® System in July 2021 – down by 14.9% compared to July 2020 result of 11,033. On a seasonally adjusted basis, July sales were down by 2% compared to June.

The MLS® Home Price Index Composite Benchmark was up by 18.1% compared to July 2020. The average price for all home types combined was $1,062,256 – up 12.6% compared to July 2020. The detached market segment led the way in terms of price growth, driven by sales in the suburban regions surrounding Toronto. On a seasonally adjusted basis, the average price was up by 0.9% compared to June.

“The annual rate of price growth has moderated since the early spring but has remained in the double digits. This means that many households are still competing very hard to reach a deal on a home. This strong upward pressure on home prices will be sustained in the absence of more supply, especially as we see a resurgence in population growth moving into 2022,” said TRREB Chief Market Analyst Jason Mercer. 

 

Ottawa, August 5, 2021 -- Members of the Ottawa Real Estate Board sold 1,724 residential properties in July through the Board’s Multiple Listing Service® System, compared with 2,183 in July 2020, a decrease of 21%. July’s sales included 1,312 in the residential-property class, down 20% from a year ago, and 412 in the condominium-property category, a decrease of 24% from July 2020. The five-year average for total unit sales in July is 1,775.

“July’s unit sales followed the traditional cycle of the spring and summer markets, which tend to peak around April or May and then slow down as Buyers and Sellers turn their attention to their vacations and other outdoor recreational activities,” states Ottawa Real Estate Board President Debra Wright. “This year’s figure is closer to 2019’s (1,838 sales) and just shy of the 5-year average, with the slight decline in transactions perhaps due to the combination of summer and the reopening of the economy last month. Certainly, the marked decrease from last year’s July sales is due to the spring 2020 lockdown, which had shifted the 2020 resale market’s peak to the summer and fall months,” she adds.

July’s average sale price for a condominium-class property was $419,545, an increase of 17% from last year, while the average sale price for a residential-class property was $685,426, also an increase of 17% from a year ago.With year-to-date average sale prices at $728,107 for residential and $422,339 for condominiums, these values represent a 30% and 20 percent increase over 2020, respectively.*

“Following the same trend as sales, the month-to-month average prices decreased marginally by 4-6% compared to June; however, this minor dip is consistent to what typically happens during the summer months. Overall, average prices have increased considerably from 2020, and year-to-date values are holding steady. Still, Sellers will need to keep in mind that the multiple offer frenzy experienced previously is no longer the norm, and they may need to have more realistic expectations when positioning their homes and settling on a listing price with their REALTORS®.”

“We are seeing the housing stock increasing with residential inventory up 19% and condominium supply 23% higher than 2020. Although there were 700 fewer listings than in June, the number of properties that entered the market in July is over the five-year average by approximately 114 units. Along with the price stabilizations, we hope this may indicate that Ottawa’s resale market is moving towards a more balanced state, which would be good for everyone,” suggests Wright.

“Established in 1921, on July 9th, the Ottawa Real Estate Board commemorated 100 years of helping our neighbours, friends, and fellow residents buy and sell their homes, cottages, and investment properties. Over the past century, our Board has advocated for affordable and attainable homes, as well as a range of housing options for seniors, first-time homebuyers, and everyone in between. We pledge to continue this endeavour for our future clients in the years to come. On behalf of the Ottawa Real Estate Board and our 3,500 REALTOR® Members, I would like to extend my heartfelt gratitude to all of you who have put your trust in us to help you make your real estate dreams come true. We hope to continue to serve our communities for the next 100 years and beyond.”

 

Britsh Columbia - Steady sales, reduced listings and virtually unchanged home prices in July

Metro Vancouver’s housing market saw more moderate sales, listings and pricing trends in July compared to the heightened activity experienced throughout much of the pandemic.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 3,326 in July 2021, a 6.3% increase from the 3,128 sales recorded in July 2020, and an 11.6% decrease from the 3,762 homes sold in June 2021.

Last month’s sales were 13.3% above the 10-year July sales average.

"Moderation was the name of the game in July. Home sales and listings fell in line with typical seasonal patterns as summer got going in earnest in July. On top of moderating market activity, price growth has leveled off in most areas and home types." said Keith Stewart, REBGV economist

There were 4,377 detached, attached, and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2021. This represents a 26.4% decrease compared to the 5,948 homes listed in July 2020 and a 25.2% decrease compared to June 2021 when 5,849 homes were listed.

July’s new listings were 12.3% below the 10-year average for the month.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,850, an 18.5% decrease compared to July 2020 (12,083) and a 9.1% decrease compared to June 2021 (10,839).

 “Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” Stewart said. "Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends."

 For all property types, the sales-to-active listings ratio for July 2021 is 33.8%. By property type, the ratio is 25.5% for detached homes, 47.8% for townhomes, and 37.3% 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.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,175,500. This represents a 13.8% increase over July 2020 and is unchanged from June 2021.

Sales of detached homes in July 2021 reached 1,050, a 6.3% decrease from the 1,121 detached sales recorded in July 2020. The benchmark price for a detached home is $1,801,100. This represents a 21% increase from July 2020 and is unchanged from June 2021.

Sales of apartment homes reached 1,666 in July 2021, a 19% increase compared to the 1,400 sales in July 2020. The benchmark price of an apartment property is $736,900. This represents an 8.4% increase from July 2020 and a 0.1% decrease compared to June 2021.

Attached home sales in July 2021 totalled 610, a 0.5% increase compared to the 607 sales in July 2020. The benchmark price of an attached home is $949,400. This represents a 16.7% increase from July 2020 and a 0.3% increase compared to June 2021.

*Editor’s Note: Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.


Alberta - Price growth slows as supply to demand balance improves

City of Calgary, August 3, 2021 – July sales totaled 2,319 units, which is well above long-term averages and the best July on record. The pace of sales growth has eased over the past few months, but so too has the pace of new listings growth. This has helped prevent any further monthly gains in inventory levels, and while overall supply remains slightly higher than last July, it’s mostly due to gains in apartment and row product.

With 6,678 units in inventory in July, the months of supply rose to just under three months. These gains are leading to far more balance between sellers and buyers. However, there is a significant variation between product type, as the months of supply ranged from two months in the detached sector to nearly six months in the apartment condominium sector.

“Over the past several months, we have seen housing market conditions trend toward more balanced conditions,” said CREB® chief economist Ann-Marie Lurie. “This eased some of the upward pressure on prices, as prices are starting to stabilize following steep gains that occurred in the first half of the year.”

Benchmark prices in the city reached $460,100, slightly higher than last month and nearly 10% higher than last July. Price growth has been the highest in the detached sector, which currently sits 11% above last year’s price and has finally recovered from previous highs in 2014.

Detached - Both sales and new listings trended lower relative to last month, but remained higher than last year’s levels. Sales are still at record levels, but with only 1,822 new listings coming onto the market in July, the sales-to-new-listings ratio remained relatively high at 78%.

 

Slower sales relative to the inventory levels also caused the months of supply to trend up. With just over two months of supply conditions remain relatively tight. However, this is an improvement relative to the past five months.

The activity also varies by price range, with homes priced below $500,000 still facing tight market conditions with less than two months of supply. 

Prices continued to trend up this month over last month. At a city-wide benchmark price of $539,900, prices are 11% higher than last year’s levels. Prices have been on the rise in every district, but it is only the City Centre that is reporting prices below 2014 high.

Semi-Detached - While sales activity did slow in some districts compared to last year, overall year-to-date levels remain at historic highs. While new listings are higher than last year’s levels, they trended down enough compared to last month to cause a slight monthly decline in inventory levels. With 209 sales and 577 units in inventory, the months of supply rose to nearly three months. This is still lower than levels recorded last year, but much higher than the extremely tight conditions recorded over the first half of the year.

Benchmark prices continue to rise over last month, but like other property types, at a slower pace. Nonetheless, at a benchmark price of $428,400 in July, levels are nearly 10% higher than last year and have recovered from previous highs. While price gains have occurred across most districts, on a year-to-date basis, they have not yet fully recovered from previous highs in the City Centre, North East, South, and East districts.

Row - Following 351 sales this month, year-to-date sales are sitting at record highs. While the pace of sales growth is slowing relative to earlier in the year, so too is the pace of new listings coming onto the market prevented any further monthly inventory gains. 

With inventory levels over 1,000 units and slightly slower sales this month compared to last, the months of supply pushed up above three months. While levels are lower than anything recorded last year, the improved choice is slowing the monthly price gain. However, prices remain nearly 11% higher than last July.

Compared to last year, prices have improved across every district, with gains ranging from a low 6% in the northwest to a high of 20% in the east district. Despite the gains, prices continue to remain well below previous highs.

Apartment Condominium - Thanks to reductions in new listings, inventory levels trended down over the previous month yet remain relatively high with 1,918 units available. While trending down relative to last month, July sales are still far better than any July over the past six years. However, the higher inventories relative to sales did contribute to the monthly rise in the months of supply, which sits just below six months.

Additional supply choice is having some impact on prices depending on the district. While prices have stalled or eased slightly in most districts compared to last month, strong gains still occurred in the south and southeast districts. While prices remain higher than levels recorded last July, they remain far from price recovery.

 

 




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