SIGNIFICANT PRICE INCREASES AND HIGH DEMAND IN THE GREATER TORONTO AREA DURING THE FIRST QUARTER OF 2017 SPURRED GROWING NUMBERS OF BUYERS TO LEAVE THE DOWNTOWN CORE.
These buyers, known as move-over buyers, are looking for greater affordability in markets across southern Ontario. In turn, they are driving price appreciation in Mississauga, Brampton, Durham, Barrie, Hamilton-Burlington, Windsor, and as far away as Kingston. The GTA saw the average residential sale price rise by 29 per cent, up from $675,492 in the first quarter of 2016 to $873,631 during the same period in 2017.
At the same time, housing demand has slowed in Greater Vancouver compared to Q1 of 2016, and the average residential sale price decreased 11 per cent year-over-year, from $1,094,936 in the first quarter of 2016 to $969,900 in 2017. The decline in average sale price is in part due to the introduction of the foreign buyer tax last August, a relatively severe winter and the natural stabilization of prices after the market reached a high point in May 2016. Move-over buyers from Vancouver and buyers migrating from other provinces continue to fuel activity in Fraser Valley, Kelowna, and in Victoria, particularly in the upper-end of the market due to relative affordability in these regions.
A recent RE/MAX survey conducted by Leger found that when making buying decisions, over two-thirds of Canadians consider the location of a home to be more important than the style or size of the home. Respondents indicated that beyond price, a number of other factors influence home purchases, including: access to green space (77 per cent), proximity to work (66 per cent), proximity to retail centres (65 per cent), and proximity to family and friends (65 per cent). All of these ranked higher than the style of a home.
In response to heightened activity seen across the GTA in recent months, the Ontario provincial government announced a 15 per cent Non-Resident Speculation Tax (NRST), along with a number of other regulations in mid-April in an effort to balance the need to stabilize the market while preventing a harmful sharp correction. Similar to the foreign buyer-tax introduced in Vancouver last year, the impact of this measure on market and buyer activity in the long run is difficult to predict. This measure may impact consumer confidence in the short-term as buyers hold out until they fully understand how they are affected, causing overall market activity to slow.
In Western Canada, particularly in Alberta, slowly recovering oil prices, low interest rates, and US approval of the Keystone XL pipeline project have renewed buyer optimism, particularly among move-up buyers and millennial, first-time buyers who are typically looking to buy condominiums. The average residential sale price increased three per cent year-over-year in Calgary to $482,065, up from $467,780 during the first quarter in 2016. A wide variety
Charlottetown and Halifax experienced increased demand from foreign buyers in the first quarter in addition to sustained demand from buyers moving back to Atlantic Canada from other parts of the country to purchase more affordable housing options than what is available in Canada’s larger urban hubs.
New residential and commercial development projects in markets across the country are expected to fuel demand in these regions. These cities include Calgary, Edmonton, Kelowna, Victoria, and Regina in the West and Windsor, London-St. Thomas, Hamilton-Burlington, Mississauga, Barrie, Durham, Brampton, Ottawa, Saint John, and Halifax in Central and Eastern Canada.
My wonderful clients just received confirmation back about their tax assessment review/ adjustment we did back in the spring. I'm so excited to report they are now receiving a credit back from the city for $380! Trust me your tax assessment is not the true value of your property. The city has never even been in your home! If you need help just call me. (Now I'm just waiting on my own review ;)
Edmonton, June 2, 2017:
Average prices for single family home increased both month over month and year over year, increasing to $440,907, up 0.33% compared to April 2017 and up 0.26% relative to May 2016. Condominium average price was $250,818 in May 2017, a decrease of 2.69% compared to April 2017 and a decrease of 0.67% compared to May 2016. Average prices for duplexes/rowhouses and condominiums decreased in May. Duplexes and rowhouses average price decreased to $344,406, a 3.75% decline from April 2017 and 1.52% lower than May 2016.
“We are in the middle of our busiest season for real estate,” says James Mabey, REALTORS® Association of Edmonton Chair. “More sellers are entering the market and are motivated to move their properties before the summer months, which provides the best selection of properties for buyers who are actively looking and taking advantage of the increased number of listings typical for this time of year.”
Inventory continued to increase for May and is up 10.16% over April 2017, increasing 4.33% relative to May 2016. New listings increased 16.21% relative to April 2017, and increased 15.09% compared to May 2016.
Average days on market remained stable, decreasing slightly for most categories in May. The average for single family homes was 48 days on market, identical to April 2017, and down marginally compared to 51 average days in May 2016. Condominiums increased to 62 days on market from 60 days in April 2017 and May 2016. Average days on market for duplexes and rowhouses decreased to 61 days, compared to 64 days in April 2017 and increased compared to 59 days in May 2016.
MLS® System Activity for May 2017
Spring has sprung and properties are moving! Stay tuned for your insider look at Edmonton's housing market reporting from Beaumaris Lake. Angie Resendes RE/MAX River City 780.439.7000 EdmontonPropertyShop.com
Things are picking up in the Edmonton region. The Edmonton housing market is experiencing some major changes and we are happy to guide you through them. Enjoy our Edmonton Real Estate Minute with Angie Resendes of RE/MAX River City
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Edmonton, May 2, 2017:
“Average monthly prices across all categories have increased,” says James Mabey, REALTORS® Association of Edmonton Chair. “Despite slightly slower April sales, the spring buying season is off to a solid start.”
April unit volumes for all categories was similar to March 2017, and increased 0.27% month over month. While all residential unit sales were down 6.99% year over year, total year to date sales increased 5.06% compared to April 2016.
Average days on market remained stable, decreasing slightly for most categories in April. The average for single family homes was 48 days on market, a decrease from 50 in March 2017. Average days on market for condominiums was 60, a decrease from 67 in March 2017. Duplex and rowhouses increased to 64 days on market from 62 in March 2017.
New listings increased 2.73% relative to March 2017, and decreased 2.65% compared to April 2016. Inventory continued to increase and is up 11.84% over March 2017, decreasing 3.76% relative to April 2016.
“Inventory levels and unit volumes continues to increase as the weather warms, which is typical for the market at this time of year,” says Mabey.
MLS® System Activity for April 2017
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City councillors decided to further narrow the minimum lot width for a single-family house to 7.5 metres Wednesday to accommodate small errors in previously imprecise survey methods.
Edmonton lots used to be measured with a chain, which could have kinks or otherwise create errors. That means several thousand standard-size lots the city thought were 50 feet or 15.24 meters wide, and therefore wide enough to subdivide, were actually slightly too narrow.
Councillors said they hope dropping the minimum requirement to 7.5 metres from 7.6 metres will solve the issue and make it clear for homeowners and all parties involved.
“This has been a contentious issue,” said Coun. Ben Henderson. “Being really public about the line is important so everybody knows they are being treated fairly.”
“That is our line and it will be set in stone,” added Coun. Andrew Knack. “We’re not going to just keep moving it down here.”
If an application to split a lot results in two lots narrower than 7.5 metres, city officials said they would refuse the application. The developer would then have the option to argue his or her case at the Subdivision and Development Appeal Board.
Edmonton, March 2, 2017
Reported unit sales continued to outperform 2016 in the Edmonton Census Metropolitan Area (CMA), with all residential categories increasing 26.6% in February 2017.
Unit prices continued to remain stable compared to previous reported periods. Single family home prices increased 2.61% over January and 1.85% compared to February 2016, to an average selling price of $427,726. Duplex and rowhouse unit prices decreased by 1.40% compared to January and decreased 1.78% relative to February last year. Condominium unit prices, which tend to experience higher fluctuations due to the wide variety of listings, continued to decrease, declining to 6.51% in January 2017 and 6.65% in February 2016.
“As we head into the spring buying season with stable prices, coupled with increases in unit sales and seasonally-appropriate inventory levels, it seems like a positive sign for our market,” says James Mabey, REALTORS® Association of Edmonton Chair.
While 2016 overall had higher inventory relative to previous years, 2017 inventory is more consistent with typical market activity for this time of year. Overall inventory decreased 8.58% compared to February 2016, and increased 9.19% compared to January 2017.
Average days on market (DOM) in February was 65, which is an increase from 57 days in February 2016 and a decrease compared to 72 days in January. Single family home average DOM was 59 days, down 3 days year to date (YTD) and condominium average DOM was 73, down 5 days YTD. Duplex and rowhouse average DOM increased to 80 from 76 YTD.
Certain segments of the market continued to gain in popularity with buyers this month. Condominiums under $250,000 represented the majority of reported sales for that category. Although duplexes and rowhouses account for only 11% of total unit sales, the reported sales for 2017 are up 41% compared to 2016, signaling continued growth in popularity of this property type.
“As the weather warms and we begin looking towards spring, both buyers and sellers are making some of the biggest financial decisions of their lives,” said Mabey. “A professional REALTOR® is here to help you through it.”
MLS® System Activity for February 2017
1 Census Metropolitan Area (Edmonton and surrounding municipalities)
While opponents of homeownership claim it's "the American nightmare," self-made millionaire David Bach is doubling down on his faith in real estate.
He thinks that not prioritizing homeownership is "the single biggest mistake millennials are making."
Buying a home is "an escalator to wealth," he tells CNBC.
Young adults in particular aren't hopping on this escalator, and it's a costly mistake, Bach warns: "If millennials don't buy a home, their chances of actually having any wealth in this country are little to none. The average homeowner to this day is 38 times wealthier than a renter."
The self-made millionaire is quick to say that the smartest investments he's ever made have been the three homes he's purchased. He tells CNBC: "I first bought a home in San Francisco. It skyrocketed in price. I moved to New York and bought another home. It skyrocketed in price. My net worth has gone up millions and millions of dollars, simply because I've lived."
Bach argues that you have to live somewhere for the rest of your life, so you might as well invest in a home that you could own permanently.
As he writes in "The Automatic Millionaire," "As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!"
If you want to get in the game of homeownership, start by crunching the numbers, Bach says: "Actually do the math. Look and see what things costs, starting with the smallest options. This way, you're really clear on your goals and you won't just say to yourself, 'I'll never afford this.'"
A good rule of thumb is to make sure your total monthly housing payment doesn't consume more than 30 percent of your take-home pay. He also recommends having a down payment of at least 10 percent, though more is always better. Finally, recognize that "oftentimes, buying your first home means you're not buying your dream home," Bach tells CNBC. "You're just getting into the market."
A lucrative market, that is. "The fact is, you aren't really in the game of building wealth until you own some real estate," Bach writes.
Edmonton home sales staged a rebound last month, rising 19 per cent from the previous January, new figures from the Realtors Association of Edmonton show.
There were 738 home sales in January. The 2,185 residential listings were down 7.6 per cent from the same period last year, and the average price for all types of housing rose 4.8 per cent to $355,841.
The average single-family home sold for $416,859, virtually unchanged over the last 12 months, while the $246,727 average condo selling price was up 8.7 per cent.
“2017 has started strong, with an increase in year-over-year unit sales and prices remaining,” association chair James Mabey said in a news release.
“While it is still early in the year, the rise in sales suggests that consumer confidence in the housing market is on the rise.”
So happy to see one of my go to mortgage brokers able to help one of my first time buyers (who was told she would not be able to purchase by a virtual company). She can buy her dream home NOW (thanks to our go to lending team)! I can't stress enough how important a good mortgage rep is when buying a home. We have to work along side them and ensure your deal is structured in such a way that you are saving the most money, with the best terms while jumping through endless financing hoops. Big thank you to Vince Arcand this week from TMG The Mortgage Group.
Edmonton, February 2, 2017: Reported unit sales for all residential listings in the Edmonton Census Metropolitan Area (CMA) were strong in January, increasing 19.4% compared to the same month in 2016. Reported unit sales were also up relative to December 2016, increasing by 3%.
Unit prices were consistently stable with only modest decreases across each category. Compared to January 2016, condominium prices increased 8.7% and duplex/rowhouses increased 8%. Both categories decreased only slightly relative to December 2016, with condominiums down 0.37% and duplex/rowhouses down 0.46%. The average price of a single family home remained stable at $416,859, which is down 0.49% relative to January 2016, and down 0.97% compared to December 2016.
“2017 has started strong, with an increase in year over year unit sales and prices remaining,” said James Mabey, REALTORS® Association of Edmonton Chair. “While it is still early in the year, the rise in sales suggests that consumer confidence in the housing market is on the rise.”
The average days on market for all residential listings increased, which is typical for the winter season. Single family homes average days on market was 68, compared to 62 days on market in the previous month. Condominium average days on market increased to 82 relative to 80 days in December 2016. Duplex/rowhouses continue to be popular, with the average days on market decreasing to 68 days, which is 10 days faster than in December 2016.
All residential inventory decreased 2.7% compared to January 2016, and increased by 7.4% relative to December 2016. While the overall listings for January more than doubled compared to December 2016, from 1,067 to 2,185, they decreased year-over-year by 7.6% when compared to January 2016.
“REALTORS® always look forward to fresh inventory in the spring. Inventory was a big story in 2016, so it is positive to see more seasonally-appropriate inventory for 2017,” said Mabey.
MLS® System Activity for January 2017