Market Watch - Spring Market is Primed for Competitive Season Ahead

Real estate sales numbers continue to indicate a positive trend for the country as a whole, Even with the additional day in February last year due to the leap year, sales this year are up in both the residential and condo property classes. Keep in mind though, that all real estate is local, and that prices and conditions will vary from neighbourhood to neighbourhood.

Ontario – Sales Up and Listings Down in February

Toronto, March 3, 2017 -- Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 8,014 residential sales through TREB's MLS® System in February 2017. Despite the fact that February 2016 had one more day due to the leap year day, this result was up on a year-over-year basis by 5.7% compared to 7,583 sales reported last year.

"The February statistics tell me that many Greater Toronto Area households continue to view home ownership as a great long-term investment. The high demand for ownership housing we're seeing is broad-based, with strong sales growth for most low-rise home types and condominium apartments. This makes sense given the results of a recent consumer survey undertaken for TREB by Ipsos, which found an even split between intending first-time buyers and existing homeowners who indicated that they were planning on purchasing a home in 2017," said Cerqua.

While the demand for ownership housing grew over the past year, new listings entered into TREB's MLS® System in February were down on a year-over-year basis by 12.5% to 9,834.

The MLS® HPI Composite Benchmark Price was up by 23.8% compared to February 2016. Similarly, the average selling price was up by 27.7% year-over-year to $875,983. Annual rates of price growth continued to be strongest for low-rise home types, particularly detached houses. Growth rates for condominium apartment prices were also in the double digits, likely a result of strong demand from first-time buyers.

"The listing supply crunch we are experiencing in the GTA has undoubtedly led to the double digit home price increases we are now experiencing on a sustained basis, both in the low-rise and high-rise market segments. Until we see a marked increase in the number of homes available for sale, expect very strong annual rates of price growth to continue," said Jason Mercer, TREB's Director of Market Analysis.

Ottawa, March 3, 2017 - Members of the Ottawa Real Estate Board sold 1,010 residential properties in February through the Board’s Multiple Listing Service® System, compared with 908 in February, an increase of 11.2%. The five-year average for February sales is 872.

“Numbers continue to indicate a positive trend for Ottawa as a whole,” says Rick Eisert, President of the Ottawa Real Estate Board. “Even with the additional day in February last year due to the leap year, sales this year are up in both the residential and condo property classes. Keep in mind though, that all real estate is local, and that prices and conditions will vary from neighbourhood to neighbourhood.”

“A total of 2,066 homes were listed this month, up almost 25% from January, while inventory on hand still remains low compared to last year,” explains Eisert. “Now is a great time to list your home in anticipation of the increase of buyer interest in the spring that will pick up as early as March.”

February’s sales included 233 in the condominium property class, and 777 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

The average sale price of a residential-class property sold in February in the Ottawa area was $417,374, an increase of 8.5% over February 2016. The average sale price for a condominium-class property was $258,397, an increase of four% over February 2016.

“This month revealed a larger average price gain in the residential property class than usual due to an increase in the number of properties sold in the $750,000 to $999,999 and over $1 million price range, similar to what occurred with condo prices last month,” explains Eisert. “For example, in the over $1 million price range alone, there was a significant increase in sales over last year; 20 units sold in 2017 versus 6 units in 2016. It is important to note that dramatic changes in the average sale price are not indicative of all property values. We encourage buyers and sellers to talk to a REALTOR® for more information about the housing market outlook where they live, or want to live.”

“In the residential market the most active price point was the $300,000 to $399,999 range for the month of February, followed by the $400,000 to $499,999 range, and combined accounting for 54.6% of the market. The condominium market was most active in the $150,000 to $249,999 price range, accounting for 54.9% of the market,” says Eisert. “In addition to residential and condominium sales, OREB members assisted clients with renting 392 properties since the beginning of the year.”

British Columbia – Low supply continues to limit Metro Vancouver home buyers

Metro Vancouver, March 2, 2017 - Reluctance amongst Metro Vancouver* home sellers is impacting sale and price activity throughout the region’s housing market.

Residential home sales in the region totalled 2,425 in February 2017. This is a 41.9% decrease from the record 4,172 homes sold in February 2016 and an increase of 59.2% compared to January 2017 when 1,523 homes sold.

Last month’s sales were 7.7% below the 10-year February sales average.

“February home sales were well below the record-breaking activity from one year ago and in line with our long-term historical average for the month,” Dan Morrison, Real Estate Board of Greater Vancouver (REBGV) president said. “Limited supply and snowy weather were two factors hampering this activity.”

New listings for detached, attached and apartment properties in Metro Vancouver totalled 3,666 in February 2017. This represents a 36.9% decrease compared to the 5,812 units listed in February 2016 and an 11.4% decrease compared to January 2017 when 4,140 properties were listed.

This is the lowest number of new listings registered in February since 2003.

The total number of properties currently listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver is 7,594, a four% increase compared to February 2016 (7,299) and a 4.9% increase compared to January 2017 (7,238).

The region’s sales-to-active listings ratio for February 2017 is 31.9%, a 10-point increase from January. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.

“While home sales are not happening at the pace we experienced last year, home seller supply is still struggling to keep up with today’s demand. This is why we’ve seen little downward pressure on home prices, particularly in the condominium and townhome markets,” Morrison said.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $906,700. This represents a 2.8% decrease over the past six months and a 1.2% increase compared to January 2017.

Sales of detached properties in February 2017 reached 745, a decrease of 58.1% from the 1,778 detached sales recorded in February 2016. The benchmark price for detached properties is $1,474,200. This represents a 6.5% decrease over the past six months and is unchanged compared to January 2017.

Sales of apartment properties reached 1,275 in February 2017, a decrease of 28.8% compared to the 1,790 sales in February 2016.The benchmark price of an apartment property is $526,300. This represents a 2.3% increase over the past six months and a 2.7% increase compared to January 2017.

Attached property sales in February 2017 totaled 404, a decrease of 33.1% compared to the 604 sales in February 2016. The benchmark price of an attached unit is $675,500. This represents a 0.3% decrease over the past six months and a 1.3% increase compared to January 2017.

Alberta - February unit sales increase 26%, prices increase slightly

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 row house 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 were 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 row house 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 row houses 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.”