Market Watch May 2017 - Strong Growth in New Listings

Home buyer competition remains intense across many regions while home selling prices continued to trend upward in April. We experienced a strong growth in new listings in April which means that buyers benefitted from considerably more choice in the marketplace. As we move into the busiest time of the year, in terms of sales volume, a greater supply of listings would certainly be welcome, but we would need to see a number of consecutive months in which listings growth outpaced sales growth before market conditions become more balanced.

Ontario – Strong Growth in New Listings in April

Toronto, May 3, 2017 - Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® entered 33.6%   more new listings into TREB's MLS® System in April 2017, at 21,630, compared to the same month in 2016. New listings were up by double-digits for all low-rise home types, including detached and semi-detached houses and townhouses. New listings for condominium apartments were at the same level as last year.

Total sales for the TREB market area as a whole amounted to 11,630 – down 3.2%   year-over-year. One issue underlying this decline was the fact that Easter fell in April in 2017 versus March in 2016, which resulted in fewer working days this year compared to last and, historically, most sales are entered into TREB's MLS® System on working days.

"The fact that we experienced extremely strong growth in new listings in April means that buyers benefitted from considerably more choice in the marketplace. It is too early to tell whether the increase in new listings was simply due to households reacting to the strong double-digit price growth reported over the past year or if some of the increase was also a reaction to the Ontario government's recently announced Fair Housing Plan," said Mr. Cerqua. The MLS® Home Price Index (HPI) Composite Benchmark Price was up by 31.7%   yearover- year in April 2017. Similarly, the average selling price for all home types combined was up by 24.5%   to $920,791.

"It was encouraging to see a very strong year-over-year increase in new listings. If new listings growth continues to outpace sales growth moving forward, we will start to see more balanced market conditions. It will likely take a number of months to unwind the substantial pent-up demand that has built over the past two years. Expect annual rates of price growth to remain well-above the rate of inflation as we move through the spring and summer months," said Jason Mercer, TREB's Director of Market Analysis.

OTTAWA, May 3, 2017 - Members of the Ottawa Real Estate Board sold 1,795 residential properties in April through the Board’s Multiple Listing Service® System, compared with 1,711 in April 2016, an increase of 4.9%  . The five-year average for April sales is 1,613.
“The April resale market continued its upward trend in units sold, just shy of a record set in 2010,” says Rick Eisert, President of the Ottawa Real Estate Board. “Sales activity is indicating a trend towards a seller’s market. Lower inventory, combined with increased demand, is creating many more multiple offer situations and quicker moving properties, with the average cumulative days on market dipping to just 71 days.”
 
April’s sales included 312 in the condominium property class, and 1,483 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.
 
“We continue to see a trend in the amount of high-end units selling,” reports Eisert. “Properties selling for $500,000 and up has increased over last year, and even more significantly in the over $1 million market, which doubled in sales over April 2016. Since the beginning of the year 83 properties over $1 million switched hands, compared to only 38 in the same time-frame last year. The increase in sales for high-end properties may be fuelled by a combination of the migration of buyers from Toronto and move-up buyers. Another contributing factor is that many, generally well paying, jobs are opening up in the high-tech sector, driving more people into the Ottawa market.”
 
The average sale price of a residential-class property sold in April in the Ottawa area was $435,883, an increase of 7.9%   over April 2016. The average sale price for a condominium-class property was $268,553, an increase of 2.9%   over April 2016. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.
 
“The two most active price points in the residential market continue to be the $300,000 to $399,999 followed by the $400,000 to $499,999 range, combined accounting for 55.1%   of the market. Within the condo market, the most active price point was between $150,000 and $249,999, accounting for 53.8%   of the market,” says Eisert. “In addition to residential and condominium sales, OREB Members assisted clients with renting 865 properties since the beginning of the year.”

British Columbia – - Condominiums and townhomes in high demand across Metro Vancouver

Tuesday, May 2, 2017 - Residential property sales in the region totalled 3,553 in April 2017, a 25.7%   decline compared to April 2016 when 4,781 homes sold and a 0.7%   decrease from the 3,579 sales recorded in March 2017.

April sales were 4.8%   above the 10-year average for the month.

For the first four months of the year, condominium and townhome sales have comprised a larger percentage of all residential sales on the Multiple Listing Service® (MLS®) in Metro Vancouver. Over this time, they’ve accounted for 68.5%  , on average, of all residential sales. This is up 10%   from the 58.2%   average over the same period last year.

“Our overall market is operating below the record-setting pace from a year ago and is in line with historical spring levels. It’s a different story in our condominium and townhome markets," Jill Oudil, Real Estate Board of Greater Vancouver (REBGV) president said. “Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to increase and making multiple offer scenarios the norm.”

New listings for detached, attached and apartment properties in Metro Vancou ver totalled 4,907 in April 2017. This represents a decrease of 19.9%   compared to the 6,127 units listed in April 2016 and a three%   increase compared to March 2017 when 4,762 properties were listed.

The total number of residential properties currently listed for sale on the MLS® system in Metro Vancouver is 7,813, a 3.5%   increase compared to April 2016 (7,550) and a three%   increase compared to March 2017 (7,586).

The sales-to-active listings ratio for April 2017 is 45.5%   for all property types. This is two%   below March 2017 and is indicative of a sellers’ market. 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.

By property type, the sales-to-active listings ratio is 26%   for detached homes, 58.2%   for townhomes, and 82.2%   for condominiums.

“Until more entry level, or ‘missing middle’, homes are available for sale in our market, we’ll likely continue to see prices increase,” Oudil said. “There’s been record building this past year, but much of that inventory isn’t ready to hit the market.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $941,100. This represents a five%   increase over the past three months and an 11.4%   increase compared to April 2016.

Over the last three months, the benchmark price of condominiums has seen the largest increase in the region at 8.2%  , followed by townhomes at 5.3%  , and detached homes at 2.8%  .

“Home buyers are looking to get into the market and they’re facing fierce competition,” Oudil said. “It’s important to work with your local Realtor to help you navigate today’s marketplace.”

Sales of detached properties in April 2017 reached 1,211, a decrease of 38.8%   from the 1,979 detached sales recorded in April 2016. The benchmark price for detached properties is $1,516,500. This represents an 8.1%   increase over the last 12 months and a 1.8%   increase compared to March 2017.

Sales of apartment, or condominium, properties reached 1,722 in April 2017, a decrease of 18.3%   compared to the 2,107 sales in April 2016.The benchmark price of an apartment property is $554,100. This represents a 16.6%   increase over the past 12 months and a 3.1%   increase compared to March 2017.

Attached, or townhome, property sales in April 2017 totalled 620, a decrease of 10.8%   compared to the 695 sales in April 2016. The benchmark price of an attached unit is $701,800. This represents a 15.3%   increase over the past 12 months and a 2.4%   increase compared to March 2017

Alberta - Edmonton Year over year average residential prices up across all categories

Edmonton, 5 April, 2017 - In the Edmonton Census Metropolitan Area (CMA), prices in all residential categories increased both month over month and year over year. The single family home average price increased in April 2017 to $439,438, up 0.07% compared to March 2017 and up 0.03% relative to April 2016. The condominium average price was $257,740 in April 2017, an increase of 6.23% over March 2017 and an increase of 2.32% compared to April 2016. Duplexes and rowhouses average price increased to $357,815, 2.58% higher than March 2017 and 4.97% higher than April 2016.

“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.