The Canadian resale housing market is now moving towards a balanced market, rather than the seller’s market we have been in for most of the past year.
For the first time in almost a year, inventory increased in June. With more homes to choose from, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price.
In a stabilizing market, consumers need to rely more on the expertise of a REALTOR® because prices are highly local and competitive.
Ontario - Inventory Increases, Market Balances in June
Toronto, July 6, 2010 - Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23% decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up 1% annually. Year-to-date sales through June were up 23% to 50,455 compared to the first six months of 2009.
"We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year," said Toronto Real Estate Board President Bill Johnston. "The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates."
The average price for June transactions was $435,034 – up 8% compared to the average of $403,972 recorded for June 2009.
"With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The annual rate of average price growth in the second half of 2010 will be in the single digits."
In June, the median price was $367,750, from the $345,000 recorded during June of 2009.
Ottawa, July 6, 2010 - Members of the Ottawa Real Estate Board sold 1,615 residential properties in June through the Board’s Multiple Listing Service® system compared with 1,897 in June 2009, a decrease of 14.9%. Of those sales, 418 were in the condominium property class, while 1,197 were in the residential property class.
“For the first time in 2010, inventory increased year-over-year in June, by almost 6%. The Ottawa housing market is now moving towards balance, rather than the seller’s market we have been in for most of the past year,” said Board President Pierre de Varennes. “Sales last month were very close to the five-year average for June, so what we see here is a return to the stable, steady market conditions that Ottawa tends to experience. Home sale prices continued to grow at a healthy rate in June,” he added.
The average sale price of residential properties, including condominiums, sold in June in the Ottawa area was $326,572, an increase of 6.4% over June 2009. The average sale price for a condominium-class property was $256,969, an increase of 8.3% over June 2009. The average sale price of a residential-class property was $350,878, an increase of 7.4% over June 2009. The Board cautions that average sale price information 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 average sale price is calculated based on the total dollar volume of all properties sold.
Hamilton, July 7, 2010 – The Hamilton-Burlington area resale market reported a total of 1,359 units sold in June, indicating a decrease of 15% from the same month last year, and a decrease of 6% from May of this year. The total unit sales for the first six months of 2010 are being reported at 18.7% higher than the same period last year, while new units listed are 20.7% higher than last year at this time, according to Multiple Listing Service® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB).
“June’s sales are down from last year’s record-breaking month,” said Joe Ferrante, RAHB President, “but the strong numbers in the early months of the year still brings our year-to-date sales ahead of last year at this time.”
Residential properties sold during June totalled 1,305 which included 1,036 freehold properties and 269 condominiums. Commercial sales for June, including industrial, farm, vacant land and business, totalled 54 units.
The average price of freehold residential properties sold in the month of June was $331,056, an increase of 5% over June last year. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.
In the condominium market the average price of condominiums in June was $249,227, an increase of 13.5% over June 2009.
The total number of units listed for sale during June was 2,072, which is 22% more than were listed in the same period in 2009.
“With a good inventory of properties available,” added Ferrante, “Hamilton, Burlington and our outlying areas remain a great place to buy real estate.”
British Columbia - Fraser Valley Real Estate Market Picks Up in June
Sales processed on the Fraser Valley Real Estate Board’s Multiple Listing Service (MLS®) increased by 23% in one month going from 1,477 sales in May to 1,815 in June. June’s numbers represent an 8% decrease compared to the 1,982 sales during the same month last year.
Deanna Horn, president of the Board, says, “Historically, it’s not unusual for June sales to outperform May in the Fraser Valley. This has happened in nine of the last twenty years.”
“However, a 23% increase in one month is significant. We were busier than expected and it could be due to the combined effect of mortgage rates edging down, the Harmonized Sales Tax coming into effect July 1, as well as the tremendous selection of homes available in the Fraser Valley.”
“Although we’re seeing a decrease in the number of new properties coming on stream, June buyers have only had this volume of homes to choose from two other times in our history, in 1995 and 2008.”
The total active inventory on Fraser Valley’s MLS® at month’s end was 11,110, 19% more than was available in June 2009. The Board’s MLS® received 9% fewer new listings in June compared to May, good news according to Horn.
“Listings typically do decrease in the summer, which will continue to stabilize the market,” continued Horn. “Over the last few months, we’ve seen residential benchmark prices levelling. Year-over-year, price increases may still appear dramatic depending on the property type and location because at this time last year, we hadn’t yet begun our recovery phase.”
In June, the benchmark price for Fraser Valley detached homes was $518,355, a 9.9% increase compared to $471,788 in June 2009.
The benchmark price of Fraser Valley townhouses in June was $328,080, a 9% increase compared to $301,103 in June 2009. The benchmark price of apartments increased by 6.6% year-over-year going from $231,014 in June 2009 to $246,351 in June 2010.
Alberta – First Time Home Buyers Retreat as Luxury Buyers Advance
Calgary, July 2, 2010 – Calgary home sales continued to show a marked year-over-year decline in the month of June, according to figures released today by the Calgary Real Estate Board (CREB®). The number of single family homes sold in June 2010 in the city of Calgary was down 42% from the same time a year ago, and condominium sales saw a decrease of 40% from the same time a year ago.
June 2010 saw 1,061 single family homes sold in the city of Calgary. This is a decrease of 16% from 1,262 sales in May 2010. In June 2009, single family home sales totalled 1,837. The number of condominium sales for the month of June 2010 was 445. This was a decrease of 14% from the 518 condominium transactions recorded in May 2010. In June 2009, condominium sales were 738. Conversely, sales of million-dollar-plus properties jumped by nearly 42% year-to-date until the end of June, compared with the same period a year ago.
“We are seeing continued moderation in Calgary’s home sales in the face of higher mortgage rates, increased inventory levels and a decreasing number of first-time homebuyers entering the market,” says Diane Scott, president of CREB®. “Our sales trends in June reflect much of what we saw in May. Changes to mortgage rules meant a good portion of homebuyers wanted to get in before the new regulations took effect in April. This, along with rising interest rates on the horizon, pulled forward sales we might have expected in May and June.”
The average price of a single family home in the city of Calgary in June 2010 was $481,964, showing no significant change from May 2010, when the average price was $483,240, and showing an increase of 8% from June 2009, when the average price was $447,142. The average price of a condominium in the city of Calgary was $292,238, showing a 4% decrease from May 2010, when the average price was $304,662 and a 2% increase over last year, when the average price was $285,595.
“The one market that seems to be bucking this moderating trend is the luxury or higher-end market,” notes Scott. “Calgary home sales continue to shift to higher price points. This has resulted in our average price holding firm. Homes in the higher price range have performed well and account for a larger portion of sales as move-up buyers enter the market. In the first six months of this year, 187 single-family homes in the city of Calgary sold for $1 million or more, compared with 132 in 2009.”
Single family listings in the city of Calgary added for the month of June totalled 2,733, a decrease of 8% from May 2010 when 2,966 new listings were added, and showing an increase of 22% from June 2009, when 2,244 new listings came to the market. Condominium new listings in the city of Calgary added for June 2010 were 1,084, down 11% from May 2010, when the MLS® saw 1,221 condo listings coming to the market. This is an increase of 17% from June 2009, when new condominium listings added were 927.
“We had an impressive housing recovery in the late spring and summer of 2009. As expected this rate of recovery will moderate in the latter half of 2010 in the face of rising mortgage rates and slowing demand—keeping Calgary’s housing market in balance,” says Scott.
“Nonetheless the economic outlook for Calgary and for Canada remains upbeat and should ensure consumer confidence remains in positive territory for the balance of 2010,” adds Scott.
