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GTA new home sales

GTA new home sales in July remain strong

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GTA new home sales in July remain strong

GTA new home sales

It was a busy month by July standards, as sales for both condos and single-family homes were up year-over-year, according to the latest statistics from the Building Industry and Land Development Association (BILD).

There were 566 new single-family homes, including detached, linked and semi-detached houses and townhouses, sold in July, according to Altus Group, BILD’s official source for new home market intelligence. Although sales increased 136 per cent from last July, they were 29 per cent below the 10-year average.

Sales of new condominium apartments in low-, medium- and highrise buildings, stacked townhouses and loft units, with 2,297 units sold, were up 22 per cent from July 2018 and 42 per cent above the 10-year average.

Brisk openings

“Typically, buyers take a bit of a vacation from the new condo apartment market in July” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “This year was no different, although the decline in sales was less pronounced than usual, resulting in the second strongest July on record. While few new projects launched in July, sales at projects opened in June were brisk.”

The benchmark price of new condominium apartments increased from last month, to $838,824, up 8.3 per cent over the last 12 months. The benchmark price of new single-family homes decreased slightly from last month, to $1.09 million, down 4.5 per cent over the last 12 months, continuing its moderating trend in 2019.

ALSO READ: Detached home sales and prices roar back to life in first half of 2019 – ReMax

Strong July sales, paired with traditional fewer summer openings, saw inventory decrease in July to 12,873 condominium units and 4,409 single-family homes. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

Total new home sales in the first seven months of 2019, at 20,268 units sold, are up 45 per cent from the same period in 2018 and nine per cent below the 10-year average.

Price gap narrows

“The price gap between single-family homes and condos continues to shrink, leaving new-home buyers with a lack of choice,” says David Wilkes, BILD president and CEO. “We must provide more ‘missing middle’ type development that can support transit in established neighbourhoods. More ‘gentle density’ housing in the form of midrise buildings, condos with street level retail, and stacked townhouses is needed to give consumers more choice.”

 

New home sales by municipality, July 2019

Municipality Condominium units Single-family homes Total
Region 2019 2018 2017 2019 2018 2017 2019 2018 2017
Durham 29 6 27 118 44 60 147 50 87
Halton 59 46 18 82 25 18 141 71 36
Peel 415 150 148 142 87 0 557 237 148
Toronto 1,522 1,557 1,118 46 8 6 1,568 1,565 1,124
York 272 120 461 178 76 34 450 196 495
GTA 2,297 1,879 1,772 566 240 118 2,863 2,119 1,890

Source: Altus Group

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Detached home sales and prices roar back to life in first half of 2019 – ReMax

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Detached home sales and prices roar back to life in first half of 2019 – ReMax

The bounce-back in single-detached home sales is contributing to an uptick in average price, with more than 50 per cent of neighbourhoods in the Greater Toronto Area reporting an increase in detached housing values the first half of 2019, according to a new report from Re/Max of Ontario-Atlantic Canada.

Re/Max examined trends and developments in 65 Toronto Real Estate Board (TREB) districts, finding that detached home sales were up in almost 88 per cent of markets, while prices were up in 51 per cent of markets between January and June 2019, compared to the same period one year ago. The 905 area saw the greatest increase in homebuying activity, with all 30 areas reporting rising detached home sales, and 43 per cent of 905 communities experiencing price appreciation. Meanwhile, in the 416, just 20 of the 35 districts experienced an uptick in sales, while detached home prices increased in 57 per cent of neighbourhoods.

“Detached housing is finally back on track, with year-to-date sales almost 17 per cent ahead of last year’s levels, signaling a return to more normal levels of home-buying activity,” says Christopher Alexander, executive vice-president and regional director, ReMax of Ontario-Atlantic Canada. “Market share is also climbing, with detached homes now representing 45.7 per cent of all home sales in the Greater Toronto Area, up from 43.1 per cent one year ago.”

While improving affordability is the catalyst in the uptick in detached home sales, Re/Max says location is equally important, as first-time and trade-up buyers move to secure prime real estate before values are on the move again.

Top 5 detached home markets in 416 by price growth, first half of 2019

Neighbourhoods

Average price

% increase

1. (E01)
North Riverdale
South Riverdale
Blake-Jones
Greenwood-Coxwell

$1.38M

15.2

2. (C01)
Trinity-Bellwoods
Palmerston-Little Italy
Niagara
Little Portugal
Kensington-Chinatown
Dufferin Grove

$1.95M

12.8

3. (C11)
Leaside
Thorncliffe Park

$2.19M

11.2

4. (E04)
Dorset Park
Wexford-Maryvale
Clairlea-Birchmount
Ionview
Kennedy Park

$836,585

7.8

5. (W02)
Junction
High Park North
Runnymede-Bloor,
West Village
Lambton-Baby Point
Dovercourt-Wallace
Emerson-Junction

$1.41M

7.1

Source: Re/Max of Ontario-Atlantic Canada; E01, C01, C11, E04, W02
are TREB market districts (trebhome.com)

Top 5 detached home markets in 905 by price growth first half of 2019

Neighbourhoods Average price % increase
1. Uxbridge
2. Milton
3. Halton Hills
4. Brampton
5. Ajax
$895,490
$903,359
$842,864
$835,435
$728,923
6
4.3
3.6
2.8
2.5

Source: Re/Max of Ontario-Atlantic Canada

Despite strong demand in these hot-pocket areas, approximately 45 per cent of districts within the 416 are in a technical buyers’ market, with a good selection of homes listed for sale. ReMax says select neighbourhoods north of Bloor offered greater flexibility in terms of negotiation – this is especially true when average price topped $2 million – while market conditions were tightest south of Bloor Street.

“Heated demand clearly exists for single-detached housing south of Bloor Street, but there are pockets throughout the 416 that are scorching hot,” says Alexander. “The Oakwood-Vaughan area in C03, where homes can still be had for just over the $1-million price point, is one of those neighbourhoods, while C10, comprised of Sherwood Park, Mount Pleasant West, Mount Pleasant East, is another. The Junction Area, High Park North, and Runnymede-Bloor West Village (W02) in the west end, and Leslieville (E01) and the Beach (E02) in the east, are also highly sought-after, with proximity to transportation and vibrant shopping avenues the common denominators drawing younger buyers.”

Top performers in terms of unit sales were markets offering single-detached homes at less than the $1-million price point. Scarborough’s L’Amoreaux, Tam O’Shanter-Sullivan, Steeles neighbourhood (E05) saw the most significant upswing in terms of percentage increase in sales, with the number of homes sold up 76.2 per cent to 148 units.

“With recovery well underway in the detached housing segment, the residential real estate market is starting to fire on all cylinders,” says Alexander. “The possibility of more relaxed mortgage rules down the road – in conjunction with today’s low interest rate environment – may serve to spark up the GTA housing market yet again.”

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National home sales down slightly but Greater Golden Horseshoe prices holding their own

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National home sales down slightly but Greater Golden Horseshoe prices holding their own

GGH

National home sales edged down 0.4 per cent between August and September, the first decline since April, according to the Canadian Real Estate Association (CREA). While sales activity is still somewhat stronger compared to the first half of the year, it remains well below most other months since 2014.

Sales declined from August to September in slightly more than half of all local markets, led by Vancouver Island and Edmonton, along with several markets in Ontario’s Greater Golden Horseshoe (GGH) region. Activity declines in these markets were offset by monthly gains in the Fraser Valley and Montreal.

About 70 per cent of local markets were down on a year-over-year basis, led primarily by declines in major urban centres in British Columbia, along with Calgary, Edmonton and Winnipeg.

MORTGAGE STRESS TEST

“The balance between the number of homebuyers and suitable homes varies depending on location, housing type and price range,” says CREA President Barb Sukkau. “Differences in market balance will likely come into sharper focus as interest rates rise and cause this year’s new mortgage stress test to become even more restrictive.”

The number of newly listed homes rose three per cent between August and September, led by the Lower Mainland and the GTA. More than half of all local markets posted a monthly increase in new listings.

“Sales activity may get all the press, but it’s the balance between that and the number of homes for sale that sets the tone for pricing environment,” says Gregory Klump, CREA’s chief economist. “In markets with an abundant supply of homes and slower sales activity, buyers have the upper hand when it comes to negotiations over price. However, in places where buyers are keen to make a purchase but there’s a shortage of homes for sale, sellers are in the driver’s seat when it comes to price. It will be interesting to see how supply and demand respond to rising interest rates amid this year’s new mortgage stress-test.”

Based on a comparison of the sales-to-new listings ratio with the long-term average, about three-quarters of all local markets were in balanced market territory in September 2018.

The Aggregate Composite MLS Home Price Index (HPI) was up 2.3 per cent year-over-year in September – in line with those posted in each of the two previous months.

Condo units posted the largest year-over-year price gains in September (8.4 per cent), followed by townhomes (4.5 per cent). Meanwhile, one-storey and two-storey single-family home prices were little changed on a year-over-year basis.

REGIONAL VARIATION

Trends continue to vary widely among the 17 housing markets tracked by the HPI. Among the markets in the GGH, home prices were up from year-ago levels in Guelph (eight per cent), Hamilton-Burlington (6.1 per cent), the Niagara Region (5.9 per cent), the GTA (two per cent), and Oakville-Milton (1.4 per cent). By contrast, home prices slipped lower in Barrie and District (-3.6 per cent).

In BC, home price gains are diminishing on a year-over-year basis in Greater Vancouver (2.2 per cent), and Fraser Valley (8.5 per cent). Meanwhile, prices in Victoria were up 8.7 per cent year-over-year in September, and elsewhere Vancouver Island they climbed 13.2 per cent.

Across the Prairies, benchmark home prices remained below year-ago levels in Calgary (-2.6 per cent), Edmonton (-2.6 per cent), Regina (-4.7 per cent) and Saskatoon(-1.9 per cent).

Home prices rose by 6.9 per cent in Ottawa (led by an 7.9 per cent increase in two-storey single family home prices), by 6.1 per cent in Greater Montreal (led by a seven-per-cent increase in townhome prices) and by 3.4 per cent in Greater Moncton (led by a 10.3 per cent increase in condo prices).

The actual (not seasonally adjusted) national average price for homes sold in September 2018 was slightly less than $487,000, up just 0.2 per cent from the same month last year.

The national average price is heavily skewed by sales in the GVA and GTA, two of Canada’s most active and expensive markets. Excluding these two markets from calculations cuts almost $104,000 from the national average price, trimming it to just over $383,000.

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Homes are selling briskly throughout the GTA: CREA

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Homes are selling briskly throughout the GTA: CREA

(CNW) — According to statistics released today by The Canadian Real Estate Association (CREA), national home sales were up on a month-over-month basis in February 2017.
Home sales over Canadian MLS Systems rose by 5.2 per cent month-over-month in February 2017 to reach the highest level since April 2016.
While February sales were up from the previous month in about 70 per cent of all local markets, the national increase was overwhelmingly driven by an increase in activity across the Greater Toronto Area (GTA) and environs.


Actual (not seasonally adjusted) activity was down 2.6 per cent from levels for the same month last year. The decline reflects a moderation in sales in the Lower Mainland of British Columbia compared to extraordinarily elevated levels recorded one year ago.
“Housing market trends continue to differ by region,” said CREA president Cliff Iverson. “Homes are selling briskly throughout the Greater Toronto Area and nearby communities. Elsewhere, competition among potential buyers is less intense, so listings take longer to sell.”
“In and around Toronto, many potential move-up buyers find themselves outbid in multiple-offer situations amid a short supply of listings,” said Gregory Klump, CREA’s chief economist. “As a result, they aren’t putting their current home on the market. It’s something of a vicious circle from the standpoint of a supply shortage and a challenge for first-time and move-up homebuyers alike.
“By contrast, housing markets in urban markets elsewhere in Canada are either balanced or are amply supplied. Because housing market conditions vary by region, further tightening of mortgage regulations aimed at cooling the housing market in one region may destabilize it elsewhere.”
The number of newly listed homes rose 4.8 per cent in February 2017, led by the GTA and nearby markets following a sharp drop in January. More than one-third of all local housing markets saw new listings recede from levels the previous month, including those in the Prairies, northern Ontario and the Atlantic region. Meanwhile, new listings in the Greater Vancouver region fell significantly from January levels, having retreated by nearly 25 per cent to reach the lowest level since 2001.
With similar monthly increases in both sales and new listings, the national sales-to-new listings ratio was 69 per cent in February, little changed from 68.7 per cent in January.
A sales-to-new listings ratio between 40 and 60 is generally consistent with balanced housing market conditions, with readings below and above this range indicating buyers’ and sellers’ markets respectively.
The ratio was above 60 per cent in almost 60 per cent of all local housing markets in February, the majority of which are located in British Columbia, in and around the GTA and across Southwestern Ontario.
The number of months of inventory is another important measure of the balance between housing supply and demand. It represents how long it would take to completely liquidate current inventories at the current rate of sales activity.
There were 4.2 months of inventory on a national basis at the end of February 2017, down from 4.5 months in January and the lowest level for this measure in almost a decade.
The imbalance between limited housing supply and robust demand in Ontario’s Greater Golden Horseshoe region is without precedent.
The number of months of inventory in February 2017 stood below one month in the GTA, Hamilton-Burlington, Oakville-Milton, Kitchener-Waterloo, Cambridge, Brantford, Guelph, Barrie & District and the Kawartha Lakes region.
The Aggregate Composite MLS HPI rose by 16 per cent year-over-yeary in February 2017. This was up from January’s gain reflecting an acceleration in home price increases, particularly for single family homes in and around Toronto.
Prices for two-storey single-family homes posted the strongest year-over-year gains (+17.9 per cent), followed closely by townhouse/row units (+16 per cent), one-storey single family homes (15 per cent) and apartment units (13.7 per cent).
While benchmark home prices were up from year-ago levels in 11 of 13 housing markets tracked by the MLS HPI, price trends continued to vary widely by location.
In the Fraser Valley and Greater Vancouver, prices are slightly off their peaks posted in August 2016. That said, home prices in these regions nonetheless remain well above year-ago levels (+21.4 per cent year-over-year and +14 per cent year-over-year respectively).
Meanwhile, benchmark prices continue to climb in Victoria and elsewhere on Vancouver Island, as well as in Greater Toronto, Oakville-Milton and Guelph. Year-over-year price gains in these five markets ranged from about 18 per cent to 30 per cent in February.
By comparison, home prices were down by 1.9 per cent year-over-year in Calgary and by 1.2 per cent year-over-year in Saskatoon. Prices in these two markets now stand 5.6 per cent and 5.1 per cent below their respective peaks reached in 2015.
Home prices were up modestly from year-ago levels in Regina (+3.5 per cent), Ottawa (+3.8 per cent), Greater Montreal (+3.3 per cent) and Greater Moncton (+1.2per cent).
The MLS Home Price Index (MLS HPI) provides the best way of gauging price trends because average price trends are prone to being strongly distorted by changes in the mix of sales activity from one month to the next.
The actual (not seasonally adjusted) national average price for homes sold in February 2017 was $519,521, up 3.5 per cent from where it stood one year earlier.
The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets.
That said, Greater Vancouver’s share of national sales activity has diminished considerably over the past year, giving it less upward influence on the national average price. The average price is reduced by almost $150,000 to $369,728 if Greater Vancouver and Greater Toronto sales are excluded from calculations.
Further information can be found at http://crea.ca/statistics.

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