January 2017 picked up where 2016 left off with sales up over this time last year, and well above the five-year average, while the number of new listings was down by double-digit annual rates for most major home types.
Home ownership continues to be a great investment and remains very important to the majority of Canadian households. As we move through 2017, we expect the demand for ownership housing to remain strong, including demand from first-time buyers who, according to a recent Ipsos survey, could account for more than half of transactions this year. However, many of these would-be buyers will have problems finding a home that meets their needs in a market with very little inventory.
Ontario – Strong start to 2017
Toronto, February 3, 2017 – Toronto Real Estate Board (TREB) President Larry Cerqua announced that Greater Toronto Area (GTA) REALTORS® reported 5,188 residential transactions through TREB's Multiple Listing Service® (MLS®) System in January 2017. This result was up by 11.8% compared to 4,640 sales reported in January 2016. Annual rates of sales growth were higher for condominium apartments than for low-rise home types.
January 2017 picked up where 2016 left off: sales were up on a year-over-year basis while the number of new listings was down by double-digit annual rates for most major home types.
"Home ownership continues to be a great investment and remains very important to the majority of GTA households. As we move through 2017, we expect the demand for ownership housing to remain strong, including demand from first-time buyers who, according to a recent Ipsos survey, could account for more than half of transactions this year. However, many of these would-be buyers will have problems finding a home that meets their needs in a market with very little inventory," said Cerqua. The MLS® Home Price Index (HPI) Composite Benchmark price was up by 21.8% on a year-over-year basis in January.
Similarly, over the same period, the average selling price was up by 22.3% to $770,745, with double-digit gains in the average prices for all major home types.
"The number of active listings on TREB's MLS® System at the end of January was essentially half of what was reported as available at the same time last year. That statistic, on its own, tells us that there is a serious supply problem in the GTA – a problem that will continue to play itself out in 2017. The result will be very strong price growth for all home types again this year," said Jason Mercer, TREB's Director of Market Analysis.
Ottawa, February 3, 2017 – Members of the Ottawa Real Estate Board (OREB) sold 667 residential properties in January through the Board’s MLS® system, compared with 598 in January 2016, an increase of 11.5%. The five-year average for January sales is 614.
“The year is off to a great start, with sales up over this time last year, and well above the five-year average,” remarks Rick Eisert, President of the OREB.
“Residential-class resales supported this increase, with a 16.6% growth over January 2016. The number of properties listed in January has doubled the amount listed in December, which is very typical of sellers getting a jump start on the spring selling season.”
January’s sales included 119 in the condominium property class, and 548 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.
“While the numbers indicate a positive trend for Ottawa as a whole, we emphasize that all real estate is local, and prices and conditions will vary from neighbourhood to neighbourhood,” explains Eisert. “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.”
The average sale price of a residential-class property sold in January in the Ottawa area was $394,001, an increase of 1.9% over January 2016. The average sale price for a condominium-class property was $288,655, an increase of 16.8% over January 2016.
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.
“The average sale price for the condominium class saw a big increase over last year,” Eisert says. “It’s important to note that three properties sold for over $1 million this January, while none were sold in January 2016. This needs to be taken into consideration when looking at the overall increase in average condo sale price.”
“In the residential market the most active price point was the $300,000 to $399,999 range for the month of January, accounting for 35.2% of the market. The condominium market was most active in the $150,000 to $249,999 price range, accounting for 58.7% of the market,” says Eisert. “In addition to residential and condominium sales, OREB members assisted clients with renting 201 properties in January.”
Alberta - January market improves over last year
Calgary, February 1, 2017 – For the fourth consecutive month, housing inventory levels have recorded year-over-year declines. At 4,112 total units, January's inventory was 18% below last year's levels.
"While housing conditions continue to favour buyers, a slow transition toward more balanced conditions is helping to ease downward pressure on home prices," said Calgary Real Estate Board® (CREB®) chief economist Ann-Marie Lurie. "Conditions have improved over last year, but people need to remember that last year's market was one of the weakest on record. Despite the appearance of a major shift in activity, the transition in the housing market is going to be a slow process."
January sales totaled 947 units, 24% above last year, but 21% below 10-year averages for the month. Sales activity improved across all product types, but only when compared to the near record lows that occurred in January 2016.
The detached segment of the market is demonstrating the most improvement. Sales activity totalled 584 units in January, a considerable improvement over the 466 sales recorded last year. Inventories have also declined pushing the months of supply to 3.2 months well below the 5.4 months recorded in January 2016.
"This past month showed how the market never stands still," said CREB® president David P. Brown. "The market isn't expected to be as unpredictable in 2017, but it's early in the year and there are still lots of unknowns that will shape decision-making for consumers."
"Every transaction is a personal decision and anyone going through the process of buying and selling real estate will be trying to make the best decision for their family. They need to consider their long-term objectives and think about the price they are willing to accept or pay for a home."
City-wide benchmark prices totaled $437,400, 0.16% lower than last month and 2.82% lower than last year's levels. Since recent highs in 2014, residential prices have declined from a low of 4.9% in the detached sector to highs of 11.5% in the apartment condominium market.
British Columbia – BC home sales post record year
Vancouver, January 13, 2017. The British Columbia Real Estate Association (BCREA) reports that a record 112,209 residential unit sales were recorded by the MLS® in 2016, an increase of 9.5% from the previous year. Total sales dollar volume was a record $77.6 billion, up 18.8% from 2015. The average MLS® residential price in the province climbed 8.6% to $691,144 on an annual basis in 2016.
"Broad-based consumer demand driven by strong economic conditions, employment growth, consumer confidence, and an expanding population base pushed home sales to record levels in many BC regions last year," said Cameron Muir, BCREA Chief Economist. "However, home sales have fallen back from their lofty peaks early last year." The seasonally adjusted annual rate of sales activity was approximately 92,000 units in December.
A total of 4,721 residential unit sales were recorded by the MLS® in December, down 28.4% from the same month last year. Total sales dollar volume was $3.1 billion last month, a decline of 33.1% compared to the same month the previous year. The average MLS® residential price in the province was $654,699 in December, a 6.6% decline from December 2015.