Detached homes lead Saskatchewan’s surge in January sales, despite declining inventory: SRA
The Saskatchewan Realtors Association (SRA) reports that in January, the province witnessed a surge in real estate activity with 776 sales, marking a 24 per cent increase year-over-year and nearly 18 per cent above the 10-year average.Driven primarily by robust detached home sales, this marks the seventh consecutive month of above-average sales. “Prospective buyers can continue to expect tight market conditions when searching for more affordable properties” Despite the strong sales, new listings declined, leading to a reduced inventory of 4,562 units, the lowest January level seen since 2010. Inventory levels plummeted by 18 per cent year-over-year, especially in the competitive segment below $400,000. However, properties priced above $600,000 saw some relief in inventory, though not enough to offset declines at lower price points.SRA’s CEO, Chris Guérette, notes, “Higher lending rates have driven many purchasers to seek out more affordable products, resulting in further inventory declines in the more affordable segment of our market.”Guérette continues to say that January failed to bring new listing relief to this area, and “Prospective buyers can continue to expect tight market conditions when searching for more affordable properties.” Stable demand should be supported by favourable economic conditions and lower lending rates Prices across all property types rose year-over-year, with row/townhouse-style properties experiencing the most significant gains. The provincial benchmark price reached $319,600 in January, up nearly 1 per cent from January 2023.“While real estate is local and market conditions vary based on property type, price range, and location – our biggest concern is the lack of inventory across many markets in our province,” Guérette says. “Despite persistent inventory challenges, the predicted easing of lending rates and favourable economic conditions should continue to support stable demand for home ownership in Saskatchewan.” Regional highlights All regions saw increased sales activity, particularly Regina Moose-Mountain and Saskatoon-Biggar. However, inventory levels remained below last year’s levels, leading to supply levels. This is especially true in Saskatoon-Biggar, which has under four months of supply. Price trends Price trends varied across Saskatchewan, as several communities witnessed price gains and others experienced slight decreases. The range was wide, from Melfort seeing a 10 per cent year-over-year increase, to Swift Current’s decline of nearly 3 per cent. Review the full provincial, city, CMA/CA and regional reports. Enjoying this article?Get the latest REM articles in your inbox 3x week so you stay up to date on the latest in the Canadian real estate industry Success! Email Subscribe The post Detached homes lead Saskatchewan’s surge in January sales, despite declining inventory: SRA first appeared on REM.The post Detached homes lead Saskatchewan’s surge in January sales, despite declining inventory: SRA appeared first on REM.
Early start to 2024 home buying season sees surge in activity yet limited supply across Canada
The 2024 buying season kicked off early this year, as hopeful homeowners all across Canada looked to take advantage of an opportunistic environment for the first time since the early pandemic.With Bank of Canada interest rates holding for the fourth consecutive time, and the anticipation of a cut to come in the months ahead, viewings, purchases and even some bidding wars are on the rise. Many prospective buyers seemed to have predicted the rate hold, getting in early on the chance to finally acquire a home. Someone “flips a switch” each year “I don’t know how else to describe it, but every year it seems someone flips a switch,” says Lindsie Tomlinson, a Re/Max Select Realty agent in Vancouver. “We go from the slowness of the winter holiday season and then someone flips a switch, and it gets really active and busy. It usually happens later in January and into February or March.”She says that this year, it happened “really early in January, even before the interest rate announcement.”Tomlinson anticipates a busy spring season, particularly compared to last year, with Vancouver and the surrounding suburbs already seeing a lot of interest. She says she still has clients who have been waiting for months for the right opportunity.She was one of several agents across Canada who spoke to REM about the current state of the market. They all noted that despite optimism for a busy season, one problem remains all over the country. The consistent problem across Canada: Supply “There’s limited inventory,” says Simon Hunt of Simon Hunt Realty in Calgary. “The market is going to be pretty tight.” He reminds us that inventory was limited in 2023, but sales were down; he also anticipates a busy season with sales already brisk and some bidding wars popping up.There is a similar sentiment elsewhere in Alberta where Samantha Sajjad, an associate at MaxWell Devonshire Edmonton, is seeing plenty of bids and not a lot of options. “Our market seems to be doing extremely well along with Calgary,” she says. “Buyer confidence is high. We have lots of out-of-province buyers coming into Edmonton, either those who have been here for a bit and have been renting or those who are virtual.”Potential buyers looking to get a deal moving to the Prairies or Atlantic Canada have likely missed the opportunity available during the pandemic.The same trends are taking place in Nova Scotia, where agent Brenda K Kielbratowski of Keller Williams saw a busier month of January than the same time in 2023, with buyers and sellers attuned to the new normal. “We’ve acclimated to it now,” she says of the past interest hikes. Now that the Bank of Canada has been holding rates, “buyers are back out there looking.”While she notes the days of the wild bidding wars are over, there simply aren’t a ton of options. “I don’t see the supply and demand balancing out. People aren’t selling their homes. It’s an inventory problem.” Most sales at or just above list price The consensus across the country is most sales end up at or just above list price. While bidding wars do exist, the number of parties involved isn’t as large as it had been, and the padded offers aren’t as outrageous.In Ottawa, Chelsea Hamre has been busy. She saw people start buying as early as January 1, with clients prepared for an interest rate hold and ready to jump. “The market has been really good for us, as a team, as a whole, with a great amount of sales,” she says of the Hamre Real Estate Team. “Buyers are out buying, sellers are considering, but there is still an inventory crisis.” More activity in the GTA, interest rate drop may not impact much The GTA sees all the same opportunities and drawbacks as the rest of the country, with increased activity but limited inventory.“After the interest rate announcement, the market started to heat up a bit, and with the possibility of the Bank of Canada reducing the rate in March or April, I think (it) sparked buyers to get in,” says Re/Max agent Anuja Kumarasamy. “There are more showings and offerings but in terms of prices, I haven’t seen a real increase. They are still according to market value.”Kumarasamy, who is mostly in Durham and Scarborough, sees more people getting in once the interest rates officially decrease but does wonder if the announcement is more psychological than practical. “Some people are waiting for the announcement because they’re not confident enough yet,” she says. “Even if they drop it, it’ll be like 0.25 per cent. It isn’t really going to impact how much more you can qualify for.“Other agents wondered that while interest rates may decline this year, this could result in list prices ticking up slightly. Enjoying this article?Get the latest REM articles in your inbox 3x week so you stay up to date on the latest in the Canadian real estate industry Success! Email Subscribe The post Early start to 2024 home buying season sees surge in activity yet limited supply across Canada first appeared on REM.The post Early start to 2024 home buying season sees surge in activity yet limited supply across Canada appeared first on REM.
TRREB forecasts 2024 as start of multi-year housing recovery in GTA
The Toronto Regional Real Estate Board (TRREB) released its projections for the Greater Toronto Area (GTA) real estate market in the 2024 Market Outlook and Year in Review report and interactive digital digest.The report covers various aspects of the GTA real estate market, including emerging trends in new homes and condos, along with an assessment of the commercial sector.It incorporates Ipsos consumer polling data, revealing insights into 2024 home buying and selling intentions, alongside TRREB’s analysis of home sales, new listings, average prices and market drivers like interest rates, population growth and employment. 2024: The start of a “multi-year recovery” TRREB’s chief market analyst, Jason Mercer, weighs in: “Demand for ownership housing in the GTA will start improving in 2024. Record population growth, a resilient economy, low unemployment and declining mortgage rates in the second half of the year will result in increased home sales compared to 2023.This will be the start of a multi-year recovery as some households will still face affordability challenges, even as borrowing costs begin trending lower. As the demand for housing picks up, it will be equally important to see a rebound in the supply of homes for sale and an uptick in new home construction.” Key market outlook highlights Projections indicate a total of 77,000 home sales for the year. The average selling price is forecasted to reach $1,170,000 across all home types, positioning as the second-highest recorded, yet remaining below the peak observed in early 2022.As well, Ipsos data suggests a consistent overall interest in home purchases compared to the previous year, with 28 per cent of respondents considering buying a home in 2024. However, the proportion of respondents expressing a high likelihood to purchase has slightly decreased, underscoring lingering uncertainty among potential buyers.The percentage of homeowners likely to list their properties for sale in 2024 decreased by 2 per cent compared to 2023, highlighting ongoing challenges in listing inventory availability amid rising demand.In addition, the report delves into the repercussions of the housing crisis on residents’ mental and physical well-being, emphasizing the urgent need for increased housing supply to accommodate the record population growth driven by immigration. Call to end “band-aid solutions that result in larger issues than the problems they attempt to solve” TRREB president Jennifer Pearce emphasized the necessity for proactive planning and streamlined processes to address housing affordability and supply issues effectively: “In the wake of a growing population, policymakers cannot lose sight of planning ahead, and avoid applying band-aid solutions that often result in larger issues than the problems they are attempting to solve.”Echoing Pearce’s sentiments, TRREB CEO John DiMichele stressed the urgency of accelerating housing supply and providing support for first-time homebuyers through measures such as relief on upfront land transfer taxes.“Prioritizing “missing middle” housing will provide more diverse and affordable housing options – something we have long called for. All levels of government need to work together and ensure the right incentives are in place for developers to build more housing across the spectrum,” says DiMichele. Read the full report here. Enjoying this article?Get the latest REM articles in your inbox 3x week so you stay up to date on the latest in the Canadian real estate industry Success! Email Subscribe The post TRREB forecasts 2024 as start of multi-year housing recovery in GTA first appeared on REM.The post TRREB forecasts 2024 as start of multi-year housing recovery in GTA appeared first on REM.
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