Canada’s two largest real estate markets — the Greater Vancouver area (GVA) and Greater Toronto Area (GTA) — performed beyond expectations in April, with rising sales and prices, but deteriorating supplies..GVA: Home buyer confidence returns..“With listing activity remaining below historical norms, home sales in Metro Vancouver mounted a surprising comeback, rising near levels seen last spring, before eight consecutive interest rate hikes eroded borrowing power and brought home sales activity down along with it,” says Andrew Lis, director of economics and data analytics at the Real Estate Board of Greater Vancouver (REBGV). .There were 2,741 sales in the GVA in April, an increase from the 2,535 sales in March. The market-wide home price index (HPI) benchmark price was $1,170,700, a 2.4% increase from $1,143,900 in March..“The fact we're seeing prices rising and sales rebounding this spring tells us home buyers are returning with confidence after a challenging year for our market, with mortgage rates roughly doubling,” says Lis. “The latest MLS HPI data show home prices increased about 5% year-to-date, which already outpaces our forecast of one to two per cent by year-end.” .“The year is far from over, however, and it remains to be seen if these price increases will be sustained into 2024.” .April saw 4,307 new listings of homes of all types in the GVA, down slightly from 4,317 new listings in March, with the number of active listings at the end of April reaching 8,790, up slightly from 8,617 at the end of March..The sales-to-active ratios by property type were: 24.4% for single-family homes; 40.1% for townhomes; and 37.4% for apartments. .Single-family home sales reached 808 units in April, up from 734 in March. The benchmark price was $1,915,800, up from $1,861,800 in March..There were 1,413 apartment sales in April, up slightly from 1,311 sales in March. April’s benchmark price was $752,300, compared to $737,200 in March..Attached home sales in April reached 500 units, compared to 466 in March. The benchmark price was $1,078,400, a small increase from $1,056,400 in March..“When we released our market forecast in January, we were one of the only organizations taking the contrarian view that prices were likely to appreciate in 2023,” says Lis. “And what we’re seeing unfold so far this year is consistent with our prediction near record-low inventory levels would create competitive conditions where almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment.”.“At the crux of it, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.” .GTA: Competiton between buyers increases.Sales across the area reached 7,531 homes in April at an average price of $1,153,269, reports the Toronto Region Real Estate Board (TRREB). This compares to 6,896 sales in March at an average price of $1,108,606..“In line with TRREB’s outlook and recent consumer polling results, we are seeing a gradual improvement in sales and average selling price. Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year,” says TRREB president Paul Baron..“The issue moving forward will not be the demand for ownership housing, but rather the ability to meet this demand with adequate supply. This is a policy issue that requires sustained effort from all levels of government.” .On a year-over-year basis, new listings were down by 38.3% in April, which doesn’t bode well for future buyers, says TRREB chief market analyst, Jason Mercer..“As demand for ownership housing picked up relative to supply, we are seeing renewed upward pressure on home prices. For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply in the GTA,” says Mercer..“Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and resulting impact on affordability. Lack of affordability in the GTA ownership and rental housing markets has been well-documented.”.Governments need to address the shortage of supply and the economy as a whole, says John DiMichele, TRREB’s CEO..“Households faced with steep price increases for basic goods and services have had to make tough decisions to adapt. It is time for governments to make tough choices as well,” says DiMichele..“On average, every dollar a household makes in the first half of the year goes to taxes. Governments need to provide more value for every tax dollar they collect and should be looking for ways to reduce tax burdens moving forward.”
Canada’s two largest real estate markets — the Greater Vancouver area (GVA) and Greater Toronto Area (GTA) — performed beyond expectations in April, with rising sales and prices, but deteriorating supplies..GVA: Home buyer confidence returns..“With listing activity remaining below historical norms, home sales in Metro Vancouver mounted a surprising comeback, rising near levels seen last spring, before eight consecutive interest rate hikes eroded borrowing power and brought home sales activity down along with it,” says Andrew Lis, director of economics and data analytics at the Real Estate Board of Greater Vancouver (REBGV). .There were 2,741 sales in the GVA in April, an increase from the 2,535 sales in March. The market-wide home price index (HPI) benchmark price was $1,170,700, a 2.4% increase from $1,143,900 in March..“The fact we're seeing prices rising and sales rebounding this spring tells us home buyers are returning with confidence after a challenging year for our market, with mortgage rates roughly doubling,” says Lis. “The latest MLS HPI data show home prices increased about 5% year-to-date, which already outpaces our forecast of one to two per cent by year-end.” .“The year is far from over, however, and it remains to be seen if these price increases will be sustained into 2024.” .April saw 4,307 new listings of homes of all types in the GVA, down slightly from 4,317 new listings in March, with the number of active listings at the end of April reaching 8,790, up slightly from 8,617 at the end of March..The sales-to-active ratios by property type were: 24.4% for single-family homes; 40.1% for townhomes; and 37.4% for apartments. .Single-family home sales reached 808 units in April, up from 734 in March. The benchmark price was $1,915,800, up from $1,861,800 in March..There were 1,413 apartment sales in April, up slightly from 1,311 sales in March. April’s benchmark price was $752,300, compared to $737,200 in March..Attached home sales in April reached 500 units, compared to 466 in March. The benchmark price was $1,078,400, a small increase from $1,056,400 in March..“When we released our market forecast in January, we were one of the only organizations taking the contrarian view that prices were likely to appreciate in 2023,” says Lis. “And what we’re seeing unfold so far this year is consistent with our prediction near record-low inventory levels would create competitive conditions where almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment.”.“At the crux of it, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.” .GTA: Competiton between buyers increases.Sales across the area reached 7,531 homes in April at an average price of $1,153,269, reports the Toronto Region Real Estate Board (TRREB). This compares to 6,896 sales in March at an average price of $1,108,606..“In line with TRREB’s outlook and recent consumer polling results, we are seeing a gradual improvement in sales and average selling price. Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year,” says TRREB president Paul Baron..“The issue moving forward will not be the demand for ownership housing, but rather the ability to meet this demand with adequate supply. This is a policy issue that requires sustained effort from all levels of government.” .On a year-over-year basis, new listings were down by 38.3% in April, which doesn’t bode well for future buyers, says TRREB chief market analyst, Jason Mercer..“As demand for ownership housing picked up relative to supply, we are seeing renewed upward pressure on home prices. For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply in the GTA,” says Mercer..“Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and resulting impact on affordability. Lack of affordability in the GTA ownership and rental housing markets has been well-documented.”.Governments need to address the shortage of supply and the economy as a whole, says John DiMichele, TRREB’s CEO..“Households faced with steep price increases for basic goods and services have had to make tough decisions to adapt. It is time for governments to make tough choices as well,” says DiMichele..“On average, every dollar a household makes in the first half of the year goes to taxes. Governments need to provide more value for every tax dollar they collect and should be looking for ways to reduce tax burdens moving forward.”
