Market watch - Residential Resale Market Returned to Pre-pandemic Levels

October’s resale market was active, busy, and stable – and followed the typical (pre-pandemic) ebb and flow that we commonly see as we enter the fall season. While the number of units sold followed the traditional trajectory, the lack of supply continues to put upward pressure on prices, which are holding strong and steadily increasing. 

Ontario - GTA home sales reached the second-highest level on record for the month of October

Toronto, 02 November 2021 -- Home sales in the Greater Toronto Area (GTA) reached the second-highest level on record for the month of October. However, the inventory of homes for sale did not keep up with demand. The number of new listings was down by approximately one-third compared to October 2020. Market conditions tightened across all major home types compared to last year, and the annual rate of average price growth remained in the double digits, including for the resurgent condominium apartment segment.

“The only sustainable way to address housing affordability in the GTA is to deal with the persistent mismatch between demand and supply. Demand isn’t going away. And that’s why all three levels of government need to focus on supply. The federal government has stated that collaboration with provinces and municipalities is required. This collaboration could be spearheaded, at least in part, with housing-related incentives tied to federal infrastructure investment,” said TRREB President Kevin Crigger.

GTA REALTORS® reported 9,783 sales through TRREB’s MLS® System in October 2021 – down by 6.9% compared to the October 2020 record of 10,503. A strong double-digit increase in condominium apartment sales mitigated annual declines in low-rise home sales. The number of new listings entered into the system was down by almost a third over the same period, with consistent declines across all major home types.

The MLS® Home Price Index Composite Benchmark was up by 24.2% year-over-year. The average selling price for all homes combined rose by 19.3% year-over-year to $1,155,345. The low-rise market continued to drive price growth in October, but the annual price growth for condominium apartments was in the double digits as well.

“The tight market conditions across all market segments and areas of the GTA is testament to the broadening scope of economic recovery in the region and household confidence that this recovery will continue. A key part of future economic development in the GTA will be the ability to provide adequate ownership and rental housing supply so that people can continue to move to the region to live, work and spend money in the local economy,” said TRREB Chief Market Analyst Jason Mercer.

Ottawa - October’s Resales Track a Traditional Cycle

Ottawa, November 3, 2021 -- Members of the Ottawa Real Estate Board sold 1,677 residential properties in October through the Board’s Multiple Listing Service® System, compared with 2,132 in October 2020, a decrease of 21%. October’s sales included 1,263 in the residential-property class, down 24% from a year ago, and 414 in the condominium-property category, a decrease of 14% from October 2020. The five-year average for total unit sales in October is 1,605.

“October’s resale market was active, busy, and stable – and followed the typical (pre-pandemic) ebb and flow that we commonly see as we enter the fall season,” states Ottawa Real Estate Board President Debra Wright. “The number of transactions increased slightly over September (1,607) as well as the 5-year average. The only reason we see a year-over-year decrease in comparison to last October is because 2020’s sales peak had shifted from the spring months to September/ October due to the initial Covid-19 lockdown.”

The average sale price for a condominium-class property in October was $404,760, an increase of 10% from 2020, while the average sale price for a residential-class property was $716,378, an increase of 19% from a year ago. With year-to-date average sale prices at $720,150 for residential and $419,515 for condominiums, these values represent a 24% and 16 percent increase over 2020, respectively.*

“While the number of units sold followed the traditional trajectory, the lack of supply continues to put upward pressure on prices, which are holding strong and steadily increasing. Although there were 1,960 new listings in October, falling just under the 5-year average (1,974), it’s simply not enough. Inventory remains at a one-month supply for residential properties and 1.2 months for condominiums. The only way we will find balance in Ottawa’s market is to increase the housing stock exponentially.”

“Low inventory and a lack of suitable housing options restrict movement along the housing spectrum. Move-up buyers and downsizers have nowhere to go, so they stay in place, but we need that exchange of properties in the marketplace to free up supply for entry-level homebuyers,” Wright adds.

“Additionally, we have noticed a substantial increase in the number of rental transactions through the MLS® System, which could suggest that some of the properties have been purchased or held on to for investment purposes. This active rental market may be another contributing factor as to why there aren’t more properties coming onto the market for sale.”

OREB Members assisted clients with renting 4,012 properties since the beginning of the year compared to 2,829 at this time last year.

British Columbia - BC Housing Market at Historically Low Level of Supply

Vancouver, November 10, 2021 -- The British Columbia Real Estate Association (BCREA) reports that a total 9,593 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in October 2021, a decrease of 13.7% from October 2020. The average MLS® residential price in BC was $964,777, an 18.9% increase from $811,307 recorded in October 2020. Total sales dollar volume was $9.3 billion, a 2.6% decline from the same time last year.

“The story across the province continues to be the record low number of listings,” said BCREA Chief Economist Brendon Ogmundson. “Rising mortgage rates should start to temper sales activity next year, but even with a moderation in demand it will take quite some time for the inventory of homes to return to a healthy level.”

Total active residential listings were down nearly 40% year-over-year in October, falling to an all-time record low for the province. Active listings have now fallen for five consecutive months on a seasonally adjusted basis.

Year-to-date, BC residential sales dollar volume is up 69.7% to $99.6 billion compared to the same period in 2020. Residential unit sales were up 42.8% to 108,798 units, while the average MLS® residential price was up 18.8% to $915,833.

Alberta - Residential Unit Sales & Inventory Normalize for October

Edmonton, November 3, 2021 -- Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for October 2021 increased 11.7% compared to October 2020 and decreased 0.6% from September 2021.

New residential listings have stayed the same year-over-year from October 2020. However, new residential listings are down month-over-month, decreasing 11.7% from September 2021. Overall inventory in the GEA was down 5.8% from October of last year and decreased 7.5% from September 2021.

For October, single-family home unit sales are up 0.9% from October 2020 and down 2.3% from September 2021 at 1,125. Condo unit sales increased 33.8% from October 2020 and decreased 0.6% from September 2021. Duplex/rowhouse unit sales were up 31.3% year-over-year and up 12.4% month-over-month.

All residential average prices are at $377,848, a 1.1% decrease from October 2020, with no change occurring from September 2021. Single-family homes averaged $450,306, a 1.6% year-over-year increase and a 0.6% decrease from September 2021. Condominiums sold for an average of $225,449, a 2.7% decrease year-over-year, and prices are up 0.6% compared to September 2021. Duplex prices increased 7.6% from October 2020, selling at $361,827, which was a 7.4% increase from September 2021.

The MLS® Home Price Index (HPI) composite benchmark price* in the Greater Edmonton Area came in at $416,800, a 6.7% increase from October 2020, and up 0.5% from September 2021.

“The Edmonton market in October saw only a nominal increase in new residential listings as compared to October 2020,” says REALTORS® Association of Edmonton Chair Tom Shearer. “The year-over-year residential unit sales in the GEA were higher than October of last year, while we have continued to see small decreases in the month-to-month activity. The market continues to see a normalization as we head into the winter months.”

Single-family homes averaged 40 days on the market, a seven-day decrease from October of last year. Condos averaged 47 days on the market, an 11-day decrease year-over-year, while duplexes averaged 43 days on the market, a six-day decrease compared to October 2020. Overall, all residential listings averaged 47 days on the market, decreasing by three days year-over-year and increasing by three days compared to September 2021.