Olivia D’Orazio
Other

Ahead of today’s provincial election, a new housing report is showing signs of a relatively stable market, despite lower oil values and fewer sales.

According to the Edmonton Real Estate Board, sales during the month of April were down 13 per cent from the year-ago period, though median prices rose 2.6 per cent.

“I’m in my 31st year in real estate in Edmonton and I’ve never quite seen the market like this,” says sales rep, Duane Ritter. “The attitude out there is very much wait-and-see. Even where we do have oversupply, nobody is adjusting.”

Indeed, Ritter says buyers are putting off purchases in light of some job losses and a certain level of economic uncertainty, while sellers are opting to remain steadfast and hold listing prices at the values they were at before the oil shock.

Still, the condo market in areas outside of the city’s downtown core will suffer, Ritter says, pointing to the oversupply of units in Edmonton’s suburbs.

“Where I’m concerned is when you get into the outlying areas,” he explains. “The downtown core – this generation wants to be in the downtown, close to everything. Edmonton is a very spread out town, so a lot of the condos … are 150 blocks from our downtown core, and now young people have a choice.”

According to the EREB, the condo market is still moving, albeit much slower than in past. Condos across the region realized a 26.4 per cent drop in sales during the month of April, compared to the year-ago period. Median price, however, remained flat year-over-year.

Sales in the detached market were also down, falling 19.5 per cent from April 2014. Median prices, like those in the condo market, however, were not impacted by a lack of sales. Instead, median price in the single-family sector rose 2.24 per cent from the year-ago period.

“I’ve never seen (the market) like this – which is a good thing,” Ritter says. “We’re not getting a reaction; people are saying let’s see what happens with oil, let’s see what happens with the election. In the past, there would be a knee jerk reaction.”

Copyright © 2015 Key Media Pty Ltd

 

Olivia D’Orazio
Other

Agents concerned with the levels of foreign ownership in Canada are pointing to a model used in Australia to keep the market from overheating.

“I think it’s something to consider because real estate is meant to serve local (populations), serve people who live in Canada,” says David Oey, an agent in Toronto, adding that an increase in foreign ownership could create a speculative market.

The government in Australia has imposed an application fee for non-Australians looking to purchase property. Those fees start at AUD $5,000 for properties up to AUD $1 million in price, and get even steeper for higher-end properties.

Buyers who flout those rules, however, could face fines up to AUD $127,500 or up to three years in jail.

According to the New York Times, Tony Abbott, the Australian prime minister, told reporters in Sydney the new law is an effort to keep real estate affordable for nationals.

“We want to ensure that illegal foreign investment is not unnecessarily driving up prices,” he said. “We want to maximize the opportunities for Australians to buy a home at the best possible price.”

Copyright © 2015 Key Media Pty Ltd

 

Jamie Henry
Other

House prices in Vancouver have increased again with the average cost of a detached home rising 12.5 per cent in April to $1.08 million with the benchmark for a typical home now at $673,000. The Real Estate Board of Greater Vancouver said Monday that a low level of listings has pushed prices higher; sales were up 37 per cent from April last year. There are currently 12,436 listings on the MLS for Greater Vancouver, that’d 0.5 per cent lower than March and 19.8 per cent lower than April last year; new listings are 0.9 per cent lower than last year.

The rising costs are also spreading to previously ignored parts of the city leading to bidding wars. Even properties that are in need of renovation are exceeding their expected sale prices. Those looking for bargains are being forced to look further out of the city with Fraser Valley and Surrey among the suburbs getting increased attention. With mortgage rates staying highly competitive and the spring season underway realtors are expecting to be busy…if the homes are available to sell!

Copyright © 2015 Key Media Pty Ltd

Olivia D’Orazio
Other

There’s no stopping buyers in Vancouver’s red-hot market, with agents revelling in spring sales up 30 per cent over the 10-year average.

Overall sales during the month of April were up 37 per cent from the year-ago period, pushing the average price across all property types up 8.5 per cent to $673,000.

And still there’s not enough properties to meet burgeoning demand.

“The supply of homes for sale today in the region is not meeting the demand we’re seeing from home buyers,” said Darcy McLeod, the president of the Real Estate Board of Greater Vancouver. “This is putting upward pressure on prices, particularly in the detached home market.”

In that particular vertical, sales were up 35.9 per cent in April from a year ago, driving prices up another 12.5 per cent to an average of $1.08 million. Condo sales followed closely behind, with sales climbing 34.7 per cent in April as the average price rose to $394,200, a 4.4 per cent increase over April 2014.

“Sellers are holding the cards,” says David Hung, a sales rep in Vancouver. “The properties that are going – two-bed, two-bath – are selling for multiple offers, and buyers are getting caught in the hype of the market.”

Hung also says that any buildable land, especially in the Fraser, Mount Pleasant and Victoria neighbourhoods, are going for top dollar. In the condo market, meanwhile, he says buyers are looking for the lifestyle that comes with being in the middle of a bustling city.

“They might not be priced out (of the detached market),” he says, “but they want to be in a vibrant community, which downtown has to offer.”

That buyer demand also put pressure on the number of new listings, which fell almost a full per cent from the April 2014 period. In the detached market, listings were down 0.4 per cent. Condo listings were down 2.1 per cent from year-ago period.

Indeed, that demand isn’t likely to go anywhere.

“I’m letting buyers know that this is the reality of the market right now,” Hung says. “If there’s something they want and must have, then definitely they should put their best foot forward; this is not the time to write lowball offers.”

Copyright © 2015 Key Media Pty Ltd

 

Jamie Henry
Other

A new report shows that Toronto is the one city with the hottest growth in  luxury real estate. Christies International’s study also revealed that the new benchmark for high-end homes is U$100 million with a record ten properties currently listed across the US at or above the 9-digit price. Toronto ranks tenth overall on Christies’ luxury index it has seen the hottest pace of growth with a 37 per cent increase in 2014; in 2013 it saw just 4 per cent. Low supply has kept that increase lower than it could have been according to experts and has also pushed prices higher; larger homes in desirable neighbourhoods are touching $4 million and even more modest homes are in the $1-2 million range. Toronto also tops the league for the fastest selling times with high end homes averaging just 31 days on the market.

Oversupply warning in Toronto, Vancouver condo market Although deemed to be ‘low-risk’ in the CMHC’s latest assessment of the property market there is a warning over one sector of Toronto and Vancouver’s real estate. Capital Economic’s David Madani says that oversupply of condos in the two cities could reach dangerously high levels. He told CanadianBusiness.com that builders are giving incentives to buyers but they may not be enough of a draw for investors who may “move off to the sidelines” if prices stall. In the first quarter of this year there was a 42 per cent increase in new condo supply according to Urbanation and some experts are predicting a sharp drop in prices is demand does not match supply.

Copyright © 2015 Key Media Pty Ltd