The State of Canada’s Housing Market Update

The State of Canada’s Housing Market Update


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Buyers may be happy in Calgary but sellers and the economy aren’t. It’s a buyer’s market and homes sales fell 22% in April compared to the previous year. Part of this has to do with the fact work isn’t the easiest thing to come by these days and oil prices. Overall in the first 3 months of 2015 home sales dropped a whopping 33%.

“With fewer buyers making purchase decisions and improved selection for resale, new home and rental property, sellers have been either adjusting their expectations on price or delaying their plans about when to list their home,” CREB president Corinne Lyall said in a news release.

Lyall also said “Sellers have more competition and need to be aware of how much product is available in comparable neighborhoods.”

One small silver lining is that although the Calgary housing market is down overall homes prices are still about 1.9% higher than April 2014.

While Calgary is feeling the pain of low oil prices and lack of job opportunities both the Toronto and Vancouver markets are seeing a jump in home sales. Vancouver jumped by 37 per cent over last April. The average price grew to $673,000, up 8.5 per cent from April 2014. Toronto home sales jumped 17 percent and the average home price rose 10% from last April to an average price of $635,932.

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

“Demand for ownership housing was very high relative to the number of homes available for sale in April,” said Jason Mercer, TREB’s director of market analysis.

“Until we experience a sustained period in which listings grow at a faster pace than sales, annual rates of home price growth will remain strong.”

Many believe that Canada is in a real estate bubble however local government disagrees. “We don’t believe we’re in a bubble,” Bank of Canada Governor Stephen Poloz told a House of Commons finance committee last week.

In April, The Economist magazine said that worldwide Canada is the most overvalued housing market.

This blog was taken from these two current news articles.

http://www.cbc.ca/news/business/calgary-house-sales-drop-22-in-april-1.3060054

http://www.huffingtonpost.ca/2015/05/05/calgary-vancouver-home-sales_n_7214266.html

 

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