Average Home Price Drops in March as Supply Surges
March was a continuation of the hot late-winter real estate streak, as sales activity in the GTA clocked in at the third-highest level for the month, and capped the second-best first quarter on record.
A total of 10,955 homes traded, a 30% decline from the record-smashing 15,628 sold in March 2021, but a 20% uptick from February activity.
Supply came roaring back to the market with a vengeance, helping to considerably alleviate some of the tight competitive conditions experienced by home buyers. A total of 20,038 new listings were brought to market, an increase of 41.6% from February. While still marking an 11.9% annual decline, that the drop was well outpaced by sales has taken pressure off of the GTA’s sales-to-new-listings ratio, easing to 70.5% from last month’s 72.2%.
End-of-month active listings came in at 10,167 — down -4.1% year-over-year, but up 45.5% from last month, indicating the overall inventory of homes for sale is rebounding from record lows.
March was a continuation of the hot late-winter real estate streak, as sales activity in the GTA clocked in at the third-highest level for the month, and capped the second-best first quarter on record.
A total of 10,955 homes traded, a 30% decline from the record-smashing 15,628 sold in March 2021, but a 20% uptick from February activity.
Supply came roaring back to the market with a vengeance, helping to considerably alleviate some of the tight competitive conditions experienced by home buyers. A total of 20,038 new listings were brought to market, an increase of 41.6% from February. While still marking an 11.9% annual decline, that the drop was well outpaced by sales has taken pressure off of the GTA’s sales-to-new-listings ratio, easing to 70.5% from last month’s 72.2%.
End-of-month active listings came in at 10,167 — down -4.1% year-over-year, but up 45.5% from last month, indicating the overall inventory of homes for sale is rebounding from record lows.
The Feds Have Pledged They’ll Build 100,000 New Homes. But At What Cost?
The federal government is not unlike the operator of heavy equipment: even a small move can cause unintended damage or disruption. That is why Ottawa’s decision to use this budget to address the fact that home prices have doubled since they took power in 2015, is bold — and just a little bit scary.
As anticipated, Canada’s new federal budget has made the national housing supply crisis a centrepiece of spending and policy plans. It allocates $10B over the next five years to spur the construction of new homes, including co-op and low-income housing. It also bans non-Canadians from investing in Canadian real estate for two years.
It is boldly tackling this complex and evolving issue at a time when borrowing costs are rising and commodity prices are also climbing. Even without the widespread shortage of skilled trades and labour, the cost of building homes is likely to increase steadily.
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The federal government is not unlike the operator of heavy equipment: even a small move can cause unintended damage or disruption. That is why Ottawa’s decision to use this budget to address the fact that home prices have doubled since they took power in 2015, is bold — and just a little bit scary.
As anticipated, Canada’s new federal budget has made the national housing supply crisis a centrepiece of spending and policy plans. It allocates $10B over the next five years to spur the construction of new homes, including co-op and low-income housing. It also bans non-Canadians from investing in Canadian real estate for two years.
It is boldly tackling this complex and evolving issue at a time when borrowing costs are rising and commodity prices are also climbing. Even without the widespread shortage of skilled trades and labour, the cost of building homes is likely to increase steadily.
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Canada’s Largest Real Estate Markets Could Soon Peak: Report
There are nascent signs that tight real estate market conditions in Canada’s two largest cities are beginning to loosen and slow price appreciation.
However, that also means affordability challenges will persist — even though price appreciation will decelerate, Canada’s rising interest rate environment will preclude market participation for countless Canadians. But, early as it is, the Bank of Canada’s March 2 25 basis point increase sent Canadians a ‘now or never’ signal and sales may have exacerbated demand, RBC contends. Nevertheless, as interest rates continue rising — RBC anticipates additional 1.5% increases by the end of the year — fewer homes will change hands.
Is the GTA Topping Out?
Although the spring market, which is the busiest time of the year in real estate, has begun, sales activity in the Greater Toronto Area is tamer than usual, as transactions on the resale market declined by 30% year-over-year in March.
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There are nascent signs that tight real estate market conditions in Canada’s two largest cities are beginning to loosen and slow price appreciation.
However, that also means affordability challenges will persist — even though price appreciation will decelerate, Canada’s rising interest rate environment will preclude market participation for countless Canadians. But, early as it is, the Bank of Canada’s March 2 25 basis point increase sent Canadians a ‘now or never’ signal and sales may have exacerbated demand, RBC contends. Nevertheless, as interest rates continue rising — RBC anticipates additional 1.5% increases by the end of the year — fewer homes will change hands.
Is the GTA Topping Out?
Although the spring market, which is the busiest time of the year in real estate, has begun, sales activity in the Greater Toronto Area is tamer than usual, as transactions on the resale market declined by 30% year-over-year in March.
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How millennials are using technology to compete in tight housing markets
Millennials are using the internet to compete in real estate markets where odds are stacked against them
The rapid escalation in housing prices has disadvantaged millennials who started their working lives with wages that failed to meet housing affordability thresholds, but they are increasingly leveraging digital solutions to compete in tight markets.
First-time homebuyers, the majority cohort of those buying a home in Canada, are mostly younger households transitioning from renting or living with their parents. In the United States, millennials comprised the largest share of homebuyers at 47 per cent, according to the National Association of Realtors (NAR).
A recent commentary noted that “millennials have aged into the housing market at the worst possible time.” Rising home prices and the persistent imbalance between supply and demand have frustrated millennials who typically lose bidding wars to older, wealthier buyers.
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Millennials are using the internet to compete in real estate markets where odds are stacked against them
The rapid escalation in housing prices has disadvantaged millennials who started their working lives with wages that failed to meet housing affordability thresholds, but they are increasingly leveraging digital solutions to compete in tight markets.
First-time homebuyers, the majority cohort of those buying a home in Canada, are mostly younger households transitioning from renting or living with their parents. In the United States, millennials comprised the largest share of homebuyers at 47 per cent, according to the National Association of Realtors (NAR).
A recent commentary noted that “millennials have aged into the housing market at the worst possible time.” Rising home prices and the persistent imbalance between supply and demand have frustrated millennials who typically lose bidding wars to older, wealthier buyers.
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But not all is lost for the millennials. Historically low-interest rates imply that their monthly mortgage costs will be relatively affordable despite the higher purchase prices. Unlike older cohorts, much of their mortgage payments will not be consumed by interest payments.
The digitization of the real estate sector, with the internet enabling digital marketplaces for listing homes, applying for mortgages, paying for services and more, has also benefitted millennials because they are more likely to readily adopt digital solutions.
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The digitization of the real estate sector, with the internet enabling digital marketplaces for listing homes, applying for mortgages, paying for services and more, has also benefitted millennials because they are more likely to readily adopt digital solutions.
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Federal 2022 budget proposes $10 billion in housing spending
The Canadian government has proposed more than $10.1 billion until 2027 to build new homes and introduce policies that will support the country’s housing market in its latest budget.
On Thursday, April 7th, Deputy Prime Minister and Minister of Finance Chrystia Freeland presented the 2022 budget to the House of Commons.
As the cost of living climbs and the price of homes continues to rise across Canada, the budget outlines specific spending dedicated towards the creation of new housing, tax credits and new policies that target market speculation.
“Housing is a basic human need, but it is also an economic imperative. Our economy is built by people, and people need homes in which to live. But here’s the problem — Canada does not have enough homes,” said Minister Freeland in her budget speech. “We need more of them, and fast. This budget represents perhaps the most ambitious plan that Canada has ever had to solve that fundamental problem.”
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The Canadian government has proposed more than $10.1 billion until 2027 to build new homes and introduce policies that will support the country’s housing market in its latest budget.
On Thursday, April 7th, Deputy Prime Minister and Minister of Finance Chrystia Freeland presented the 2022 budget to the House of Commons.
As the cost of living climbs and the price of homes continues to rise across Canada, the budget outlines specific spending dedicated towards the creation of new housing, tax credits and new policies that target market speculation.
“Housing is a basic human need, but it is also an economic imperative. Our economy is built by people, and people need homes in which to live. But here’s the problem — Canada does not have enough homes,” said Minister Freeland in her budget speech. “We need more of them, and fast. This budget represents perhaps the most ambitious plan that Canada has ever had to solve that fundamental problem.”
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