Residential non-waterfront sales were 5% below the five-year average and 7.7% below the 10-year average for the month of October.

On a year-to-date basis, residential non-waterfront sales totaled 3,712 units over the first 10 months of the year. This was a small reduction of 1.1% from the same period in 2023.

Sales of waterfront properties numbered 118 units in October 2024. This was an increase of 10.3% (11 sales) from the same period in 2023. Waterfront sales were 15.6% below the five-year average and 19.4% below the 10-year average for the month of October.

On a year-to-date basis, waterfront sales totaled 1,044 units over the first 10 months of the year. This was a small gain of 2.1% from the same period in 2023.

“Sales activity recorded a notable year-over-year increase in October, due largely to a very strong rebound in non-waterfront home sales,” said Bonnie Looby, President of OnePoint Association of REALTORS ® . “Non-waterfront new listings were also trending at record levels for the month of October as sellers undoubtedly responded to increased demand from buyers. We likely won’t be seeing this kind of resurgence in waterfront properties as we head into the colder season but it may be wise to look at trends for non-waterfront homes during this time in anticipation of what may come in the spring.”

The MLS ® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS ® HPI composite benchmark price was $697,300 in October 2024, a small reduction of 3.2% compared to October 2023.

The benchmark price for single-family homes was $726,300, falling by 3.2% on a year-over-year basis in October. By comparison, the benchmark price for townhouse/row units was $549,300, a decline of 5.3% compared to a year earlier, while the benchmark apartment price was $460,900, down modestly by 3.1% from year-ago levels.

The median price for residential non-waterfront property sales in October 2024 was $640,000, decreasing by 3.8% from October 2023.

The more comprehensive year-to-date residential non-waterfront median price was $655,000, a modest decline of 3.7% from the first 10 months of 2023.

The median price for waterfront property sales in October 2024 was $1,029,000, increasing by 12.5% from October 2023.

The more comprehensive year-to-date waterfront median price was $950,000, unchanged from the first 10 months of 2023.

The total dollar value of all residential non-waterfront sales in October 2024 was $354.3 million, up sharply by 58% from the same month in 2023.

The total dollar value of all waterfront sales in October 2024 was $174.4 million, an increase of 25.2% from the same month in 2023.

The post Muskoka & Simcoe County MLS Home Sales Post Considerable Recovery In October appeared first on Muskoka411.

“It wasn’t a ‘blow the doors off’ month by any means, but Canada’s housing numbers did perk up a bit on a month-over-month basis in June following the first Bank of Canada rate cut,” said Shaun Cathcart, CREA’s Senior Economist. “Year-over-year comparisons don’t look great mainly because of how many buyers were still jumping into the market last spring, but that’s a story about last year. What’s happening right now is that sales were up from May to June, market conditions tightened for the first time this year, and prices nationally ticked higher for the first time in 11 months.”

Highlights:

• National home sales climbed 3.7% month-over-month in June.
• Actual (not seasonally adjusted) monthly activity came in 9.4% below June 2023.
• The number of newly listed properties rose 1.5% month-over-month.
• The MLS^® Home Price Index (HPI) edged up 0.1% month-over-month but was down 3.4% year-over-year.
• The actual (not seasonally adjusted) national average sale price posted a 1.6% year-over-year decrease in June.

Home sales activity recorded over Canadian MLS^® Systems climbed 3.7% between May and June 2024.

As of the end of June 2024, there were about 180,000 properties listed for sale on all Canadian MLS^® Systems, up 26% from a year earlier but still below historical averages of around 200,000 for this time of the year. On a seasonally adjusted basis, the end-of-June supply number was only up 0.5% from the end of May, suggesting the national inventory buildup may be slowing down.

New listings posted a 1.5% month-over-month increase in June, led by the Greater Toronto Area and British Columbia’s Lower Mainland.

As the national increase in new listings was smaller than the sales gain in June, the national sales-to-new listings ratio tightened to 53.9% compared to 52.8% in May. The long-term average for the national sales-to-new listings ratio is 55%, with a sales-to-new listings ratio between 45% and 65% generally consistent with balanced housing market conditions.

“The second half of 2024 is widely expected to see the beginnings of a slow and gradual return of buyers into the housing market,” said James Mabey, Chair of CREA. “Those buyers will face a considerably different shopping experience depending on where they are in Canada, from multiple offers in places like Calgary, to the most inventory to choose from in over a decade in places like Toronto. Wherever you live, or might like to, you’ll need a solid game plan, so contact a REALTOR^® in your area today.”

There were 4.2 months of inventory on a national basis at the end of June 2024, down from 4.3 months at the end of May. It was the first time that the number of months of inventory has fallen month-over-month in 2024. The long-term average is about five months of inventory.

The National Composite MLS^® Home Price Index (HPI) inched up 0.1% from May to June. While a small increase, it was noteworthy in that it was the first month-over-month gain in 11 months.

Regionally, prices are still generally sliding sideways across much of the country. The exceptions remain Calgary, Edmonton, and Saskatoon, and to a lesser extent Montreal and Quebec City, where prices have steadily moved higher since the beginning of last year.

That said, there have been some more recent upward movements in prices in other markets, including across Ontario cottage country, Mississauga, Hamilton–Burlington, Kitchener-Waterloo, Cambridge, London–St. Thomas, and Halifax– Dartmouth.

The non-seasonally adjusted National Composite MLS^® HPI stood 3.4% below June 2023. This mostly reflects how prices took off last April, May, June, and July – something that has not been repeated in 2024.

The actual (not seasonally adjusted) national average home price was $696,179 in June 2024, down 1.6% from June 2023.

The post Canadian Housing Activity Perks Up In June appeared first on Muskoka411.

Residential non-waterfront sales were 13.8% below the five-year average and 22.6% below the 10-year average for the month of May.

On a year-to-date basis, residential non-waterfront sales totaled 1,687 units over the first five months of the year. This was down by 5.9% from the same period in 2023.

Sales of waterfront properties numbered 137 units in May 2024. This was a decline of 4.9% (seven sales) from the same period in 2023.

Waterfront sales were 21.7% below the five-year average and 30.7% below the 10-year average for the month of May.

On a year-to-date basis, waterfront sales totaled 395 units over the first five months of the year. This was up by 12.5% from the same period in 2023.

“The waterfront and non-waterfront segments of the market showed similar trends in May, with demand moving slightly lower compared to year-ago levels, although the waterfront segment is ahead on a year-to-date basis while the non-waterfront sector continues to lag behind,” said Bonnie Looby, President of the Lakelands Association of REALTORS®. “Much noise has been made regarding the proposed change to the capital gains tax inclusion rate, but looking at the data it doesn’t seem like it’s had an effect on sales in our region as of yet, given that cottage properties were one of the most common recurring examples given of asset sales that would be impacted by the change. With less than a month to go until the proposed changes take effect we’ll be looking more closely at the June data released next month to see if this trend changes.”

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS® HPI composite benchmark price was $715,600 in May 2024, down modestly by 1.9% compared to May 2023.

The benchmark price for single-family homes was $744,400, a minor decrease of 1.7% on a year-over-year basis in May. By comparison, the benchmark price for townhouse/row units was $559,900, a small reduction of 3.4% compared to a year earlier, while the benchmark apartment price was $483,400, falling by 1.7% from year-ago levels.

The median price for residential non-waterfront property sales in May 2024 was $675,000, a minor decrease of 3.2% from May 2023.

The more comprehensive year-to-date residential non-waterfront median price was $674,900, a small reduction of 1.5% from the first five months of 2023.

The median price for waterfront property sales in May 2024 was $960,000, a substantial decrease of 13.2% from May 2023.

The more comprehensive year-to-date waterfront median price was $950,000, a small reduction of 1.6% from the first five months of 2023.

The total dollar value of all residential non-waterfront sales in May 2024 was $351.7 million, falling by 9.2% from the same month in 2023.

The total dollar value of all waterfront sales in May 2024 was $195.4 million, a decline of 9.8% from the same month in 2023.

Lakelands West: The Blue Mountains, Clearview, Collingwood, Grey Highlands, Meaford, Wasaga Beach

Lakelands Central: Midland, Orillia, Oro-Medonte, Penetanguishene, Ramara, Springwater, Tay, Tiny

Lakelands North: Algonquin Highlands, The Archipelago, Bracebridge, Dysart et al, Georgian Bay Township, Gravenhurst, Highlands East, Huntsville, Lake of Bays, Minden, Muskoka Lakes, Parry Sound, Severn

The post Lakelands Association Of Realtors MLS Waterfront And Non-Waterfront Sales Edge Down In May appeared first on Muskoka411.

Residential non-waterfront sales were 19.9% below the five-year average and 28% below the 10-year average for the month of April.

On a year-to-date basis, residential non-waterfront sales totaled 1,230 units over the first four months of the year. This was down by 4.4% from the same period in 2023.

Sales of waterfront properties numbered 112 units in April 2024. This was an advance of 43.6% from the same period in 2023.

Waterfront sales were 6.8% below the five-year average and 15% below the 10-year average for the month of April.

On a year-to-date basis, waterfront sales totaled 257 units over the first four months of the year. This was up by 24.2% from the same period in 2023.

“The pace of demand and recovery in the non-waterfront segment of the market has been outpaced by waterfront sales for several months now, despite very similar trends on the supply side for both property types,” said Bonnie Looby, President of the Lakelands Association of REALTORS®. “It’s possible that would-be buyers looking for a new principal residence are being more cautious and awaiting further evidence of interest rate cuts. In other news, with the proposed new measures to the capital gains tax exemption limits from the federal government’s newly tabled budget there is some speculation that cottage owners may move to sell or move up their plans for selling in advance of the potential effective date of these announcement measures. Whether these come to pass and what effect they will have on our market if they do remains to be seen, but that is one of the top issues that we will be monitoring in the months ahead.”

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS® HPI composite benchmark price was $692,900 in April 2024, a minor decrease of 1.2% compared to April 2023.

The benchmark price for single-family homes was $721,700, a small reduction of 1% on a year-over-year basis in April. By comparison, the benchmark price for townhouse/row units was $558,900, falling by 2.3% compared to a year earlier, while the benchmark apartment price was $445,800, a modest decline of 2.5% from year- ago levels.

The median price for residential non-waterfront property sales in April 2024 was $700,000, unchanged from April 2023.

The more comprehensive year-to-date residential non-waterfront median price was $671,500, a small reduction of 1.2% from the first four months of 2023.

The median price for waterfront property sales in April 2024 was $955,000, a minor decrease of 1.9% from April 2023.

The more comprehensive year-to-date waterfront median price was $950,000, a small gain of 2.2% from the first four months of 2023.

The total dollar value of all residential non-waterfront sales in April 2024 was $304.1 million, a substantial decline of 12.3% from the same month in 2023.

The total dollar value of all waterfront sales in April 2024 was $137.1 million, a gain of 24.5% from the same month in 2023.

Lakelands West: The Blue Mountains, Clearview, Collingwood, Grey Highlands, Meaford, Wasaga Beach

Lakelands Central: Midland, Orillia, Oro-Medonte, Penetanguishene, Ramara, Springwater, Tay, Tiny

Lakelands North: Algonquin Highlands, The Archipelago, Bracebridge, Dysart et al, Georgian Bay Township, Gravenhurst, Highlands East, Huntsville, Lake of Bays, Minden, Muskoka Lakes, Parry Sound, Severn

The post Lakelands Association Of Realtors MLS Non-Waterfront Home Sales Continue To Lag Behind Waterfront Demand appeared first on Muskoka411.

The six-month trend in housing starts increased from 244,638 units in January to 245,665 units in February for a slight 0.4% gain. The trend measure is a six-month moving average of the SAAR of total housing starts for all areas in Canada.

The actual number of housing starts across Canada in urban centres of 10,000 population and over was up 11% to 17,495 units in February compared to 15,822 units in February 2023. The year-over-year increase was driven solely by higher multi-unit starts, up 16%. Single-detached starts decreased 14% in February.

February’s actual housing starts were 10% and 82% higher year-over-year in Toronto and Vancouver, respectively, because of higher multi-unit starts, while single-detached starts decreased. Montreal’s actual starts decreased 9%, as both housing segments were lower.

“Following two consecutive monthly declines, both the SAAR and Trend of housing starts increased in February. This was due to growth in actual year-over-year starts, driven by higher multi-unit starts, particularly in Toronto and Vancouver. As the national housing shortage continues, the focus for developers continues to shift towards multi-unit construction in Canada’s major centres,” said Bob Dugan, CMHC’s Chief Economist.

The post Housing Starts For February 2024 appeared first on Muskoka411.

Residential non-waterfront sales were 40.6% below the five-year average and 40.6% below the 10-year average for the month of October.

On a year-to-date basis, residential non-waterfront sales totaled 3,738 units over the first 10 months of the year. This decreased by 8.2% from the same period in 2022.

Sales of waterfront properties numbered 105 units in October 2023. This was a sizable gain of 15.4% (14 sales) from the same period in 2022.

Waterfront sales were 29.1% below the five-year average and 30.6% below the 10-year average for the month of October.

On a year-to-date basis, waterfront sales totaled 1,019 units over the first 10 months of the year. This decreased by 4.6% from the same period in 2022.

“A diverging trend is beginning to emerge in our market, with sales activity continuing to fall for non-waterfront residential properties but now improving for waterfront homes,” said Matthew Lidbetter, President of the Lakelands Association of REALTORS®. “In both cases new listings are surging to historical levels and overall inventories have climbed to just above their averages. However, in the case of waterfront homes it seems as though early signs of a recovery, or at the very least a moderation in decline, are starting to show. It will be difficult to discern meaningful trends on this segment of the market as we head into the colder months so it’s something we’ll be keeping an eye on once we get into early spring.”

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS® HPI composite benchmark price was $707,300 in October 2023, falling by 1.2% compared to October 2022.

The benchmark price for single-family homes was $737,200, down only 0.4% on a year-over-year basis in October. By comparison, the benchmark price for townhouse/row units was $574,400, down sharply by 11.5% compared to a year earlier, while the benchmark apartment price was $453,500, a minor decrease of 2.5% from year-ago levels.

The median price for residential non-waterfront property sales in October 2023 was $675,000, a modest gain of 2.3% from October 2022.

The more comprehensive year-to-date residential non-waterfront median price was $680,000, down by 6.2% from the first 10 months of 2022.

The median price for waterfront property sales in October 2023 was $933,000, a gain of 9.9% from October 2022.

The more comprehensive year-to-date waterfront median price was $950,000, down by 5.7% from the first 10 months of 2022.

The total dollar value of all residential non-waterfront sales in October 2023 was $226.4 million, a substantial decrease of 16.3% from the same month in 2022.

The total dollar value of all waterfront sales in October 2023 was $139.8 million, a jump of 31.4% from the same month in 2022.

Lakelands West: The Blue Mountains, Clearview, Collingwood, Grey Highlands, Meaford, Wasaga Beach
Lakelands Central: Midland, Orillia, Oro-Medonte, Penetanguishene, Ramara, Springwater, Tay, Tiny
Lakelands North: Algonquin Highlands, The Archipelago, Bracebridge, Dysart et al, Georgian Bay Township, Gravenhurst, Highlands East, Huntsville, Lake of Bays, Minden, Muskoka Lakes, Parry Sound, Severn

The post Lakelands Association Of REALTORS MLS Home Sales Remain Subdued As New Listings Surge In October appeared first on Muskoka411.

Concerning their co-owning situation, 44 per cent of co-owners³ say that they and all fellow co-owners live in the home together. A smaller percentage (28%) say that they co-own a home with another person(s), but they do not cohabitate. Six per cent of respondents say that they co-own a home with another person(s) and neither party uses the home as a primary residence, rather as an investment or recreational property.

The COVID-19 pandemic forced some Canadians to reconsider their living situation, with many choosing to share living space with friends or family in a time of isolation. Now, in an era where social distancing restrictions have ceased, a number of Canadians continue to choose cohabitation to address their housing needs. According to a recent Royal LePage survey⁴ of real estate professionals across the country, 23 per cent say that they have seen somewhat of an increase in the number of homebuyers purchasing a property with another person(s), other than their spouse or significant other, compared to pre-pandemic times. Eight per cent say they have seen a noticeable increase over the same time period.

“Different generations of families living under one roof is not a new phenomenon, but has been growing in popularity in recent years,” said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd. “Census data⁵ shows that multigenerational households are now the fastest growing household type in Canada. Households group together for many reasons, including communal care for elderly parents, help raising children, cultural preferences or simply to be together. However, the decision to live together, including co-owning a home, is a decision increasingly made for financial reasons. In an environment where home prices and interest rates have risen quickly and sharply, and where the threshold to qualify for a mortgage has become much more challenging, Canadians are pooling their resources and buying homes together. In cases where homebuyers cannot afford to purchase on their own, they are combining their buying power with their parents, children, siblings or even friends.”

Of all co-owners surveyed, 65 per cent say that they co-own a single-family detached home, 19 per cent say they share an attached home, such as a townhouse or semi detached property, and 13 per cent say they share a condominium/apartment.

In light of the rising cost of living in recent years, alongside higher interest rates and housing prices, a large number of co-owners say that their decision to share a home was prompted by a lack of affordability.

According to the survey, 76 per cent of co-owners say that affordability was a major motivating factor in their decision to co-purchase their property. Not surprisingly, that number rises to 83 per cent for co-owners between the ages of 25 and 34. Thirty-two per cent of respondents who were influenced by a lack of affordability say that they co-purchased their property after the Bank of Canada began raising interest rates in March of 2022.

Twenty-five per cent of Royal LePage real estate professionals reported somewhat of an increase in the number of homebuyers purchasing a property with another person(s), other than their spouse or significant other, since interest rates began to rise. Eight per cent say they have seen a noticeable increase over the same time period.

“In a market beset by reduced home supply, escalating prices, tightened mortgage qualification requirements, and the highest borrowing rates in more than two decades, many buyers are having difficulties securing the property that they want. Some Canadians are using co-ownership as a way of boosting their borrowing capacity or lowering their monthly mortgage costs, helping them achieve their goal of home ownership,” said Yolevski. “By dividing the cost of a home between more people, Canadians can not only get their foot on the property ladder more easily, but also expand their home search to more desirable locations or larger properties that may not have been accessible with their budget alone.”

Of those who co-own a home with another person(s) and live in the home together, nearly half (49%) say that they purchased the home with another party because they would not have been able to afford a home on their own. Thirty-eight per cent say that by co-owning, they were able to afford a larger property and/or a property in a more desirable neighbourhood. Thirty per cent say that they purchased a co-owned home because they required family support with childcare or taking care of elderly relatives.

“Opting to co-own with friends or family is not as simple as signing a piece of paper next to someone else’s name – co-owning a home often comes with meaningful lifestyle changes, and requires in-depth conversations over financial, legal and personal obligations,” said Yolevski. “Regardless of whether you live in the home with your fellow co-owners or not, the responsibilities of owning a home with other people are shared, but so are the benefits.”

The post Canadians Buying Homes With Family, Friends To Combat Housing Affordability Woes appeared first on Muskoka411.

Residential non-waterfront sales were 6.4% below the five-year average and 12.6% below the 10-year average for the month of May.

On a year-to-date basis, residential non-waterfront sales totalled 1,795 units over the first five months of the year. This was a notable decline of 22.7% from the same period in 2022.

Sales of waterfront properties numbered 149 units in May 2023. This was a slight gain of 0.7% (one sale) from the same period in 2022.

Waterfront sales were 20.5% below the five-year average and 27.8% below the 10-year average for the month of May.

On a year-to-date basis, waterfront sales totalled 366 units over the first five months of the year, falling 22.6% from the same period in 2022.

“Non-waterfront home sales took the lead in May, posting the first year-over-year increase in exactly two years, while sales of waterfront properties were flat compared to the same month last year,” said Matthew Lidbetter, President of the Lakelands Association of REALTORS®. “We may have to wait until warmer weather for the waterfront segment to heat up, although demand is outpacing supply in that area as evidenced by the surge in median price for waterfront properties, which was back up above $1 million in May.”

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS® HPI composite benchmark price was $715,000 in May 2023, down by 12.8% compared to May 2022.

The benchmark price for single-family homes was $743,600, a decrease of 12.8% on a year-over-year basis in May. By comparison, the benchmark price for townhouse/row units was $572,100, a reduction of 13.9% compared to a year earlier, while the benchmark apartment price was $468,200, a decline of 10.5% from year-ago levels.

The median price for residential non-waterfront property sales in May 2023 was $695,000, a decline of 6.1% from May 2022.

The more comprehensive year-to-date residential non-waterfront median price was $685,000, down by 13.2% from the first five months of 2022.

The median price for waterfront property sales in May 2023 was $1,085,000, a gain of 6.6% from May 2022.

The more comprehensive year-to-date waterfront median price was $961,250, down by 16.4% from the first five months of 2022.

The total dollar value of all residential non-waterfront sales in May 2023 was $400.9 million, a decrease of 4.3% from the same month in 2022.

The total dollar value of all waterfront sales in May 2023 was $218.4 million, a small gain of 3.2% from the same month in 2022.

The post Lakelands Association Of REALTORS MLS Home Sales Edge Up In May On Strength Of Non-Waterfront Activity appeared first on Muskoka411.

Highlights:

• National home sales climbed 5.1% month-over-month in May.
• Actual (not seasonally adjusted) monthly activity came in 1.4% above May 2022.
• The number of newly listed properties rose 6.8% month-over-month but is still historically low.
• The MLS® Home Price Index (HPI) climbed 2.1% month-over-month but was still down 8.6% year-over-year.
• The actual (not seasonally adjusted) national average sale price posted a 3.2% year-over-year increase in May.

Home sales recorded over Canadian MLS® Systems posted a 5.1% increase between April and May 2023, building on the double-digit jump in April and smaller gains in February and March.

Sales were up in about 70% of all local markets, including Canada’s largest markets: the Greater Toronto Area (GTA), Montreal, Greater Vancouver, Calgary, Edmonton, and Ottawa.

The actual (not seasonally adjusted) number of transactions came in 1.4% above the same time last year. While this was a small gain, it was notable in that it was the first national year-over-year sales increase in almost two years (since June 2021).

“The rebound has been evident for a number of months at this point, but May really drove the point home with year-over-year comparisons for both national sales activity and national average home price back in positive territory,” said Larry Cerqua, Chair of CREA. “That being said, the degree to which a recovery will be able to play out on the sales side as opposed to the price side will come down to supply, which remains quite low. If you’re looking for information and guidance about how to buy or sell a property in your local market, contact a REALTOR® in your area,” continued Cerqua.

“A rebound in housing activity this year was never really in doubt because we knew the demand was there – the only question was around timing and that was answered this spring,” said Shaun Cathcart, CREA’s Senior Economist. “The 2023 housing puzzle piece that was less obvious was the reluctance of existing owners to take advantage of a slower market to make a move because they don’t want to mess with the ultra-low fixed rates they locked in during the COVID-19 pandemic. Without existing owners supplying the market with new listings, this housing demand rebound may play out more acutely than might have been expected on the price side this year.”

The number of newly listed homes was up 6.8% on a month-over-month basis in May; although, the bigger picture is that new supply is still running at historically low levels.

With sales and new listings up by similar magnitudes in May, the sales-to-new listings ratio was 67.9%, little changed from 69% in April. The long-term average for this measure is 55.1%.

There were 3.1 months of inventory on a national basis at the end of May 2023, down from 3.3 months at the end of April and down more than a full month from the most recent peak at the end of January. The long-term average for this measure is about five months.

The Aggregate Composite MLS® Home Price Index (HPI) climbed 2.1% on a month-over-month basis in May 2023 – a large increase for a single month and on the heels of a similar gain in April. Once again, it was also very broad-based, with a monthly increase in prices between April and May observed in the majority of local markets.

The Aggregate Composite MLS® HPI now sits 8.6% below year-ago levels, a smaller decline than in January, February, March, and April.

The actual (not seasonally adjusted) national average home price was $729,000 in May 2023, up 3.2% from May 2022. This was the first year-over-year gain in this measure in 12 months. The national average price has recovered by more than $116,000 since January 2023 owing in large part to outsized sales rebounds in the GTA and B.C. Lower Mainland. Excluding the GTA and Greater Vancouver from the calculation cuts almost $150,000 from the national average price.

PLEASE NOTE: The information contained in this news release combines both major market and national sales information from MLS® Systems from the previous month.

The post Canadian Home Sales Continue To Pick Up Steam In May appeared first on Muskoka411.

Highlights:

• National home sales declined 3% month-over-month in January.
• Actual (not seasonally adjusted) monthly activity came in 37.1% below January 2022.
• The number of newly listed properties rose 3.3% month-over-month.
• The MLS^® Home Price Index (HPI) declined by 1.9% month-over-month and was down 12.6% year-over-year.
• The actual (not seasonally adjusted) national average sale price posted an 18.3% decline year-over-year in January.

Home sales recorded over Canadian MLS^® Systems edged back down 3% between December 2022 and January 2023, giving back all of December’s small gains and rejoining the mild downward trend observed since last summer.

Gains in Hamilton–Burlington and Quebec City were more than offset by declines in Greater Vancouver, Victoria and elsewhere on Vancouver Island, Calgary, Edmonton, and Montreal.

The actual (not seasonally adjusted) number of transactions in January 2023 came in 37.1% below the second-best January ever in 2022. The January 2023 sales figure was the lowest for that month since 2009.

“The big question on everyone’s minds after last year was what will housing markets do in 2023?” said Jill Oudil, Chair of CREA. “We may have to wait another month or two to see what buyers are planning this year since new listings are currently trickling out at near-record low levels, but that should change as  the weather warms. When looking for information and guidance about how to buy or sell a property, your best bet is to contact a local REALTOR^®,” continued Oudil.

“Early 2023 feels a lot like 2019, where after a year in which it became much harder to qualify for a mortgage, everyone was wondering if the market would pick up in the spring,” said Shaun Cathcart, CREA’s Senior Economist. “In 2019 the market started off slow, as there wasn’t much to buy. It took off once spring listings started to come out. With the Bank of Canada increasingly signaling that rates are now at the top, it’s possible the spring market this year could also surprise, particularly in areas where prices have been stable or are now stabilizing. Buyers are likely feeling increasingly confident in taking on variable rate mortgages, and 2023 will probably be a good window of opportunity to be able to engage in a calmer home search and buying experience following the intense market conditions of the last few years.”

The number of newly listed homes picked up by 3.3% on a month-over-month basis in January, led by increases across British Columbia. That said, despite the small increase, nationally, new listings remain historically low. New supply in January 2023 hit the lowest level for that month since 2000.

With new listings up and sales down in January, sales-to-new listings eased back to 50.7%. This is roughly where it had been over the entire second half of 2022. The long-term average for this measure is 55.1%.

There were 4.3 months of inventory on a national basis at the end of January 2023. This is close to where this measure was in the months leading up to the initial COVID-19 pandemic lockdowns, and still close to a month below its long-term average of about five months.

The Aggregate Composite MLS^® Home Price Index (HPI) was down 1.9% on a month-over-month basis in January 2023, continuing the trend that began last spring.

The Aggregate Composite MLS^® HPI now sits 15% below its peak level, reached in February 2022. Looking across the country, prices are down from peak levels by more than they are nationally in many parts of Ontario and some parts of B.C., and down by less elsewhere. While prices have softened to some degree almost everywhere, Calgary, Regina, Saskatoon, and St. John’s stand out as markets where home prices are barely off their peaks at all.

An interesting development in recent months has been an increasing number of East Coast markets where prices appear to have bottomed out on a month-to-month basis and are now trending back up.

The non-seasonally adjusted Aggregate Composite MLS^® HPI came in 12.6% below its January 2022 reading. Year-over-year declines will likely hit their highest levels over the next two months as we move past the highest price levels on record in February and March of last year.

The actual (not seasonally adjusted) national average home price was $612,204 in January 2023, down 18.3% from the same month last year. The national average price is heavily influenced by sales in Greater Vancouver and the Greater Toronto Area, two of Canada’s most active and expensive housing markets.

Excluding these two markets from the calculation cuts almost $113,000 from the national average price.

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