grand festival condos.House prices soared 21% to a record high. Home sales fell in January from a year earlier, but it was still the second-best performance of the month, with average prices climbing to record levels, the Canadian Real Estate Association said on Tuesday.Please Visit: grand festival condos to Get Your VVIP Registration Today!
Total housing sales nationwide in January were 33166, down 10.7 per cent from 37137 in January 2021.
On a seasonally adjusted basis, home sales in January were 55043, up 1 per cent from 54482 in December.
“the reality is that people are not ready to sell and there is very little supply on the market,” said Davelle Morrison, a broker at Bosley Real Estate Ltd in Toronto. ”
“I have three apartments listed at the end of February or early March, and January is a little early for them.”
Real estate agents and economists attribute sales performance to high demand for homes from millennials, who are eager to buy their first homes before prices rise further, new immigrants and investors eager to take advantage of lower interest rates.
“it is very difficult for supply to keep up with such strong demand,” Rishi Sondhi, an analyst at TD Economics, said in a note to investors.
Meanwhile, CREA noted that the number of new homes on the market fell in January, down 11% from 69196 in December to 61602.
But Robert Kavcic, a senior economist at BMO Capital Markets Capital Markets, believes that the pace of new listings has remained normal over the past year, and the surge in demand is what really makes the market balance and inventories look “extremely tight”.
“when listed houses are snapped up by multiple offers within a few days, this is a demand problem,” he wrote in a report to investors. ”
Expectations of rising house prices may even boost demand while curbing listings. ”
Some real estate bureaus predict that house prices will continue to rise year-on-year in 2022, but by a small margin, due to the imminent rise in extremely low interest rates during COVID-19 ‘s epidemic.
“affordability is clearly deteriorating rapidly, which should make it harder for first-time buyers to enter the market,” Sondhi said.
The market has tilted towards the seller. CREA found last month that 85 per cent of the local market was a seller’s market and 15 per cent of the rest was a “balanced” market.
These conditions, coupled with the lack of newly listed houses, have once again pushed up prices.
In January, the average house price in Canada reached a record 748450 yuan, up 21% from 618587 yuan in the same period last year.
Excluding Greater Vancouver and Greater Toronto, Canada’s most active and expensive housing markets, national average prices fell by nearly 160000 yuan, CREA said.
The average house price in most and warm areas exceeded 1.2 million yuan on a seasonally adjusted basis, up 5.7 per cent and 1.8 per cent respectively from December.
“in most areas, people can’t afford it,” Morrison said. She sees people go to New Brunswick or even the suburbs of GTA, where house prices are cheaper. “as the saying goes, they will drive until they buy it.”
Claire Fan, an economist at RBC Economics of Canada, pointed out that house prices in major markets such as Toronto and Montreal led the increase, with prices up 3.5 per cent from December.
“House prices are growing slowly in prairie provinces, but even there, most markets are dominated by sellers,” she wrote in a report to investors. ” But Fan is hopeful that the market will become less frenzied.
She believes that deteriorating affordability, rising borrowing costs and increasing housing supply will gradually cool demand and restore some balance.
Kavcic agrees. “We have a real estate market with strong fundamentals, which is overheated by overly loose policies,” he wrote. Higher interest rates are needed to change market psychology and cool excess demand and price growth. This day will come soon. “