While the real estate market in Greater Vancouver remains one of the strongest in the country, September saw the city’s residential sales cool somewhat, according to new Canadian Real Estate Association data released October 15.
The total dollar sales volume in the month was just over $2.99 billion – down 9.8% from $3.32 billion in August. A total of 3,427 homes were sold in the month, which is a decrease of 3.8% compared with 3,563 units sold in August.
The number of units sold in Vancouver increased 15.4% year-over-year on a non-seasonally adjusted basis, however, but BMO Economics’ Sal Guatieri said the markets in both Vancouver and Greater Toronto – where sales were up 1.9% over the year – are “losing some steam” relative to sales in other cities across Canada. He points to increases in Victoria (up 21% year-over-year), London (up 22.9%) and the Niagara region (up 17.5%) as some examples of areas with higher growth.
The average home sale price in Vancouver was $857,272, which is down 4.3% compared with August.In the Fraser Valley, the average home sale price was up 0.1% to $476,615. Victoria saw a 6.2% drop to $508,187.
Outside of British Columbia, the greatest prices remain in Toronto, where the average home sale price was $627,502 – almost 27% lower than in Vancouver.
Year-over-year, Vancouver prices increased 2.4% and in Toronto, prices were up 9.4%.
“The story for the GVA and GTA is that continued strong demand for a limited supply of detached properties is sending prices through the roof as international migrants, young millennials and an apparent influx of foreign wealth flock to these two areas,” Guatieri said.
“The latter could get a significant boost if China further eases foreign investment restrictions on individuals.”
Canada-wide, the average residential sales price was $439,822, down 0.8%. The decrease was mostly driven by price declines in Vancouver.
“Overall, September’s housing markets stats are consistent with a continued hot housing market; it just doesn’t appear to be getting any hotter,” said Diana Petramala, economist at TD Economics. “This underscores our view that the highly stimulative impact of lower mortgage rates at the start of the year would wear out by September/October.
“Looking forward, a favourable economic backdrop and balanced market conditions will continue to support a moderate pace of housing activity in most markets across Canada.”
Petramala points out that cities with oil-dependent economies, including Edmonton, Calgary, Regina and Saskatoon, will likely see weak activity through the first half of 2016.
Except where otherwise indicated, CREA data is seasonally adjusted. The association compiles its figures from select MLS systems across Canada, including the British Columbia Real Estate Association.
Reference:https://www.biv.com/article/
