Market Watch March 2016 – A New Record February Sales

Despite the new federal mortgage lending guidelines that require at least a 10% down payment on the portion of purchase prices between $500,000 and $1,000,000. February sales hit a new record number again in both Toronto and Greater Vancouver areas. Seller's market conditions continued in February with a strong competition between buyers resulted in a healthy growth in selling prices. This competitive fast-moving market cycle is expected to remain with us through 2016.

Ontario - Record February Sales

Toronto, March 3, 2016 - Toronto Real Estate Board (TREB) President Mark McLean announced Greater Toronto Area REALTORS® reported a record number of home sales through TREB's Multiple Listing Service® (MLS®) System in February 2016. There were 7,621 transactions reported this past February – up 21.1% compared to February 2015.

The number of new listings entered into TREB's MLS® System was also up on a year-over-year basis, but by a lesser 8.2%. The fact that the annual rate of sales growth outstripped the annual rate of new listings growth shows a tightening of market conditions compared to last year.
"Even after accounting for the leap year day, sales were above the previous record for February set back in 2010. Sales were up strongly from the 15th day of the month onward as well, despite the new federal mortgage lending guidelines coming into effect that require at least a 10% down payment on the portion of purchase prices between $500,000 and $1,000,000," said Mr. McLean.

Seller's market conditions continued throughout the GTA in February. Strong competition between buyers resulted in a healthy growth in selling prices. The MLS® Home Price Index (HPI) Composite Benchmark was up by 11.3% year-over-year. The average selling price was up by 14.9% annually to $685,278.

"Recent polling conducted for TREB by Ipsos suggested that GTA households will remain upbeat about purchasing a home in 2016. Early sales results for January and February certainly support this view. With strong sales up against a constrained supply of listings, home prices continued to trend strongly upward," said Jason Mercer, TREB's Director of Market Analysis.

Ottawa, March 3, 2016 - Members of the Ottawa Real Estate Board (OREB) sold 911 residential properties in February through the Board’s MLS® System, compared with 850 in February 2015, an increase of 7.2%. The five-year average for February sales is 908.

“Although the weather was very unpredictable this month, with many highs and lows and several winter storms, the Ottawa resale market only saw activity pick up,” says President of OREB, Shane Silva. “Residential and condo sales combined increased by 52.3% since last month. However, we need to factor in the leap year, which added an extra day to the month of February, and 46 sales on that day alone.”

February’s sales included 199 in the condominium property class, and 712 in the residential property class. The condominium property class includes any property, regardless of style (i.e., detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“In February, 2,312 homes were listed, up 26.6% since January, and inventory on hand at the end of February rose by 10.7% since January,” says Silva. “We’re starting to see more homes coming onto the market in preparation for the busy spring selling season. If you’re thinking of putting your home on the market, this is a great time to do so.”

The average sale price of a residential-class property sold in February in the Ottawa area was $384,632, an increase of 1.2% over February 2015. The average sale price for a condominium-class property was $249,727, a decrease of 6.8% over February 2015. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

“The highest concentration of properties sold continues to be in the $300,000 to $400,000 price range, followed by the $200,000 to $300,000 range,” says Silva. “These price ranges continue to have the highest concentration of properties sold – residential and condo – while two-storey, bungalow, and one-level condos have the highest concentration of buyers. In addition to residential and condominium sales, OREB Members assisted clients with renting 414 properties since the beginning of the year.”
 
British Columbia – Metro Vancouver home buyers set a record pace in February

Vancouver, March 2, 2016 - Last month was the highest selling February on record for the Metro Vancouver housing market.

Residential property sales in the region totalled 4,172 in February 2016, an increase of 36.3% from the 3,061 sales recorded in February 2015 and an increase of 65.6% compared to January 2016 when 2,519 homes sold.

Last month’s sales were 56.3% above the 10-year sales average for the month and rank as the highest February sales total on record.

“We're in a competitive, fast-moving market cycle that favours home sellers,” Darcy McLeod, Real Estate Board of Greater Vancouver (REBGV) President said. “Sustained home buyer competition is keeping upward pressure on home prices across the region.”

New listings for detached, attached and apartment properties in Metro Vancouver totalled 5,812 in February 2016. This represents an increase of 7.1% compared to the 5,425 units listed in February 2015 and a 30.8% increase compared to January 2016 when 4,442 properties were listed.

“We're beginning to see home listings increase as we head toward the spring market, however, additional supply is still needed to meet today's demand,” McLeod said.

The total number of properties currently listed for sale on the MLS® System in Metro Vancouver is 7,299, a 38.7% decline compared to February 2015 (11,898) and a 10% increase compared to January 2016 (6,635).
The sales-to-active listings ratio for February 2016 is 57.2%. This is indicative of a seller’s market.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark, while home prices often experience upward pressure when it reaches the 20-22% range in a particular community for a sustained period of time.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $795,500. This represents a 22.2% increase compared to February 2015.

Sales of detached properties in February 2016 reached 1,778, an increase of 37.2% from the 1,296 detached sales recorded in February 2015. The benchmark price for detached properties increased 27% from February 2015 to $1,305,600.

Sales of apartment properties reached 1,790 in February 2016, an increase of 43.9% compared to the 1,244 sales in February 2015.The benchmark price of an apartment property increased 17.7% from February 2015 to $454,600.

Attached property sales in February 2016 totalled 604, an increase of 15.9% compared to the 521 sales in February 2015. The benchmark price of an attached unit increased 17% from February 2015 to $569,600.

Alberta -  Housing prices hold steady as inventory grows

Edmonton, March 2, 2016 -- Residential inventory saw another significant increase in February, surpassing 6,000 listings on the market, ending the month with 6,681 properties for sale on the MLS® System for the Edmonton Census Metropolitan Area (CMA). That’s a 16.2% increase over last month, and 33.4% more homes listed for sale than February 2015. Sales for February were up 36.5% month-over-month at 837 compared to 618 in January, but 10.1% lower than the 931 properties that sold during the same time last year.

“Sales numbers are increasing consistent with seasonal trends,” REALTORS® Association of Edmonton Chair Steve Sedgwick explains. “Relative to 2015, potential buyers have more inventory to choose from. Despite this inventory growth, prices have moderated only slightly compared to last year, so home owners and sellers can maintain some confidence that housing prices are remaining stable.”

February brought strength back to the average all-residential selling price, ending the month at $363,266, which is 6.9% higher month-over-month and virtually on par with this same time last year. Prices in all categories saw an increase in the Edmonton CMA market compared to just one month ago. Single family house prices averaged $419,940, virtually flat to last month (up 0.24%) but down 2.8% year-over-year. Condo properties sold for an average of $247,090, up 8.8% over last month, and down just 1.3% year-over-year. The biggest average price gain came in the duplex/rowhouse category, with the price in February finishing at $354,386, up 8.4% and 1.2% compared to January 2016 and February 2015, respectively.

February’s average days-on-market for all housing types dropped to 57, down from 71 in January but up from 48 year-over-year. On average, condos sold in 57 days last month, that’s down significantly from the 85 days it took in January, but still higher than the 49 days in February 2015.

“Buyers are still taking their time to consider all of their options before purchasing a new home,” Sedgwick said. “But with warmer weather just around the corner, clients are reaching out to their REALTOR® for support as the busy spring buying season approaches.”