Market Watch April 2016 – Strong Growth in Home Sales Translates Into Record First Quarter

Demand was clearly not an issue in the first three months of 2016 regardless of the housing market segment being considered. The supply of listings, however, continued to aggravate many buyers. We could have experienced even stronger sales growth were it not for the constrained supply of listings, especially in the low-rise market segments.

Ontario - Strong growth in home sales in March/Q1

Toronto, April 5, 2016 -- Toronto Real Estate Board (TREB) President Mark McLean announced record TREB Multiple Listing Service® (MLS®) home sales for the first quarter of 2016 following a strong result for March transactions. There were 10,326 sales in March and 22,575 sales in the first quarter. The year-over-year growth rate for sales was 15.8% for Q1 2016 and 16.2% for March 2016. For the TREB market area as a whole, double-digit year-over-year rates of sales growth were experienced for all major home types during the first quarter.

The positive annual growth in sales was not mirrored on the listings front. The number of new listings entered into TREB's MLS® System during March and the first quarter were down compared to the same periods in 2015.

"At the beginning of 2016, TREB's outlook for the year pointed to a strong possibility of a second consecutive record year for home sales. This outlook was based, in part, on upbeat consumer survey results pointing to robust home buying intentions. It is clear that these upbeat intentions have translated into record first quarter results," said Mr. McLean.

The MLS® Home Price Index Composite Benchmark for March 2016 was up by 11.6% compared to March 2015. The average selling price for all home types combined was up 12.1% year-over-year in March and 13.6% in the first quarter.

"Demand was clearly not an issue in the first three months of 2016, regardless of the housing market segment being considered. The supply of listings, however, continued to aggravate many would-be home buyers. We could have experienced even stronger sales growth were it not for the constrained supply of listings, especially in the low-rise market segments. The resulting strong competition between buyers has underpinned the double-digit rates of price growth experienced so far this year," 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 the 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 – March sales set an all-time record

Metro Vancouver, April 4, 2016 - Metro Vancouver home sales eclipsed 5,000 in March for the first time on record. Residential property sales in the region totalled 5,173 in March 2016, an increase of 27.4% from the 4,060 sales recorded in March 2015 and an increase of 24% compared to February 2016 when 4,172 homes sold.

Last month’s sales were 56% above the 10-year sales average for the month.
"March was the highest selling month the REBGV has ever recorded,” Dan Morrison, Real Estate Board of Greater Vancouver (REBGV) president said. “Today's demand is broad based. Home buyers are active in neighbourhoods across our region."

New listings for detached, attached and apartment properties in Metro Vancouver totalled 6,278 in March 2016. This represents an increase of 5.2% compared to the 5,968 units listed in March 2015 and an 8.0% increase compared to February 2016 when 5,812 properties were listed.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 7,358, a 40.5% decline compared to March 2015 (12,376) and a 0.8% increase compared to February 2016 (7,299).

“Strong job and economic growth in our province, positive net migration and low interest rates are helping to drive this activity," Morrison said.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $815,000. This represents a 23.2% increase compared to March 2015.

Sales of detached properties in March 2016 reached 2,135, an increase of 24.8% from the 1,711 detached sales recorded in March 2015. The benchmark price for detached properties increased 27.4% from March 2015 to $1,342,500.

Sales of apartment properties reached 2,252 in March 2016, an increase of 38.4% compared to the 1,627 sales in March 2015.The benchmark price of an apartment property increased 18.8% from March 2015 to $462,800.

Alberta - Spring sales begin to pick up as prices hold steady

Edmonton, April 4, 2016 - 1,364 properties were sold in the Edmonton Census Metropolitan Area (CMA) in March, up nearly 63% from the 837 homes sold last month, but down 6.13% from the 1,453 relative to March 2015. There were 863 single family detached homes sold in the Edmonton CMA, a 67% percent increase month-over-month, and down only 1.5% from the same time last year. March saw the sale of 335 condos and 144 duplex/rowhouses, up 44% and 82% from February, respectively.

“Sales, relative to last month, were consistent with the seasonal trends that we expect,” REALTORS® Association of Edmonton Chair Steve Sedgwick explains. “Inventory is growing, with more than 3,000 properties coming onto the market last month. Despite the inventory growth, prices are holding steady, with median prices on par with last year, and average prices up slightly due to the sale of high-end luxury homes in March.” 
 
The average all-residential price was $379,524 for March, which is close to 3.0% higher than February, and up nearly 2.0% compared to $372,289 during the same in last year. Single family house prices averaged $439,815, up slightly over last year (up 0.56%) and up by 4.73% month-over-month. Condo properties sold for an average of $251,093, up from both last month and last year, at an increase of 1.62% and 0.55%, respectively. Median prices remained virtually the same as last year, as the all-residential median price took at slight dip of less than 1.0% to end the month at $357,750, down from $360,000 from this time last year, but up nearly 3.0% from February. The median price for single family homes was up over 1.0% from last month ending March at $405,000, but down just over 1.0% from $410,000 in March of 2015.

“When looking at housing prices, we have to take into account a number of factors,” Sedgwick said. “Last month, we saw sales of two homes in Edmonton that were priced at more than $3 million dollars. This is the first time that properties at that price point have sold in 2016, and those two sales affected the average price by several thousands of dollars. So it is important that we also look at the median prices as well, to gain a clear picture of the market.”
March’s average days-on-market dropped in almost all housing types, as it took an average of 53 days to sell a home compared to 57 last month. On average, single family homes sold 4 days quicker than last month, selling in 49 days. Duplex/rowhouses were on the market for an average of 62 days compared to 71 in February. And, on average, condos sold in 58 days, up 1 day from the same time last month.