market update –

Distinctive Advisors Inc.

 Menu

your.team@distinctiveadvisors.com

416 925 3140

Distinctive Real Estate Advisors Inc., Brokerage | Distinctive Real Estate Advisors Inc., Mortgage Broker License #12592

Tag Archives: market update

May MLS Home Sales in Ottawa Smooth and Cautious

The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totaled 1,545 units in May 2024. This was a decrease of 9.2% from May 2023.

Home sales were 3.7% below the five-year average and 13.2% below the 10-year average for the month of May.

On a year-to-date basis, home sales totaled 5,673 units over the first five months of the year — an increase of 5.2% from the same period in 2023.

“Ottawa’s early spring market was unsurprisingly steady,” says OREB President Curtis Fillier. “The increase in new listings indicate that sellers are more confident that properties are moving as market activity picks up. Some buyers, however, were likely waiting for the Bank of Canada’s interest rate announcement to see if it would affect their purchasing power. The first interest rate cut in four years is good news, but expectations still need to be managed as long as supply issues and high home prices persist.”

“Interest rate cuts, for example, can’t help get more homes built and make them affordable when the City of Ottawa is hiking development fees — a counterproductive move that OREB is firmly against.”

By the Numbers – Prices:

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 $651,300 in May 2024, a marginal gain of 1.2% from May 2023.
    • The benchmark price for single-family homes was $736,000, up 1.1% on a year-over-year basis in May.
    • By comparison, the benchmark price for a townhouse/row unit was $517,500, up 2.1% compared to a year earlier.
    • The benchmark apartment price was $425,000, up 2.0% from year-ago levels.
  • The average price of homes sold in May 2024 was $690,683 increasing 0.8% from May 2023. The more comprehensive year-to-date average price was $679,862, increasing by 1.8% from the first five months of 2023.
  • The dollar volume of all home sales in May 2024 was $1.06 billion, down 8.5% from the same month in 2023.

OREB cautions that the average sale price 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 calculation of the average sale price is based on the total dollar volume of all properties sold. Prices will vary from neighbourhood to neighbourhood.

 

By the Numbers – Inventory and New Listings:

  • The number of new listings saw an increase of 26.2% from May 2023. There were 3,034 new residential listings in May 2024. New listings were 23.2% above the five-year average and 10.2% above the 10-year average for the month of May.
  • Active residential listings numbered 3,552 units on the market at the end of May 2024, a gain of 59.4% from May 2023. Active listings were 72.2% above the five-year average and 2.9% below the 10-year average for the month of May.
  • Months of inventory numbered 2.3 at the end of May 2024, up from 1.3 in May 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

In conjunction with the Ottawa Real Estate Board (OREB), historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and May highlights from the Ottawa Real Estate Board (OREB).

We’d welcome an opportunity to discuss the May MLS Home Sales in Ottawa Smooth and Cautious. If you have any questions about our services, please contact our team.

GTA Has More Listings, Steady Prices and New Opportunities in April

April 2024 home sales were down in comparison to April 2023, when there was a temporary resurgence in market activity.

New listings were up strongly year-over-year, which meant there was increased choice for home buyers and little movement in the average selling price compared to last year.

Greater Toronto Area (GTA) REALTORS® reported 7,114 sales through the Toronto Regional Real Estate Board (TRREB) MLS® System in April 2024 – down by five per cent compared to April 2023.

TOTAL RESIDENTIAL TRANSACTIONS

New listings were up by 47.2 per cent over the same period. On a seasonally adjusted monthly basis, sales edged lower while new listings were up compared to March.

Listings were up markedly in April in comparison to last year and last month. Many homeowners are anticipating an increase in demand for ownership housing as we move through the spring.

While sales are expected to pick up, many would-be home buyers are likely waiting for the Bank of Canada to actually begin cutting its policy rate before purchasing a home.

The average selling price was up by 0.3 per cent to $1,156,167. On a seasonally adjusted month-over-month basis, the average selling price was up by 1.5 per cent compared to March.

AVERAGE SELLING PRICE

TOTAL NEW LISTINGS

AVERAGE DAYS ON MARKET

SALES & AVERAGE PRICE BY MAJOR HOME TYPE

Navigating the New Fiscal Landscape:

It is crucial to highlight the impending changes to the capital gains tax as outlined in Canadian Federal Budget 2024. These changes, effective from June 25, 2024, propose to increase the inclusion rate for capital gains from one-half to two-thirds for gains exceeding $250,000. The initial $250,000 will continue to be taxed at the existing one-half rate.

The imminent implementation of these tax changes is driving a notable increase in property listings and accelerated sales across the Greater Toronto Area (GTA), as investors are eager to capitalize on the current more favorable tax conditions before the new rates take effect.

Final Thoughts:

As we reflect on the April 2024 real estate landscape in the Greater Toronto Area, it’s clear that the market dynamics are aligning to offer both challenges and opportunities. Despite a decline in home sales compared to April 2023, a substantial increase in new listings — up by 47.2% — has enriched the market with more choices, benefiting buyers seeking diverse options without significant price fluctuations.

The average selling price has seen a modest uptick, reflecting a stable yet cautiously optimistic market environment. Key insights suggest a potential shift on the horizon, as lower borrowing costs anticipated later this year could tighten market conditions and stimulate renewed price growth as we progress into 2025.

The commitment from various government levels to enhance housing affordability and market alignment also underscores a critical need for coherent policies that support sustainable growth and meet the evolving demands of our growing population.

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and April highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss the GTA Has More Listings, Steady Prices and New Opportunities in April more. If you have any questions about our services, please contact our team.

GTA REALTORS® Release October 2023 Stats

  • Lack of affordability and uncertainty remained issues for many would-be home buyers in the Greater Toronto Area (GTA) in October 2023. As a result, sales edged lower compared to last year.
  • Selling prices remained higher than last year’s levels. Record population growth and a relatively resilient GTA economy have kept the overall demand for housing strong.
  • More of that demand has been pointed at the rental market, as high borrowing costs and uncertainty on the direction of interest rates has seen many would-be home buyers remain on the sidelines in the short term. When mortgage rates start trending lower, home sales are predicted to pick up quickly.

RESIDENTIAL STATS

REALTORS® reported 4,646 GTA home sales through TRREB’s MLS® System in October 2023 – down 5.8 per cent compared to October 2022. On a month-over-month seasonally-adjusted basis, sales were also down in comparison to September.

New listings in October 2023 were up noticeably compared to the 12-year low reported in October 2022, but up more modestly compared to the 10-year average for October. New listings, on a seasonally adjusted basis, edged slightly lower month-over-month compared to September 2023.

The October 2023 MLS® Home Price Index Composite benchmark and the average selling price were both up on year-over-year basis, by 1.4 per cent and 3.5 per cent respectively. On a seasonally adjusted basis, the MLS® HPI Composite benchmark edged lower compared to September 2023 while the average selling price remained at a similar level. Both the MLS® HPI Composite benchmark and average price remained above the cyclical lows experienced at the beginning of 2023.


Competition between buyers remained strong enough to keep the average selling price above last year’s level in October and above the cyclical lows experienced in the first quarter of this year. The Bank of Canada also noted this resilience in its October statement. However, home prices remain well-below their record peak reached at the beginning of 2022, so lower home prices have mitigated the impact of higher borrowing costs to a certain degree.

In the current environment of extremely high borrowing costs, it is disappointing to see that there has been no relief for uninsured mortgage holders reaching the end of their current term. If these borrowers want to shop around for a more competitive rate, they are still forced to unrealistically qualify at rates approaching eight per cent. Following their most recent round of consultations, the Office of the Superintendent of Financial Institutions should have eliminated this qualification rule for those renewing their mortgages with a different institution.

CONDO SALE STATS

CONDO RENTAL STATS

COMMERCIAL STATS

The “All Leasing Activity (Sq. Ft.)” chart summarizes total industrial, commercial/retail and office square feet leased through Toronto MLS® regardless of pricing terms.
The “All Sales Activity” chart summarizes total industrial and commercial/retail and office sales through Toronto MLS® regardless of pricing terms.

In conjunction with the Toronto Regional Real Estate Board (TRREB) redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and October highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss the GTA Realtors Release October 2023 Stats. If you have any questions about our services, please contact our team.

High Interest Rates Impacting the Market, But Population Growth Will Soon Spur Demand

  • The impact of high borrowing costs, high inflation, uncertainty surrounding future Bank of Canada decisions and slower economic growth continued to weigh on Greater Toronto Area (GTA) home sales in September.
  • Despite the market being better-supplied with listings, the average selling price was up year-over-year.The short and medium-term outlooks for the GTA housing market are very different. In the short term, the consensus view is that borrowing costs will remain elevated until mid-2024, after which they will start to trend lower.
  • This suggests that we should start to see a marked uptick in demand for ownership housing in the second half of next year, as lower rates and record population growth spur an increase in buyers.
RESIDENTIAL STATS

In September 2023, GTA REALTORS® reported 4,642 home sales through TRREB’s MLS® System in September 2023 – down 7.1% compared to September 2022.

The year-over-year dip in sales was more pronounced for ground-oriented homes, particularly semi-detached houses and townhouses. On a month-over-month seasonally-adjusted basis, sales were also down slightly.

GTA home selling prices remain above the trough experienced early in the first quarter of 2023. However, we did experience a more balanced market in the summer and early fall, with listings increasing noticeably relative to sales.

This suggests that some buyers may benefit from more negotiating power, at least in the short term. This could help offset the impact of high borrowing cost.
What is seasonal adjustment? Seasonality refers to a monthly (or quarterly) pattern that occurs in roughly the same manner from one year to the next, e.g., sales are highest in the spring and lowest in the winter each year.
COMMERCIAL STATS

The “All Leasing Activity (Sq. Ft.)” chart summarizes total industrial, commercial/retail and office square feet leased through Toronto MLS® regardless of pricing terms.
The “All Sales Activity” chart summarizes total industrial and commercial/retail and office sales through Toronto MLS® regardless of pricing terms.

In conjunction with the Toronto Regional Real Estate Board (TRREB) redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and September highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss the High Interest Rates Impacting the Market, but Population Growth will Soon Spur Demand. If you have any questions about our services, please contact our team.

« Older Entries