Time for your weekly update on the most important real estate stories.
Canadian Real Estate
The Canadian Real Estate Association (CREA) updated their annual pricing forecast for Canada. CREA estimates that sales across the country will decline by 1.5% by the end of the year, and the average sale price will be $526,000. A couple of problems here – sales are down 4% year-to-date, and the average sale price is only $478,469. Prices would have to rise over 5x the annual rate of inflation for this to happen, in just four months. Forecasting is hard, and we’re not saying it’s wrong. However, it does highlight how unrealistic the expectations are for real estate across this country.
Condo madness isn’t just contained to Toronto and Vancouver, it’s spreading across the country. The benchmark price across the country reached $411,000, up $3,500 from the month before. This is a 19.9% increase from the same month last year, which works out to $68,400. This marks a disturbing trend across the country, where the most “affordable” type of home is now growing faster than the median net-income of families.
Toronto Real Estate
Toronto’s condo buyers are trying to figure out what the current price of a condo is worth, in the wake of the recent sales slump. The benchmark price, a.k.a. the price of a typical condo, was $481,300 in July, up over 29% for the year. Sounds good, but some neighbourhoods are making erratic pricing swings. Prices are rising over $30,000 or falling over $30,000 in some neighbourhoods. Check out the article for a neighbourhood by neighbourhood breakdown.
Vancouver Real Estate
Vancouver new construction sales are making huge gains, bucking the falling price trend that’s been plaguing Toronto. The median sale price of new construction in July was $1,800,000, up a massive 3% from the month before. This represents a 38% increase from the year before.
Vancouver’s condo market is hitting all-time highs for prices, although price growth is beginning to slow down. The benchmark price of a condo in Vancouver was $616,600 in July, 18.5% higher than it was the same time last year. This rate of price growth is 30% slower than the same time last year.
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