July in Real Estate:
Busy long weekend came to an end and the sun keeps smiling. I can’t believe what I’m about to say… but I miss the rain (for my garden). My garden is feeling the stress of super hot sun but I’m still loving the heat and enjoying the time spent at the lakes.
July was a busy month across the board, maybe not as busy as we have seen recently but that’s probably due to the stress test changes and also summer vacations. A lot of people are taking some time off and enjoying the summer.
The Vancouver Island Real Estate Board reports that;
“Inventory remains extremely tight in the VIREB area, tracking at a 21-year historical low. Active listings of single-family homes and row/townhouses dropped by 51 per cent from July 2020. In the condo apartment category, inventory decreased by 60 per cent from one year ago. Based on the demand VIREB is seeing, there is no doubt that sales would be higher if there were sufficient inventory.”
VIREB’s heated housing market continues to impact prices, which continue to increase throughout the board area.
The benchmark price of a single family home in Campbell River area is 639,100 up from $588,800 just 3 months ago.
Apartments in Campbell River area benchmark closed the $336,300 mark and Townhouses $465,700.
“Unless demand drops significantly or more housing supply comes online through new construction, the needle for VIREB’s inventory situation will not move by much,” states Mackay. “BCREA, VIREB, and other real estate boards continue advocating with policymakers at the provincial and regional levels to speed up the development process so that municipalities can expand supply more quickly to meet demand.”
In the month of July we saw:
Quadra Island had four new listings, and five pending sale (received offers and are waiting for completion)
Cortes Island saw one pending, one cancelled and two new listings.
Seems like a very busy month in such a small market.
Price growth slows as supply to demand balance improves.
July sales totaled 2,319 units, which is well above long-term averages and the best July on record. The pace of sales growth has eased over the past few months, but so too has the pace of new listings growth. This has helped prevent any further monthly gains in inventory levels, and while overall supply remains slightly higher than last July, it’s mostly due to gains in apartment and row product.
The benchmark price of a detached home in the city of Calgary is $539,900, apartments: $254,100, semi-detached: $428,400 and row houses: $299,600.
Steady sales, reduced listings and virtually unchanged home prices
“Moderation was the name of the game in July,” said REBGV’s economist Keith Stewart. “Home sales and listings fell in line with typical seasonal patterns as summer got going in earnest in July. On top of moderating market activity, price growth has leveled off in most areas and home types.”
“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” Stewart said. "Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends."
The benchmark price for a detached home is $1,801,100. This represents a 21 per cent increase from July 2020 and is unchanged from June 2021.
The benchmark price of an apartment property is $736,900. This represents an 8.4 per cent increase from July 2020 and a 0.1 per cent decrease compared to June 2021.
The benchmark price of an attached home is $949,400. This represents a 16.7 per cent increase from July 2020 and a 0.3 per cent increase compared to June 2021.
JULY NUMBERS SHOW STRONG DEMAND CONTINUES FOR HOME OWNERSHIP IN GTA
“Demand for ownership housing has remained strong despite a pandemic-related lull in population growth. Of specific note is the condominium apartment market, which has seen a marked turn-around in 2021 with sales up compared to last year. First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the market place,” said TRREB President Kevin Crigger.
“There is a huge backlog of people seeking citizenship or permanent resident status in Canada. A large share of these newcomers will ultimately choose to call the GTA home. This means ownership and rental market conditions will remain tight with upward pressure on prices for the foreseeable future. Policy makers at all levels must pursue a coordinated effort to bring on a greater diversity of supply in major metropolitan areas,” said TRREB CEO John DiMichele.
Average Price of a detached home in area (416) is $1,695,541, semi-detached: 1,285,347; Townhouses: $926,437; and the average price for a condo: $700,061
It seems that demand across the country continues but maybe just at a slower pace. What would cause such a slow down? Most likely in my opinion the biggest factor behind this trend is the Mortgage stress test that has been recently introduced. The government decided to step in and cool down the overheating real estate market. One of the tools that can be used is the amount of credit that consumers can access. To me, based on the current market conditions statistics there’s a clear co-relation between the stress test and the slow-down. Another big factor that I have also witnessed in the daily life of a realtor is that some buyers are just tired and put the whole idea of buying a home on hold for now. Both buyers and sellers realize that we’ve been stuck at home for too long and might as well just enjoy the summer months and spend time traveling and spending it with your family and close friends. I wonder what will happen with the markets when the new lockdown happens. It appears that it’s just a matter of time before new measures are introduced to control the public. I understand the severity of the health crisis but I don’t always trust what the media feeds us. I would rather enjoy my garden and focus on my family.
Are you thinking of selling your home? Call me for a free home evaluation.
Roman Krzaczek REALTOR ®
Home number: 250-285-2141
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