Canada`s Weak 1st Quarter for Homes
It is no secret that there has been a huge decline in prices for property prices & home sales. If we were to compare the month of February 2017 to February 2018, sales have tremendously decreased according to The Real Estate Association.
Canadian Housing market dropped almost 17% while the average sales dropped 5%. The hot market for both Vancouver and Toronto have stabilized for the most part, since their peak earlier in 2017 are still driving sales for the whole country. When these two housing markets are excluded, the average Canadian home is $112,000 lower, at just $382,000.
So much of the markets decline is due to “seller uncertainty” in Toronto & Vancouver. New Provincial Legislation that was introduced last year was meant to cool down the market, however it seems that the Ontario Fair Housing Plan and BC tax buyers had a very negative effect. Most homeowners were waiting for the perfect time to sell and get top dollar, however, seeing prices dip even further has made them make the decision to list their properties.
Properties are still selling, just not as fast as they were last year though. This year, 2018 has marked a near record low for the housing market. In spite of the fact that the supply is up, it is still not enough to meet the demand the hot Urban Markets.
The assumption is that we will most likely see prices rise in the interim.
Another reason we are seeing slow sales in the first quarter of 2018 is because buyers were in such a hurry to purchase a home before the OSFI tighten their new mortgage rules which took effect on January 1st. Buyers fearing they would be left stuck or struggling decided to rush out to buy what was affordable or stretch themselves to afford. Which is why if you noticed condos were the most inexpensive market segments and the largest price gains year over year.
What we are seeing now is that the majority of the country has a balanced housing market. This means that neither sellers nor buyers have the upper hand.
Vancouver continues to be the most expensive place to purchase a property with an average price of almost 17% percent to $1,071,800.
As we approach our busy season we may see a change, especially after British Columbia announced 30 ways of making homes more affordable.
For those Canadians looking for inexpensive places to purchase a home, homeowners should consider Saskatoon and Halifax with their strong job markets and homes selling in the range of $300,000.