Home buyer demand continues to strengthen in November Home sales registered in the MLS® in the Metro Vancouver1 market rose 28 percent year-over-year in November, building on the momentum of the 30 percent year-over-year increase seen in October. Sales The Greater Vancouver REALTORS® (GVR)2 reports that residential sales in the region totalled 2,181 in November 2024, a…
There are four main incentive programs for first-time home buyers in Canada: Land transfer tax rebates, which rebate some or all of your land transfer tax. Some municipalities have down payment assistance programs (DPAPs) for first-time homebuyers. The Home Buyers’ Plan which allows you to withdraw up to $60,000 (since April 16, 2024) from your Registered Retirement Savings Plan (RRSP) without…
If your home ownership dreams have been put on hold, there may be hope on the horizon as Canada’s falling interest rates are impacting how much income is needed to purchase a property. But depending on where you live, it still requires a hefty paycheque to enter the market. According to a new report from Ratehub.ca, the income needed to afford a home has fallen in 12 of 13 cities across the country. This comes after the Bank of Canada (BoC) announced a massive interest rate cut in October. The BoC dropped the rate by 50 basis points, bringing it from 4.25% to 3.75%, which many referred to as a “jumbo-sized” drop. This was the fourth announcement of 2024, and such a low rate hasn’t been seen since December 2022. According to Ratehub.ca’s Penelope Graham, “affordability conditions have been improving since June, when the Bank of Canada first started cutting its benchmark interest rate, easing mortgage costs and the pricing of other borrowing products.” RateHub Vancouver and Toronto, Canada’s most expensive cities, saw the most significant drops in the income needed to purchase a home between September and October 2024. “While both of these cities saw a robust increase in sales activity in October, they remain well supplied, which has helped keep a lid on price growth,” notes the report. Still, prospective buyers in these cities need to take home significant paycheques to get into the housing market. The income required to purchase the average home in Vancouver now stands at $214,000 annually. In Toronto, it’s slightly lower at $195,420. Moreover, Canada’s smaller cities haven’t experienced the softer prices of their larger counterparts. A drop in supply and an increase in buyer activity have resulted in prices going up, as six out of 13 markets across the country saw month-over-month price hikes. Fredericton was the only market where affordability deteriorated between September and October as home prices increased by $16,100, meaning buyers would need $1,890 more income to purchase an average property. Ratehub.ca provided an optimistic outlook for prospective buyers over the next few months as mortgage rates are expected to drop further. The overnight lending rate is predicted to drop by another 25 basis points, bringing the benchmark interest rate to 3.5%. Rates are expected to drop further in 2025. However, lower rates will likely lead to an uptick in prices as more buyers could enter the market. “The national average home price is expected to end the year largely flat at $683,200 – just a 0.9% increase – before rising 4.4% next year to $713,375,” concluded Ratehub.ca.
A recently sold Vancouver home lost some big money in just over a year. The home at 6869 Beechwood Street was listed for sale in September 2023 for $9,998,000, but it didn’t sell for over a year after that last week for $7,281,580. It sold for nearly $3 million under the asking price of $9,998,000. According to Zealty, the home was last sold in May 2023 for $8,100,000, with the same asking price of $9,998,000. That means that between May 2023 and November 2024, there was a loss of $819,420. Zealty says the Beechwood Street home in the Vancouver SouthWest Marine region was built in 2018. It features seven bedrooms and nine bathrooms, and is a sizeable 7,889 sq ft. The lot is quite large, at 11,814 sq ft. Royal Pacific Realty Corp. Royal Pacific Realty Corporation’s listing says the home is an “exquisite mansion” with premium hardwood flooring and European stone throughout. Royal Pacific Realty Corp. It also features an indoor swimming pool, sauna, hot tub, and even golf training equipment, but the listing doesn’t include pictures of the fun stuff. Royal Pacific Realty Corp. The home’s most recent assessed value was $6,702,000. Royal Pacific Realty Corp. After the Vancouver home sold, there was discussion on X surrounding the amount it lost compared to the previous sale. Massive loss of capital. Almost 1 mil. That stings big time. — Law of Reflection (@david_door57003) November 15, 2024 This is another example of a long line of similar sales over the past year, with many owners looking to sell for more than the assessed value but having to bring the price down to snag a buyer. “October sales numbers suggest buyers may finally be responding to lower borrowing costs after waiting on the sidelines for months,” said Greater Vancouver Realtors in last month’s report. Earlier this month, we spoke to Ryan Dash, who works with eXp Realty and is one of the people behind the Vancouver Life Real Estate Podcast ; he also had some thoughts on the current real estate climate. Dash said there’s been a bit of a stalemate, as everyone thought buyers would flood the market after rates went down. Instead, sellers flooded the market. “They wanted to sell and move on and a lot of sellers that wanted to sell a year ago chose not to because interest rates were so high.” After that, inventory wasn’t moving, and sellers kept flooding the market with housing supply. “We’ve seen a lot of buyers sit on the sidelines, and they’re letting sellers compete. Sellers are lowering their prices to try and make buyers come and put a deal together.”
The Canadian Real Estate Association says the number of homes sold in October rose 30 per cent compared with a year ago, marking a shift from the market’s holding pattern. On a seasonally adjusted month-over-month basis, national home sales rose 7. The Canadian Real Estate Association says the number of homes sold in October rose 30 per cent compared with a year ago, marking a shift from the market’s holding pattern. On a seasonally adjusted month-over-month basis, national home sales rose 7.7 per cent from September, as 44,041 residential properties changed hands last month across Canada. The association said rising home sales activity was broad based, with the Greater Toronto Area and British Columbia’s Lower Mainland recording double-digit increases in October. CREA senior economist Shaun Cathcart called the jump in sales a “surprise,” even as the Bank of Canada continues to lower its key interest rate. The central bank has lowered its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market. Jason Ralph, broker of record for Royal LePage Team Realty in Ottawa, said activity often picks up in the fall, but surpassed his expectations last month. Still, he said the market rebound seems to be happening gradually, rather than all at once. He attributed that trend to the Bank of Canada’s messaging surrounding its rate cut cycle. “There’s not going to be this massive rush to the market like we saw in the pandemic. That was an anomaly,” said Ralph. “The 50-basis-point drop was enough to push some people on the sidelines into the market where they found it enticing enough to jump in, but it wasn’t that massive wave that everybody’s waiting on because the messaging is, ‘We’re lowering it and we’re likely going to lower it again.'” Cathcart said the sales increase last month was more likely related to the surge in new listings that hit the market in September. That month saw a 4.8 per cent increase in new homes on the market, pushing supply to some of the highest levels seen since mid-2022. “There probably won’t be another rush of new supply like that until next spring, and at that point, mortgage rates should be close to their expected lows, as well,” said Cathcart in a press release. “With that in mind, you can think of the October numbers as a sort of preview for what we might expect to see next year.” CREA chair James Mabey added that October’s strong sales numbers “suggest buyers have been in the market since rates began to fall in early summer, but they were waiting for the right property to come up for sale, which didn’t happen in a big way until September.” “The extent to which that will be able to continue between now and next spring will depend on the number of listings coming onto the market,” he said. In October, the number of newly listed properties was down 3.5 per cent month-over-month. The association said the national pullback was led by a drop in new supply in Greater Toronto. There were 174,458 properties listed for sale across the country at the end of the month, up 11.4 per cent from a year earlier but still below historical averages for that time of year. The national average sale price for October amounted to $696,166, up six per cent compared with a year earlier. Ralph said that with property prices expected to increase amid more demand, would-be sellers are growing more confident to list, while potential buyers are feeling more comfortable paying current prices. “Buyers have been sort of going, ‘Well, where’s my deal?’ And sellers have been going, ‘Well, I still want my price.’ So we’ve been having a little bit of a game between buyers and sellers,” he said. “I think we’re seeing a little bit more movement as people understand that as rates come down, prices are steady and probably going to go back up.” BMO senior economist Robert Kavcic said the sales figures show Canada’s housing market “is finding some life.” “Sales volumes have bounced from last year’s lows, prices have stabilized across many regions and outright buyers’ markets are disappearing,” he said in a note. “To be fair, last October and November were very soft after accounting for seasonality, but it’s clear that activity has risen with more selection and lower borrowing costs. Price reductions across some segments have also allowed the market to clear better as the ‘bid-ask’ spread narrows.” This report by The Canadian Press was first published Nov. 15, 2024. Sammy Hudes, The Canadian Press
If you and your long-term partner are ready to take your relationship to the next level, what are you choosing to do first: a mortgage or marriage? According to a recent Houseful survey, a majority of young first-time homebuyers in Canada are choosing doorbells before wedding bells. The online Canadian real estate platform owned by RBC found that 78% of single and unmarried first-time homebuyers under 30 are prioritizing saving for a mortgage over having a big, lavish wedding. “Younger adults are increasingly conscious of ongoing housing affordability challenges, which motivates them to secure a financially stable future by seizing saving opportunities earlier,” said Karen Starns, CEO of Houseful, in a news release. “After getting a foothold in the market, they can gain the flexibility to pursue other life milestones that are important to them.” With the cost of living crisis in Canada, buying a home or having a wedding is easier said than done. According to a recent report from the Canadian Real Estate Association (CREA), the average price of a home went up significantly this year. The actual (not seasonally adjusted) national average home price in March 2024 was $698,530, up 2% from March 2023. In January, CREA said this national average was $659,395, up 7.6% from January 2023. This means from January to March this year, buying a home became $39,135 pricier. Houseful’s survey found that prospective homebuyers are aware of these difficulties in the current market, with 73% of those under 30 saying that reports about the market make housing look unattainable. But this isn’t stopping them from prioritizing home ownership, with 71% believing it will be an important part of their retirement plan. If you’re prioritizing a mortgage over marriage, Daily Hive wants to hear from you. Why have you decided to prioritize buying a home over having a wedding? How are you saving up? Share your story with us in the survey below or email your responses to [email protected] :
Posted September 19, 2024 9:39 am. Last Updated September 19, 2024 10:24 am. A new housing project on the lands of the xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish), and səlilwətaɬ (Tsleil-Waututh) Nations will create 2,600 new affordable homes. CLICK HERE TO LISTEN TO 1130 NEWSRADIO VANCOUVER LIVE! The homes will be at Heather Lands, an 8.5-hectare (21-acre) lot between West 33rd and West 37th avenues on Heather Street, just east of Queen Elizabeth Park. The province says buyers will be able to purchase the homes at 60 per cent of market value — with 40 per cent of the cost covered by provincial financing. In an announcement Thursday, Premier David Eby explained the financing agreement isn’t a grant or a subsidy, it’s a loan from the province. “The 40 per cent is repaid at the end of 25 years, or when the owner sells. … What we have created here, together, is a financing tool that protects taxpayers, that minimizes impact on public budgets, and yet, at the same time, delivers affordable housing now,” Eby explained. “And when the loan is paid back by the homeowner, [it] protects affordability in the future,” he added. Eby shared that the homes will be sold as 99-year strata-leaseholds with Musqueam, Squamish, and Tsleil-Waututh Nations. “The unit prices will be determined at the time they actually go up for sale, but if they were for sale today, under current market conditions, a studio apartment on the site would sell for $620,000. Under this program we’re announcing today, that same studio apartment will sell for $370,000,” he said. “On this site today, the market price for a two-bedroom condo is $1.3 million. Under this program that we’re announcing today, that will be $780,000.” Eby added priority will be given to first homebuyers, and there will be “strict” criteria around income and asset ceilings for would-be purchasers. “I want to assure you that we will have strict rules and screening measures in place, and anyone who thinks that they can game the system when we detect that, there will be serious consequences.” The province says that to cover the 40 per cent of purchase prices, it will need to finance an estimated $670 million. If purchasers would like to buy out the remaining 40 per cent of the value of the home, Eby shared owners are able to do just that, “but if they exit in advance of 25 years, then they need to pay the appreciation in the value of the property as well.” “Say property values go up, they would have to pay that share of the government’s appreciation of the property as well. And say, property values go down, they would still have to pay the full amount back to the government that was loaned at the first instance,” he added. More to come.
Posted September 19, 2024 10:46 am. Vancouver’s luxury home market is still soft, according to the latest report from Royal LePage, but that doesn’t mean prices are dropping. The real estate group says sales in the segment are down almost 40 per cent through the first eight months of the year, compared to the same time last year. But prices barely fell — by less than two per cent — to a little under $7 million. The report considers $ 5.5 million to be the entry-level price for Vancouver’s luxury market. It says from January to the end of August, the median luxury home price in Vancouver was $6,975,000 — the highest in the country. For comparison, the median in Toronto over the same period was $5,820,000. “In Vancouver’s luxury segment, it seems everyone is trying to time the bottom of the market. As such, we’ve seen a slowdown in activity of late. After all, buyers love to buy when others are buying,” said a sales representative for the company. He says a “pullback” in Vancouver’s luxury market began about eight years ago, and activity has never fully rebounded. “The implementation of the 2023 foreign buyer ban, which has limited residential real estate purchases by non-Canadians, has reduced demand, although it has not had a material impact on prices,” he added. Royal Lepage expects moderate activity levels through the fall, despite the likelihood of additional interest rate cuts.