national market trends

The 2016 Spring Market Trends Report is out!

Sustained price appreciation in Vancouver and Toronto is revitalizing surrounding areas, according to the Spring Market Trends 2016 Final Report
National Summary: Vancouver and Toronto continued to see significant price appreciation in the first quarter of the year. Greater Vancouver’s average residential sale price in the first quarter of 2016 compared with the same period in 2015 rose 24 per cent, while single-family homes in the city of Vancouver crossed the $2 million threshold. In the Greater Toronto Area, the average residential sale price during the first quarter rose 14 per cent to $675,492.
The competition in both Vancouver and Toronto among buyers has discouraged sellers from listing their properties, thus further reducing inventory. While sellers know their homes would be quick to sell, many are reluctant to become buyers themselves and enter the highly competitive market.
Also, some potential sellers are hesitant to list their homes believing that home prices could appreciate further. However, not all Canadians can wait out the housing market as many are relying on their homes as a source of retirement income. According to a recent RE/MAX poll conducted by Leger, 56 per cent of Canadians 55-64 who are considering selling their homes are doing so to release equity for retirement.
Outside of Vancouver and Toronto, surrounding regions continue to experience a spillover effect as buyers move farther out in search of affordable single-family homes. This has led to significant price appreciation in regions such as Victoria (+10%), Hamilton-Burlington (+10%) and Barrie (+14%). The population growth in these regions, driven by housing demand, is growing local economies as restaurants, shops and services expand…
 
Calgary Summary: Calgary had a slow start to the spring real estate season as oil prices dipped in January, making buyers and sellers hesitant to enter the market. Once oil prices showed signs of beginning to recover, there was a corresponding uptick in real estate activity as well. Sales were down slightly in the first quarter of the year while listings were up.
There were 6,084 active listings at the end of March, compared with 5,704 the same time last year. With more inventory on the market compared with previous years, the properties that sell are those that are priced correctly and show well. While continued uncertainty in the oil industry has made some buyers hesitant, there is interest in the market and open houses are busy.
 
Other findings in this year’s report:
– Diversified economies and capital projects mitigate short-term effects of low price of oil in Calgary, Edmonton and St. John’s
– Millennials, especially in Ontario and BC, are counting on their parents’ help to purchase their homes
 
click on the following link for a .pdf of the Spring Market Trends 2016 Final Report
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