On a month-to-month basis, the declines in home sales in Canada’s two largest markets are not in the freefall analysts expected last spring..On a year-over-year basis, it’s a different story..Sales in the Greater Toronto Area (GTA) in September reached 5,038 homes, down from 5,627 sales in August..Year-over-year, September’s total was 44.1% below sales in September 2021..New listings also declined by 16.7%, year-over-year, a troublesome figure, given that the stock of homes in the GTA increased markedly over the last 20 years, says Kevin Crigger, president of the Toronto Regional Real Estate Board (TRREB)..“We must ensure the temporary dip in housing demand is not allowed to mask the critical shortage of homes available for sale in the GTA. Candidates running in the upcoming Ontario municipal elections must ensure home buyers and renters have adequate housing options in the years to come,” says Crigger..“Municipal council decisions have a direct impact on housing affordability, in terms of the protracted development approval processes, high development fees and other related policies that preclude timely housing development.” .“Elected councils must also reconsider existing policies that preclude homeowners from listing their homes for sale, including significant added upfront costs like the land transfer tax,” says TRREB CEO John DiMichele..“Potential new policies like mandatory home energy audits could also create unnecessary interference and delays in the home selling process and dissuade some homeowners from listing their homes for sale.” .The average sales price dipped 4.3% year-over-year, says TRREB chief market analyst, Jason Mercer..“Hovering just below $1.1 million, the average selling price may have found some support during the last couple months of summer,” says Mercer..“With new listings down quite substantially year-over-year and well-below historic norms, some home buyers are quite possibly experiencing tighter market conditions in some GTA neighbourhoods.”.“October generally represents the peak of the fall market, so it will be important to see where price trends head over the next month.” .Sellers outnumbered buyers on the West Coast..Sales in the Greater Vancouver Area reached 1,687 homes in September, a 46.4% decrease from September 2021, a 9.8% decrease from August 2022 and 35.7% below the 10-year September average, according to the Real Estate Board of Greater Vancouver (REBGV).. “With the Bank of Canada hiking rates in an effort to stamp out inflation, the cost to borrow funds has risen substantially over a short period,” says Andrew Lis, REBGV director, economics and data analytics..“This has resulted in a more challenging environment for borrowers looking to purchase a home, and home sales across the region have dropped accordingly.” .New listings in September, 4,229, were a 27.1% increase compared to August when 3,328 homes were listed..September’s new listings brought the total number of listings in the area to 9,971 homes, a 3.2% increase over August. .“With fewer homes selling and new listings continuing to come to market, inventory is beginning to accumulate, providing buyers with more selection compared to last year,” says Lis..“With more supply and less demand within this market cycle, residential home prices have edged down in the region over the last six months.” .The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver in September was $1,155,300, a 3.9% increase over September 2021; an 8.5% decline over the past six months, and; a 2.1% decline from August..Single-family home sales were 525 units, a 44.7% decrease from September 2021, with a benchmark price of $1,906,400, down 2.4% from August. .Sales of apartments reached 888 units in September, down 45.2% from September 2021. The benchmark price of an apartment in September was $728,500, a 6.2% increase, year-over-year and a 1.6% decrease from August..There were 274 sales of attached homes in September, a 52.6% decrease from September 2021, at a benchmark price of $1,048,900. This is a 9.1% increase from September 2021 and a 1.9% August 2022.
