Money: Vancouver housing market not even among top 5 in Canada anymore - PressFrom - Canada
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MoneyVancouver housing market not even among top 5 in Canada anymore

23:01  15 may  2019
23:01  15 may  2019 Source:   huffingtonpost.ca

Canada's housing markets not as vulnerable as prices fall more than 5%, CMHC report

Canada's housing markets not as vulnerable as prices fall more than 5%, CMHC report For the first time in 2.5 years, Canada Mortgage and Housing Corporation has rated the housing market as only moderately vulnerable, indicating the hot conditions characterized by bidding wars and sky-high prices may be cooling off a little. In its quarterly Housing Market Assessment, CMHC found that inflation-adjusted average price fell by 5.4 per cent in the fourth quarter of 2018 compared to the same period in 2017. In its latest report, the Canadian Real Estate Association said the average price of a home sold in Canada during March was $481,745.

Vancouver housing market not even among top 5 in Canada anymore © Provided by Oath Inc. A real estate sign in front of a house for sale in Ottawa, Aug. 15, 2017.

Remember when Vancouver used to top the lists of the world’s hottest housing markets?

Well, these days it isn’t even one of Canada’s hottest markets anymore.

There were 1,552 home sales in Greater Vancouver in April, in seasonally adjusted terms, a drop of more than 29 per cent from a year earlier. The steep decline means fewer homes are selling in Vancouver than in some other much smaller metro areas, such as Edmonton and Ottawa.

In fact, despite Vancouver being the third-largest metro area in Canada, it now ranks sixth on home sales, according to data released Wednesday by the Canadian Real Estate Association (CREA)

Risks Are Receding in Canada’s Housing Market, Agency Says

Risks Are Receding in Canada’s Housing Market, Agency Says Recent rule changes by Canadian policy makers, including tightened mortgage lending, appear to be bringing the country’s real estate market more into balance. The federal housing agency lowered its assessment of the overall vulnerabilities in the national market to “moderate,” from “high,” according to a report Thursday from Ottawa. Canada Mortgage and Housing Corp. cited evidence of easing price acceleration for the country as a whole, with prices in Toronto and Vancouver moving closer to levels supported by fundamentals.

A year ago at this time, Vancouver had the third-largest number of sales, in line with its population.

Vancouver housing market not even among top 5 in Canada anymore © Provided by Oath Inc.

CREA said Wednesday that home sales in April posted their first year-over-year increase since December 2017 as gains in Montreal and the Toronto region outweighed a decline in the B.C. Lower Mainland.

Sales last month were up 4.2 per cent compared with a year ago, when they hit a seven-year low for the month.

On a month-over-month basis, sales through the Multiple Listing Service rose 3.6 per cent in April.

Related video: How to price your house so it sells [Provided by Money Talks News]

“Canadian housing activity appears to be broadly stabilizing, as there are signs that the market has largely digested the many policy changes,” Bank of Montreal chief economist Doug Porter wrote in a report.

What the spring real estate market will tell Canadian banks about their whole year

What the spring real estate market will tell Canadian banks about their whole year Green shoots offer hope for growth in residential mortgages that has so far been underwhelming

“And while the regional divide is wide, fundamentals look to be a bit more supportive in the year ahead, with the policy tightening likely having run its course, job growth surprisingly solid and borrowing costs ebbing.”

The national average price for homes sold in April was $494,978, up 0.3 per cent from the same month in 2018.

Excluding the Greater Vancouver and Greater Toronto Area, two of the country’s most expensive markets, the average price was just over $391,000.

Canadian home sales softened in the wake of new mortgage stress test rules introduced last year and a rise in mortgage rates.

However, mortgage rates have started to come back down in recent months as expectations that the Bank of Canada will raise its key interest rate have also cooled.

Canada May Be Expensive For Middle Earners, But For The World’s Rich, It’s A Bargain

Canada May Be Expensive For Middle Earners, But For The World’s Rich, It’s A Bargain MONTREAL — Canada has become one of the world's hottest destinations for wealthy migrants, and one clear reason for it is low housing costs. Yes, low housing costs. While Canada's largest housing markets are, overall, some of the least affordable in the world, that's not the case for the world's wealthy, who enjoy house prices here well below what they would pay in many other destinations, research shows. Canada saw the world's third-largest influx of rich migrants in 2018, according to a report from market research group New World Wealth. Only the United States and Australia saw a larger gain. © Provided by Oath Inc.

The Canadian Real Estate Association noted that the number of newly listed homes rose 2.7 per cent in April, following an increase of 3.4 per cent in March.

However, the national sales-to-new listings ratio tightened to 54.8 per cent compared with 54.3 per cent in March.

The association noted that sales activity was stabilizing among Canada’s five most active urban housing markets, which no longer includes Greater Vancouver for the first time since the recession as sales in that city continue to trend lower.

— With files from The Canadian Press

This article originally appeared on HuffPost Canada

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New mortgage loans slowed in Canada but overall value is still rising, says CMHC.
The number of mortgage loans in Canada grew at a slower pace in the fourth quarter as housing activity cooled, according to a new report from the Canadian Mortgage and Housing Corporation, but the value of all mortgages is still rising. There were 223,000 new mortgage loans in the last three months of 2018, which is 4.8 per cent lower than the same period a year ago, the CMHC said. "While indebtedness of Canadian households remains elevated, growth in the volume of mortgage activity slowed in the last quarter of 2018, partly reflecting lower housing market activity," said Geneviève Lapointe, senior market analyst at CHMC in the report.

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