Photo: James Bombales
Any industry watcher will tell you that, while it’s one thing to make predictions about where the national housing market is headed, the real story varies from market to market.
That’s especially true when it comes to Canada’s biggest cities, each dealing with their own unique mix of buyer demand and housing supply.
For a closer look at what the next few months have in store for Toronto, Montreal and Ottawa home prices, Livabl has rounded up the latest industry commentary, to keep you in the know.
Montreal listings took a big dip last month, falling a whopping 17 percent year-over-year.
That lack of supply pushed the median price of a condo up 4 percent year-over-year to $265,000, while the median price of a single-family home rose 4 percent to $329,250.
“[The condo market] has moved from a buyer’s market to a seller’s market in just one year,” writes Nathalie Begin, president of the Greater Montreal Real Estate Board board of directors, in a statement.
What’s more, the market could be at risk of overheating, according to a recent report from the Canada Mortgage and Housing Corporation (CMHC).
“Montreal’s resale market is close to overheating, creating significant upward pressure on prices as a result of a sharp tightening between supply and demand,” reads the CMHC release.
Listings are also trending down in Toronto, according to the Toronto Real Estate Board (TREB). They fell 2.7 percent year-over-year last month, marking the fifth consecutive month of falling supply in the region.
“Annual sales growth has outstripped annual growth in new listings for the last five months, underpinning the fact that listings supply remains an issue in the Greater Toronto Area,” writes Jason Mercer, TREB’s director of market analysis, in a statement.
Falling supply matched with rising demand means that prices are on their way up. The average sale price for a home rose 3.5 percent year-over-year last month, hitting $807,340.
Meanwhile, the MLS Home Price Index Composite Benchmark was up 2.6 percent year-over-year.
Prices are on their way up in the Ottawa market, as buyers are drawn to the city’s relative affordability.
“October’s sales are truly indicative of the fast-paced market we have experienced for much of 2018,” writes Ralph Shaw, president of the Ottawa Real Estate Board, in a statement. “Year-to-date average Days on the Market are down 14 percent from 45 to 39 days for residential homes and down 24 percent from 68 to 51 days for condos.”
Shaw names the lack of listings as a “major driving factor” in home prices, as more and more buyers make their way into the market.
Prices continued their upward trajectory in October, with condos in the downtown core selling for an average price of $405,190, up 13 percent year-over-year, while condos in the east end sold for an average price of $300,000, up 15 percent year-over-year.