Looming HST Drives Sales
The consensus among home buyers at the moment seems to be "no time like the present." As new mortgage regulations, expectations of higher interest rates, and the coming harmonized sales tax in many provinces appear to be having a considerable impact on sales at the moment. Many experts predict this wave of sales to continue into the summer.
In fact, increased real estate activity has been noted in as many as 16 markets throughout the country, especially in January which is typically one of the slowest months of the year. This unparalleled activity has created marked drops in active listings in 4 of 5 surveyed markets and has created reasonable concern about having too many buyers and not enough homes.
Of course when there are more buyers than available listings there is almost always a push in prices. Currently, Toronto, Kitchener-Waterloo, Ottawa, Victoria, and Metro Vancouver represent the markets with the most restricted inventories. With inventory drops ranging from 27 to 41 per cent there have not only been sizeable improvements in year-over-year sales but also a steady increase in average prices.
The biggest gains in sales have been seen in Metro Vancouver where there was a year-over-year improvement of 152 per cent; then Kelowna at 121 per cent; Greater Toronto at 87 per cent; Victoria at 69 per cent; Hamilton-Burlington at 58 per cent; London-St. Thomas at 55 per cent; and finally Calgary at 47 per cent. As you can see, many markets across Canada are benefiting from drastic improvements in sales compared to a year ago.
Somewhat surprisingly, the improvements recorded in Metro Vancouver actually corresponded to a decrease in sales from the end of 2009. Usually success in a market is measured by the ratio of sales to active listings which dropped in January 2010 throughout Metro Vancouver. This ratio was 26 per cent in January but at the end of 2009 this ratio ranged between 31 and 33 percent. Basically, this ratio represents the percentage of homes sold compared to the inventory available.
A 26 per cent ratio is almost balanced market conditions while figures over 31 per cent represent a seller's market. The last time the Vancouver market was as hot as the end of 2009 was summer 2006. But as sales have dropped slightly in January we're seeing a few more active listings and a pretty healthy market.
Western Canada has certainly been leading the real estate recovery and home prices have raised the most here as well. Victoria saw a 25.5 per cent increase in January compared to January 2009; Kelowna, Greater Vancouver, St John's and Toronto saw 22 per cent, 19.5 per cent, 23 per cent and 19 per cent increases respectively.
In fact, increased real estate activity has been noted in as many as 16 markets throughout the country, especially in January which is typically one of the slowest months of the year. This unparalleled activity has created marked drops in active listings in 4 of 5 surveyed markets and has created reasonable concern about having too many buyers and not enough homes.
Of course when there are more buyers than available listings there is almost always a push in prices. Currently, Toronto, Kitchener-Waterloo, Ottawa, Victoria, and Metro Vancouver represent the markets with the most restricted inventories. With inventory drops ranging from 27 to 41 per cent there have not only been sizeable improvements in year-over-year sales but also a steady increase in average prices.
The biggest gains in sales have been seen in Metro Vancouver where there was a year-over-year improvement of 152 per cent; then Kelowna at 121 per cent; Greater Toronto at 87 per cent; Victoria at 69 per cent; Hamilton-Burlington at 58 per cent; London-St. Thomas at 55 per cent; and finally Calgary at 47 per cent. As you can see, many markets across Canada are benefiting from drastic improvements in sales compared to a year ago.
Somewhat surprisingly, the improvements recorded in Metro Vancouver actually corresponded to a decrease in sales from the end of 2009. Usually success in a market is measured by the ratio of sales to active listings which dropped in January 2010 throughout Metro Vancouver. This ratio was 26 per cent in January but at the end of 2009 this ratio ranged between 31 and 33 percent. Basically, this ratio represents the percentage of homes sold compared to the inventory available.
A 26 per cent ratio is almost balanced market conditions while figures over 31 per cent represent a seller's market. The last time the Vancouver market was as hot as the end of 2009 was summer 2006. But as sales have dropped slightly in January we're seeing a few more active listings and a pretty healthy market.
Western Canada has certainly been leading the real estate recovery and home prices have raised the most here as well. Victoria saw a 25.5 per cent increase in January compared to January 2009; Kelowna, Greater Vancouver, St John's and Toronto saw 22 per cent, 19.5 per cent, 23 per cent and 19 per cent increases respectively.
Labels: British Columbia Real Estate, Real Estate
posted by VancouverResidence
