Experts have indicated Canada will need to build millions more homes in the next 10 years to meet our growing needs. To the casual observer the problem is easy to solve: just build more homes. For those in the real estate development field, the problem is much more complicated than this.
Home sales in Greater Vancouver grew by 29% year-over-year in October, with transactions rising to 3,687 from 2,858, according to new data from the Real Estate Board of Greater Vancouver (REBGV).
Sales also increased by 1.2% last month from 3,643 transactions in September, and were 34.7% above the 10-year average, marking the second-highest total ever for the month, indicating that the COVID-19 pandemic hasn’t impeded activity in the country’s most expensive real estate market. In a statement, Colette Gerber, chair of the REBGV, noted that lockdown measures this past spring were a catalyst for homeowners seeking out upgrades.
“Home has been a focus for residents during the pandemic. With more days and evenings spent at home this year, people are rethinking their housing situation,” she said.
In a bid to stimulate the economy, the Bank of Canada cut interest rates to historic lows, and it’s almost certainly the reason real estate markets in Canada’s three biggest cities have been able to absorb the economic fallout of the pandemic.
According to Robert Mogensen, a broker with The Mortgage Advantage in North Vancouver, low rates have opened the market up to previously short shrifted would-be buyers.
“There’s been some pent up demand that’s built over the last few years with prices rising in such an extreme way, and now, with lower interest rates, affordability is coming back a bit, which has brought more people into the market,” Mogensen told CREW.
Statistics Canada data showed that remote workers grew by 150,000 last month, bringing the total to roughly 2.4 million Canadians. Echoing Gerber, Mogensen added that these workers have pursued upgraded living conditions.
“Another factor is people have had to spend more time at home working, and in many cases they have decided that where they’re living and working long-term after the pandemic subsides should match the kind of lifestyle or locale they want,” he said. “A lot of my clients have been looking to move from downtown high-rise condos to houses in the suburbs, where they don’t have to deal with elevators and crowds in the city.”
The REBGV data also revealed that detached home sales surged by 42.3% last month from October 2019, bringing the benchmark price up by 8.5% to $1,523,800.
“Demand in the detached market has grown,” said Mogensen. “I’ve heard a number of stories from realtors I work with offering single-family homes at sweet spot prices in their given areas, where they’re having multiple offers and where they’re holding open houses that get dozens of buyers vying for the properties. The pace is frantic in Vancouver’s suburbs.”
While there has been a deceleration in new home sales, we must keep the pedal to the metal and continue to train skilled trades workers for the future.
Many jurisdictions in the U.S. have been thinking outside the box to boost the housing supply. Here in Ontario, we’d be wise to follow suit.
This free summit will feature top experts in Canadian real estate who will share their knowledge on a broad range of topics. It will be presented on Sat. Jun. 18th from 12pm-3pm.
For Real Estate News and Market Updates & VIP Access to Exclusive Real Estate Investment Opportunities
Canadian Real Estate Wealth Media Corp. needs the contact information you provide to us to contact you with news and market updates and to share real estate investment opportunities. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.
Diversity, equity and inclusion, better known by the acronym DEI, are buzzwords that permeate the workplace these days.
Ontario's construction sector will need to recruit about 71,800 new workers over the next six years to keep pace with retirements in the industry.
While markets across the country are seeing price corrections amid rising interest rates, Calgary has held strong.
The Bank of Canada announced yet another interest rate hike at its meeting on Thursday.
CREW has compiled a group of investment real estate agents that we think stand out for their quality service and dedication to the world of real estate investing.
“Sign up for our daily newsletter to get the latest news, updates and offers delivered directly to your inbox.”