This week we dive deep into the real estate landscapes of Toronto and Vancouver, Canada's largest real estate cities with Merete Lewis, an Agent with Chestnut Peak Real Estate out of Toronto. We dissect the recent trends and statistics that are shaping both property markets and we look at which city is fairing better under the current economic climate.
In Toronto, the month of October witnessed a notable softening in home sales, hitting levels not seen since 1995, with less than 5000 sales. Despite this, immigration remains robust, creating a dynamic where the market feels akin to holding a beach ball underwater. As we explore the data, we unveil a deepening Buyer's market in both cities with new listings surging and inventory reaching levels not seen since 2012. With the Housing Price Index (HPI) on a multi month decline, those looking for a deal may soon find one.
Shifting our focus to Vancouver, a decline in sales of 13% in September and October has continued into November, resulting in a 19% downturn. Despite flat new listings, the sales-to-new-listings ratio indicates a declining price environment, favouring buyers. The counter-seasonal increase in inventory for the first time in 20 years, coupled with a consecutive decline in the HPI, suggests a market that is adjusting. While prices are currently 5% higher than last year, the trend indicates a nuanced situation.
As we navigate through these statistics, we aim to validate the trends by comparing them to real stories on the ground. We delve into questions surrounding market sentiment, the impact of recent economic changes, and the challenges faced by both buyers and sellers.
Reflecting on our previous discussion about the similarities between Toronto and Vancouver, we observe how both markets bounced back in the spring but have since experienced shifts. Toronto, in particular, faced challenges in October, which was only marginally better than the previous year after significant rate hikes. The sentiment has changed, and the market has transitioned into a much slower market.
Our conversation extends to specific queries about the Toronto condo market. With headlines portraying a challenging scenario, we seek to uncover the real story. Are investors assigning condos at lower values or walking away from deals? How is the market responding to the current conditions?
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Dan Wurtele, PREC, REIA
604.809.0834
Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com