Using the numbers from October, we are experiencing higher inventory which increase the days to sell. But, we see home values are up 1.72% compared to last year because more people are purchasing homes in the luxury markets to take advantage of lower prices and decent mortgage rates.
Duplex/townhouses take the biggest hit in sales volume followed by condominiums
Sale volumes tend to slow down close to the winter months, however, Duplex/rowhouses are down 10.06% month/month and down 5.30% year/year. Condominiums follow behind in sales down 8.17% month over month, and down 7.12% year over year. Single family homes seem to be selling the best with an increased in October of 3.69% and only decreased slightly compared to 2016 at 0.59%.
All residential sale prices increased by .06%
All residential sale prices have increased slightly but mainly driven by the single family homes. Single family homes have increased in price by .23% month over month and 1.44% compared to 2016. Duplex/townhouses not so much, they decreased in value by .55% month over month but still up compared to 2016 at 1.15%. Condos decreased 3.74% month over month and only by .45% compared to 2016.
Why? More people are purchasing homes in the higher priced demographics. More infill homes are selling which are typically prices $650,000 to over 1M. Labour costs are cheaper during low economical periods.Buyers understand home values are much lower then 2014 so they are happy to take a loss at selling their home and then getting a large discount when upgrading. This a buyers market!
What is the news saying?
Canadian Mortgage Holders Risk ‘Payment Shock,’ Ratings Agency Warns
Low-Inflation Risk Motivated Bank of Canada's Caution on Rates
CREA reports October home sales in Canada up 0.9 per cent from September
Interest rate shocks for some households could be “significant,” report warns
Its takes 61 days to sell on average right now
When there is high amounts of inventory it indicates higher competition between sellers and a longer time to sell your home. On average, it takes 61 days to sell a residential home which is increased from last month by 5.17%. Condominiums are up to 67 days to sell, townhouse/duplex take 61 days and single family homes take 55 days to sell.