The spring market unofficially ended last month and Canada’s three most followed housing markets finished off the spring selling season strongly. Sales volumes, prices and new listings each increased in June in all three cities. Low interest rates continue to fuel strong buyer demand.
Sales volumes were up in Vancouver by 29% in June, compared to the same month in 2013. They were also 3.7% higher than in May but only 0.6% above the ten year average for the month. Sales of detached properties were up a whopping 59% from the level seen in June of 2012. REBGV President Ray Harris commented that competition among buyers has increased and “is as strong as it’s been in the region since June, 2011”.
The sales-to-new-listings ratio in Vancouver reached 21.3% in June, the highest since June, 2011. New listings were up 9.5% compared to a year earlier but were down by more than 10% from May’s level and 2.6% below the ten year average. Total listings stood at 16,011 which is down 7% from June, 2013.
Average prices in Vancouver for detached homes in June were up more than 6% from a year ago but are still under $1 million at $976,700. For apartment condominiums, average prices rose 2.4% year-over-year to $378,000.
The comparison of this year’s month of June to June, 2013 in the Calgary real estate market requires some context as last year at this time, Calgary was dealing with the aftermath of the damaging flood which took a large bite out of sales activity. This year’s sales volumes in June were 18% above the ten year average for the month as the market continued its hot streak.
There was some relief from the severely tight market conditions which have plagued the market in recent months as new listings rose above the long term average in June for the first time since 2010. Inventory levels rose as a result but balanced market conditions remain well out of reach for now.
The single-family unadjusted benchmark price was $509,700 in June, representing an 11% increase from the same period last year. For condominiums, the “apartment-style” benchmark price was $299,700 and for “townhouse-style” units, it was $326,000.
The Toronto Real Estate Board welcomed a new President in June. Paul Etherington’s first monthly sales report featured an increase of more than 15% in sales volumes from a year earlier as there were more than 10,000 sales recorded in June. New listings also rose but not by as much which means that competition among buyers increased yet again in June. Many areas of the Greater Toronto Area have less than two month of inventory of listed properties. TREB predicts that with the current level of pent-up demand, sales should be strong throughout the rest of the summer.
The average sale price of a home in Toronto reached $568,953 in June, a 7.4% increase from a year ago. Prices for detached properties in the “416” area – the City of Toronto – reached $921,127 in June, moving ever closer to prices in the Vancouver market. Despite the abundance of new units reaching completion and the number of resale units listed for sale, the condominium market in Toronto remains strong as average prices moved ahead by 6.8% from a year ago.