Prince William and Kate release photo of daughter Charlotte to mark ninth birthday
Prince William and his wife Kate released a picture of their daughter Charlotte to mark the princess's ninth birthday on Thursday.
Home sales across the country are starting to fall back from highs seen earlier in the year, but the Canadian Real Estate Association still expects the number of transactions during 2021 to set a new record.
May's 56,156 sales were a 7.4 per cent drop from April's 60,638, the association reported, and month-over-month sales declines occurred in close to 80 per cent of all markets.
The number of transactions in May was a significant drop compared with a year ago, when the COVID-19 pandemic was spreading rapidly through the country, but the association expects sales to edge toward more typical levels through the latter half of 2021 and into 2022.
The association is predicting 2021 will see transactions rise 23.8 per cent from last year to reach a record-setting 682,900, then fall by 13 per cent to around 594,000 units in 2022.
CREA chair Cliff Stevenson attributed the slowing sales numbers to higher prices, a lack of supply and a general malaise spreading in many markets.
“More and more, there is anecdotal evidence of offer fatigue and frustration among buyers, and the urgency to lock down a place to ride out COVID would also be expected to fade,” he said, in a release.
CREA believes the declines in sales will be largest in B.C. and Ontario, where pre-pandemic bidding wars and soaring prices became even more intense during the health crisis.
It said these declines will create a “Simpson's Paradox,” where the average price in every province will experience a larger year-over-year increase than the national average because sales will shift away from the most expensive provincial markets.
The association expects the average home price will rise by 19.3 per cent on an annual basis to hit $677,775 this year and then edge up by less than one per cent to reach $681,500 in 2022.
The highest average home prices are expected in B.C., where CREA forecasts they will reach $883,781 in 2021 and 896,304 in 2022.
Ontario will trail close behind with an average price of $859,533 this year and $887,031 next.
The most affordable housing will be found in Newfoundland and Labrador, where homes will sell for an average $272,964 in 2021 and $279,937 in 2022.
Adil Dinani, a B.C. agent with Royal LePage West Real Estate Services, isn't surprised by the forecasts based on what he sees in his area.
“While the market has stabilized and we're no longer seeing rapid price growth, we're still very much in a seller's market,” he said.
“There's still a shortage of quality inventory and that's across all segments ... until that narrative changes, we're going to see prices hold.”
The national average price of a home sold in May was a little over $688,000, up 38.4 per cent from $497,189 during the same month last year.
When the Greater Vancouver and Greater Toronto areas are removed from that calculation, the average price sank by nearly $140,000, CREA said.
The average price in May was $1,179,831 in Greater Vancouver alone and $1,108,462 in the GTA.
Across the entire country, the association said the number of new listings fell 6.4 per cent to 74,466 in May, down from 79,572 in April.
Listings were down in about 70 per cent of markets with the Halifax-Dartmouth region seeing a 32.4 per cent decline compared to April, the biggest drop seen across the country.
The smallest decreases were in Greater Vancouver, Saskatoon, Regina, Trois-Rivieres and Sherbrooke, which were down by less than one per cent each.
On a sales-to-new listings basis, BMO Capital Markets senior economist Robert Kavcic said the tightest markets remain in cottage country areas like the Okanagan in B.C. and Kawartha Lakes in Ontario.
He attributed the cooling materializing nationally to a combination of buyer fatigue, five-year fixed mortgage rates edging up, policy measures like the bump in the mortgage qualification rate and the stampede out of out larger cities that Canada saw as companies increasingly allowed remote work.
“Home sales have backed off from extreme levels seen in recent months, but current activity is still historically strong and fostering outsized price growth,” Kavcic wrote in a note to investors.
“We believe that sales activity will continue to gradually cool in the year ahead, but it's going to take higher interest rates to soften the market in a meaningful way.”
This report by The Canadian Press was first published June 15, 2021.
Prince William and his wife Kate released a picture of their daughter Charlotte to mark the princess's ninth birthday on Thursday.
A Canadian restaurant lowered its prices this week, and though news of price tags dropping rather than climbing sounds unusual, the business strategy in this case is not, according to experts in the field.
A 49-year-old man has been charged in connection with an alleged assault that happened earlier this week in Dartmouth, N.S.
Inspections are underway at more than one Loblaws location in Ottawa after complaints were filed about tall Plexiglas barriers.
Archeologists have unearthed the skeletons of five people, missing their hands and feet, at a former Nazi military base in Poland.
Nathaly Paola Castro Torres has a rare disorder called Laron syndrome that is caused by a genetic mutation. It stunts her growth but also provides a hidden silver lining: Her body is protected from chronic diseases such as cancer that often take life away long before old age.
Canadian baseball player Tyler Black made a major splash in his first-ever big league game for the Milwaukee Brewers on Tuesday night.
Guitarist Duane Eddy, best known for twangy riffs on hits such as 'Rebel Rouser' and 'Cannonball,' has died at the age of 86.
Scientists studying a Neanderthal woman's remains have painstakingly pieced together her skull from 200 bone fragments to understand what she may have looked like.
A group of SaskPower workers recently received special recognition at the legislature – for their efforts in repairing one of Saskatchewan's largest power plants after it was knocked offline for months following a serious flood last summer.
A police officer on Montreal's South Shore anonymously donated a kidney that wound up drastically changing the life of a schoolteacher living on dialysis.
Since 1932, Montreal's Henri Henri has been filled to the brim with every possible kind of hat, from newsboy caps to feathered fedoras.
Police in Oak Bay, B.C., had to close a stretch of road Sunday to help an elephant seal named Emerson get safely back into the water.
Out of more than 9,000 entries from over 2,000 breweries in 50 countries, a handful of B.C. brews landed on the podium at the World Beer Cup this week.
Raneem, 10, lives with a neurological condition and liver disease and needs Cholbam, a medication, for a longer and healthier life.
The lawyer for a residential school survivor leading a proposed class-action defamation lawsuit against the Catholic Church over residential schools says the court action is a last resort.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.