As we delve into the real estate market for the month of March, it's evident that each city has its own unique story to tell. From Victoria to Nanaimo, Vancouver to Calgary to Toronto, the trends and statistics vary, showcasing the diverse nature of Canada's real estate landscape. All across the country we are facing high interest rates, high demand for housing due to record immigration numbers and slow down in construction starts. It’s a perfect storm for prices to go even higher in this mostly balanced market.  
Let's take a closer look at the market performance in each of these cities.

Victoria

“We’ve concluded a rather quiet first quarter and are transitioning into the spring market,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “Many of our local REALTOR® members are noting that more shoppers are coming into the market – but this has not necessarily translated into sales numbers. This may change as we move into what is historically the busiest market of the year.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2023 was $1,258,300. The benchmark value for the same home in March 2024 increased by 1.7 per cent to $1,279,300, up from February’s value of $1,247,400. The MLS® HPI benchmark value for a condominium in the Victoria Core area in March 2023 was $549,000 while the benchmark value for the same condominium in March 2024 increased by 3.3 per cent to $567,300, up from the February value of $557,000.

FULL REPORT HERE

Vancouver
The Greater Vancouver REALTORS® (GVR)2 reports that residential sales3 in the region totalled 2,415 in March 2024, a 4.7 per cent decrease from the 2,535 sales recorded in March 2023. This was 31.2 per cent below the 10-year seasonal average (3,512). “If you’re finding the weather a little chillier than last spring, you may find some comfort in knowing that the market isn’t quite as hot as it was last spring either, particularly if you’re a buyer,” Andrew Lis, GVR’s director of economics and data analytics said. “Despite the welcome increase in inventory, the overall market balance continues inching deeper into sellers’ market territory, which suggests demand remains strong for well-priced and well located properties.”

The benchmark price for a detached home is $1,972,400. This represents a 7.2 per cent increase from February 2023 and a 1.5 per cent increase compared to January 2024. The benchmark price of an apartment home is $770,700. The benchmark price of a townhouse is $1,094,700

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 10,552, a 22.5 per cent increase compared to March 2023 (8,617). This is 6.3 per cent above the 10-year seasonal average (9,923).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for March 2024 is 23.8 per cent. By property type, the ratio is 18.2 per cent for detached homes, 31.3 per cent for attached, and 25.8 per cent for apartments.

Sales of detached homes in March 2024 reached 694, a 5.4 per cent decrease from the 734 detached sales recorded in March 2023. The benchmark price for a detached home is $2,007,900. This represents a 7.4 per cent increase from March 2023 and a 1.8 per cent increase compared to February 2024.

Sales of apartment homes reached 1,207 in March 2024, a 7.9 per cent decrease compared to the 1,311 sales in March 2023. The benchmark price of an apartment home is $777,500. This represents a 5.7 per cent increase from March 2023 and a 0.9 per cent increase compared to February 2024.

Attached home sales in March 2024 totaled 495, a 6.2 per cent increase compared to the 466 sales in March 2023. The benchmark price of a townhouse is $1,112,800. This represents a 5 per cent increase from March 2023 and a 1.7 per cent increase compared to February 2024.

FULL REPORT HERE

Calgary
March reflects strong seller's market and price increases.
“We have not seen March conditions this tight since 2006, which is also the last time we reported high levels of interprovincial migration and a months-of-supply below one month," said Ann-Marie Lurie, Chief Economist at CREB®. “Moreover, we are entering the third consecutive year of a market favouring the seller as the two-year spike in migration has driven up demand and contributed to the drop in re-sale and rental supply. Given supply adjustments take time, it is not a surprise that we continue to see upward pressure on home prices.”

Inventory levels have declined across properties priced below $1,000,000, with the steepest declines occurring for homes priced below $500,000. In March, there were 2,532 units in inventory, 22 per cent lower than last year and half the levels we traditionally see in March.

Detached homes:
Low inventories compared to sales caused the months of supply to drop below one month, driving further price gains. The unadjusted detached benchmark price rose to $739,700, a monthly gain of nearly three per cent and a year over-year gain of 14 per cent. The largest year-over-year gains occurred in the most affordable North East and East districts.
Semi-Detached:
Limited supply and growing demand drove further price gains in March. The unadjusted benchmark price reached $658,000, nearly three per cent higher than last month and a 14 per cent gain over last March. Prices rose across all districts in the city, with year-over-year gains ranging from a low of 11 per cent in the highest-priced area of the City Centre to 25 per cent in the lowest-priced market in the East district.
Row:
The decline in inventory levels was driven by properties priced below $400,000, as inventory levels rose 35 per cent for units priced above $400,000. The unadjusted benchmark price trended up in March, reaching $448,700, a monthly gain of nearly three per cent and over 20 per cent higher than levels reported at this time last year. The higher-priced City Centre reported the slowest growth in benchmark prices, with the highest growth reported in the city's most affordable districts.
Apartments:
Demand for lower-priced homes has supported the growth of apartment-style properties, but the tight conditions have also contributed to further price gains. In March, the benchmark prices reached $337,700, over two per cent higher than last month and 17 per cent higher than levels reported last March.

FULL REPORT HERE

Toronto

“We have seen a gradual improvement in market conditions over the past quarter. More buyers have adjusted to the higher interest rate environment. At the same time, homeowners may be anticipating an improvement in market conditions in the spring, which helps explain the marked increase in new listings so far this year. Assuming we benefit from lower borrowing costs in the near future, sales will increase further, new listings will be absorbed, and tighter market conditions will push selling prices higher,” said TRREB President Jennifer Pearce.

“The average selling price edged up in comparison to last year as we moved through the first quarter of 2024. Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and sellers’ market conditions start to emerge in many neighbourhoods. Lower borrowing costs in the months ahead will help fuel increased demand for ownership housing,” said TRREB Chief Market Analyst Jason Mercer.

The average price of a detached home in the area code (416) is $1,708,437. Semi-detached: $1,300,403. Townhouse $999,771. Condo:$729,392.

FULL REPORT HERE

Nanaimo
MARCH HOUSING MARKET CALMER THAN EXPECTED
“As we reported last month, there is a lot of interest among potential buyers,” says Jason Yochim, VIREB Chief Executive Officer. “REALTORS® are definitely busy, although the statistics don’t reflect that. We expect it will be June before the numbers catch up with pent-up demand.”
“The VIREB area is geographically widespread, so market conditions in Nanaimo won’t be the same as in Port Alberni,” adds Yochim. “However, properties priced appropriately for their location attract the most interest and sell more quickly than overpriced homes. That’s why the knowledge a local REALTOR® brings to the table is invaluable.”
In Campbell River, the benchmark price of a single-family home was $677,500 last month, up eight per cent from the previous year. The Comox Valley’s year-over-year benchmark price rose by 10 per cent to $856,300. In the Cowichan Valley, the benchmark price was $753,200, a three per cent increase from March 2023. Nanaimo’s year-over-year benchmark price rose by six per cent to reach $794,900, while the Parksville-Qualicum area saw its benchmark price increase by two per cent to $867,300. The cost of a benchmark single-family home in Port Alberni was $528,800, up four per cent from the previous year. For the North Island, the benchmark price of a single-family home rose by four per cent to $407,100.

FULL REPORT HERE

Quadra Island Real Estate:

March had a busy start on Quadra Island, with 7 new listings, 3 pending, 1 sold. All prices were between $419,000 and 1,199,000, one at $6,5000,000. Out of the 11 listings 3 are over the million dollar mark. Quadra Island has currently 21 active listings.
March activity on Quadra Island here

Current Listings on Quadra Island here

Cortes Island Real Estate:
Cortes saw 2 new listings, one of which was a re-list, one sold, and 1 expired. Cortes currently has 10 active listings.
March activity on Cortes Island here

CORTES ISLAND REAL ESTATE LISTINGS

 In conclusion, statistics can be manipulated and don’t necessarily show the whole picture. It’s very clear that Canada’s immigration policy is flawed and our country is taking more immigrants than new housing builds. This is creating a massive shortage of housing across the whole country. With 500,000 new immigrants expected this year the demand is not going to slow down much. Let’s be realistic, rents can not continue to go up endlessly. There is a cap on tenant’s ability to pay rent. Are we nearing that cap? Based on the most current sales it clearly appears that less transactions happen. In the month of March specifically, Vancouver has seen 31% less transactions than the 10 year seasonal average. Vancouver Island Real Estate Board: Campbell River 45% decline YoY of transactions. Comox 36% Less transactions than last year. Nanaimo 11% less, Parksville 31% less, Port Alberni almost 7% less, Cowichan Valley is the only area that has seen more sales than last year with 1.72% growth. Calgary is still in a very strong seller’s market with almost 10% growth in transactions! Toronto had less transactions but it’s in single digits still. Let’s see what happens in the next couple of weeks with the start of spring market. Last year spring market had an earlier start compared to this year. Maybe we need some good weather to wake up the buyers or maybe this is how things will be this year. That remains to be seen. I can’t predict the future, but I feel that the market will be much slower this year. The key to selling your home today is to make sure the property is in good shape and priced very well, otherwise it won’t sell; just like many new listings that are coming to the market now. 

As we begin 2024, it's time to reflect on the state of the real estate market across Canada. December is often a pivotal month, offering insights into the market's performance over the past year and providing indicators of what may lie ahead in the coming year. In this blog post, we'll delve into the December 2023 statistics from various regions across the country to gain a comprehensive understanding of the current market conditions.

Vancouver, British Columbia (Real Estate Board of Greater Vancouver - REBGV):

In December 2023, the Vancouver real estate market continued to display strength, with the average price of a single-family home reaching $1,965,000. The benchmark price of a single-family home increased by 7.7% compared to the previous year, reflecting the ongoing demand in the region.

Full report here

Victoria, British Columbia (Victoria Real Estate Board - VREB):

Victoria's real estate market also demonstrated resilience, with the average price of a single-family home reaching $1,275,000 in December 2023. The benchmark price of a single-family home increased by 6.2% compared to the previous year, showcasing the city's appeal to homebuyers.

Full report here

Calgary, Alberta (Calgary Real Estate Board - CREB):

In Calgary, the average price of a single-family home in the city of Calgary was $697,400 in December 2023. While the market showed signs of stability, with a benchmark price increase of 12.8% compared to the previous year, it also faced challenges related to economic factors and supply dynamics.

Full report here

Toronto, Ontario (Toronto Regional Real Estate Board - TRREB):

Toronto's real estate market remained robust, with the average price of a single-family home in area 416 reaching $1,626,980 in December 2023. The average price of a single-family home decrease by -0.3% compared to the previous year, reflecting the city's status as a competitive real estate market.

Full report here

Nanaimo
High interest rates are primarily to blame for the weaker sales, as there was significant demand, but many buyers opted to wait for an anticipated 2024 rate cut.
Benchmark price for detached homes: Comox Valley- $820,600; Cowichan Valley- $763,400; Nanaimo- $781,900; Parksville- $845,200; Port Alberni- $530,700; North Island- $426,300

Campbell River $653,100 up from $607,900 from last year. 
Quadra Island had one sold, one pending, one withdrawn and one property expired. 

Full report here

Market Trends and Predictions:

Across Canada, the real estate market in December 2023 displayed resilience and growth in many regions. Low interest rates, demographic shifts, and a strong desire for homeownership contributed to the market's performance. However, supply constraints and affordability challenges remained key factors affecting certain markets.

Looking ahead to 2024, it's essential to monitor factors such as interest rate changes, government policies, and economic indicators that could influence the real estate landscape. Continued demand for housing, coupled with supply-side challenges, is likely to shape the market's trajectory in the coming months.

Conclusion:

The December 2023 real estate statistics across Canada reflect a diverse landscape characterized by growth, stability, and unique regional dynamics. As we move into the new year, staying informed about market trends and developments will be crucial for both buyers and sellers navigating the Canadian real estate market.

By analyzing the data from different regions, we gain valuable insights into the broader trends shaping the industry and can make informed decisions about real estate investments and transactions. As always, it's advisable to consult with real estate professionals for personalized advice tailored to specific needs and objectives in this dynamic market.

Winter on the West Coast of British Columbia brings its own unique challenges and beauty. While the region is known for its milder temperatures compared to other parts of Canada, it's essential to prepare your home for the rainy season, occasional frost, and potential storms. In this article, we'll explore practical tips and considerations to ensure your West Coast home is ready to face the winter months.

1. Inspect Your Roof and Gutters:

   • Start by checking your roof for any missing or damaged shingles. Repair any issues to prevent leaks.

   • Clean out gutters and downspouts to ensure proper water drainage. This helps prevent water damage and ice buildup.

2. Seal Windows and Doors:

   • Inspect window and door frames for drafts. Seal any gaps or cracks with weatherstripping to improve insulation.

   • Consider using draft stoppers at the bottom of doors to prevent cold air from entering your home.

3. Check Heating Systems:

   • Schedule a professional inspection of your heating system to ensure it's in good working condition.

   • Replace furnace filters regularly for optimal performance and energy efficiency.

4. Insulate Pipes:

   • Insulate exposed pipes to prevent freezing. This is crucial, especially during colder nights.

   • Disconnect and drain outdoor hoses, and shut off the exterior water supply to prevent pipe damage.

5. Chimney Maintenance:

   • If you have a wood-burning fireplace, have the chimney cleaned and inspected before use.

   • Ensure the damper is working correctly to prevent drafts.

6. Prepare the Garden:

   • Trim back overhanging branches to prevent them from breaking under the weight of snow or ice.

   • Clear dead vegetation and debris from gutters, flower beds, and around the foundation.

7. Protect Outdoor Furniture:

   • Store or cover outdoor furniture to protect it from the elements.

   • Consider investing in covers for barbecues and other equipment left outside.

8. Emergency Kit:

   • Prepare an emergency kit that includes essentials like flashlights, batteries, candles, and non-perishable food items.

   • Keep a battery-powered radio on hand for weather updates during storms.

9. Check Carbon Monoxide and Smoke Detectors:

   • Test carbon monoxide and smoke detectors, and replace batteries if needed.

   • Consider installing a CO2 detector if you don't already have one.

10. Landscaping and Lawn Care:

    • Trim back trees and bushes to prevent damage during winter storms.

    • Fertilize and aerate your lawn to ensure it stays healthy through the colder months.

11. Clean and Store Summer Gear:

    • Clean and properly store summer items like patio furniture, pool equipment, and gardening tools.

    • Consider covering air conditioning units to protect them from winter weather.

12. Prepare for Power Outages:

    • Invest in a generator or ensure you have alternative heating sources, such as a fireplace or portable heater.

    • Stock up on essentials like candles, blankets, and non-perishable food items.

13. Check Insulation:

    • Inspect your home's insulation for any signs of wear or damage. Proper insulation helps regulate indoor temperatures.

    • Consider adding additional insulation in the attic to improve energy efficiency.

14. Winterize Your Garden:

    • Mulch garden beds to protect plants and soil from freezing temperatures.

    • Consider planting winter-friendly vegetables and flowers suitable for the West Coast climate.

15. Community Preparedness:

    • Stay informed about local weather forecasts and community emergency plans.

    • Connect with neighbors and create a support network in case of severe weather events.

Conclusion:

Preparing your Quadra Island home for winter is a proactive approach to ensure comfort, safety, and the longevity of your property. By taking these steps, you'll be well-equipped to face the unique challenges that the winter season may bring to the beautiful region of British Columbia's West Coast.

Spring Market.

Spring Market is just around the corner. Historically the busiest time in Real Estate starts in April and goes on until about August. Usually the busiest months are April, May and June but last couple years March was also very busy. 

As usual a lot of people considering a move and thinking about selling are calling their realtors with questions. I would like to address some of the concerns here.

2022 has just started and so far, has been very turbulent already. Rising inflation, potential of rising interest rates, illegal government overreach, covid mandates, high immigration targets and now conflict in Ukraine, to name a few.

Making rational decisions based on facts can get hard because it seems there are many variables that can change weekly.

Why is spring market good for buyers and sellers?

Simply put, curb appeal! Hopefully when spring hits, all snow is melted and spring flowers make your yards look beautiful. The trees are waking up with color and people feel more energized and wanting to move. 

Since the pandemic has started more home buyers decided to reconfigure their lives, priorities changed and also the demand for larger homes with multi purpose rooms have increased. A lot of buyers have moved out of the highly densely populated cities into the suburbs or in many cases even changed the provinces in search for more affordable prices. We are still not clear if the exodus from big cities will continue or once offices open up, people will head back to cities, or if they will continue to work remotely.   

Rising inflation will be higher than we have seen in many years. In order for the central banks to combat the rising inflation they need to raise the interest rates.

Banks saw this trend coming, that’s why they introduced the “mortgage stress test”. The extra 2% buffer needed to qualify for a mortgage gives the bank confidence that borrowers will be able to make payments once the mortgage rates go up.
How does that translate in real life?

Based on a quick Google search, the average Canadian has a $372,000 mortgage. A 5 year closed mortgage of 4.79% will cost roughly $2120/ monthly.

If the mortgage rate goes up by 2% the monthly payments will be $2,560/ monthly

$440 increase in monthly payments.

Today we are facing record low inventory but the demand is still very high.

So, is now a good time to sell?

Every person is in a different place in their lives. Don’t base your decision on fear.  

Generally, best time to sell is during a seller’s market. We are in the strongest seller’s market in a long time. This is by far the best time to sell, based on historical data.

If you are thinking of buying it’s probably not the optimal time but it depends on your circumstance. If you can afford to wait until the market changes to a buyer’s market, then wait. If you must buy now, don’t expect to find any “deals”.

It is important to listen to a few opinions, ideas before making up our minds. The most important aspect is to listen to ourselves, to the feeling we have. Sometimes it’s not all about the money or timing.

My personal litmus test when making big decisions is to ask myself: is it going to hurt someone, does it come from respect, kindness and compassion? Whatever decision I make is a decision I’m willing to live with.

Over the last couple of years, we have followed so called “leaders” telling us how we should live but I really hope we have reached the end of this. It’s time to take charge of our lives and finally return back to kindness and community.  

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

 The first market statistics of the year were published late therefore I’m including them in this article instead of the last one. I can’t believe we are mid way through January already!

I’m assuming by now you have all received your BC Assessment and you’re excited at the fact that your home is worth more than 30% and in some cases even 50% more! Your property taxes will not go up by 50%, don’t worry. They will certainly go up though. 

Campbell River

According to the British Columbia Real Estate Association, the supply situation is especially critical in markets outside the Lower Mainland, with one of the worst being Vancouver Island. Even if sales were to return to long-run average levels, total listings would need to nearly double to achieve a balanced market, and the road to doubling those listings lies in building more homes.

“Expanding inventory is the key to affordability, and it requires a coordinated effort from all levels of government and adequate incentives for municipalities to take action,” says Mackay. “The public also has a role to play by being more open to gentle densification in some areas.”

Benchmark Price for a detached home in Campbell River in December reached: $689,000.

Benchmark Price for an apartment: $335,000.

Benchmark Price for a Townhouse: $505,300.

Average sale price in 2021, in Campbell River was $692,906 compared to $537,494 in 2020.

Quadra Island
Quadra Island saw a very busy December with 3 listings sold (pending), 2 sold, 1 cancelled and 1 expired.

Overall in 2021 Quadra Island had 42 listings in total that sold, 5 were cancelled, and 3 expired.

If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca 

Cortes Island

Cortes Island also had a relatively busy year with 14 listings sold, 2 cancelled, and 4 expired.

 If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Calgary

“2021 Record year for home sales”. Thanks to exceptionally high sales in December, 2021 was a record year for home sales. Calgary sales reached 27,686 units this year, nearly 72 per cent higher than last year and over 44 per cent higher than the 10-year average. “Concerns over inflation and rising lending rates likely created more urgency with buyers over the past few months. However, as is the case in many other cities, the supply has not kept pace with the demand causing strong price growth,” said CREB® Chief Economist Ann-Marie Lurie.

The benchmark price of detached homes in the city of Calgary hit $547,300; semi-detached: $432,400; row home: $300,100; apartments $252,000.

Vancouver

Metro Vancouver home sales reached an all-time high in 2021 as housing needs remained a top priority for residents in the second year of the COVID-19 pandemic.

“We begin 2022 with just over 5,000 homes for sale across the region. This is the lowest level we’ve seen in more than 30 years,” Keith Stewart, REBGV economist said. “With demand at record levels, residents shouldn’t expect home price growth to relent until there’s a more adequate supply of housing available to purchase.”

Looking across Metro Vancouver, Maple Ridge saw the largest increase in benchmark prices at 34.7 per cent, followed by Pitt Meadows (29.8 per cent) and Whistler (27.8 per cent).

The benchmark price for a detached home is $1,910,200. This represents a 22 per cent increase from December 2020.

The benchmark price of an apartment home is $761,800. This represents a 12.8 per cent increase from December 2020.

The benchmark price of an attached home is $1,004,900. This represents a 22 per cent increase from December 2020.

Toronto

In December, GTA REALTORS® reported 6,031 sales – a strong result historically, but still down by more than 1,000 transactions (-15.7 per cent) compared to the record of 7,154 set in December 2020. Over the same period, new listings were down by 11.9 per cent to 5,174. The MLS® Home Price Index Composite benchmark was up by 31.1 per cent year-over-year in December. The average selling price was up by 24.2 per cent annually to $1,157,849.

The average price for a detached home in area (416) is $1,698,178.

The average price of a semi-detached home (416) is 1,342,429.

The average price of a townhouse (416) is $997,208.

The average price of a condo (416) is $730,792 as reported by the Toronto Regional Real Estate Board (TREBB).

Prediction for 2022- more of the same. Looks like the biggest problem we currently have is a huge demand for housing but supply of new housing is just not meeting the demand. Being a buyer in this market is very hard, especially if you don't have a $1million dollars for a downpayment. 

In my opinion, the most important drivers of housing crisis are the artificial low interest rates and very high numbers of newcomers to Canada. According to Sean Fraser (Minister of Immigration), Canada welcomed 401,000 new immigrants in 2021.This is the most newcomers in a year in Canadian history since 1913. Federal government is planning to bring 411,000 immigrants in 2022. Just to be very clear- I'm not blaming immigrants for this crisis. This is just a bad policy by the feds. 

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca