Monthly Market Statistics Update
REALTORS® From Across Canada Urge Governments to Reduce Costs and Remove Barriers to Home Ownership
September 12, 2019
REALTOR® associations from Canada’s largest real estate markets are calling on all levels of government to take meaningful action to make home ownership more accessible to people across the country.
With a federal election on October 21, the Toronto, Calgary and Vancouver real estate boards, together with the Quebec Professional Association of Real Estate Brokers, the REALTORS® Association of Edmonton and the Nova Scotia Association of REALTORS® are urging the federal political parties to commit to policies that will help remove barriers and reduce the cost of home ownership.
These organizations are asking the federal political parties to adopt the following housing affordability recommendations:
- Revise the Office of the Superintendent of Financial Institution’s (OSFI) mortgage stress test to take into account its impact on different real estate markets across the country. The federal government should view the stress test as a flexible policy and adjust it based on changing economic trends and interest rates.
- Replace the $750 First-Time Home Buyers Tax Credit with a $2,500 non-refundable tax credit for first-time home buyers.
- Reintroduce 30-year mortgage amortizations.
- Consider regional differences when implementing nation-wide measures that affect home buyers.
With housing affordability and supply a top-of-mind issue for Canadians, REALTORS® across the country want to work with federal, provincial and municipal governments to increase home ownership in Canada. There is too much regulation, at all levels of government, focused on curbing demand and providing “one-size-fits-all” solutions that do not take local market conditions into account.
“Home ownership is a key component of the national economic fabric and its role in creating economic diversity cannot be overlooked. To help Canadians, the real estate market must have liquidity, but the federal government’s anti-homeownership policies have made it difficult for millennials to purchase their first home, difficult for families to upsize or downsize as their needs change and difficult for seniors to exit the market. For example, the mortgage stress test, implemented as national policy with total disregard for regional differences, has had a significant downward impact on the price point at which buyers can qualify and purchase. This has lowered prices and stolen equity from homeowners. Home equity is a substantial asset for many Canadians, and this equity will not be easily or quickly rebuilt,” said Michael Brodrick, Chair, REALTORS® Association of Edmonton.
August Residential Prices Remain Stable Despite Drop In Sales
Edmonton, September 4, 2019
Total residential unit sales in the
Edmonton Census Metropolitan Area (CMA) real estate market for the month of August
2019 dropped 6.38% compared to August 2018. The number of new residential
listings is also down, dropping 4.73% from August 2018, and overall inventory
in the Edmonton CMA fell 12.21% from August of last year.
Single family home unit sales are down 9.01%,
while condo unit sales dropped 3.05%, and unit sales of duplexes fell 4.40% from
the same period of time last year.
All residential average prices remained
stable at $367,339, similar to August 2018, and are virtually unchanged from July
2019. Single family homes sold for an average of $434,634, a 2.24%
year-over-year increase from August 2018, and a 1.14% increase from July 2019.
Condominiums sold for an average of $234,480, a 5.16% drop year-over-year, but an
increase of 5.19% from the previous month. Duplexes are up 7.00% from last year
to $354,455, which was a 6.34% increase from the previous month.
“Edmonton real estate prices have remained
relatively stable” says REALTORS® Association of Edmonton Chair Michael
Brodrick. “Single family home pricing is virtually unchanged, condos are up 5.19%
from last month, while duplexes increased 7.00% year-over-year.”
Single family homes averaged 57 days on the
market, a one day decrease from last year. Condos spent one day longer on the
market, from 73 to 74 days, while duplexes averaged 61 days on market, a two
day decrease from August 2018. Overall, all residential listings averaged 62
days on market, a 1.59% decrease year-over-year, and remained the same as the
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