Sales and values of homes in the Canadian cities of Vancouver and Toronto rose during 2013, despite predictions of overheating
Other
Home sales and values in the major Canadian cities of Vancouver and Toronto have both risen year-on-year in 2013, confounding gloomy predictions.
Sales in Vancouver, British Columbia, rose 14% year-on-year, while in Toronto, Ontario, they were up 2% year-on-year.
Average property prices in Vancouver were up 2.1% in the year to December 2013 at CAN$603,400 and rose 6.3% in Toronto to CAN$483,200, according to the MLS Home Price Index composite benchmark.
Vancouver sales of detached, attached and apartments in 2013 reached 28,524, compared with 25,032 in 2012, but were 11.9% down on the 32,390 total in 2011, according to Real the Estate Board of Greater Vancouver (REBGV).
Taking the month of December 2013 alone, sales rose 71% to 1,953, compared with 1,142 in December 2012 and were 8.1% above the 10-year December sales average of 1,807.
In Toronto, sales for the whole of 2013 reached 87,111, up around 2% on the 85,496 in 2012, says the Toronto Real Estate Board.
Experienced Vancouver real estate marketer and columnist, Nicola Way, of BestHomesBC.com, says overseas property buyers play a role in boosting the numbers, but it is difficult to tell by how much.
She tells OPP Connect, “Despite ongoing warnings of an overheated market, Vancouver, like Toronto and Calgary, registered higher property sales than expected in 2013. Total sales in Metro Vancouver were up 14 percent compared to 2012 showing demand for all types of housing – detached, attached, and condos – is not abating any time soon. This demand has also created a rise in the average price of a home.
“Certainly, overseas buyers play a role in boosting these figures, but how much of a part they play is still not known, as Canada does not keep records of a buyer’s country of residence.
“This may change, but in the meantime, all we can do is speculate. However, with Vancouver consistently being rated one of the top cities in the world to live, alongside its reputation for having excellent schools, current low levels of interest rates, and an increasing number of direct flights to Pacific Rim cities, overseas buyers continue to be attracted to Canada’s west coast.”
REBGV President, Sandra Wyant, says last year’s home sale total ranks as the third lowest annual total for the region in the last ten years, according to the region’s Multiple Listing Service.
“Home sales quietly improved last year compared to 2012, although the volume of activity didn’t compare to some of the record-breaking years we experienced over the last decade,”
The number of homes listed for sale on the MLS® in Metro Vancouver fell 6.2% in 2013 to 54,742 compared to 58,379 in 2012 and 8.1% down on 2011’s total of 59,539. However, it is around the 10-year average.
December home sales in Toronto reached 4,078 for the month, up from 3,582 in December 2012, says the Toronto Real Estate Board.
Dianne Usher, President of the Toronto Real Estate Board says, “After a slow start to the year, sales growth accelerated to a brisk pace in the second half of 2013.
“Despite the inclement weather in December, we finished the year with a respectable gain in transactions compared to 2012.”
The average price for a home sold in December was CAN$520,398, up 8.9% compared with December 2012’s figure of CAN$477,756.
New listings for the Toronto market in December were down by almost four per cent over the same period.
Copyright 2013 OPP CONNECT