Ontario Real Estate overall markets report mixed October sales amid tight inventory!!
Home sales nationally will decline 11.5 per cent following the tightening of mortgage rules by the federal government.
That’s the latest assessment from RBC Economics which says that benchmark prices will still rise but growth will be a moderate 1.6 per cent in the year ahead, compared to the 9.5 per cent seen this year.
RBC’s outlook expects sales to drop less than 3 per cent in Manitoba but approximately 24 per cent in British Columbia; the high figure for BC represents additional easing from the provincial foreign buyers’ tax.
The benchmark price should rise in all provinces except Newfoundland and Labrador, Alberta and Saskatchewan.
Overall, the RBC does not predict a crash but a soft landing but it says that there is additional potential risk to markets on both the positive and negative side and its outlook assumes that there is no further policy intervention.
Home sales in three markets in Ontario, other than the GTA, show mixed results for October as demand for homes struggled to be met.
In the south of the province, there was a record-breaking month for London-St. Thomas while Windsor-Essex Country saw sales slip from a year ago. Meanwhile, there was strong growth for Bruce Grey Owen Sound in the west.
The best October ever for London-St Thomas saw 825 homes sold by London and St. Thomas Association of Realtors, up 18.7 per cent compared to a year earlier.
“The runner up for best October ever was in 2006, when 711 homes exchanged hands,” says Stacey Evoy, LSTAR’s 2016 President. “Not even close!”
Prices were up year-to-date by 5.3 per cent compared to the same period of 2015 with the average sales price at $278,471. Inventory was down by a third.
In Windsor-Essex County, sales and market activity eased in October. Sales were down 6 per cent year-over-year while activity slipped 3.3 per cent.
However, year-to-date figures from Windsor-Essex County Association of Realtors show activity up 1.86 per cent and sales rising 10.6 per cent to 5,911.
Prices continued higher in October, up 14.91 per cent to an average of $230,754.
Finally the Realtors Association of Bruce Grey Owen Sound reported a new record for the month with 277 sales, up 28.2 per cent from a year earlier. The average price rose 7.3 per cent to $262,281 as inventory fell 39.5 per cent.