Month: April 2020

Quebec’s Q1 home sales numbers have reached a new record high, but the market will encounter substantial coronavirus-impelled challenges in the months ahead, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).

The province saw its 23rd straight quarterly increase in sales activity during the first three months of 2020, having grown by 18% year-over-year to reach a total of 27,817 transactions. Meanwhile, the average sales price stood at $275,000 (up 8% annually).

The economic ravages of COVID-19 will derail this trend, however.

Quebec’s first-quarter performance “will be a sharp contrast to the decline that we are expected to in the second quarter of the year, due to the application of social distancing measures and the suspension of so-called non-essential economic activities imposed by the government,” said Julie Saucier, QPAREB president and chief executive officer.

Still, fundamental market strength will impart some much-needed momentum over several quarters, said Charles Brant, QPAREB market analysis director.

“This market vitality, which has been artificially halted since mid-March, suggests resilience for the coming months,” Brant said. “It thus bodes well for a significant latent demand from buyers while the supply of residential properties on the market should continue to be relatively limited in many areas.”

Supply fell for the 17th consecutive quarter between January and March. Inventory during the period stood at 48,787 residential properties for sale, having dropped by 21% year-over-year.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

The impact of the COVID-19 pandemic on the already-battered Alberta housing segment will persist over the next few quarters, according to the Alberta Real Estate Association (AREA).

“This is an unprecedented time with a significant amount of uncertainty. It is not a surprise to see these concerns also weigh on the housing market,” said Ann-Marie Lurie, AREA chief economist.

Alberta’s average home price was $371,022 last month, having declined by 2.64% annually. The number of new listings dropped by 14.54%, while the stock of homes available in the market contracted by 5.76%.

Provincial sales fell by 8.5% during the same time frame. Activity in Calgary and Edmonton shrunk by roughly 10% and 3%, respectively.

These observations were supported by recent Q1 figures from Royal LePage, which found that Calgary had nearly flat housing prices (0.1% annual drop to $469,156), while Edmonton suffered a notable decline (1.4% year-over-year to $371,118).

Fortunately, the market will have considerable support despite the mobility restrictions associated with the anti-coronavirus policies currently in force.

“Measures put in place by the government and lending institutions to help support home owners through this time of job and income loss will prevent more significant impacts in the housing market,” Lurie said.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Unemployment has a disproportionate impact on the country’s largest housing markets, according to new Statistics Canada figures.

Across Canada, the employment sector declined by 5.3% from February to March, representing more than 1 million lost jobs. The unemployment rate rose to 7.8%, spurred by a record high 2.2% monthly increase.

Of particular concern is the sharp drop in employment in the private sector (down 6.7%), which was at a rate nearly double that of the public sector (down 3.7%).

“Unemployment increased by 413,000 (+36.4%), largely due to temporary layoffs,” Statistics Canada said. “In addition, the number of Canadians who had worked recently and wanted to work, but did not meet the official definition of unemployed, increased by 193,000.”

The agency’s March figures also indicated that unemployment rates in Toronto, Vancouver, and Montreal have experienced rapid increases last month.

The trend is compounding the already severe socio-economic effects of the COVID-19 pandemic, according to real estate information portal Better Dwelling.

Toronto’s unemployment rate stood at 7.8% as of March, having grown 11.42% annually. Meanwhile, Vancouver saw its share of unemployed workers shoot up by 68.89% year-over-year to reach 7.6% – a sharp about-face from the numbers traditionally associated with the city’s robust labour sector.

Of the top housing markets, Montreal suffered the highest unemployment rate last month, increasing by 51.67% annually to end up at 9.1%.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate