Prices

Pandemic-shift: spike in savings diverted into housing driving national median home prices up 8.6%, according to Royal LePage | Nachricht

Despite second wave worries, the median price of a home in Canada forecast to finish year 7.0% higher than year-end 2019

  • Delayed spring market extends through Q3 as pent up demand fuels prices and sales
  • 97% of regions surveyed post price appreciation in third quarter despite economic shock of COVID-19
  • Ontario and Quebec real estate markets dominate list of highest appreciating regions, with Windsor in the top spot at 17.0%

TORONTO, Oct. 14, 2020 /CNW/ – According to the Royal LePage House Price Survey and Market Survey Forecast released today, the aggregate1 price of a home in Canada increased 8.6 per cent year-over-year to $692,964 in the third quarter, as high demand and low inventory continued to fuel a seller’s market.

The Royal LePage National House Price Composite is compiled from proprietary property data in 64 of the nation’s largest real estate markets. When broken out by housing type, the median price of a standard two-storey home rose 10.0 per cent year-over-year to $819,906, while the median price of a bungalow increased 7.0 per cent to $570,701. The median price of a condominium increased 5.3 per cent year-over-year to $510,365. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.

“Typical consumption patterns have been disrupted in 2020 as the pandemic has driven the household savings rate to levels not seen in decades,” said Phil Soper, president and CEO of Royal LePage. “Most Canadians have sharply reduced spending on discretionary goods and services involving a great deal of human interaction, and with mortgage rates at record lows, many have refocused on housing investments, be it renovations to accommodate work-from-home needs, a recreational property or a new

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Lorella design offers spacious living room | Current Prices

An intriguing three-step hipped roof crowns the Lorella, a small home with a surprisingly spacious living room. Its stately brick column works with the brick detailing on the garage to create an attractive frame for the front door and sidelight.

This plan’s narrow footprint, a mere 40 feet in width, allows for construction on a small lot, deeper than it is wide.

Parents with young children will appreciate the close proximity of the bedrooms, all on the right. Bathrooms, utilities, and closets placed down the middle do double duty, serving as sound buffers between the sleeping rooms and the typically noisier active living areas.

Standing in front of the living room’s gas fireplace, you can gaze outside in three directions. Wide multipaned windows fill most of the front wall, sliders at the rear look out across a patio, and another set of windows flanks the fireplace. On days when you don’t want to be reminded of the weather, you can lift your spirits by shifting focus to the colorful flames in the fireplace.

The kitchen is large enough to provide plenty of cupboard and counter space, yet small enough to be efficient. Counter space wraps around all four sides. The peninsula bordering the dining room could be outfitted as an eating bar, and the partially covered patio outside the sliding glass doors could be screened in, if desired.

Luxury touches in the Lorella’s owners’ suite include a roomy walk-in closet, and a private bathroom with oversized shower, double vanity, and display shelves. Utilities are close to both bedrooms and the garage, located in a pass-through space that also serves as a mud room.

Associated Designs is the original source for the Lorella 30-154. For more information or to view other designs, visit www.AssociatedDesigns.com or call 800-634-0123.

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Red hot home prices have more consumers saying now is a bad time to buy

People wait to visit a house for sale in Floral Park, Nassau County, New York.

Wang Ying | Xinhua News Agency | Getty Images

Anyone out hunting for a house knows that bidding wars are no longer the exception, but the rule.

Demand for housing has been unusually strong, due to the coronavirus pandemic, and supply is historically lean. That is a recipe for high prices, which are now beginning to take their toll on potential homebuyers’ confidence.

The share of buyers who say they think it’s a good time to buy fell in September, from 59% to 54%, according to a new survey from Fannie Mae.

Home values were up nearly 6% annually, according to CoreLogic, a data analytics firm. More consumers now expect those price gains to grow.

The percentage of respondents to the Fannie Mae survey who says prices will go up in the next year increased from 33% to 41%, while the share who said prices would go down decreased from 26% to just 17%.

More people do think now is a good time to sell a home, which is an improvement from the first months of the pandemic, when potential sellers didn’t want shoppers in their homes and worried about the state of the overall economy.

If seller sentiment improves substantially, that could help bolster supply and take away at least some of the heat in prices.  

“Going forward, we believe the wild card to be whether enough sellers enter the market to continue to meet the strong homebuying demand,” said Doug Duncan, Fannie Mae’s chief economist. “The home purchase market requires the proper mix of home price growth and continued economic recovery to achieve sustainable levels of housing activity.”

Falling mortgage rates have been driving buyers into the market, especially as rates set record

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Home prices up 4.8% in July, reports Case-Shiller Index

July Home prices rose 4.8% annually, up from a 4.3% gain in June, according to S&P CoreLogic Case-Shiller U.S. National Home Price Index.

The report reaffirms the trends of strong demand from homebuyers combined with historically low mortgage interest rates.

The 10-City Composite annual increase showed a 3.3% gain, up from 2.8% in the previous month. The 20-City Composite rose 3.9% annually, up from 3.5% in June.

Phoenix (+9.2%), Seattle (+7.0%) and Charlotte (+6.0%) reported the highest year-over-year gains among the 19 cities (excluding Detroit) in July.

“The strength of the housing market was consistent nationally – all 19 cities for which we have July data rose, with 16 of them outpacing their June gains,” says Craig J. Lazzara, MD and Global Head of Index Investment Strategy at S&P Dow Jones Indices.

Previously: Mortgage rates tick up but housing demand remains strong (Sept. 24)

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Gloom before boom for home prices

“Yet there will be locations where distress selling could be more significant and the spectre of negative equity weighs heavily on households. Given Australia’s high household debt and lower population growth, house prices will struggle over the coming years.”

While Macquarie senior economist Justin Fabo expects national house prices to fall by up to 5 per cent, he added the pace of decline could be ebbing in Sydney and prices are starting to lift in several capital cities and in regional areas.

According to CoreLogic, home values rose in Hobart, Darwin and Canberra in August. Prices also rose in regional New South Wales.

“The true test of resilience will be next year when some of the fiscal support tapers and support from lenders is wound back,” Mr Fabo said.

“We see a good chance of very modest dwelling price growth next year, supported by some improvement in the economy but, most importantly, the very low level of interest rates.”

The Reserve Bank of Australia’s move to cut interest rates to a record low 0.25 per cent – and the prospect of a move to 0.1 per cent at its November meeting – has translated to lower rates on home loans.

Both Commonwealth Bank and ING Australia trimmed their standard variable rates for owner-occupiers last week.

Cheap rates are expected to help revive interest in the property market as economic growth and job creation recovers in 2021.

“As supportive measures are withdrawn, house price falls will be cushioned by low rates, a recovering economy and pent up demand from buyers, keeping price declines mild and in the range of 5 per cent to 10 per cent,” said QIC chief economist Matthew Peter.

Dr Peter reckons prices of high-density apartments, especially in Sydney and Melbourne, could still see falls in excess of

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